June 09, 2025 a 02:46 am
📊 Dividend Analysis - The Estée Lauder Companies Inc.
The Estée Lauder Companies Inc. is a prominent player in the consumer goods sector with a substantial dividend history. While the recent negative growth rates and high payout ratios suggest short-term challenges, the consistent dividend history and potential for future growth provide grounds for cautious optimism.
🗣️ Overview
Estée Lauder has a solid reputation in the sector, but the current dividend yield indicates room for improvement. With a streak of 30 years in dividend consistency, stakeholders might find the lack of any recent cut or suspension reassuring.
| Metric | Value |
|---|---|
| Sector | Consumer Goods |
| Dividend yield | 2.55 % |
| Current dividend per share | 2.64 USD |
| Dividend history | 30 years |
| Last cut or suspension | None |
📈 Dividend History
Estée Lauder's dividend history showcases resilience and a commitment to shareholder returns. A consistent and growing dividend over decades indicates a strong business model. Recent dividend payments continue this trend although any potential risk is signaled by significant past payouts.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.70 |
| 2024 | 2.33 |
| 2023 | 2.64 |
| 2022 | 2.46 |
| 2021 | 2.19 |
📊 Dividend Growth
In the context of consistent payments, growth rates depict vitality in dividend health. Though recent years have shown minimal growth, prospects remain due to their historical ability to perform.
| Time | Growth |
|---|---|
| 3 years | 2.09 % |
| 5 years | 5.65 % |
The average dividend growth is 5.65% over 5 years, demonstrating moderate but steady growth.
📉 Payout Ratio
The payout ratio provides insights into dividend sustainability. Estée Lauder's EPS-based negative ratio suggests underlying financial issues, yet FCF-based indicators are healthier.
| Key Figure | Ratio |
|---|---|
| EPS-based | -109.12 % |
| Free cash flow-based | 100.10 % |
The negative EPS payout ratio indicates risk, while an FCF payout at 100.10% suggests limited cushion but potential stability in liquidity to cover dividends.
💰 Cashflow & Capital Efficiency
Understanding cash flow and capital efficiency helps assess financial robustness. With free cash flow yield and earnings yield fluctuating, operational strategies must align closely with shareholder expectations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.81 % | -2.22 % | 2.18 % |
| Earnings Yield | 1.03 % | 1.43 % | 2.61 % |
| CAPEX to Operating Cash Flow | 39.23 % | 190.01 % | 34.21 % |
| Stock-based Compensation to Revenue | 2.08 % | 1.68 % | 1.87 % |
| Free Cash Flow / Operating Cash Flow Ratio | 61.06 % | -90.01 % | 65.79 % |
These figures suggest varied cash management quality, with room for optimizing capital allocation strategies to ensure enhanced returns.
📑 Balance Sheet & Leverage Analysis
Balance sheet strengths and leverage ratios are pivotal for financial health analysis, ensuring strategic debt usage.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.85 | 1.82 | 1.37 |
| Debt-to-Assets | 45.33 % | 43.43 % | 36.56 % |
| Debt-to-Capital | 64.90 % | 64.55 % | 57.76 % |
| Net Debt to EBITDA | 3.25 | 2.61 | 0.97 |
| Current Ratio | 1.41 | 1.46 | 1.60 |
| Quick Ratio | 1.01 | 0.99 | 1.10 |
| Financial Leverage | 4.08 | 4.19 | 3.74 |
Leverage and liquidity figures indicate cautious capital structure management, hinting at robust measures to navigate financial obligations effectively.
🔍 Fundamental Strength & Profitability
Fundamental metrics reflect core profitability aspects, crucial for assessing long-term operational success.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 7.34 % | 18.01 % | 42.75 % |
| Return on Assets | 1.80 % | 4.30 % | 11.43 % |
| Net Margin | 2.50 % | 6.32 % | 13.47 % |
| EBIT Margin | 7.37 % | 10.16 % | 17.32 % |
| EBITDA Margin | 12.69 % | 14.77 % | 21.35 % |
| Gross Margin | 71.66 % | 71.31 % | 75.73 % |
| R&D to Revenue | 2.31 % | 2.16 % | 1.73 % |
The high margins and returns articulate a potential for profitability, although recent declines necessitate strategic reinforcement of their business model.
📅 Price Development
🌟 Dividend Scoring System
| Criteria | Score (1-5) | Rating |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 2 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 26/40
📊 Rating
In light of the metrics evaluated, Estée Lauder's dividend profile emerges as moderately favorable. The strength of its dividend history and continuity scores high marks, yet the need for strategic improvements in profitability and growth is evident. Long-term investors may find the sustained payouts attractive, but they should remain vigilant regarding financial adjustments needed to bolster growth and yield consistency.