ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
EPA:EL - FR0000121667 - Common Stock
272 EUR
0 (0%)
Taking everything into account, EL scores 5 out of 10 in our fundamental rating. EL was compared to 58 industry peers in the Health Care Equipment & Supplies industry. While EL has a great profitability rating, there are quite some concerns on its financial health. 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.
In the past 5 years EL has always been profitable.
Each year in the past 5 years EL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.84%, EL is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
EL has a Return On Equity (6.29%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 5.39%, EL is doing good in the industry, outperforming 60.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EL is below the industry average of 8.14%.
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 67.24% of its industry peers.
In the last couple of years the Profit Margin of EL has grown nicely.
With a decent Operating Margin value of 12.86%, EL is doing good in the industry, outperforming 67.24% of the companies in the same industry.
In the last couple of years the Operating Margin of EL has grown nicely.
EL has a better Gross Margin (61.91%) than 67.24% 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 | 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
EL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
2.2 Solvency
EL has an Altman-Z score of 4.07. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
EL's Altman-Z score of 4.07 is fine compared to the rest of the industry. EL outperforms 75.86% of its industry peers.
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 Debt to FCF ratio of 4.18. This is in the better half of the industry: EL outperforms 72.41% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that EL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.25, EL is doing good in the industry, outperforming 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.07 |
ROIC/WACC0.72
WACC7.52%
2.3 Liquidity
EL has a Current 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.
The Current ratio of EL (0.97) is worse than 79.31% of its industry peers.
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: 77.59% 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
The Earnings Per Share has been growing slightly by 3.00% 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.
The Revenue has been growing slightly by 5.45% in the past year.
The Revenue has been growing by 8.80% on average over the past years. This is quite good.
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 9.27% on average over the next years. This is quite good.
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y9.27%
Revenue Next Year5.08%
Revenue Next 2Y5.67%
Revenue Next 3Y6%
Revenue Next 5Y6.19%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 39.59, EL can be considered very expensive at the moment.
EL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.76, EL is valued a bit more expensive.
The Price/Forward Earnings ratio is 30.12, which means the current valuation is very expensive for EL.
EL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.91. EL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.59 | ||
| Fwd PE | 30.12 |
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 the industry average as 67.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37 | ||
| EV/EBITDA | 20.42 |
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)2.15
PEG (5Y)2.47
EPS Next 2Y15.32%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.50%, EL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.14, EL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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
22.97% of the earnings are spent on dividend by EL. This is a low number and sustainable payout ratio.
The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.97%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPA:EL (8/22/2025, 5:35:30 PM)
272
0 (0%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners29.87%
Inst Owner ChangeN/A
Ins Owners32.47%
Ins Owner ChangeN/A
Market Cap124.44B
Analysts77.93
Price Target273.19 (0.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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)-2.02%
PT rev (3m)-3.62%
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)-1.1%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.59 | ||
| Fwd PE | 30.12 | ||
| P/S | 4.57 | ||
| P/FCF | 37 | ||
| P/OCF | 25.32 | ||
| P/B | 3.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.42 |
EPS(TTM)6.87
EY2.53%
EPS(NY)9.03
Fwd EY3.32%
FCF(TTM)7.35
FCFY2.7%
OCF(TTM)10.74
OCFY3.95%
SpS59.54
BVpS82.67
TBVpS-5.15
PEG (NY)2.15
PEG (5Y)2.47
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%
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-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 | 4.07 |
F-Score7
WACC7.52%
ROIC/WACC0.72
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 Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y9.27%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.08%
Revenue Next 2Y5.67%
Revenue Next 3Y6%
Revenue Next 5Y6.19%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y15.36%
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%