Estee Lauder stock has collapsed - time to buy? (3-minute analysis)

Published first at https://www.3minutebreakdowns.com Estee Lauder 3-minute stock analysis. Ticker: EL Estee Lauder used to be an incredible investment. Between 2009 and 2021 the stock compounded at almost 30% a year. But since 2022, shares have fallen over 80%. Right now, the company has a market cap of 25 billion dollars. It’s got 2.4 billion of cash and 8.9 billion of debt on the balance sheet so the enterprise value is 31.7 billion. Revenue over the last 12 months is 15.5 billion with 2.4 billion of ebitda and 1.3 billion of free cash flow. But net income has dropped to just 200 million. That means Estee Lauder stock is now valued at 24 times free cash flow and 126 times earnings. Since 2022, Estee Lauder’s revenue has dropped 12%. But earnings have fallen over 90%. That’s partly due to operating deleverage. The company has fixed costs which are difficult to control when demand drops. And so Estee Lauder’s margins have fallen across the board. #investing #stocks #stockanalysis