Estee Lauder Companies, Inc.’s (T (EL) stock has been rising continuously over the last 2 years. It has risen from a low of $20 in March 2009 to $113 on January 9th, 2012.
The company was started in 1934 and while more than a family business, the family has always been heavily involved in management. Interestingly the company has excellent ratios for management effectiveness. The return on equity is 34.25% and the return on assets is 13.96%. The profitability is also good with an operating margin of 14.30% and a profit margin of 8.57%.
One of the reasons for the company’s great success is its emphasis on providing the best quality products. Women wear these products on their bodies so they can feel the quality. There will always be people who are willing to pay for quality especially if it feels good and makes them look good.
Some managers to watch at Estee Lauder Companies are Gregory F. Polcer, Amy DiGeso, John Demsey, Richard W. Kunes and Alexandra C. Trower.
Disclaimer: The information provided here is just preliminary information. It is insufficient to base investment decisions on. All investments should be made only after a thorough investigation of the investment.
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