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 58 industry peers in the Health Care Equipment & Supplies industry. 1EL scores excellent on profitability, but there are some minor 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
1EL had positive earnings in the past year.
In the past year 1EL had a positive cash flow from operations.
Each year in the past 5 years 1EL has been profitable.
Each year in the past 5 years 1EL had a positive operating cash flow.
1.2 Ratios
1EL has a Return On Assets of 3.67%. This is in the better half of the industry: 1EL outperforms 60.34% 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.
The Average Return On Invested Capital over the past 3 years for 1EL is below the industry average of 8.41%.
The last Return On Invested Capital (4.99%) for 1EL is above the 3 year average (4.84%), which is a sign of increasing profitability.
| 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
1EL's Profit Margin of 8.90% is fine compared to the rest of the industry. 1EL outperforms 60.34% of its industry peers.
In the last couple of years the Profit Margin of 1EL has grown nicely.
The Operating Margin of 1EL (13.01%) is better than 63.79% of its industry peers.
1EL's Operating Margin has improved in the last couple of years.
1EL has a Gross Margin of 62.45%. This is in the better half of the industry: 1EL outperforms 62.07% 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 | 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.
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
1EL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.77 indicates that 1EL is not in any danger for bankruptcy at the moment.
1EL has a better Altman-Z score (3.77) than 77.59% 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.
1EL has a better Debt to FCF ratio (3.94) than 74.14% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that 1EL is not too dependend on debt financing.
1EL has a better Debt to Equity ratio (0.24) than 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.77 |
ROIC/WACC0.66
WACC7.53%
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: 74.14% of the companies in the same industry are doing better.
1EL has a Quick Ratio of 0.95. 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 Quick ratio of 0.65 is on the low side compared to the rest of the industry. 1EL is outperformed by 72.41% of its industry peers.
| 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%.
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.
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 12.08% yearly.
The Revenue is expected to grow by 6.85% on average over the next years.
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y12.08%
Revenue Next Year6.25%
Revenue Next 2Y6.29%
Revenue Next 3Y6.48%
Revenue Next 5Y6.85%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.19, which means the current valuation is very expensive for 1EL.
Compared to the rest of the industry, the Price/Earnings ratio of 1EL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.25, 1EL is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 30.57, the valuation of 1EL can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1EL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.15. 1EL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.19 | ||
| Fwd PE | 30.57 |
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 67.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.54 | ||
| EV/EBITDA | 19.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1EL has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1EL's earnings are expected to grow with 13.79% in the coming years.
PEG (NY)1.97
PEG (5Y)2.26
EPS Next 2Y15.32%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
1EL has a Yearly Dividend Yield of 1.52%.
1EL's Dividend Yield is a higher than the industry average which is at 2.19.
Compared to the average S&P500 Dividend Yield of 2.40, 1EL is paying slightly less dividend.
| 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 49.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.3%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
BIT:1EL (5/30/2025, 7:00:00 PM)
245.7
-2.3 (-0.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners31.76%
Inst Owner ChangeN/A
Ins Owners32.45%
Ins Owner ChangeN/A
Market Cap112.41B
Analysts78
Price Target284.12 (15.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)-3.3%
PT rev (3m)4.59%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.32%
Revenue NY rev (3m)-2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.19 | ||
| Fwd PE | 30.57 | ||
| P/S | 4.24 | ||
| P/FCF | 33.54 | ||
| P/OCF | 23.06 | ||
| P/B | 2.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.29 |
EPS(TTM)6.79
EY2.76%
EPS(NY)8.04
Fwd EY3.27%
FCF(TTM)7.33
FCFY2.98%
OCF(TTM)10.65
OCFY4.34%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)1.97
PEG (5Y)2.26
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 | 3.77 |
F-Score5
WACC7.53%
ROIC/WACC0.66
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 5Y12.08%
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 5Y6.85%
EBIT growth 1Y9.04%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y17.5%
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%