How do you actually see L'Oreal $OR (+3,35%)
at the moment?
I'm very undecided about the company. What I don't like about the share is the whole anti-investor tax issue in France. And the company (sector) doesn't really fit in well with my tech portfolio.
On the other hand, the valuation is currently very attractive in historical terms. It is also a very robust share - with comparatively little volatility and drawdowns and very good profitability. A really healthy, high-quality company with strong brands.
In recent years, profit margins have been rising again quite well, which is also very interesting. From 2010 to 2020, this rose quite leisurely from 11.5% to 12.7%. From 2020 to the end of FY 2023, however, it even rose to 15%. Overall, profits are therefore also growing faster than sales at around 10% per year.
L'Oreal has therefore been increasing its dividend again for 3 years and has not lowered it for 18 years. Despite this, the share has suffered unusually heavy losses in recent months.
What is your assessment of L'Oreal? Are you invested? Would you refrain from investing? Are you considering getting in?
