ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
Europe - EPA:EL - FR0000121667 - Common Stock
276.4 EUR
+0.3 (+0.11%)
Taking everything into account, EL scores 4 out of 10 in our fundamental rating. EL was compared to 60 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 valied quite expensively at the moment, while 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 has a Return On Assets (3.84%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.29%, EL is in line with its industry, outperforming 48.33% of the companies in the same industry.
The Return On Invested Capital of EL (5.39%) is comparable to the rest of the industry.
EL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 9.00%.
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
With a Profit Margin value of 8.74%, EL perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
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 60.00% of the companies in the same industry.
EL's Operating Margin has improved in the last couple of years.
The Gross Margin of EL (61.91%) is better than 63.33% 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
EL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for EL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.12 indicates that EL is not in any danger for bankruptcy at the moment.
The Altman-Z score of EL (4.12) is better than 73.33% of its industry peers.
EL has a debt to FCF ratio of 4.18. This is a neutral value as EL would need 4.18 years to pay back of all of its debts.
EL has a better Debt to FCF ratio (4.18) than 68.33% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that EL is not too dependend on debt financing.
EL has a Debt to Equity ratio of 0.25. This is in the better half of the industry: EL outperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.12 |
ROIC/WACC0.7
WACC7.69%
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.
Looking at the Current ratio, with a value of 0.97, EL is doing worse than 76.67% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.67, EL is doing worse than 75.00% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 16.01% on average over the past years. This is quite good.
EL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.45%.
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
The Earnings Per Share is expected to grow by 9.20% 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 6.39% yearly.
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
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
A Price/Earnings ratio of 40.23 indicates a quite expensive valuation of EL.
EL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.90, EL is valued a bit more expensive.
EL is valuated quite expensively with a Price/Forward Earnings ratio of 34.32.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EL indicates a slightly more expensive valuation: EL is more expensive than 60.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.36. EL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.23 | ||
| Fwd PE | 34.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EL is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EL indicates a somewhat cheap valuation: EL is cheaper than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.6 | ||
| EV/EBITDA | 20.7 |
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.
EL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.94
PEG (5Y)2.51
EPS Next 2Y8.91%
EPS Next 3Y9.98%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.41%. 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 2.13.
Compared to an average S&P500 Dividend Yield of 2.44, EL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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 2Y8.91%
EPS Next 3Y9.98%
EPA:EL (10/7/2025, 5:36:15 PM)
276.4
+0.3 (+0.11%)
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 Cap126.46B
Analysts78.67
Price Target290.43 (5.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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)6.31%
PT rev (3m)4.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-9.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.23 | ||
| Fwd PE | 34.32 | ||
| P/S | 4.64 | ||
| P/FCF | 37.6 | ||
| P/OCF | 25.73 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.7 |
EPS(TTM)6.87
EY2.49%
EPS(NY)8.05
Fwd EY2.91%
FCF(TTM)7.35
FCFY2.66%
OCF(TTM)10.74
OCFY3.89%
SpS59.54
BVpS82.67
TBVpS-5.15
PEG (NY)5.94
PEG (5Y)2.51
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 | 4.12 |
F-Score7
WACC7.69%
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 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%