ESSILORLUXOTTICA (1EL.MI) Stock Fundamental Analysis
BIT:1EL - FR0000121667 - Common Stock
257.3 EUR
-3 (-1.15%)
Overall 1EL gets a fundamental rating of 4 out of 10. We evaluated 1EL against 57 industry peers in the Health Care Equipment & Supplies industry. While 1EL belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1EL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1EL was profitable.
In the past year 1EL had a positive cash flow from operations.
Each year in the past 5 years 1EL has been profitable.
1EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.84%, 1EL is doing good in the industry, outperforming 61.40% of the companies in the same industry.
1EL has a Return On Equity (6.29%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.39%, 1EL perfoms like the industry average, outperforming 54.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1EL is below the industry average of 8.81%.
The last Return On Invested Capital (5.39%) for 1EL is above the 3 year average (4.84%), which is a sign of increasing profitability.
| 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 fine compared to the rest of the industry. 1EL outperforms 63.16% of its industry peers.
In the last couple of years the Profit Margin of 1EL has grown nicely.
With a decent Operating Margin value of 12.86%, 1EL is doing good in the industry, outperforming 61.40% of the companies in the same industry.
1EL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 61.91%, 1EL is in the better half of the industry, outperforming 63.16% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1EL is destroying value.
The number of shares outstanding for 1EL has been increased compared to 1 year ago.
The number of shares outstanding for 1EL has been increased compared to 5 years ago.
Compared to 1 year ago, 1EL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.90 indicates that 1EL is not in any danger for bankruptcy at the moment.
1EL's Altman-Z score of 3.90 is fine compared to the rest of the industry. 1EL outperforms 71.93% of its industry peers.
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 66.67% of the companies in the same industry.
1EL has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
1EL has a Debt to Equity ratio of 0.25. This is in the better half of the industry: 1EL outperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.72
WACC7.5%
2.3 Liquidity
1EL has a Current Ratio of 0.97. This is a bad value and indicates that 1EL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.97, 1EL is doing worse than 80.70% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that 1EL may have some problems paying its short term obligations.
The Quick ratio of 1EL (0.67) is worse than 78.95% 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
The Earnings Per Share is expected to grow by 9.30% on average over the next years. This is quite good.
1EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.22% yearly.
EPS Next Y6.94%
EPS Next 2Y9.2%
EPS Next 3Y10.05%
EPS Next 5Y9.3%
Revenue Next Year5.01%
Revenue Next 2Y5.63%
Revenue Next 3Y5.98%
Revenue Next 5Y6.22%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 37.45 indicates a quite expensive valuation of 1EL.
The rest of the industry has a similar Price/Earnings ratio as 1EL.
Compared to an average S&P500 Price/Earnings ratio of 27.06, 1EL is valued a bit more expensive.
1EL is valuated quite expensively with a Price/Forward Earnings ratio of 31.78.
1EL's Price/Forward Earnings is on the same level as the industry average.
1EL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.45 | ||
| Fwd PE | 31.78 |
4.2 Price Multiples
1EL's Enterprise Value to EBITDA is on the same level as the industry average.
64.91% of the companies in the same industry are more expensive than 1EL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35 | ||
| EV/EBITDA | 19.41 |
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)5.4
PEG (5Y)2.34
EPS Next 2Y9.2%
EPS Next 3Y10.05%
5. Dividend
5.1 Amount
1EL has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
1EL's Dividend Yield is a higher than the industry average which is at 2.34.
1EL's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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 2Y9.2%
EPS Next 3Y10.05%
BIT:1EL (9/3/2025, 7:00:00 PM)
257.3
-3 (-1.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners29.87%
Inst Owner ChangeN/A
Ins Owners32.47%
Ins Owner ChangeN/A
Market Cap117.72B
Analysts77.93
Price Target273.72 (6.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)-0.84%
PT rev (3m)-3.66%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-9.67%
EPS NY rev (3m)-9.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.45 | ||
| Fwd PE | 31.78 | ||
| P/S | 4.32 | ||
| P/FCF | 35 | ||
| P/OCF | 23.96 | ||
| P/B | 3.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.41 |
EPS(TTM)6.87
EY2.67%
EPS(NY)8.1
Fwd EY3.15%
FCF(TTM)7.35
FCFY2.86%
OCF(TTM)10.74
OCFY4.17%
SpS59.54
BVpS82.67
TBVpS-5.15
PEG (NY)5.4
PEG (5Y)2.34
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%
ROICexcg growth 3Y0.01%
ROICexcg 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 | 3.9 |
F-Score7
WACC7.5%
ROIC/WACC0.72
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 Y6.94%
EPS Next 2Y9.2%
EPS Next 3Y10.05%
EPS Next 5Y9.3%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.01%
Revenue Next 2Y5.63%
Revenue Next 3Y5.98%
Revenue Next 5Y6.22%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y15.39%
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%