Aureus
FRed Flag

Estee Lauder Companies, Inc. (T(EL)

F

Financial data as of Jun 30, 2025Improving · Consumer Staples

FCF Margin2.6%Free Cash Flow / Revenue
Cash Conversion-112.3%Operating CF / Net Income
Free Cash Flow$670.0M
Revenue$14.3B
Net Cash-$6.5BNet debt position
Debt / FCF25.9xElevated debt burden
Current Ratio1.30Adequate short-term liquidity
YoY FCF Growth+12.7%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-2Extreme debt-to-FCF ratio (25.9x)
→
+0.5Modest YoY FCF growth (12.7% YoY)
→
-0.5Highly volatile FCF (consistency: 1.59)
→
FinalF

Analysis Summary

Strengths

  • FCF trend is improving

Concerns

  • Low FCF margin (2.6%)
  • Heavy debt position ($6.5B net debt, 25.9x FCF)
  • High debt-to-FCF ratio (25.9x)
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.3B stock-based compensation (45% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin2.6%
Net Margin-7.9%
Operating CF Margin8.9%
CapEx Ratio4.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$6.5BNet debt position
Debt / FCF25.9xElevated debt burden
Current Ratio1.30Adequate liquidity
Debt / Equity2.45High leverage

Quarterly FCF Trend

+12.7% YoYImproving (+12.7%)

Free cash flow per quarter

Sector Comparison — Consumer Staples

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameEstee Lauder Companies, Inc. (T
SectorConsumer Staples
Free Cash Flow$670.0M
Revenue$14.3B
Net Income-$1.1B
Operating Cash Flow$1.3B
Capital Expenditure$602.0M
FCF Margin2.6%
Cash Conversion Rate-112.3%
Net Margin-7.9%
Total Debt$9.5B
Total Cash$2.9B
Net Cash-$6.5B
Current Ratio1.30
Debt / Equity2.45
Debt / FCF25.9x
YoY FCF Growth+12.7%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateJun 30, 2025
GradeF
Data SourceYahoo Finance

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