French stock alert

FRA

CLOSING UPDATE: L'Oreal dropped 2.0%, led market lower 21 July 2017 18:05 CEST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's French market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

L'Oreal, France's 2nd largest personal goods company by market capitalisation, has dropped 2.0% to trade at EUR180.90 vs. the CAC 40 Index which weakened 81.6 points (or 1.6%) to 5,117.7. Representing a weighting of about 7.2% of the index, the stock accounted for 9.2% of today's loss. Trading volume was 1.3 times average at the end of the day. Compared with the CAC 40 Index which fell 81.6 points (or 1.6%) in the day, this represented a relative price change of -0.4%.

Technical indicators complementing today's significant downtrend:

+ The negative 1.17 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price decreased 1.8% in the last week and sank 4.8% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price/Sales of 3.9 [2.8]

+ Return on Equity 12.7% [14.7%]

Other Bearish Signals include:

+ Tobin's Q Ratio is 2.8. Compared with the rest of the market the stock is overvalued and ranks in the bottom 9% of stocks by value of Q Ratio.

+ As per the Du Pont analysis, Return on Equity of 12.7% is lower than sector average of 14.7%.

Note

L'Oreal today is at a discount of 8.2% to the 12-month high of EUR197.15 on 26 Jun, 2017. It is at a premium of 15.6% to the 12-month low of EUR156.50 on 11 Nov, 2016.

Bullish Signals:

In the last three months the stock has hit a new 52-week high fifteen times, pointing to a significant uptrend.

Interest cover is less leveraged at 133.6 times.

Total Liabilities/EBITDA of 2.6 is comfortably below the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 12.5% in the last 3 years. This is better than the sector average of 11% and suggests a high margin of safety.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Return on Assets 8.7% [5.9%]

Return on Capital Employed 16.5% [14.6%]

TODAY'S ALERT

Afternoon Alert: L'Oreal decreases 0.9%, leads Personal goods sector lower

21 July 2017 14:04 CEST

L'Oreal (FR:OR) has decreased 0.9% to trade at EUR183.0 vs. the Personal goods sector which weakened 32.2 points (or 0.2%) to 13,621.2. Representing a weighting of about 33.2% of the sector, the stock accounted for the loss. Trading volume was 1.5 times average so far today.

RECENT ALERTS

CLOSING UPDATE: L'Oreal increased losses by 0.03%, led Personal goods sector lower

20 July 2017 18:07 CEST

L'Oreal, France's 2nd largest personal goods company by market capitalisation, has decreased 0.4% to trade at EUR184.60 vs. the Personal goods sector which weakened 19.9 points (or 0.1%) to 13,653.4. Representing a weighting of about 33.4% of the sector, the stock accounted for 78.1% of today's loss. Compared with the CAC 40 Index which fell 16.9 points (or 0.3%) in the day, this represented a relative price change of -0.03%.

Afternoon Alert: L'Oreal decreases 0.4%, leads Personal goods sector lower

20 July 2017 12:11 CEST

L'Oreal (FR:OR) has decreased 0.4% to trade at EUR184.55 vs. the Personal goods sector which weakened 10.2 points (or 0.07%) to 13,663.0. Representing a weighting of about 33.4% of the sector, the stock accounted for the loss. Trading volume was 1.1 times average so far today.

L'Oreal (FR:OR; EPA:OR; PA:OR; FP:OR)

ISIN: FR0000120321

PermID: 4295867384

Source: www.BuySellSignals.com