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The Estee Lauder (MEX:EL) Piotroski F-Score : 5 (As of Jul. 21, 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:

MEX: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 -565.749 + 539.986 + 5312.94 + 5476.764 = MXN10,764 Mil.
Cash Flow from Operations was 12240.745 + -7106.91 + 22830.364 + 8862.4 = MXN36,827 Mil.
Revenue was 61872.335 + 61279.68 + 72632.807 + 65389.245 = MXN261,174 Mil.
Gross Profit was 41933.979 + 42641.46 + 53044.525 + 47017.19 = MXN184,637 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(409437.875 + 401424.419 + 394538.017 + 395211.416 + 376734.989) / 5 = MXN395469.3432 Mil.
Total Assets at the begining of this year (Mar23) was MXN409,438 Mil.
Long-Term Debt & Capital Lease Obligation was MXN148,902 Mil.
Total Current Assets was MXN141,632 Mil.
Total Current Liabilities was MXN89,885 Mil.
Net Income was 1046.136 + 9836.235 + 7681.424 + 2811.9 = MXN21,376 Mil.

Revenue was 71640.198 + 79051.95 + 90071.52 + 67611.775 = MXN308,375 Mil.
Gross Profit was 50898.54 + 58474.305 + 66305.896 + 46720.8 = MXN222,400 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(425279.049 + 420667.38 + 402078.735 + 404171.576 + 409437.875) / 5 = MXN412326.923 Mil.
Total Assets at the begining of last year (Mar22) was MXN425,279 Mil.
Long-Term Debt & Capital Lease Obligation was MXN123,688 Mil.
Total Current Assets was MXN202,727 Mil.
Total Current Liabilities was MXN138,793 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 10,764. ==> 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 36,827. ==> 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)
=10763.941/409437.875
=0.02628956

ROA (Last Year)=Net Income/Total Assets (Mar22)
=21375.695/425279.049
=0.05026275

The Estee Lauder's return on assets of this year was 0.02628956. The Estee Lauder's return on assets of last year was 0.05026275. ==> 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 10,764. The Estee Lauder's current Cash Flow from Operations (TTM) was 36,827. ==> 36,827 > 10,764 ==> 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
=148901.6/395469.3432
=0.37651869

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=123687.55/412326.923
=0.29997447

The Estee Lauder's gearing of this year was 0.37651869. The Estee Lauder's gearing of last year was 0.29997447. ==> 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
=141632.44/89885.317
=1.57570162

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=202727.175/138792.5
=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
=184637.154/261174.067
=0.70695056

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=222399.541/308375.443
=0.72119731

The Estee Lauder's gross margin of this year was 0.70695056. The Estee Lauder's gross margin of last year was 0.72119731. ==> 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)
=261174.067/409437.875
=0.63788448

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=308375.443/425279.049
=0.72511318

The Estee Lauder's asset turnover of this year was 0.63788448. The Estee Lauder's asset turnover of last year was 0.72511318. ==> 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  (MEX: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 (MEX:EL) 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.