L'Oréal S.A. (OR.PA) stock analysis
In our weekly check, L'Oréal S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 1.
About L'Oréal S.A.
L'Oréal S.A. is a Consumer Defensive company (Household & Personal Products) based in France, listed on PAR as OR.PA.
What our checks show for OR.PA
Red flags
- Recovering from its deepest fall took about 3.4 years.
Warning signs
- Revenue grew only 4.8% a year over the last 3 years.
- The price is 36.9 times earnings (P/E): the market already pays for a lot of future growth.
- The stock has fallen as much as 53% from a peak. Would you have held through that?
- Thinly traded (about 314 thousand shares a day): buying and selling can move the price.
Strengths
- Net debt is only 0.2x a year of EBITDA: the balance sheet has room.
- Operating profit covers interest 27.2 times over.
- Operating cash flow is 1.41x net profit: the profit arrives as real cash.
- Analysts expect earnings per share to grow about 12.1% a year over the next years.
- Analysts expect the net margin to improve by 2.5 points from today's 13.9%.
- Free cash flow is 16.3% of revenue: cash for dividends, buybacks or growth.
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Questions
What grade does L'Oréal S.A. (OR.PA) have?
In our weekly check, L'Oréal S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 1. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of OR.PA stock?
This week's biggest flags for L'Oréal S.A.: Slow recovery after falls, Weak revenue growth, High P/E. In total 5 of 25 checks show a warning or a red flag.
What does L'Oréal S.A. do?
L'Oréal S.A. is a Consumer Defensive company (Household & Personal Products) based in France, listed on PAR as OR.PA.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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