ESSILORLUXOTTICA (EL.PA) Fundamental Analysis & Valuation

EPA:EL • FR0000121667

Current stock price

191.25 EUR
-2.7 (-1.39%)
Last:

This EL.PA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. EL.PA Profitability Analysis

1.1 Basic Checks

  • In the past year EL was profitable.
  • 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.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.62%, EL is in line with its industry, outperforming 52.46% of the companies in the same industry.
  • With a Return On Equity value of 5.95%, EL perfoms like the industry average, outperforming 44.26% of the companies in the same industry.
  • The Return On Invested Capital of EL (4.95%) is comparable to the rest of the industry.
  • EL had an Average Return On Invested Capital over the past 3 years of 4.87%. This is significantly below the industry average of 10.18%.
  • The last Return On Invested Capital (4.95%) for EL is above the 3 year average (4.87%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.62%
ROE 5.95%
ROIC 4.95%
ROA(3y)3.69%
ROA(5y)3.41%
ROE(3y)5.93%
ROE(5y)5.53%
ROIC(3y)4.87%
ROIC(5y)4.51%
EL.PA Yearly ROA, ROE, ROICEL.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • EL's Profit Margin of 8.13% is fine compared to the rest of the industry. EL outperforms 63.93% of its industry peers.
  • In the last couple of years the Profit Margin of EL has grown nicely.
  • EL's Operating Margin of 11.85% is in line compared to the rest of the industry. EL outperforms 54.10% of its industry peers.
  • In the last couple of years the Operating Margin of EL has grown nicely.
  • Looking at the Gross Margin, with a value of 59.69%, EL is in line with its industry, outperforming 59.02% of the companies in the same industry.
  • In the last couple of years the Gross Margin of EL has remained more or less at the same level.
Industry RankSector Rank
OM 11.85%
PM (TTM) 8.13%
GM 59.69%
OM growth 3Y-2.11%
OM growth 5Y30.95%
PM growth 3Y-2.57%
PM growth 5Y69.02%
GM growth 3Y-1.64%
GM growth 5Y0.64%
EL.PA Yearly Profit, Operating, Gross MarginsEL.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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4

2. EL.PA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EL is destroying value.
  • Compared to 1 year ago, EL has more shares outstanding
  • 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.
EL.PA Yearly Shares OutstandingEL.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
EL.PA Yearly Total Debt VS Total AssetsEL.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • EL has an Altman-Z score of 3.10. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • EL has a better Altman-Z score (3.10) than 65.57% of its industry peers.
  • EL has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as EL would need 3.82 years to pay back of all of its debts.
  • EL has a Debt to FCF ratio of 3.82. This is in the better half of the industry: EL outperforms 65.57% 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.
  • EL has a better Debt to Equity ratio (0.25) than 62.30% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 3.82
Altman-Z 3.1
ROIC/WACC0.66
WACC7.47%
EL.PA Yearly LT Debt VS Equity VS FCFEL.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.3 Liquidity

  • EL has a Current Ratio of 0.99. 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's Current ratio of 0.99 is on the low side compared to the rest of the industry. EL is outperformed by 78.69% of its industry peers.
  • EL has a Quick Ratio of 0.99. 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 0.70, EL is not doing good in the industry: 75.41% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.7
EL.PA Yearly Current Assets VS Current LiabilitesEL.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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5

3. EL.PA Growth Analysis

3.1 Past

  • EL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.90%.
  • Measured over the past years, EL shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.65% on average per year.
  • The Revenue has been growing slightly by 7.48% in the past year.
  • The Revenue has been growing by 14.58% on average over the past years. This is quite good.
EPS 1Y (TTM)0.9%
EPS 3Y2.19%
EPS 5Y30.65%
EPS Q2Q%-0.64%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y5.17%
Revenue growth 5Y14.58%
Sales Q2Q%9.45%

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 9.77% yearly.
  • Based on estimates for the next years, EL will show a quite strong growth in Revenue. The Revenue will grow by 9.20% on average per year.
EPS Next Y12.36%
EPS Next 2Y13.55%
EPS Next 3Y14.08%
EPS Next 5Y9.77%
Revenue Next Year12%
Revenue Next 2Y11.38%
Revenue Next 3Y11.07%
Revenue Next 5Y9.2%

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.
EL.PA Yearly Revenue VS EstimatesEL.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B 40B
EL.PA Yearly EPS VS EstimatesEL.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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3

4. EL.PA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.92, the valuation of EL can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of EL is on the same level as its industry peers.
  • EL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.60.
  • Based on the Price/Forward Earnings ratio of 24.85, the valuation of EL can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of EL is on the same level as its industry peers.
  • EL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.84.
Industry RankSector Rank
PE 27.92
Fwd PE 24.85
EL.PA Price Earnings VS Forward Price EarningsEL.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • EL's Enterprise Value to EBITDA is on the same level as the industry average.
  • EL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EL is cheaper than 67.21% of the companies in the same industry.
Industry RankSector Rank
P/FCF 23.53
EV/EBITDA 15.8
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 EL does not grow enough to justify the current Price/Earnings ratio.
  • EL has a very decent profitability rating, which may justify a higher PE ratio.
  • EL's earnings are expected to grow with 14.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.26
PEG (5Y)0.91
EPS Next 2Y13.55%
EPS Next 3Y14.08%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. EL.PA Dividend Analysis

5.1 Amount

  • EL has a Yearly Dividend Yield of 2.05%.
  • In the last 3 months the price of EL has falen by -27.97%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 1.17, EL pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.90, EL has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.05%

