A Quick Look at the European Personal Products Industry

November 05, 2013

By Knowledge Leaders Team in Uncategorized

In the wake of management’s improved outlook for Beiersdorf and the stock’s subsequent one-day gain of 5.3%, we wanted to take a closer look at it’s peer group.

After years of languishing in a trading range, European Personal Products companies broke out in 2012:

While companies’ relative stock performance became a bit extended on a technical basis, prices have moderated–but, importantly, have not violated support–so far in 2013:

In addition to a strong balance sheet, Beiersdorf also manages to outspend its European rival, L’Oreal, on one of our favorite metrics: intellectual property.

Meanwhile, L’Oreal boasts 70%+ gross margins, the lowest financial leverage among global peers, and impressive growth in spending on intellectual property over the last decade:

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