ESSILORLUXOTTICA (1EL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EL - FR0000121667 - Common Stock
273.5 EUR
+0.5 (+0.18%)
Overall 1EL gets a fundamental rating of 4 out of 10. We evaluated 1EL against 62 industry peers in the Health Care Equipment & Supplies industry. 1EL has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, 1EL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
1EL had positive earnings in the past year.
1EL had a positive operating cash flow in the past year.
Each year in the past 5 years 1EL has been profitable.
In the past 5 years 1EL always reported a positive cash flow from operatings.
1.2 Ratios
1EL has a Return On Assets (3.84%) which is in line with its industry peers.
With a Return On Equity value of 6.29%, 1EL perfoms like the industry average, outperforming 44.62% of the companies in the same industry.
With a Return On Invested Capital value of 5.39%, 1EL perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
1EL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 9.74%.
The 3 year average ROIC (4.84%) for 1EL is below the current ROIC(5.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 6.29% | ||
| ROIC | 5.39% |
ROA(3y)3.67%
ROA(5y)2.72%
ROE(3y)5.86%
ROE(5y)4.39%
ROIC(3y)4.84%
ROIC(5y)3.74%
1.3 Margins
1EL's Profit Margin of 8.74% is in line compared to the rest of the industry. 1EL outperforms 56.92% of its industry peers.
1EL's Profit Margin has improved in the last couple of years.
1EL's Operating Margin of 12.86% is in line compared to the rest of the industry. 1EL outperforms 56.92% of its industry peers.
In the last couple of years the Operating Margin of 1EL has grown nicely.
Looking at the Gross Margin, with a value of 61.91%, 1EL is in line with its industry, outperforming 60.00% of the companies in the same industry.
1EL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.86% | ||
| PM (TTM) | 8.74% | ||
| GM | 61.91% |
OM growth 3Y4.69%
OM growth 5Y6.47%
PM growth 3Y6.8%
PM growth 5Y7.52%
GM growth 3Y0.88%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
1EL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 1EL has been increased compared to 1 year ago.
Compared to 5 years ago, 1EL has more shares outstanding
1EL has a worse debt/assets ratio than last year.
2.2 Solvency
1EL has an Altman-Z score of 4.12. This indicates that 1EL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.12, 1EL is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
1EL has a debt to FCF ratio of 4.18. This is a neutral value as 1EL would need 4.18 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.18, 1EL is doing good in the industry, outperforming 63.08% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that 1EL is not too dependend on debt financing.
1EL's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. 1EL outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.12 |
ROIC/WACC0.7
WACC7.71%
2.3 Liquidity
A Current Ratio of 0.97 indicates that 1EL may have some problems paying its short term obligations.
With a Current ratio value of 0.97, 1EL is not doing good in the industry: 83.08% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that 1EL may have some problems paying its short term obligations.
1EL has a Quick ratio of 0.67. This is amonst the worse of the industry: 1EL underperforms 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.00% over the past year.
The Earnings Per Share has been growing by 16.01% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.45% in the past year.
1EL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.80% yearly.
EPS 1Y (TTM)3%
EPS 3Y13.7%
EPS 5Y16.01%
EPS Q2Q%2.1%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
3.2 Future
Based on estimates for the next years, 1EL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.05% on average per year.
The Revenue is expected to grow by 7.48% on average over the next years.
EPS Next Y7.24%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
EPS Next 5Y11.05%
Revenue Next Year5.99%
Revenue Next 2Y6.94%
Revenue Next 3Y7.45%
Revenue Next 5Y7.48%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1EL is valuated quite expensively with a Price/Earnings ratio of 39.81.
Compared to the rest of the industry, the Price/Earnings ratio of 1EL is on the same level as its industry peers.
1EL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.92.
Based on the Price/Forward Earnings ratio of 33.61, the valuation of 1EL can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1EL indicates a slightly more expensive valuation: 1EL is more expensive than 66.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, 1EL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.81 | ||
| Fwd PE | 33.61 |
4.2 Price Multiples
1EL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1EL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.67 | ||
| EV/EBITDA | 20.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1EL may justify a higher PE ratio.
