ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
Europe - EPA:EL - FR0000121667 - Common Stock
264.7 EUR
-1.9 (-0.71%)
Overall EL gets a fundamental rating of 4 out of 10. We evaluated EL against 58 industry peers in the Health Care Equipment & Supplies industry. While EL is still in line with the averages on profitability rating, there are concerns on its financial health. EL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
EL had positive earnings in the past year.
EL had a positive operating cash flow in the past year.
In the past 5 years EL has always been profitable.
EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EL has a better Return On Assets (3.84%) than 60.34% of its industry peers.
With a Return On Equity value of 6.29%, EL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
EL has a Return On Invested Capital of 5.39%. This is comparable to the rest of the industry: EL outperforms 53.45% of its industry peers.
EL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 8.86%.
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 of 8.74%. This is in the better half of the industry: EL outperforms 60.34% of its industry peers.
In the last couple of years the Profit Margin of EL has grown nicely.
With a Operating Margin value of 12.86%, EL perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
In the last couple of years the Operating Margin of EL has grown nicely.
EL's Gross Margin of 61.91% is fine compared to the rest of the industry. EL outperforms 60.34% of its industry peers.
EL's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for EL has been increased compared to 1 year ago.
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 4.01. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
EL's Altman-Z score of 4.01 is fine compared to the rest of the industry. EL outperforms 72.41% 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.
Looking at the Debt to FCF ratio, with a value of 4.18, EL is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
EL has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
EL's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. EL outperforms 60.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.01 |
ROIC/WACC0.72
WACC7.51%
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.
EL's Current ratio of 0.97 is on the low side compared to the rest of the industry. EL is outperformed by 82.76% 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: 81.03% 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.
Looking at the last year, EL shows a small growth in Revenue. The Revenue has grown by 5.45% in the last year.
Measured over the past years, EL shows a quite strong growth in Revenue. The Revenue has been growing by 8.80% on average per year.
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 9.30% on average per year.
The Revenue is expected to grow by 6.22% on average over the next years.
EPS Next Y6.94%
EPS Next 2Y9.2%
EPS Next 3Y10.05%
EPS Next 5Y9.3%
Revenue Next Year5.01%
Revenue Next 2Y5.63%
Revenue Next 3Y5.98%
Revenue Next 5Y6.22%
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
EL is valuated quite expensively with a Price/Earnings ratio of 38.53.
EL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, EL is valued a bit more expensive.
EL is valuated quite expensively with a Price/Forward Earnings ratio of 32.69.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.73. EL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.53 | ||
| Fwd PE | 32.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EL.
63.79% of the companies in the same industry are more expensive than EL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.01 | ||
| EV/EBITDA | 20.05 |
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.
PEG (NY)5.55
PEG (5Y)2.41
EPS Next 2Y9.2%
EPS Next 3Y10.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, EL has a reasonable but not impressive dividend return.
EL's Dividend Yield is a higher than the industry average which is at 2.16.
Compared to the average S&P500 Dividend Yield of 2.45, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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.
EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.97%
EPS Next 2Y9.2%
EPS Next 3Y10.05%
EPA:EL (9/12/2025, 7:00:00 PM)
264.7
-1.9 (-0.71%)
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 Cap121.10B
Analysts77.93
Price Target273.19 (3.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)-0.38%
PT rev (3m)-3.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-9.67%
EPS NY rev (3m)-9.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.53 | ||
| Fwd PE | 32.69 | ||
| P/S | 4.45 | ||
| P/FCF | 36.01 | ||
| P/OCF | 24.64 | ||
| P/B | 3.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.05 |
EPS(TTM)6.87
EY2.6%
EPS(NY)8.1
Fwd EY3.06%
FCF(TTM)7.35
FCFY2.78%
OCF(TTM)10.74
OCFY4.06%
SpS59.54
BVpS82.67
TBVpS-5.15
PEG (NY)5.55
PEG (5Y)2.41
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 | 4.01 |
F-Score7
WACC7.51%
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 Y6.94%
EPS Next 2Y9.2%
EPS Next 3Y10.05%
EPS Next 5Y9.3%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.01%
Revenue Next 2Y5.63%
Revenue Next 3Y5.98%
Revenue Next 5Y6.22%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y15.39%
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%