5.2 History

  • The dividend of EL has a limited annual growth rate of 0.65%.
Dividend Growth(5Y)0.65%
Div Incr Years1
Div Non Decr Years5
EL.PA Yearly Dividends per shareEL.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2026 0 0 0 0 0

5.3 Sustainability

  • EL pays out 23.63% 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.
DP23.63%
EPS Next 2Y13.55%
EPS Next 3Y14.08%
EL.PA Yearly Income VS Free CF VS DividendEL.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
EL.PA Dividend Payout.EL.PA Dividend Payout, showing the Payout Ratio.EL.PA Dividend Payout.PayoutRetained Earnings

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EL.PA Fundamentals: All Metrics, Ratios and Statistics

ESSILORLUXOTTICA

EPA:EL (4/2/2026, 7:00:00 PM)

191.25

-2.7 (-1.39%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-11
Earnings (Next)04-22
Inst Owners28.44%
Inst Owner ChangeN/A
Ins Owners32.07%
Ins Owner ChangeN/A
Market Cap88.60B
Revenue(TTM)28.49B
Net Income(TTM)2.31B
Analysts84.85
Price Target331.94 (73.56%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.05%
Yearly Dividend1.19
Dividend Growth(5Y)0.65%
DP23.63%
Div Incr Years1
Div Non Decr Years5
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)0.26%
PT rev (3m)-0.22%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-5.4%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)4.17%
Valuation
Industry RankSector Rank
PE 27.92
Fwd PE 24.85
P/S 3.11
P/FCF 23.53
P/OCF 16.75
P/B 2.28
P/tB N/A
EV/EBITDA 15.8
EPS(TTM)6.85
EY3.58%
EPS(NY)7.7
Fwd EY4.02%
FCF(TTM)8.13
FCFY4.25%
OCF(TTM)11.42
OCFY5.97%
SpS61.5
BVpS83.94
TBVpS-4.05
PEG (NY)2.26
PEG (5Y)0.91
Graham Number113.74
Profitability
Industry RankSector Rank
ROA 3.62%
ROE 5.95%
ROCE 6.52%
ROIC 4.95%
ROICexc 4.99%
ROICexgc 24.01%
OM 11.85%
PM (TTM) 8.13%
GM 59.69%
FCFM 13.22%
ROA(3y)3.69%
ROA(5y)3.41%
ROE(3y)5.93%
ROE(5y)5.53%
ROIC(3y)4.87%
ROIC(5y)4.51%
ROICexc(3y)5.14%
ROICexc(5y)4.76%
ROICexgc(3y)33.36%
ROICexgc(5y)33.03%
ROCE(3y)6.4%
ROCE(5y)5.93%
ROICexgc growth 3Y0.12%
ROICexgc growth 5Y35.81%
ROICexc growth 3Y4%
ROICexc growth 5Y42.45%
OM growth 3Y-2.11%
OM growth 5Y30.95%
PM growth 3Y-2.57%
PM growth 5Y69.02%
GM growth 3Y-1.64%
GM growth 5Y0.64%
F-Score7
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 3.82
Debt/EBITDA 1.47
Cap/Depr 48.99%
Cap/Sales 5.35%
Interest Coverage 250
Cash Conversion 81.54%
Profit Quality 162.68%
Current Ratio 0.99
Quick Ratio 0.7
Altman-Z 3.1
F-Score7
WACC7.47%
ROIC/WACC0.66
Cap/Depr(3y)49.88%
Cap/Depr(5y)48.88%
Cap/Sales(3y)5.71%
Cap/Sales(5y)5.75%
Profit Quality(3y)150.08%
Profit Quality(5y)168.44%
High Growth Momentum
Growth
EPS 1Y (TTM)0.9%
EPS 3Y2.19%
EPS 5Y30.65%
EPS Q2Q%-0.64%
EPS Next Y12.36%
EPS Next 2Y13.55%
EPS Next 3Y14.08%
EPS Next 5Y9.77%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y5.17%
Revenue growth 5Y14.58%
Sales Q2Q%9.45%
Revenue Next Year12%
Revenue Next 2Y11.38%
Revenue Next 3Y11.07%
Revenue Next 5Y9.2%
EBIT growth 1Y-2.09%
EBIT growth 3Y2.95%
EBIT growth 5Y50.04%
EBIT Next Year73.26%
EBIT Next 3Y27.8%
EBIT Next 5Y19.38%
FCF growth 1Y12.35%
FCF growth 3Y5.46%
FCF growth 5Y10.35%
OCF growth 1Y8.56%
OCF growth 3Y3.42%
OCF growth 5Y12.38%

ESSILORLUXOTTICA / EL.PA Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ESSILORLUXOTTICA (EL.PA) stock?

ChartMill assigns a fundamental rating of 5 / 10 to EL.PA.


What is the valuation status for EL stock?

ChartMill assigns a valuation rating of 3 / 10 to ESSILORLUXOTTICA (EL.PA). This can be considered as Overvalued.


How profitable is ESSILORLUXOTTICA (EL.PA) stock?

ESSILORLUXOTTICA (EL.PA) has a profitability rating of 6 / 10.


What is the financial health of ESSILORLUXOTTICA (EL.PA) stock?

The financial health rating of ESSILORLUXOTTICA (EL.PA) is 4 / 10.


How sustainable is the dividend of ESSILORLUXOTTICA (EL.PA) stock?

The dividend rating of ESSILORLUXOTTICA (EL.PA) is 6 / 10 and the dividend payout ratio is 23.63%.