The Estee LauderMEX:EL -0.41%61 Operating Margin % is 15.01% as of Mar. 2026, which is 6% below its 10-year median of 15.90. GuruFocus rates MEX:EL with a GF Score™ of 61/100 and a GF Value™ of MXN1,559.73 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, The Estee Lauder ranks better than 73.81% on this metric.
The Estee Lauder Companies Inc operating margin has been in a 5-year decline. The average rate of decline per year is -14.6%.
The historical rank and industry rank for The Estee Lauder's Operating Margin % or its related term are showing as below:
MEX:EL'
s Operating Margin % Range Over the Past 10 Years
Min: 7.96 Med: 15.9 Max: 19.98
Current: 10.54
MEX:EL's Operating Margin % is ranked better than 73.81% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs MEX:EL: 10.54
The Estee Lauder's 5-Year Average Operating Margin % Growth Rate was -14.60% per year.
The Estee Lauder (MEX:EL) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
The Estee Lauder Operating Margin % Related Terms
The Estee Lauder Operating Margin % Historical Data
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The historical data trend for The Estee Lauder's Operating Margin % 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.
MEX:EL vs KMB, KVUE, CHD: Operating Margin % Comparison
For the Household & Personal Products subindustry, The Estee Lauder's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Estee Lauder's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Estee Lauder's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
The Estee Lauder's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* 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.
The Estee Lauder (MEX:EL) has a Operating Margin % of 15.01% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Estee Lauder and its competitors. This is near median its historical median of 15.90. Over the past decade, The Estee Lauder's Operating Margin % has ranged from 7.96 to 19.98. According to the industry distribution chart, The Estee Lauder ranks #511 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 26.2%.
Is The Estee Lauder's Operating Margin % too high?
The Estee Lauder's current Operating Margin % of 15.01% is near median its 10-year median of 15.90. Over the past 10 years, this metric has ranged from a low of 7.96 to a high of 19.98. The Consumer Packaged Goods industry median Operating Margin % is 5.26. The Estee Lauder's value of 15.01% is 185.4% above this industry median. Based on the distribution chart, The Estee Lauder ranks #511 out of 1951 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, The Estee Lauder has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Estee Lauder's Operating Margin % compare to KMB and KVUE?
According to the Consumer Packaged Goods industry distribution chart, The Estee Lauder ranks #511 out of 1951 companies for Operating Margin %. This puts The Estee Lauder in the upper half of its industry. The industry median Operating Margin % is 5.26. The Estee Lauder's value of 15.01% is 185.4% above this benchmark. Historically, The Estee Lauder's own Operating Margin % has ranged from 7.96 to 19.98 over the past decade. While the company's 10-year median is 15.90 vs. the industry median of 5.26, The Estee Lauder has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Estee Lauder's current Operating Margin % of 15.01% is 185.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on The Estee Lauder and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Estee Lauder's current Operating Margin % is 15.01%, which is near median its own 10-year median of 15.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Estee Lauder stock overvalued right now?
Based on GuruFocus' analysis, The Estee Lauder (MEX:EL) is currently considered Fairly Valued. The stock's GF Value™ is MXN1,559.73, compared to a current price of MXN1,470.00 — trading 5.8% below its estimated fair value. The current Operating Margin % is 15.01%, which is near median its 10-year median of 15.90 and 185.4% above the Consumer Packaged Goods industry median of 5.26. The Estee Lauder's overall GF Score™ is 61/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For The Estee Lauder (MEX:EL), the current Operating Margin % is 15.01% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Estee Lauder (MEX:EL) Overvalued in 2026?
Based on GuruFocus' analysis, The Estee Lauder stock appears to be undervalued.
The current stock price of MXN1,470.00 is trading 5.8% below its estimated GF Value™ of MXN1,559.73.
GuruFocus considers The Estee Lauder to be Fairly Valued.
Key valuation signals for MEX:EL:
Operating Margin %: 15.01% (near median its 10-year median of 15.90)
GF Value™: MXN1,559.73 vs. price of MXN1,470.00 (5.8% below fair value)
Industry Position: 185.4% above the Consumer Packaged Goods median (#511 of 1951)
No single metric tells the full story. See the MEX:EL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Estée Lauder is a leader in the global prestige beauty market, participating across skin care (49% of fiscal 2025 sales), makeup (29%), fragrance (17%), and hair care and others (5%). Top-selling brands include Estée Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins. The firm operates in more than 150 countries, generating 31% of revenue from the Americas, 37% from Europe, the Middle East and Africa (including travel retail), and 32% from Asia-Pacific. Estée Lauder sells its products through department stores, travel retail, specialty multibrand beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.
61GF Score
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