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Estee Lauder Companies, Inc. (T(EL)

C

Financial data as of Jun 30, 2026Improving · Consumer Staples

FCF Margin6.7%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$1.3B
Revenue$15.0B
Net Cash-$5.7BNet debt position
Debt / FCF9.2xElevated debt burden
Current Ratio1.22Adequate short-term liquidity
YoY FCF Growth+173.6%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-1High debt-to-FCF ratio (9.2x)
→
+1Strong YoY FCF growth (173.6% YoY)
→
-0.5Highly volatile FCF (consistency: 2.17)
→
FinalC

Analysis Summary

Strengths

  • Strong YoY FCF growth (+173.6%)

Concerns

  • Low FCF margin (6.7%)
  • Heavy debt position ($5.7B net debt, 9.2x FCF)
  • High debt-to-FCF ratio (9.2x)
  • Highly volatile quarterly FCF
Cash conversion ratio unavailable or not meaningfulSBC-adjusted FCF used — $0.3B stock-based compensation (24% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin6.7%
Net Margin1.2%
Operating CF Margin11.8%
CapEx Ratio3.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$5.7BNet debt position
Debt / FCF9.2xElevated debt burden
Current Ratio1.22Adequate liquidity
Debt / Equity2.43High leverage

Quarterly FCF Trend

+173.6% YoYImproving (+173.6%)

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$1.3B
Revenue$15.0B
Net Income$182.0M
Operating Cash Flow$1.8B
Capital Expenditure$457.0M
FCF Margin6.7%
Cash Conversion Rate—
Net Margin1.2%
Total Debt$9.2B
Total Cash$3.5B
Net Cash-$5.7B
Current Ratio1.22
Debt / Equity2.43
Debt / FCF9.2x
YoY FCF Growth+173.6%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateJun 30, 2026
GradeC
Data SourceYahoo Finance

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