ESSILORLUXOTTICA (1EL.MI) Stock Fundamental Analysis
Europe - BIT:1EL - FR0000121667 - Common Stock
280.4 EUR
+5.4 (+1.96%)
1EL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 60 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. 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.
1EL had a positive operating cash flow in the past year.
In the past 5 years 1EL has always been profitable.
In the past 5 years 1EL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.84%, 1EL is in line with its industry, outperforming 58.73% of the companies in the same industry.
1EL has a Return On Equity (6.29%) which is in line with its industry peers.
1EL has a Return On Invested Capital of 5.39%. This is comparable to the rest of the industry: 1EL outperforms 52.38% of its industry peers.
1EL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 9.00%.
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 fine compared to the rest of the industry. 1EL outperforms 61.90% of its industry peers.
In the last couple of years the Profit Margin of 1EL has grown nicely.
Looking at the Operating Margin, with a value of 12.86%, 1EL is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
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 65.08% 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
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
Compared to 1 year ago, 1EL has a worse debt to assets ratio.
2.2 Solvency
1EL has an Altman-Z score of 4.16. This indicates that 1EL is financially healthy and has little risk of bankruptcy at the moment.
1EL has a Altman-Z score of 4.16. This is in the better half of the industry: 1EL outperforms 73.02% 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 has a Debt to FCF ratio of 4.18. This is in the better half of the industry: 1EL outperforms 68.25% 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 65.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.16 |
ROIC/WACC0.7
WACC7.69%
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.
With a Current ratio value of 0.97, 1EL is not doing good in the industry: 79.37% of the companies in the same industry are doing better.
1EL has a Quick 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 has a Quick ratio of 0.67. This is in the lower half of the industry: 1EL underperforms 77.78% 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 9.20% 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 6.39% yearly.
EPS Next Y6.78%
EPS Next 2Y8.91%
EPS Next 3Y9.98%
EPS Next 5Y9.2%
Revenue Next Year4.62%
Revenue Next 2Y5.36%
Revenue Next 3Y5.93%
Revenue Next 5Y6.39%
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 40.82, the valuation of 1EL can be described as expensive.
1EL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.86, 1EL is valued a bit more expensive.
The Price/Forward Earnings ratio is 34.81, which means the current valuation is very expensive for 1EL.
The rest of the industry has a similar Price/Forward Earnings ratio as 1EL.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, 1EL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.82 | ||
| Fwd PE | 34.81 |
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 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.15 | ||
| EV/EBITDA | 21 |
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)6.02
PEG (5Y)2.55
EPS Next 2Y8.91%
EPS Next 3Y9.98%
5. Dividend
5.1 Amount
1EL has a Yearly Dividend Yield of 1.41%.
Compared to an average industry Dividend Yield of 2.13, 1EL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 1EL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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 2Y8.91%
EPS Next 3Y9.98%
BIT:1EL (10/2/2025, 7:00:00 PM)
280.4
+5.4 (+1.96%)
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 Cap128.29B
Analysts78.67
Price Target290 (3.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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)6.5%
PT rev (3m)2.45%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-9.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.82 | ||
| Fwd PE | 34.81 | ||
| P/S | 4.71 | ||
| P/FCF | 38.15 | ||
| P/OCF | 26.11 | ||
| P/B | 3.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21 |
EPS(TTM)6.87
EY2.45%
EPS(NY)8.05
Fwd EY2.87%
FCF(TTM)7.35
FCFY2.62%
OCF(TTM)10.74
OCFY3.83%
SpS59.54
BVpS82.67
TBVpS-5.15
PEG (NY)6.02
PEG (5Y)2.55
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 | 4.16 |
F-Score7
WACC7.69%
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 Y6.78%
EPS Next 2Y8.91%
EPS Next 3Y9.98%
EPS Next 5Y9.2%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year4.62%
Revenue Next 2Y5.36%
Revenue Next 3Y5.93%
Revenue Next 5Y6.39%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.93%
EBIT Next 3Y22.99%
EBIT Next 5Y16.01%
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%