10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
L'Oreal's 10-Year ROIIC % for the quarter that ended in Dec. 2025 was 15.72%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for L'Oreal's 10-Year ROIIC % or its related term are showing as below:
XSWX:OR's 10-Year ROIIC % is ranked better than 75.84% of 1598
companies
in the Consumer Packaged Goods industry
Industry Median: 4.015
vs XSWX:OR: 15.72
L'Oreal (XSWX:OR) 10-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
L'Oreal 10-Year ROIIC % Related Terms
L'Oreal 10-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for L'Oreal's 10-Year ROIIC % 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.
XSWX:OR vs PG, CL, KVUE: 10-Year ROIIC % Comparison
For the Household & Personal Products subindustry, L'Oreal's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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.
L'Oreal 10-Year ROIIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, L'Oreal's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where L'Oreal's 10-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
L'Oreal (XSWX:OR) has a 10-Year ROIIC % of 15.72 as of Dec. 2025. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on L'Oreal and its competitors. According to the industry distribution chart, L'Oreal ranks #386 out of 1598 companies in the Consumer Packaged Goods industry, placing it in the top 24.2%.
Is L'Oreal's 10-Year ROIIC % too high?
L'Oreal's current 10-Year ROIIC % is 15.72. The Consumer Packaged Goods industry median 10-Year ROIIC % is 4.02. L'Oreal's value of 15.72 is 291.5% above this industry median. Based on the distribution chart, L'Oreal ranks #386 out of 1598 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, L'Oreal has a GF Score™ of 99/100, reflecting its overall financial health beyond just this single metric.
How does L'Oreal's 10-Year ROIIC % compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, L'Oreal ranks #386 out of 1598 companies for 10-Year ROIIC %. This places L'Oreal in the top 24% of its industry — outperforming the majority of peers. The industry median 10-Year ROIIC % is 4.02. L'Oreal's value of 15.72 is 291.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year ROIIC % for a Consumer Packaged Goods company?
The median 10-Year ROIIC % among Consumer Packaged Goods companies is 4.02, based on 1,598 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. L'Oreal's current 10-Year ROIIC % of 15.72 is 291.5% 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 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on L'Oreal and its competitors. For the Consumer Packaged Goods industry, the median 10-Year ROIIC % is 4.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L'Oreal's current 10-Year ROIIC % is 15.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L'Oreal stock overvalued right now?
L'Oreal (XSWX:OR) has a current 10-Year ROIIC % of 15.72. The stock's GF Value™ is CHF366.59, compared to a current price of CHF328.25 — trading 10.5% below its estimated fair value. The current 10-Year ROIIC % is 15.72 and 291.5% above the Consumer Packaged Goods industry median of 4.02. L'Oreal's overall GF Score™ is 99/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For L'Oreal (XSWX:OR), the current 10-Year ROIIC % is 15.72 as of Dec. 2025. 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 L'Oreal (XSWX:OR) Overvalued in 2026?
Based on GuruFocus' analysis, L'Oreal stock appears to be undervalued.
The current stock price of CHF328.25 is trading 10.5% below its estimated GF Value™ of CHF366.59.
Key valuation signals for XSWX:OR:
10-Year ROIIC %: 15.72
GF Value™: CHF366.59 vs. price of CHF328.25 (10.5% below fair value)
Industry Position: 291.5% above the Consumer Packaged Goods median (#386 of 1598)
No single metric tells the full story. See the XSWX:OR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L'Oréal is the largest beauty product maker in the world, with consumer products (37% of sales) and luxury beauty (35%) the major segments, followed by derma skin care (16%) and professional products (12%). The firm also has a diversified geographic footprint, generating 34% of sales in Europe, 27% from North America, 23% in North Asia, and the rest from various emerging markets across South Asia, Latin America, and Africa. L'Oréal owns a mix of premium and mass beauty brands sold through a wide range of channels such as mass retail, drugstores, department stores, travel retail, e-commerce, hair salons, and medi-spas. Leading brands include Lancôme, Yves Saint Laurent, Maybelline, Kiehl's, L'Oréal Paris, Kerastase, CeraVe, Garnier, and Armani.
99GF Score
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