L'Occitane International SA 00973

Morningstar Rating
HK$33.70 0.00 (0.00%)
View Full Chart

Company Report

CEO Offers HKD 34 per Share to Take L’Occitane Private

We think L’Occitane’s growth over the next five years will largely depend on the performance of Elemis and Sol De Janeiro. Elemis, a premium skincare brand acquired in March 2019, is predominantly sold in the UK and US, with few sales elsewhere. Whether Elemis can repeat its success in other markets, especially China, will make a big difference in L’Occitane’s fortunes, given the steep price L’Occitane paid for the acquisition.

Price vs Fair Value

00973 is trading at a 566% premium.
Price
HK$33.70
Fair Value
HK$96.00
Uncertainty
Medium
1-Star Price
HK$37.40
5-Star Price
HK$12.60
Economic Moat
Xmrbdyg
Capital Allocation
Rmddljn

Bulls Say, Bears Say

Bulls

Recent acquisitions of smaller skincare brands should fuel growth and boost profitability.

Bears

Same-store sales growth for its core brand could remain sluggish as the brand fails to bring in new customers.

News

Trading Information

Previous Close Price
HK$33.70
Day Range
HK$33.7033.70
52-Week Range
HK$16.6434.00
Bid/Ask
HK$33.70 / HK$33.80
Market Cap
HK$49.70 Bil
Volume/Avg
6,750 / 422,240

Key Statistics

Price/Earnings (Normalized)
37.92
Price/Sales
2.30
Dividend Yield (Trailing)
0.76%
Dividend Yield (Forward)
0.76%
Total Yield
0.76%

Company Profile

L’Occitane International manufactures and sells beauty and well-being products with natural and organic ingredients. It currently has seven brands: L’Occitane en Provence, Elemis, Sol de Janeiro, Grown Alchemist, Melvita, Erborian, and LimeLife. L’Occitane en Provence is the core brand and contributed 67% to group sales in the financial year ended March 2023. The company sells its products mainly through its own retail stores but also through distributors and other channels. It has a global presence; its top three markets are the United States, Japan, and China.
Sector
Consumer Defensive
Industry
Household & Personal Products
Stock Style Box
Large Growth
Total Number of Employees
9,255

Competitors

Valuation

Metric
00973
OR
EL
Price/Earnings (Normalized)
37.9230.8838.41
Price/Book Value
6.867.336.74
Price/Sales
2.305.102.31
Price/Cash Flow
16.4726.7820.84
Price/Earnings
00973
OR
EL

Financial Strength

Metric
00973
OR
EL
Quick Ratio
0.470.570.90
Current Ratio
0.921.011.39
Interest Coverage
5.7125.912.60
Quick Ratio
00973
OR
EL

Profitability

Metric
00973
OR
EL
Return on Assets (Normalized)
5.29%12.72%6.08%
Return on Equity (Normalized)
16.36%22.90%24.96%
Return on Invested Capital (Normalized)
9.81%16.77%9.54%
Return on Assets
00973
OR
EL

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