ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
FRA:ESL - Deutsche Boerse Ag - FR0000121667 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to ESL. ESL was compared to 60 industry peers in the Health Care Equipment & Supplies industry. ESL has an average financial health and profitability rating. ESL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ESL had positive earnings in the past year.
ESL had a positive operating cash flow in the past year.
ESL had positive earnings in each of the past 5 years.
ESL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESL has a Return On Assets (3.67%) which is comparable to the rest of the industry.
With a Return On Equity value of 5.84%, ESL perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
The Return On Invested Capital of ESL (4.99%) is comparable to the rest of the industry.
ESL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 8.41%.
The 3 year average ROIC (4.84%) for ESL is below the current ROIC(4.99%), indicating increased profibility in the last year.
| 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
The Profit Margin of ESL (8.90%) is better than 62.07% of its industry peers.
In the last couple of years the Profit Margin of ESL has grown nicely.
The Operating Margin of ESL (13.01%) is better than 65.52% of its industry peers.
In the last couple of years the Operating Margin of ESL has grown nicely.
Looking at the Gross Margin, with a value of 62.45%, ESL is in line with its industry, outperforming 58.62% of the companies in the same industry.
In the last couple of years the Gross Margin of ESL 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), ESL is destroying value.
The number of shares outstanding for ESL has been increased compared to 1 year ago.
The number of shares outstanding for ESL has been increased compared to 5 years ago.
Compared to 1 year ago, ESL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.77 indicates that ESL is not in any danger for bankruptcy at the moment.
ESL has a Altman-Z score of 3.77. This is in the better half of the industry: ESL outperforms 75.86% of its industry peers.
The Debt to FCF ratio of ESL is 3.94, which is a good value as it means it would take ESL, 3.94 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.94, ESL is doing good in the industry, outperforming 70.69% of the companies in the same industry.
ESL has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, ESL is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.77 |
ROIC/WACC0.66
WACC7.53%
2.3 Liquidity
ESL has a Current Ratio of 0.95. This is a bad value and indicates that ESL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ESL (0.95) is worse than 77.59% of its industry peers.
ESL has a Quick Ratio of 0.95. This is a bad value and indicates that ESL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.65, ESL is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ESL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.82%.
ESL 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.
ESL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.80% yearly.
EPS 1Y (TTM)3.82%
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
ESL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.08% yearly.
Based on estimates for the next years, ESL will show a small growth in Revenue. The Revenue will grow by 6.85% on average per year.
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y12.08%
Revenue Next Year6.25%
Revenue Next 2Y6.29%
Revenue Next 3Y6.48%
Revenue Next 5Y6.85%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
The Price/Earnings ratio is 36.17, which means the current valuation is very expensive for ESL.
Compared to the rest of the industry, the Price/Earnings ratio of ESL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ESL to the average of the S&P500 Index (26.25), we can say ESL is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 30.55, the valuation of ESL can be described as expensive.
ESL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, ESL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.17 | ||
| Fwd PE | 30.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESL is on the same level as its industry peers.
ESL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ESL is cheaper than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.52 | ||
| EV/EBITDA | 19.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ESL may justify a higher PE ratio.
A more expensive valuation may be justified as ESL's earnings are expected to grow with 13.79% in the coming years.
PEG (NY)1.97
PEG (5Y)2.26
EPS Next 2Y15.32%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, ESL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.27, ESL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, ESL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of ESL has a limited annual growth rate of 4.50%.
Dividend Growth(5Y)4.5%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ESL pays out 49.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ESL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.3%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
FRA:ESL (5/30/2025, 7:00:00 PM)
245.6
-0.9 (-0.37%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners31.76%
Inst Owner ChangeN/A
Ins Owners32.45%
Ins Owner ChangeN/A
Market Cap112.36B
Analysts78
Price Target284.56 (15.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend2.56
Dividend Growth(5Y)4.5%
DP49.3%
Div Incr Years2
Div Non Decr Years2
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)-2.78%
PT rev (3m)4.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.32%
Revenue NY rev (3m)-2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.17 | ||
| Fwd PE | 30.55 | ||
| P/S | 4.24 | ||
| P/FCF | 33.52 | ||
| P/OCF | 23.05 | ||
| P/B | 2.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.29 |
EPS(TTM)6.79
EY2.76%
EPS(NY)8.04
Fwd EY3.27%
FCF(TTM)7.33
FCFY2.98%
OCF(TTM)10.65
OCFY4.34%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)1.97
PEG (5Y)2.26
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 | 3.77 |
F-Score5
WACC7.53%
ROIC/WACC0.66
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 5Y12.08%
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 5Y6.85%
EBIT growth 1Y9.04%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y17.5%
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%