ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
EPA:EL - Euronext Paris - Matif - FR0000121667 - Common Stock - Currency: EUR
EL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of EL get a neutral evaluation. Nothing too spectacular is happening here. 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.
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 has a Return On Assets (3.67%) which is in line with its industry peers.
With a Return On Equity value of 5.84%, EL perfoms like the industry average, outperforming 52.73% 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 56.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 Rank | Sector 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%
1.3 Margins
With a decent Profit Margin value of 8.90%, EL is doing good in the industry, outperforming 61.82% of the companies in the same industry.
In the last couple of years the Profit Margin of EL has grown nicely.
EL's Operating Margin of 13.01% is in line compared to the rest of the industry. EL outperforms 60.00% of its industry peers.
EL's Operating Margin has improved in the last couple of years.
EL's Gross Margin of 62.45% is in line compared to the rest of the industry. EL outperforms 60.00% 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 | 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL is destroying value.
The number of shares outstanding for EL has been increased compared to 1 year ago.
EL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EL has a worse debt to assets ratio.
2.2 Solvency
EL has an Altman-Z score of 3.71. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.71, EL is doing good in the industry, outperforming 65.45% of the companies in the same industry.
The Debt to FCF ratio of EL is 3.94, which is a good value as it means it would take EL, 3.94 years of fcf income to pay off all of its debts.
EL has a better Debt to FCF ratio (3.94) than 69.09% of its industry peers.
EL has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
EL has a better Debt to Equity ratio (0.24) than 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.71 |
ROIC/WACC0.67
WACC7.48%
2.3 Liquidity
A Current Ratio of 0.95 indicates that EL may have some problems paying its short term obligations.
EL's Current ratio of 0.95 is on the low side compared to the rest of the industry. EL is outperformed by 83.64% of its industry peers.
EL has a Quick 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.
EL's Quick ratio of 0.65 is on the low side compared to the rest of the industry. EL is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
EL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.82%.
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 4.38% in the past 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)3.82%
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
Based on estimates for the next years, EL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.99% on average per year.
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
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.
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
The Price/Earnings ratio is 36.38, which means the current valuation is very expensive for EL.
61.82% of the companies in the same industry are more expensive than EL, based on the Price/Earnings ratio.
EL is valuated rather expensively when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 30.73, the valuation of EL can be described as expensive.
EL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.71, EL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.38 | ||
| Fwd PE | 30.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EL.
67.27% 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 | 33.71 | ||
| EV/EBITDA | 18.89 |
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.
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%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.07, EL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, EL is paying slightly less dividend.
| Industry Rank | Sector 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
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%
EPA:EL (7/23/2025, 10:54:17 AM)
247
+4.7 (+1.94%)
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 Cap113.00B
Analysts77.33
Price Target274.22 (11.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.38 | ||
| Fwd PE | 30.73 | ||
| P/S | 4.26 | ||
| P/FCF | 33.71 | ||
| P/OCF | 23.19 | ||
| P/B | 2.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.89 |
EPS(TTM)6.79
EY2.75%
EPS(NY)8.04
Fwd EY3.25%
FCF(TTM)7.33
FCFY2.97%
OCF(TTM)10.65
OCFY4.31%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)1.98
PEG (5Y)2.27
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.71 |
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%