ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
Europe - EPA:EL - FR0000121667 - Common Stock
319.5 EUR
+1.2 (+0.38%)
Overall EL gets a fundamental rating of 4 out of 10. We evaluated EL against 62 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of EL while its profitability can be described as average. EL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EL was profitable.
EL had a positive operating cash flow in the past year.
In the past 5 years EL has always been profitable.
In the past 5 years EL always reported a positive cash flow from operatings.
1.2 Ratios
EL's Return On Assets of 3.84% is in line compared to the rest of the industry. EL outperforms 59.68% of its industry peers.
The Return On Equity of EL (6.29%) is comparable to the rest of the industry.
The Return On Invested Capital of EL (5.39%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 8.76%.
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
EL has a Profit Margin (8.74%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of EL has grown nicely.
EL's Operating Margin of 12.86% is fine compared to the rest of the industry. EL outperforms 61.29% of 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 66.13% 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 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.
Compared to 1 year ago, EL has more shares outstanding
Compared to 5 years ago, EL has more shares outstanding
Compared to 1 year ago, EL has a worse debt to assets ratio.
2.2 Solvency
EL has an Altman-Z score of 4.64. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.64, EL is doing good in the industry, outperforming 74.19% 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.
The Debt to FCF ratio of EL (4.18) is better than 64.52% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that EL is not too dependend on debt financing.
The Debt to Equity ratio of EL (0.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.64 |
ROIC/WACC0.69
WACC7.82%
2.3 Liquidity
A Current Ratio of 0.97 indicates that EL may have some problems paying its short term obligations.
With a Current ratio value of 0.97, EL is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that EL may have some problems paying its short term obligations.
EL's Quick ratio of 0.67 is on the low side compared to the rest of the industry. EL is outperformed by 77.42% of its industry peers.
| 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%.
EL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.01% yearly.
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
Based on estimates for the next years, EL will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.20% on average per year.
The Revenue is expected to grow by 6.39% on average over the next years.
EPS Next Y6.78%
EPS Next 2Y8.91%
EPS Next 3Y9.98%
EPS Next 5Y9.2%
Revenue Next Year4.62%
Revenue Next 2Y5.36%
Revenue Next 3Y5.93%
Revenue Next 5Y6.39%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 46.51 indicates a quite expensive valuation of EL.
The rest of the industry has a similar Price/Earnings ratio as EL.
The average S&P500 Price/Earnings ratio is at 26.76. EL is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 39.67, the valuation of EL can be described as expensive.
Based on the Price/Forward Earnings ratio, EL is valued a bit more expensive than 61.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EL to the average of the S&P500 Index (22.63), we can say EL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.51 | ||
| Fwd PE | 39.67 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EL indicates a somewhat cheap valuation: EL is cheaper than 61.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44 | ||
| EV/EBITDA | 23.88 |
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)6.86
PEG (5Y)2.9
EPS Next 2Y8.91%
EPS Next 3Y9.98%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.27%.
EL's Dividend Yield is a higher than the industry average which is at 2.23.
Compared to an average S&P500 Dividend Yield of 2.31, EL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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 2Y8.91%
EPS Next 3Y9.98%
EPA:EL (10/30/2025, 5:36:15 PM)
319.5
+1.2 (+0.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners29.19%
Inst Owner ChangeN/A
Ins Owners32.47%
Ins Owner ChangeN/A
Market Cap147.98B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts78.67
Price Target290.43 (-9.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend2.56
Dividend Growth(5Y)4.5%
DP22.97%
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)4.64%
PT rev (3m)5.91%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-9.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.51 | ||
| Fwd PE | 39.67 | ||
| P/S | 5.43 | ||
| P/FCF | 44 | ||
| P/OCF | 30.11 | ||
| P/B | 3.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.88 |
EPS(TTM)6.87
EY2.15%
EPS(NY)8.05
Fwd EY2.52%
FCF(TTM)7.26
FCFY2.27%
OCF(TTM)10.61
OCFY3.32%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)6.86
PEG (5Y)2.9
Graham Number112.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 6.29% | ||
| ROCE | 6.93% | ||
| ROIC | 5.39% | ||
| ROICexc | 5.71% | ||
| ROICexgc | 35.85% | ||
| OM | 12.86% | ||
| PM (TTM) | 8.74% | ||
| GM | 61.91% | ||
| FCFM | 12.34% |
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%
ROICexgc growth 3Y0.01%
ROICexgc 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-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 49.38% | ||
| Cap/Sales | 5.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.95% | ||
| Profit Quality | 141.24% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 4.64 |
F-Score7
WACC7.82%
ROIC/WACC0.69
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%
EPS 3Y13.7%
EPS 5Y16.01%
EPS Q2Q%2.1%
EPS Next Y6.78%
EPS Next 2Y8.91%
EPS Next 3Y9.98%
EPS Next 5Y9.2%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year4.62%
Revenue Next 2Y5.36%
Revenue Next 3Y5.93%
Revenue Next 5Y6.39%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.93%
EBIT Next 3Y22.99%
EBIT Next 5Y16.01%
FCF growth 1Y3.16%
FCF growth 3Y-1.57%
FCF growth 5Y6.95%
OCF growth 1Y2.06%
OCF growth 3Y2.36%
OCF growth 5Y8.12%
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.
Can you provide the valuation status for ESSILORLUXOTTICA?
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.
Can you provide the financial health for EL stock?
The financial health rating of ESSILORLUXOTTICA (EL.PA) is 3 / 10.
What is the earnings growth outlook for ESSILORLUXOTTICA?
The Earnings per Share (EPS) of ESSILORLUXOTTICA (EL.PA) is expected to grow by 6.78% in the next year.