ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
EPA:EL - Euronext Paris - Matif - FR0000121667 - Common Stock - Currency: EUR
EL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 53 industry peers in the Health Care Equipment & Supplies industry. EL has an average financial health and profitability rating. EL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
EL had positive earnings in the past year.
In the past year EL had a positive cash flow from operations.
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
The Return On Assets of EL (3.67%) is comparable to the rest of the industry.
The Return On Equity of EL (5.84%) is comparable to the rest of the industry.
EL has a Return On Invested Capital of 4.99%. This is comparable to the rest of the industry: EL outperforms 58.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 8.25%.
The last Return On Invested Capital (4.99%) for EL 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
The Profit Margin of EL (8.90%) is better than 67.92% of its industry peers.
In the last couple of years the Profit Margin of EL has grown nicely.
EL has a better Operating Margin (13.01%) than 71.70% of its industry peers.
EL's Operating Margin has improved in the last couple of years.
EL has a Gross Margin of 62.45%. This is in the better half of the industry: EL outperforms 60.38% of its industry peers.
In the last couple of years the Gross Margin of EL 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 EL is destroying value.
EL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EL has more shares outstanding
The debt/assets ratio for EL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.88 indicates that EL is not in any danger for bankruptcy at the moment.
EL's Altman-Z score of 3.88 is amongst the best of the industry. EL outperforms 83.02% of its industry peers.
EL has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as EL would need 3.94 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.94, EL is doing good in the industry, outperforming 75.47% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that EL is not too dependend on debt financing.
The Debt to Equity ratio of EL (0.24) is better than 64.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.88 |
ROIC/WACC0.65
WACC7.67%
2.3 Liquidity
EL has a Current Ratio of 0.95. This is a bad value and indicates that EL is not financially healthy enough and could expect problems in meeting its short term obligations.
EL has a Current ratio of 0.95. This is in the lower half of the industry: EL underperforms 75.47% of its industry peers.
A Quick Ratio of 0.65 indicates that EL may have some problems paying its short term obligations.
The Quick ratio of EL (0.65) is worse than 71.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.82% over the past year.
EL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.01% yearly.
Looking at the last year, EL shows a small growth in Revenue. The Revenue has grown by 4.38% in the last 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)3.82%
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
EL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.08% yearly.
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 6.85% on average per year.
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y12.08%
Revenue Next Year8.78%
Revenue Next 2Y7.61%
Revenue Next 3Y7.33%
Revenue Next 5Y6.85%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
A Price/Earnings ratio of 37.79 indicates a quite expensive valuation of EL.
The rest of the industry has a similar Price/Earnings ratio as EL.
When comparing the Price/Earnings ratio of EL to the average of the S&P500 Index (28.18), we can say EL is valued slightly more expensively.
With a Price/Forward Earnings ratio of 31.92, EL can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, EL is valued a bit more expensive than 60.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EL to the average of the S&P500 Index (20.81), we can say EL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.79 | ||
| Fwd PE | 31.92 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, EL is valued a bit cheaper than 67.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.02 | ||
| EV/EBITDA | 19.96 |
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 EL may justify a higher PE ratio.
EL's earnings are expected to grow with 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.06
PEG (5Y)2.36
EPS Next 2Y15.32%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.47, EL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.45, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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 Years3
5.3 Sustainability
49.30% of the earnings are spent on dividend by EL. This is a bit on the high side, but may be sustainable.
The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.3%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPA:EL (5/5/2025, 2:41:53 PM)
256.6
-0.9 (-0.35%)
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 Cap117.40B
Analysts78
Price Target288.28 (12.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.56
Dividend Growth(5Y)4.5%
DP49.3%
Div Incr Years3
Div Non Decr Years3
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)-1.18%
PT rev (3m)20.62%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.54%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.79 | ||
| Fwd PE | 31.92 | ||
| P/S | 4.43 | ||
| P/FCF | 35.02 | ||
| P/OCF | 24.09 | ||
| P/B | 2.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.96 |
EPS(TTM)6.79
EY2.65%
EPS(NY)8.04
Fwd EY3.13%
FCF(TTM)7.33
FCFY2.86%
OCF(TTM)10.65
OCFY4.15%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)2.06
PEG (5Y)2.36
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 | 3.88 |
F-Score5
WACC7.67%
ROIC/WACC0.65
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 Year8.78%
Revenue Next 2Y7.61%
Revenue Next 3Y7.33%
Revenue Next 5Y6.85%
EBIT growth 1Y9.04%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year65.78%
EBIT Next 3Y25.34%
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%