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 59 industry peers in the Health Care Equipment & Supplies industry. 1EL scores excellent on profitability, but there are 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.
1EL had a positive operating cash flow in the past year.
In the past 5 years 1EL has always been profitable.
1EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1EL has a Return On Assets of 3.84%. This is in the better half of the industry: 1EL outperforms 64.41% of its industry peers.
1EL has a Return On Equity of 6.29%. This is comparable to the rest of the industry: 1EL outperforms 55.93% of its industry peers.
1EL has a Return On Invested Capital of 5.39%. This is comparable to the rest of the industry: 1EL outperforms 57.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1EL is below the industry average of 8.10%.
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 has a Profit Margin of 8.74%. This is in the better half of the industry: 1EL outperforms 62.71% of its industry peers.
1EL's Profit Margin has improved in the last couple of years.
1EL has a Operating Margin of 12.86%. This is in the better half of the industry: 1EL outperforms 61.02% 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 61.91%, 1EL is in the better half of the industry, outperforming 64.41% of the companies in the same industry.
In the last couple of years the Gross Margin of 1EL has remained more or less at the same level.
| 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.
1EL has more shares outstanding than it did 1 year ago.
1EL has more shares outstanding than it did 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 3.85. 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 3.85, 1EL is in the better half of the industry, outperforming 69.49% of the companies in the same industry.
The Debt to FCF ratio of 1EL is 4.18, which is a neutral value as it means it would take 1EL, 4.18 years of fcf income to pay off all of its debts.
1EL has a better Debt to FCF ratio (4.18) than 69.49% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that 1EL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.25, 1EL is doing good in the industry, outperforming 62.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.72
WACC7.49%
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.
The Current ratio of 1EL (0.97) is worse than 79.66% of its industry peers.
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 in the lower half of the industry: 1EL underperforms 77.97% 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.
Measured over the past years, 1EL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.01% on average per year.
Looking at the last year, 1EL shows a small growth in Revenue. The Revenue has grown by 5.45% in the last year.
Measured over the past years, 1EL shows a quite strong growth in Revenue. The Revenue has been growing by 8.80% on average per year.
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 8.99% on average over the next years. This is quite good.
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 Year5.08%
Revenue Next 2Y5.67%
Revenue Next 3Y6%
Revenue Next 5Y6.14%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 36.83, the valuation of 1EL can be described as expensive.
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 (26.48), we can say 1EL is valued slightly more expensively.
With a Price/Forward Earnings ratio of 28.02, 1EL can be considered very expensive at the moment.
1EL's Price/Forward Earnings is on the same level as the industry average.
1EL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.83 | ||
| Fwd PE | 28.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1EL is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1EL indicates a somewhat cheap valuation: 1EL is cheaper than 67.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.42 | ||
| EV/EBITDA | 19.08 |
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.
1EL's earnings are expected to grow with 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)2.3
EPS Next 2Y15.32%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, 1EL has a reasonable but not impressive dividend return.
1EL's Dividend Yield is a higher than the industry average which is at 2.08.
1EL's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| 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
22.97% of the earnings are spent on dividend by 1EL. This is a low number and sustainable payout ratio.
The dividend of 1EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.97%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
BIT:1EL (8/8/2025, 7:00:00 PM)
253
+0.5 (+0.2%)
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 Cap115.75B
Analysts77.33
Price Target276.03 (9.1%)
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)-2.49%
PT rev (3m)-3.41%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.1%
Revenue NY rev (3m)-3.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.83 | ||
| Fwd PE | 28.02 | ||
| P/S | 4.25 | ||
| P/FCF | 34.42 | ||
| P/OCF | 23.56 | ||
| P/B | 3.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.08 |
EPS(TTM)6.87
EY2.72%
EPS(NY)9.03
Fwd EY3.57%
FCF(TTM)7.35
FCFY2.91%
OCF(TTM)10.74
OCFY4.25%
SpS59.54
BVpS82.67
TBVpS-5.15
PEG (NY)2
PEG (5Y)2.3
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 | 3.85 |
F-Score7
WACC7.49%
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 Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.08%
Revenue Next 2Y5.67%
Revenue Next 3Y6%
Revenue Next 5Y6.14%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y15.63%
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%