EL - Embedded Expectations Analysis - 2018 03 20
The Estée Lauder Companies (EL:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 34.6x Uniform P/E, implying bullish expectations for the firm. Moreover, management is confident about international markets, their workforce, and capital allocationSpecifically, management is confident that they anticipated that demand for skin care products would rebound, and in their opportunities for expansion and future growth online internationally. Additionally, they are confident in the passion for excellence in execution that their workforce has, and in their long-term focus on covering all their key strategic opportunities to help deliver sustainability through their portfolio. Furthermore, they are confident in their capital allocation strategy, and that incremental sales from Too Faced and BECCA contributed approximately 2 percentage points to growth
Estee Lauder Companies is a manufacturer and marketer of skin care, makeup, fragrance and hair care products. The company's products are sold under a number of brand names including: Estee Lauder, Clinique, Origins, MzAzC, Bobbi Brown, La Mer, Jo Malone London, Aveda and Too Faced. The company is also the global licensee for fragrances, cosmetics and/or related products sold under various designer brand names. The company's products include skin care, makeup and related items such as compacts, brushes and other makeup tools, fragrance sold in various forms, hair care, and other ancillary products and services.
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