PEG (NY)5.5
PEG (5Y)2.49
EPS Next 2Y9.47%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, 1EL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.11, 1EL pays a bit more dividend than its industry peers.
1EL's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of 1EL has a limited annual growth rate of 4.50%.
Dividend Growth(5Y)4.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1EL pays out 22.97% of its income as dividend. This is a sustainable payout ratio.
1EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.97%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
BIT:1EL (12/23/2025, 7:00:00 PM)
273.5
+0.5 (+0.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners28.84%
Inst Owner ChangeN/A
Ins Owners32.08%
Ins Owner ChangeN/A
Market Cap126.67B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target331.71 (21.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend2.56
Dividend Growth(5Y)4.5%
DP22.97%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.59%
PT rev (3m)19.83%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.81 | ||
| Fwd PE | 33.61 | ||
| P/S | 4.65 | ||
| P/FCF | 37.67 | ||
| P/OCF | 25.78 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.75 |
EPS(TTM)6.87
EY2.51%
EPS(NY)8.14
Fwd EY2.98%
FCF(TTM)7.26
FCFY2.65%
OCF(TTM)10.61
OCFY3.88%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.5
PEG (5Y)2.49
Graham Number112.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 6.29% | ||
| ROCE | 6.93% | ||
| ROIC | 5.39% | ||
| ROICexc | 5.71% | ||
| ROICexgc | 35.85% | ||
| OM | 12.86% | ||
| PM (TTM) | 8.74% | ||
| GM | 61.91% | ||
| FCFM | 12.34% |
ROA(3y)3.67%
ROA(5y)2.72%
ROE(3y)5.86%
ROE(5y)4.39%
ROIC(3y)4.84%
ROIC(5y)3.74%
ROICexc(3y)5.06%
ROICexc(5y)3.96%
ROICexgc(3y)34.05%
ROICexgc(5y)28.3%
ROCE(3y)6.22%
ROCE(5y)4.81%
ROICexgc growth 3Y0.01%
ROICexgc growth 5Y9.27%
ROICexc growth 3Y12.06%
ROICexc growth 5Y11.05%
OM growth 3Y4.69%
OM growth 5Y6.47%
PM growth 3Y6.8%
PM growth 5Y7.52%
GM growth 3Y0.88%
GM growth 5Y0.39%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 49.38% | ||
| Cap/Sales | 5.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.95% | ||
| Profit Quality | 141.24% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 4.12 |
F-Score7
WACC7.71%
ROIC/WACC0.7
Cap/Depr(3y)51.19%
Cap/Depr(5y)45.17%
Cap/Sales(3y)6.06%
Cap/Sales(5y)5.58%
Profit Quality(3y)145.59%
Profit Quality(5y)677.55%
High Growth Momentum
Growth
EPS 1Y (TTM)3%
EPS 3Y13.7%
EPS 5Y16.01%
EPS Q2Q%2.1%
EPS Next Y7.24%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
EPS Next 5Y11.05%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.99%
Revenue Next 2Y6.94%
Revenue Next 3Y7.45%
Revenue Next 5Y7.48%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.89%
EBIT Next 3Y23.64%
EBIT Next 5Y17.4%
FCF growth 1Y3.16%
FCF growth 3Y-1.57%
FCF growth 5Y6.95%
OCF growth 1Y2.06%
OCF growth 3Y2.36%
OCF growth 5Y8.12%
ESSILORLUXOTTICA / 1EL.MI FAQ
What is the fundamental rating for 1EL stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1EL.MI.
What is the valuation status for 1EL stock?
ChartMill assigns a valuation rating of 2 / 10 to ESSILORLUXOTTICA (1EL.MI). This can be considered as Overvalued.
What is the profitability of 1EL stock?
ESSILORLUXOTTICA (1EL.MI) has a profitability rating of 6 / 10.
What is the valuation of ESSILORLUXOTTICA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ESSILORLUXOTTICA (1EL.MI) is 39.81 and the Price/Book (PB) ratio is 3.35.
What is the expected EPS growth for ESSILORLUXOTTICA (1EL.MI) stock?
The Earnings per Share (EPS) of ESSILORLUXOTTICA (1EL.MI) is expected to grow by 7.24% in the next year.