The Estee Lauder (MEX:EL) Piotroski F-Score

: 5 (As of Today)

View and export this data going back to 2014. Start your Free Trial

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: 6 Max: 9
Current: 5

During the past 13 years, the highest Piotroski F-Score of The Estee Lauder was 9. The lowest was 4. And the median was 6.

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 Annual Data

Trend

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Piotroski F-Score

5.00

6.00

5.00

7.00

5.00

The Estee Lauder Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Piotroski F-Score																7.00	5.00	5.00	5.00	5.00

Competitive Comparison

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.

Annual Data Quarterly Data

The Estee Lauder Piotroski F-Score Distribution

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 in comparison to its industry or sector. The grey bar indicates the Piotroski F-Score's extreme value range as defined by GuruFocus.

How is the Piotroski F-Score calculated?

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Net Income was 1046.136 + 9836.235 + 7681.424 + 2811.9 = MXN21,376 Mil.
Cash Flow from Operations was 21546.378 + -13074.75 + 27313.896 + 4794.65 = MXN40,580 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 this year (Mar22)
to the end of this year (Mar23) was
(425279.049 + 420667.38 + 402078.735 + 404171.576 + 409437.875) / 5 = MXN412326.923 Mil.
Total Assets at the begining of this 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.

Net Income was 20264.308 + 14228.904 + 22319.232 + 11110.338 = MXN67,923 Mil.

Revenue was 78350.016 + 90308.304 + 113627.046 + 84522.195 = MXN366,808 Mil.
Gross Profit was 58722.7 + 68574.27 + 88538.424 + 64730.661 = MXN280,566 Mil.
Average Total Assets from the begining of last year (Mar21)
to the end of last year (Mar22) was
(406775.9 + 437354.726 + 443727.96 + 452908.092 + 425279.049) / 5 = MXN433209.1454 Mil.
Total Assets at the begining of last year (Mar21) was MXN406,776 Mil.
Long-Term Debt & Capital Lease Obligation was MXN142,085 Mil.
Total Current Assets was MXN189,155 Mil.
Total Current Liabilities was MXN107,798 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 21,376. ==> 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 40,580. ==> 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 (Mar22)
	=	21375.695	/	425279.049
	=	0.05026275

ROA (Last Year)	=	Net Income	/	Total Assets (Mar21)
	=	67922.782	/	406775.9
	=	0.16697838

The Estee Lauder's return on assets of this year was 0.05026275. The Estee Lauder's return on assets of last year was 0.16697838. ==> 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 21,376. The Estee Lauder's current Cash Flow from Operations (TTM) was 40,580. ==> 40,580 > 21,376 ==> 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: Mar23)	=	Long-Term Debt & Capital Lease Obligation	/	Average Total Assets from Mar22 to Mar23
	=	123687.55	/	412326.923
	=	0.29997447

Gearing (Last Year: Mar22)	=	Long-Term Debt & Capital Lease Obligation	/	Average Total Assets from Mar21 to Mar22
	=	142084.896	/	433209.1454
	=	0.32798222

The Estee Lauder's gearing of this year was 0.29997447. The Estee Lauder's gearing of last year was 0.32798222. ==> This year is lower or equal to last year. ==> Score 1.

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: Mar23)	=	Total Current Assets	/	Total Current Liabilities
	=	202727.175	/	138792.5
	=	1.46064935

Current Ratio (Last Year: Mar22)	=	Total Current Assets	/	Total Current Liabilities
	=	189154.5	/	107798.154
	=	1.75471001

The Estee Lauder's current ratio of this year was 1.46064935. The Estee Lauder's current ratio of last year was 1.75471001. ==> Last year's current ratio is higher ==> Score 0.

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 361.2. The Estee Lauder's number of shares in issue last year was 363.6. ==> 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
	=	222399.541	/	308375.443
	=	0.72119731

Gross Margin (Last Year: TTM)	=	Gross Profit	/	Revenue
	=	280566.055	/	366807.561
	=	0.76488624

The Estee Lauder's gross margin of this year was 0.72119731. The Estee Lauder's gross margin of last year was 0.76488624. ==> 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 (Mar22)
	=	308375.443	/	425279.049
	=	0.72511318

Asset Turnover (Last Year)	=	Revenue	/	Total Assets at the Beginning of Last Year (Mar21)
	=	366807.561	/	406775.9
	=	0.90174359

The Estee Lauder's asset turnover of this year was 0.72511318. The Estee Lauder's asset turnover of last year was 0.90174359. ==> 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

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

Thank you for viewing the detailed overview of The Estee Lauder's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

The Estee Lauder (MEX:EL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » The Estee Lauder Companies Inc (MEX:EL) » Definitions » Piotroski F-Score

Comparable Companies

Traded in Other Exchanges

EL:USA ELAA:Germany ELCI34:Brazil ESLA:Austria

Address

767 Fifth Avenue, New York, NY, USA, 10153

Website

https://www.elcompanies.com

Estee Lauder is the world leader in the global prestige beauty market, participating across skincare (56% of fiscal 2022 sales), makeup (26%), fragrance (14%), and haircare (4%) categories, with popular brands such as Estee Lauder, Clinique, MAC, La Mer, Jo Malone, Aveda, Bobbi Brown, Too Faced, Origins, Dr. Jart+, and The Ordinary. The firm operates in 150 countries, with 26% of fiscal 2022 revenue stemming from the Americas, 43% from Europe, the Middle East and Africa, and 31% from Asia-Pacific. The company sells its products through department stores, travel retail, multibrand specialty beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.