Some cosmetics stocks have experienced robust growth over the last few years. However, the pandemic was a negative factor, especially for those brands that had business models optimized towards retail sales.
They have experienced difficult times. However, the leading brands seem to have bounced back quite strongly from the lows of the March 2020 market crash. If you are an investor looking for beauty stocks to invest in, then you may want to take a closer look at Estee Lauder. Its stock has almost doubled over the last year or so, and prices have gone up by nearly 9% during the past month. Estee Lauder is clearly in an uptrend. The financials of the company also look pretty interesting, and the brand name of Estee Lauder is also globally renowned.
Estee Lauder Financials
Estee Lauder earned revenue of $8.8 billion in 2011. That number jumped to $14.3 billion for the year 2020. The gross margins throughout the decade have been relatively stable. They have been mainly around the 80% mark for the most part except in 2019 when they dropped to 77% and 2020 when they dropped to 75%. Operating margins are around 15%, while net income has grown from $700 million in 2011 to $1.7 billion in 2019. In 2020, due to the pandemic, net income dropped to $684 million. Interestingly, dividends per share have grown from $0.38 per share in 2011 to $1.39 per share in 2020. The payout ratio has not gone significantly above 50% throughout the past decade. So, overall, the business model looks relatively stable, and there seems to be reasonable growth as well. Those are the reasons for Estee Lauder being one of the picks for beauty stocks to buy now.
Beauty Stocks To Invest In
Estee Lauder has some popular brands under its belt. Names like Clinique, Aveda, MAC, La Mer, Bobbi Brown, Jo Malone, and Origins are all Estee Lauder-owned brands. The company sells its products through these brands in more than 150 countries. The Americas region contributes to only 27% of the revenue. Europe is the biggest market with a 44% revenue share.
