Shares of The Estee Lauder Companies Inc. (NYSE:EL) recorded -1.98% loss during trading session on January 10th, 2019. The script traded as low as $121.47 and last traded at $125.30. 4.4 million shares changed exchanged hands during trading, a drop of -86.26% from the 30-day average session volume of 2.36M shares. The firm had previously closed at $127.83. The company has $368.49M outstanding shares, a price-to-earnings ratio of 29.23, price-to-earnings-growth ratio of 3.31and a beta of 0.66. The company has a RSI of 40.07, ATR of 4.58 and a volatility of 3.06% this week. EL has a 52 week low price of $121.64 and a 52 week high price of $158.80.
Investors have identified the tech company The Estee Lauder Companies Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 46.17B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
The Estee Lauder Companies Inc. (EL) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For EL, the company has in raw cash 1.44 billion on their books with 913 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 0 total, with 9.17 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
EL were able to record 247 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 738 million. In cash movements, the company had a total of 119 million as operating cash flow.
Potential earnings growth for The Estee Lauder Companies Inc. (EL)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, The Estee Lauder Companies Inc. recorded a total of 3.52 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.07% coming in sequential stages and their sales for the third quarter increasing by 0.06%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 823 million trying to sell their products during the last quarter, with the result yielding a gross income of 2.7 billion. This allows shareholders to hold on to 368.49M with the revenue now reading 1360 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.23 cents a share).
Is the stock of EL attractive?
Having a look at the company’s valuation, the company is expected to record 5.34 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EL sounds very interesting.
In related news, Group President Demsey John sold 54,303 shares of the company’s stock in a transaction that recorded on January 2nd, 2019. The sale was performed at an average price of 131.48, for a total value of 7,139,893. As the sale deal closes, the EVP & CFO Demsey John now sold 13,297 shares of the company’s stock, valued at 2,027,152. Also, Director FRIBOURG PAUL J sold 13,759 shares of the company’s stock in a deal that was recorded on December 3rd, 2019. The shares were sold at an average price of 152.54 per share, with a total market value of 4,000. Following this completion of acquisition, the 10% Owner now holds 15,000 shares of the company’s stock, valued at 2,140,982. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.
10 out of 27 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on The Estee Lauder Companies Inc. stock. 0 analysts has assigned a Sell rating on the EL stock. The 12-month mean consensus price target for the company’s shares has been set at $154.81.