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The Estee Lauder (MEX:EL) Operating Margin %

: 8.29% (As of Mar. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. The Estee Lauder's Operating Income for the three months ended in Mar. 2023 was MXN5,606 Mil. The Estee Lauder's Revenue for the three months ended in Mar. 2023 was MXN67,612 Mil. Therefore, The Estee Lauder's Operating Margin % for the quarter that ended in Mar. 2023 was 8.29%.

Good Sign:

The Estee Lauder Companies Inc operating margin is expanding. Margin expansion is usually a good sign.

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: 12.24   Med: 16.48   Max: 19.98
Current: 12.24


MEX:EL's Operating Margin % is ranked better than
78.96% of 1806 companies
in the Consumer Packaged Goods industry
Industry Median: 4.49 vs MEX:EL: 12.24

The Estee Lauder's 5-Year Average Operating Margin % Growth Rate was 3.30% per year.

The Estee Lauder's Operating Income for the three months ended in Mar. 2023 was MXN5,606 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2023 was MXN37,917 Mil.


The Estee Lauder Operating Margin % Historical Data

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.

* Premium members only.

The Estee Lauder Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.71 17.62 14.73 18.56 19.98

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
Operating Margin % 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 Premium Member Only Premium Member Only Premium Member Only 22.99 5.50 16.87 16.69 8.29

Competitive 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 % Distribution

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 in comparison to its industry or sector. The grey bar indicates the Operating Margin %'s extreme value range as defined by GuruFocus.



The Estee Lauder Operating Margin % Calculation

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. 2022 is calculated as

Operating Margin %=Operating Income (A: Jun. 2022 ) / Revenue (A: Jun. 2022 )
=71298.192 / 356832.966
=19.98 %

The Estee Lauder's Operating Margin % for the quarter that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2023 ) / Revenue (Q: Mar. 2023 )
=5605.775 / 67611.775
=8.29 %

* 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) 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 Nokia’s 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

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


The Estee Lauder (MEX:EL) Business Description

The Estee Lauder logo
Traded in Other Exchanges
Address
767 Fifth Avenue, New York, NY, USA, 10153
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.

The Estee Lauder (MEX:EL) Headlines

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