ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:EL - FR0000121667 - Common Stock
308.7 EUR
+5 (+1.65%)
We assign a fundamental rating of 4 out of 10 to EL. EL was compared to 63 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. While showing a medium growth rate, EL is valued expensive at the moment.
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.
Each year in the past 5 years EL has 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 (3.84%) which is comparable to the rest of the industry.
EL's Return On Equity of 6.29% is in line compared to the rest of the industry. EL outperforms 49.21% of its industry peers.
The Return On Invested Capital of EL (5.39%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for EL is below the industry average of 9.33%.
The 3 year average ROIC (4.84%) for EL is below the current ROIC(5.39%), indicating increased profibility in the last year.
| 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 61.90% of its industry peers.
EL's Profit Margin has improved in the last couple of years.
EL has a better Operating Margin (12.86%) than 61.90% of its industry peers.
EL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 61.91%, EL is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
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.
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
An Altman-Z score of 4.47 indicates that EL is not in any danger for bankruptcy at the moment.
EL has a better Altman-Z score (4.47) than 76.19% 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.
With a decent Debt to FCF ratio value of 4.18, EL is doing good in the industry, outperforming 68.25% 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.
The Debt to Equity ratio of EL (0.25) is better than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.47 |
ROIC/WACC0.7
WACC7.74%
2.3 Liquidity
A Current Ratio of 0.97 indicates that EL may have some problems paying its short term obligations.
EL has a worse Current ratio (0.97) than 79.37% 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.
EL has a Quick ratio of 0.67. This is in the lower half of the industry: EL underperforms 76.19% of its industry peers.
| 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.
Measured over the past years, EL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.01% on average per year.
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 11.05% on average over the next years. This is quite good.
EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.60% yearly.
EPS Next Y7.46%
EPS Next 2Y9.42%
EPS Next 3Y10.6%
EPS Next 5Y11.05%
Revenue Next Year5.73%
Revenue Next 2Y6.28%
Revenue Next 3Y6.67%
Revenue Next 5Y7.6%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 44.93, 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 is valuated expensively when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 37.97, the valuation of EL can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as EL.
EL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.93 | ||
| Fwd PE | 37.97 |
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 63.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.51 | ||
| EV/EBITDA | 22.86 |
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)6.02
PEG (5Y)2.81
EPS Next 2Y9.42%
EPS Next 3Y10.6%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
EL's Dividend Yield is a higher than the industry average which is at 2.22.
Compared to an average S&P500 Dividend Yield of 2.41, 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.
EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.97%
EPS Next 2Y9.42%
EPS Next 3Y10.6%
EPA:EL (11/25/2025, 5:36:15 PM)
308.7
+5 (+1.65%)
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 Cap142.97B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target323.24 (4.71%)
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)11.3%
PT rev (3m)18.32%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.64%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.93 | ||
| Fwd PE | 37.97 | ||
| P/S | 5.25 | ||
| P/FCF | 42.51 | ||
| P/OCF | 29.1 | ||
| P/B | 3.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.86 |
EPS(TTM)6.87
EY2.23%
EPS(NY)8.13
Fwd EY2.63%
FCF(TTM)7.26
FCFY2.35%
OCF(TTM)10.61
OCFY3.44%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)6.02
PEG (5Y)2.81
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 | 4.47 |
F-Score7
WACC7.74%
ROIC/WACC0.7
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 Y7.46%
EPS Next 2Y9.42%
EPS Next 3Y10.6%
EPS Next 5Y11.05%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.73%
Revenue Next 2Y6.28%
Revenue Next 3Y6.67%
Revenue Next 5Y7.6%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.93%
EBIT Next 3Y22.99%
EBIT Next 5Y17.39%
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%
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 3 / 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 7.46% in the next year.