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The Estee Lauder (The Estee Lauder) Piotroski F-Score : 5 (As of Jul. 17, 2024)


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What is The Estee Lauder Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The Estee Lauder has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for The Estee Lauder's Piotroski F-Score or its related term are showing as below:

EL' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 5   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of The Estee Lauder was 8. The lowest was 4. And the median was 5.


The Estee Lauder Piotroski F-Score Historical Data

The historical data trend for The Estee Lauder's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Estee Lauder Piotroski F-Score Chart

The Estee Lauder Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 5.00 7.00 5.00 4.00

The Estee Lauder Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 4.00 4.00 4.00 5.00

Competitive Comparison of The Estee Lauder's Piotroski F-Score

For the Household & Personal Products subindustry, The Estee Lauder's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Estee Lauder's Piotroski F-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where The Estee Lauder's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was -33 + 31 + 313 + 330 = $641 Mil.
Cash Flow from Operations was 714 + -408 + 1345 + 534 = $2,185 Mil.
Revenue was 3609 + 3518 + 4279 + 3940 = $15,346 Mil.
Gross Profit was 2446 + 2448 + 3125 + 2833 = $10,852 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(22715 + 23415 + 22650 + 23283 + 22700) / 5 = $22952.6 Mil.
Total Assets at the begining of this year (Mar23) was $22,715 Mil.
Long-Term Debt & Capital Lease Obligation was $8,972 Mil.
Total Current Assets was $8,534 Mil.
Total Current Liabilities was $5,416 Mil.
Net Income was 52 + 489 + 394 + 156 = $1,091 Mil.

Revenue was 3561 + 3930 + 4620 + 3751 = $15,862 Mil.
Gross Profit was 2530 + 2907 + 3401 + 2592 = $11,430 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(21359 + 20910 + 19989 + 20731 + 22715) / 5 = $21140.8 Mil.
Total Assets at the begining of last year (Mar22) was $21,359 Mil.
Long-Term Debt & Capital Lease Obligation was $6,862 Mil.
Total Current Assets was $11,247 Mil.
Total Current Liabilities was $7,700 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The Estee Lauder's current Net Income (TTM) was 641. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The Estee Lauder's current Cash Flow from Operations (TTM) was 2,185. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=641/22715
=0.02821924

ROA (Last Year)=Net Income/Total Assets (Mar22)
=1091/21359
=0.05107917

The Estee Lauder's return on assets of this year was 0.02821924. The Estee Lauder's return on assets of last year was 0.05107917. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

The Estee Lauder's current Net Income (TTM) was 641. The Estee Lauder's current Cash Flow from Operations (TTM) was 2,185. ==> 2,185 > 641 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=8972/22952.6
=0.39089254

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=6862/21140.8
=0.32458564

The Estee Lauder's gearing of this year was 0.39089254. The Estee Lauder's gearing of last year was 0.32458564. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar24)=Total Current Assets/Total Current Liabilities
=8534/5416
=1.57570162

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=11247/7700
=1.46064935

The Estee Lauder's current ratio of this year was 1.57570162. The Estee Lauder's current ratio of last year was 1.46064935. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

The Estee Lauder's number of shares in issue this year was 360.8. The Estee Lauder's number of shares in issue last year was 361.2. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=10852/15346
=0.70715496

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=11430/15862
=0.72059009

The Estee Lauder's gross margin of this year was 0.70715496. The Estee Lauder's gross margin of last year was 0.72059009. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=15346/22715
=0.67558882

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=15862/21359
=0.74263776

The Estee Lauder's asset turnover of this year was 0.67558882. The Estee Lauder's asset turnover of last year was 0.74263776. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+1+1+0+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The Estee Lauder has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The Estee Lauder  (NYSE:EL) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


The Estee Lauder Piotroski F-Score Related Terms

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The Estee Lauder (The Estee Lauder) Business Description

Address
767 Fifth Avenue, New York, NY, USA, 10153
Estee Lauder is a leader in the global prestige beauty market, participating across skin care (56% of 2022 sales), makeup (26%), fragrance (14%), and hair care (4%) categories, with top-selling brands such as Estee Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins. The firm operates in more than 150 countries, generating 26% of revenue from the Americas, 43% from Europe, the Middle East and Africa (including travel retail), and 31% from Asia Pacific. Estee Lauder sells its products through department stores, travel retail, specialty multibrand beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.
Executives
Charlene Barshefsky director
Jane Lauder director 767 FIFTH AVENUE, NEW YORK NY 10153
Hudis Jane Hertzmark officer: Group President C/O THE ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Carl P. Haney officer: EVP-Global R&D C/O ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Jennifer Hyman director 767 FIFTH AVENUE, C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Fabrizio Freda officer: President and COO 767 FIFTH AVENUE, NEW YORK NY 10153
De La Faverie Stephane officer: Executive Group President C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Michael O'hare officer: EVP-Global Human Resources 767 FIFTH AVENUE, NEW YORK NY 10153
Wei Sun Christianson director MORGAN STANLEY, TOWER 1, 18 TAIPINGQIAO ST. XICHENG DIST, BEIJING F4 1000032
Barry S Sternlicht director STARWOOD CAPITAL GROUP GLOBAL LP, 1601 WASHINGTON AVENUE, SUITE 800, MIAMI BEACH FL 33139
Angela Wei Dong director C/O THE ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Peter Jueptner officer: President, International
Arturo Nunez director C/O THE ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Ronald S Lauder director, 10 percent owner, officer: Chairman Clinique Labs, Inc. 767 FIFTH AVENUE, NEW YORK NY 10153
John Demsey officer: Group President 767 FIFTH AVENUE, NEW YORK NY 10036