ESSILORLUXOTTICA (1EL.MI) Stock Fundamental Analysis
BIT:1EL - Euronext Milan - FR0000121667 - Common Stock - Currency: EUR
Taking everything into account, 1EL scores 5 out of 10 in our fundamental rating. 1EL was compared to 57 industry peers in the Health Care Equipment & Supplies industry. 1EL has an excellent profitability rating, but there are some minor concerns on its financial health. 1EL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1EL had positive earnings in the past year.
In the past year 1EL had a positive cash flow from operations.
1EL had positive earnings in each of the past 5 years.
In the past 5 years 1EL always reported a positive cash flow from operatings.
1.2 Ratios
1EL has a Return On Assets of 3.67%. This is in the better half of the industry: 1EL outperforms 61.40% of its industry peers.
1EL has a Return On Equity (5.84%) which is comparable to the rest of the industry.
The Return On Invested Capital of 1EL (4.99%) is comparable to the rest of the industry.
1EL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 8.12%.
The 3 year average ROIC (4.84%) for 1EL is below the current ROIC(4.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROIC | 4.99% |
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
With a decent Profit Margin value of 8.90%, 1EL is doing good in the industry, outperforming 68.42% of the companies in the same industry.
1EL's Profit Margin has improved in the last couple of years.
The Operating Margin of 1EL (13.01%) is better than 64.91% of its industry peers.
1EL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 62.45%, 1EL is in the better half of the industry, outperforming 66.67% 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 | 13.01% | ||
| PM (TTM) | 8.9% | ||
| GM | 62.45% |
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.
Compared to 1 year ago, 1EL has more shares outstanding
The number of shares outstanding for 1EL has been increased compared to 5 years ago.
The debt/assets ratio for 1EL is higher compared to a year ago.
2.2 Solvency
1EL has an Altman-Z score of 3.72. This indicates that 1EL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1EL (3.72) is better than 68.42% of its industry peers.
The Debt to FCF ratio of 1EL is 3.94, which is a good value as it means it would take 1EL, 3.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1EL (3.94) is better than 73.68% of its industry peers.
1EL has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, 1EL is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.72 |
ROIC/WACC0.67
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.95 indicates that 1EL may have some problems paying its short term obligations.
With a Current ratio value of 0.95, 1EL is not doing good in the industry: 82.46% of the companies in the same industry are doing better.
A Quick Ratio of 0.65 indicates that 1EL may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, 1EL is not doing good in the industry: 77.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
1EL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.82%.
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 4.38% in the past year.
The Revenue has been growing by 8.80% on average over the past years. This is quite good.
EPS 1Y (TTM)3.82%
EPS 3Y13.7%
EPS 5Y16.01%
EPS Q2Q%4.2%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.37%
3.2 Future
1EL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.99% yearly.
Based on estimates for the next years, 1EL will show a small growth in Revenue. The Revenue will grow by 6.14% on average per year.
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue Next Year6.25%
Revenue Next 2Y6.29%
Revenue Next 3Y6.48%
Revenue Next 5Y6.14%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
1EL is valuated quite expensively with a Price/Earnings ratio of 35.82.
Compared to the rest of the industry, the Price/Earnings ratio of 1EL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of 1EL to the average of the S&P500 Index (27.50), we can say 1EL is valued slightly more expensively.
The Price/Forward Earnings ratio is 30.25, which means the current valuation is very expensive for 1EL.
The rest of the industry has a similar Price/Forward Earnings ratio as 1EL.
The average S&P500 Price/Forward Earnings ratio is at 36.44. 1EL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.82 | ||
| Fwd PE | 30.25 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1EL.
1EL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1EL is cheaper than 64.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.19 | ||
| EV/EBITDA | 18.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1EL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1EL may justify a higher PE ratio.
1EL's earnings are expected to grow with 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.95
PEG (5Y)2.24
EPS Next 2Y15.32%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, 1EL has a reasonable but not impressive dividend return.
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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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 49.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
1EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.3%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
BIT:1EL (7/18/2025, 7:00:00 PM)
243.2
-0.4 (-0.16%)
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 Cap111.27B
Analysts77.33
Price Target283.08 (16.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend2.56
Dividend Growth(5Y)4.5%
DP49.3%
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%
PT rev (3m)-3.65%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.82 | ||
| Fwd PE | 30.25 | ||
| P/S | 4.2 | ||
| P/FCF | 33.19 | ||
| P/OCF | 22.83 | ||
| P/B | 2.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.99 |
EPS(TTM)6.79
EY2.79%
EPS(NY)8.04
Fwd EY3.31%
FCF(TTM)7.33
FCFY3.01%
OCF(TTM)10.65
OCFY4.38%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)1.95
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROCE | 6.42% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 26.04% | ||
| OM | 13.01% | ||
| PM (TTM) | 8.9% | ||
| GM | 62.45% | ||
| FCFM | 12.65% |
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-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 49.13% | ||
| Cap/Sales | 5.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.46% | ||
| Profit Quality | 142.09% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.72 |
F-Score5
WACC7.5%
ROIC/WACC0.67
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)3.82%
EPS 3Y13.7%
EPS 5Y16.01%
EPS Q2Q%4.2%
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.37%
Revenue Next Year6.25%
Revenue Next 2Y6.29%
Revenue Next 3Y6.48%
Revenue Next 5Y6.14%
EBIT growth 1Y9.04%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y15.63%
FCF growth 1Y0.66%
FCF growth 3Y-1.57%
FCF growth 5Y6.95%
OCF growth 1Y0.27%
OCF growth 3Y2.36%
OCF growth 5Y8.12%