Fact based stock research
L'Oreal (ENXTPA:OR)

FR0000120321

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

L'Oreal stock research in summary

loreal.comfr

ANALYSIS: With an Obermatt Combined Rank of 38 (worse than 62% compared with investment alternatives), L'Oreal (Personal Products, France) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of L'Oreal are low in value (priced high) with a consolidated Value Rank of 17 (worse than 83% of alternatives). But they show above-average growth (Growth Rank of 57) and are safely financed (Safety Rank of 55, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 38, is a hold recommendation based on L'Oreal's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company L'Oreal exhibits low value (Obermatt Value Rank of 17), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 57). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 55) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	17
Growth Rank	57
Safety Rank	55
Combined Rank	38

Country	France
Industry	Personal Products
Index	EURO STOXX 50, CAC 40, CAC All, SBF 120, Diversity Europe, Human Rights, Sound Pay Europe
Size class	XX-Large

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: L'Oreal

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	31	13	21	17
GROWTH
GROWTH	81	83	48	57
SAFETY
SAFETY	70	70	55	55
SENTIMENT
SENTIMENT	39	89	80	^new
360° VIEW
360° VIEW	65	92	58	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better L'Oreal is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	31	13	21	17
GROWTH
GROWTH	81	83	48	57
SAFETY
SAFETY	70	70	55	55
COMBINED
COMBINED	70	66	41	38

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of L'Oreal the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 17 (worse than 83% compared with alternatives), L'Oreal shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for L'Oreal. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 56% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 18 which means that the stock price compared with what market professionals expect for future profits is higher than 82% of comparable companies, indicating a low value concerning L'Oreal's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 18 which means that the stock price compared with what market professionals expect for future profit levels is higher than 82% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 8 is also low. Compared with invested capital, the stock price is higher than for 92% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 17, is a sell recommendation based on L'Oreal's stock price compared with the company's operational size and dividend yields. Should dividend investors pick L'Oreal? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose L'Oreal only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	27	15	15	18
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	17	11	26	18
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	15	8	7	8
DIVIDEND YIELD
DIVIDEND YIELD	58	55	65	56
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	31	13	21	17

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of L'Oreal; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), L'Oreal shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for L'Oreal. Only Capital Growth has a good rank of 72, which means that currently professionals expect the company to grow its invested capital more than 46% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 35 which means that currently professionals expect the company to grow less than 65% of its competitors. Profit Growth with a rank of 46 and Stock Returns with a rank of 45 are also low (below 55% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for L'Oreal is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	63	58	63	35
PROFIT GROWTH
PROFIT GROWTH	43	62	42	46
CAPITAL GROWTH
CAPITAL GROWTH	83	54	61	72
STOCK RETURNS
STOCK RETURNS	79	87	23	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	81	83	48	57

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of L'Oreal.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 55 (better than 55% compared with alternatives), the company L'Oreal has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of L'Oreal is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for L'Oreal. Leverage is at a rank of 63, meaning the company has a below-average debt-to-equity ratio. It has less debt than 63% of its competitors. Liquidity is also good at a rank of 81, meaning the company generates more profit to service its debt than 81% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 12, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 88% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 55 (better than 55% compared with alternatives), L'Oreal has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for L'Oreal. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with L'Oreal and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	71	74	65	63
REFINANCING
REFINANCING	10	11	12	12
LIQUIDITY
LIQUIDITY	88	94	88	81
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	70	70	55	55

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of L'Oreal and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	29	17	^new
OPINIONS CHANGE
OPINIONS CHANGE	49	52	75	^new
PRO HOLDINGS
PRO HOLDINGS	41	86	84	^new
MARKET PULSE
MARKET PULSE	62	94	77	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	39	89	80	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for L'Oreal.
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