ESSILORLUXOTTICA (1EL.MI) Stock Fundamental Analysis
Europe - BIT:1EL - FR0000121667 - Common Stock
305.8 EUR
-5.3 (-1.7%)
We assign a fundamental rating of 4 out of 10 to 1EL. 1EL was compared to 60 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of 1EL while its profitability can be described as average. 1EL is quite expensive at the moment. 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.
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 (3.84%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 6.29%, 1EL is in line with its industry, outperforming 48.33% of the companies in the same industry.
1EL has a Return On Invested Capital (5.39%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1EL is below the industry average of 8.99%.
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
The Profit Margin of 1EL (8.74%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 1EL has grown nicely.
1EL's Operating Margin of 12.86% is in line compared to the rest of the industry. 1EL outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of 1EL has grown nicely.
1EL has a Gross Margin of 61.91%. This is in the better half of the industry: 1EL outperforms 63.33% of its industry peers.
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.
1EL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.56 indicates that 1EL is not in any danger for bankruptcy at the moment.
1EL has a better Altman-Z score (4.56) than 78.33% of its industry peers.
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's Debt to FCF ratio of 4.18 is fine compared to the rest of the industry. 1EL outperforms 63.33% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that 1EL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.25, 1EL perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.56 |
ROIC/WACC0.69
WACC7.81%
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.
1EL's Current ratio of 0.97 is on the low side compared to the rest of the industry. 1EL is outperformed by 81.67% 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 78.33% 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.
1EL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.01% yearly.
1EL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.45%.
The Revenue has been growing by 8.80% on average over the past years. This is quite good.
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 11.05% 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 7.60% yearly.
EPS Next Y7.46%
EPS Next 2Y9.42%
EPS Next 3Y10.6%
EPS Next 5Y11.05%
Revenue Next Year5.73%
Revenue Next 2Y6.28%
Revenue Next 3Y6.67%
Revenue Next 5Y7.6%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 44.51, 1EL can be considered very expensive at the moment.
1EL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.45. 1EL is valued rather expensively when compared to this.
1EL is valuated quite expensively with a Price/Forward Earnings ratio of 37.62.
65.00% of the companies in the same industry are cheaper than 1EL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1EL to the average of the S&P500 Index (34.46), we can say 1EL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.51 | ||
| Fwd PE | 37.62 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.11 | ||
| EV/EBITDA | 23.37 |
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.
PEG (NY)5.97
PEG (5Y)2.78
EPS Next 2Y9.42%
EPS Next 3Y10.6%
5. Dividend
5.1 Amount
1EL has a Yearly Dividend Yield of 1.23%.
1EL's Dividend Yield is a higher than the industry average which is at 2.11.
With a Dividend Yield of 1.23, 1EL pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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 2Y9.42%
EPS Next 3Y10.6%
BIT:1EL (11/21/2025, 7:00:00 PM)
305.8
-5.3 (-1.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners29.19%
Inst Owner ChangeN/A
Ins Owners32.47%
Ins Owner ChangeN/A
Market Cap141.63B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target314.57 (2.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)8.47%
PT rev (3m)15.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.64%
EPS NY rev (3m)-9.23%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.51 | ||
| Fwd PE | 37.62 | ||
| P/S | 5.2 | ||
| P/FCF | 42.11 | ||
| P/OCF | 28.82 | ||
| P/B | 3.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.37 |
EPS(TTM)6.87
EY2.25%
EPS(NY)8.13
Fwd EY2.66%
FCF(TTM)7.26
FCFY2.37%
OCF(TTM)10.61
OCFY3.47%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.97
PEG (5Y)2.78
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 | 4.56 |
F-Score7
WACC7.81%
ROIC/WACC0.69
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 Y7.46%
EPS Next 2Y9.42%
EPS Next 3Y10.6%
EPS Next 5Y11.05%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.73%
Revenue Next 2Y6.28%
Revenue Next 3Y6.67%
Revenue Next 5Y7.6%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.93%
EBIT Next 3Y22.99%
EBIT Next 5Y17.39%
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%
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 44.51 and the Price/Book (PB) ratio is 3.74.
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 7.46% in the next year.