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ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis

EPA:EL - Euronext Paris - Matif - FR0000121667 - Common Stock - Currency: EUR

247.2  +1 (+0.41%)

Fundamental Rating

4

Overall EL gets a fundamental rating of 4 out of 10. We evaluated EL against 55 industry peers in the Health Care Equipment & Supplies industry. EL has only an average score on both its financial health and profitability. While showing a medium growth rate, EL is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year EL was profitable.
In the past year EL had a positive cash flow from operations.
EL had positive earnings in each of the past 5 years.
In the past 5 years EL always reported a positive cash flow from operatings.
EL.PA Yearly Net Income VS EBIT VS OCF VS FCFEL.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

1.2 Ratios

EL has a Return On Assets of 3.67%. This is comparable to the rest of the industry: EL outperforms 58.18% of its industry peers.
With a Return On Equity value of 5.84%, EL perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
EL's Return On Invested Capital of 4.99% is in line compared to the rest of the industry. EL outperforms 58.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 8.22%.
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 RankSector 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%
EL.PA Yearly ROA, ROE, ROICEL.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

EL has a Profit Margin of 8.90%. This is in the better half of the industry: EL outperforms 63.64% of its industry peers.
EL's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.01%, EL is doing good in the industry, outperforming 61.82% of the companies in the same industry.
In the last couple of years the Operating Margin of EL has grown nicely.
Looking at the Gross Margin, with a value of 62.45%, EL is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
EL's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
EL.PA Yearly Profit, Operating, Gross MarginsEL.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL is destroying value.
Compared to 1 year ago, EL has more shares outstanding
Compared to 5 years ago, EL has more shares outstanding
EL has a worse debt/assets ratio than last year.
EL.PA Yearly Shares OutstandingEL.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
EL.PA Yearly Total Debt VS Total AssetsEL.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

EL has an Altman-Z score of 3.75. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EL (3.75) is better than 63.64% 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.
EL's Debt to FCF ratio of 3.94 is fine compared to the rest of the industry. EL outperforms 70.91% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that EL is not too dependend on debt financing.
EL has a Debt to Equity ratio of 0.24. This is in the better half of the industry: EL outperforms 63.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 3.94
Altman-Z 3.75
ROIC/WACC0.67
WACC7.48%
EL.PA Yearly LT Debt VS Equity VS FCFEL.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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.
The Current ratio of EL (0.95) is worse than 81.82% of its industry peers.
A Quick Ratio of 0.65 indicates that EL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, EL is doing worse than 78.18% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.95
Quick Ratio 0.65
EL.PA Yearly Current Assets VS Current LiabilitesEL.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.82% over the past year.
Measured over the past years, EL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.01% on average per year.
Looking at the last year, EL shows a small growth in Revenue. The Revenue has grown by 4.38% in the last 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

EL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.99% yearly.
EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.14% yearly.
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue Next Year6.25%
Revenue Next 2Y6.29%
Revenue Next 3Y6.48%
Revenue Next 5Y6.14%

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 decreasing: in the next years the growth will be less than in the last years.
EL.PA Yearly Revenue VS EstimatesEL.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
EL.PA Yearly EPS VS EstimatesEL.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

3

4. Valuation

4.1 Price/Earnings Ratio

EL is valuated quite expensively with a Price/Earnings ratio of 36.41.
Based on the Price/Earnings ratio, EL is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EL to the average of the S&P500 Index (27.35), we can say EL is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 30.75, the valuation of EL can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as EL.
EL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 37.54, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 36.41
Fwd PE 30.75
EL.PA Price Earnings VS Forward Price EarningsEL.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
69.09% of the companies in the same industry are more expensive than EL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 33.74
EV/EBITDA 19.17
EL.PA Per share dataEL.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EL has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as EL's earnings are expected to grow with 13.79% in the coming years.
PEG (NY)1.98
PEG (5Y)2.27
EPS Next 2Y15.32%
EPS Next 3Y13.79%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.62%, EL has a reasonable but not impressive dividend return.
EL's Dividend Yield is a higher than the industry average which is at 2.07.
Compared to the average S&P500 Dividend Yield of 2.36, EL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.62%

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
EL.PA Yearly Dividends per shareEL.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 1 2 3

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.
EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.3%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EL.PA Yearly Income VS Free CF VS DividendEL.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
EL.PA Dividend Payout.EL.PA Dividend Payout, showing the Payout Ratio.EL.PA Dividend Payout.PayoutRetained Earnings

ESSILORLUXOTTICA

EPA:EL (7/24/2025, 7:00:00 PM)

247.2

+1 (+0.41%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)04-23 2025-04-23
Earnings (Next)07-28 2025-07-28
Inst Owners29.87%
Inst Owner ChangeN/A
Ins Owners32.47%
Ins Owner ChangeN/A
Market Cap113.10B
Analysts77.33
Price Target274.22 (10.93%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.62%
Yearly Dividend2.56
Dividend Growth(5Y)4.5%
DP49.3%
Div Incr Years3
Div Non Decr Years4
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)-2.73%
PT rev (3m)-6.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.05%
Valuation
Industry RankSector Rank
PE 36.41
Fwd PE 30.75
P/S 4.27
P/FCF 33.74
P/OCF 23.2
P/B 2.8
P/tB N/A
EV/EBITDA 19.17
EPS(TTM)6.79
EY2.75%
EPS(NY)8.04
Fwd EY3.25%
FCF(TTM)7.33
FCFY2.96%
OCF(TTM)10.65
OCFY4.31%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)1.98
PEG (5Y)2.27
Profitability
Industry RankSector 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 RankSector 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 3.75
F-Score5
WACC7.48%
ROIC/WACC0.67
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 5Y8.99%
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 5Y6.14%
EBIT growth 1Y9.04%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y15.63%
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%