ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:EL • FR0000121667
257.9 EUR
+3.3 (+1.3%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, EL scores 4 out of 10 in our fundamental rating. EL was compared to 64 industry peers in the Health Care Equipment & Supplies industry. EL has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, EL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year EL was profitable.
- EL had a positive operating cash flow in the past year.
- Each year in the past 5 years EL has been profitable.
- EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EL 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%, EL is in line with its industry, outperforming 48.44% of the companies in the same industry.
- EL's Return On Invested Capital of 5.39% is in line compared to the rest of the industry. EL outperforms 48.44% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EL is significantly below the industry average of 9.95%.
- The last Return On Invested Capital (5.39%) for EL 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 EL (8.74%) is better than 60.94% of its industry peers.
- In the last couple of years the Profit Margin of EL has grown nicely.
- EL has a Operating Margin (12.86%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of EL has grown nicely.
- With a decent Gross Margin value of 61.91%, EL is doing good in the industry, outperforming 64.06% of the companies in the same industry.
- EL's Gross Margin has been stable in the last couple of years.
| 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 EL is destroying value.
- EL has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for EL has been increased compared to 5 years ago.
- The debt/assets ratio for EL is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.94 indicates that EL is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.94, EL is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
- The Debt to FCF ratio of EL is 4.18, which is a neutral value as it means it would take EL, 4.18 years of fcf income to pay off all of its debts.
- EL has a better Debt to FCF ratio (4.18) than 64.06% of its industry peers.
- EL has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.25, EL is doing good in the industry, outperforming 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 3.94 |
ROIC/WACC0.69
WACC7.79%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that EL may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.97, EL is doing worse than 79.69% of the companies in the same industry.
- EL has a Quick Ratio of 0.97. This is a bad value and indicates that EL is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.67, EL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- EL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.00%.
- 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 5.45% in the past year.
- EL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.80% yearly.
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 9.60% on average over the next years. This is quite good.
- EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.56% yearly.
EPS Next Y5.69%
EPS Next 2Y8.8%
EPS Next 3Y10.77%
EPS Next 5Y9.6%
Revenue Next Year5.99%
Revenue Next 2Y6.94%
Revenue Next 3Y7.45%
Revenue Next 5Y7.56%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
- A Price/Earnings ratio of 37.54 indicates a quite expensive valuation of EL.
- EL's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, EL is valued a bit more expensive.
- The Price/Forward Earnings ratio is 32.09, which means the current valuation is very expensive for EL.
- EL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EL is more expensive than 62.50% of the companies in the same industry.
- EL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.54 | ||
| Fwd PE | 32.09 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EL is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as EL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.52 | ||
| EV/EBITDA | 19.67 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EL does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of EL may justify a higher PE ratio.
PEG (NY)6.6
PEG (5Y)2.34
EPS Next 2Y8.8%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
- EL has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
- EL's Dividend Yield is a higher than the industry average which is at 0.96.
- EL's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
- The dividend of EL has a limited annual growth rate of 4.50%.
Dividend Growth(5Y)4.5%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
- EL pays out 22.97% of its income as dividend. This is a sustainable payout ratio.
- The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.97%
EPS Next 2Y8.8%
EPS Next 3Y10.77%
ESSILORLUXOTTICA / EL.PA FAQ
What is the ChartMill fundamental rating of ESSILORLUXOTTICA (EL.PA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to EL.PA.
What is the valuation status for EL stock?
ChartMill assigns a valuation rating of 2 / 10 to ESSILORLUXOTTICA (EL.PA). This can be considered as Overvalued.
What is the profitability of EL stock?
ESSILORLUXOTTICA (EL.PA) 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 (EL.PA) is 37.54 and the Price/Book (PB) ratio is 3.16.
Can you provide the dividend sustainability for EL stock?
The dividend rating of ESSILORLUXOTTICA (EL.PA) is 6 / 10 and the dividend payout ratio is 22.97%.