ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
Europe - FRA:ESL - FR0000121667 - Common Stock
266.6 EUR
+1.5 (+0.57%)
Taking everything into account, ESL scores 4 out of 10 in our fundamental rating. ESL was compared to 58 industry peers in the Health Care Equipment & Supplies industry. While ESL belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, ESL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ESL was profitable.
In the past year ESL had a positive cash flow from operations.
ESL had positive earnings in each of the past 5 years.
Each year in the past 5 years ESL had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.84%, ESL is doing good in the industry, outperforming 62.07% of the companies in the same industry.
ESL's Return On Equity of 6.29% is in line compared to the rest of the industry. ESL outperforms 51.72% of its industry peers.
ESL has a Return On Invested Capital (5.39%) which 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 8.86%.
The last Return On Invested Capital (5.39%) for ESL 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
ESL has a Profit Margin of 8.74%. This is in the better half of the industry: ESL outperforms 62.07% of its industry peers.
In the last couple of years the Profit Margin of ESL has grown nicely.
ESL's Operating Margin of 12.86% is fine compared to the rest of the industry. ESL outperforms 60.34% of its industry peers.
ESL's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 61.91%, ESL is doing good in the industry, outperforming 62.07% of the companies in the same industry.
ESL'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 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 4.01 indicates that ESL is not in any danger for bankruptcy at the moment.
ESL has a better Altman-Z score (4.01) than 74.14% of its industry peers.
The Debt to FCF ratio of ESL is 4.18, which is a neutral value as it means it would take ESL, 4.18 years of fcf income to pay off all of its debts.
ESL has a better Debt to FCF ratio (4.18) than 67.24% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ESL is not too dependend on debt financing.
ESL's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. ESL outperforms 62.07% 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
A Current Ratio of 0.97 indicates that ESL may have some problems paying its short term obligations.
ESL's Current ratio of 0.97 is on the low side compared to the rest of the industry. ESL is outperformed by 81.03% of its industry peers.
ESL has a Quick Ratio of 0.97. 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 0.67, ESL is not doing good in the industry: 79.31% 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.
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 5.45% in the past year.
Measured over the past years, ESL 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
The Earnings Per Share is expected to grow by 9.30% on average over the next years. This is quite good.
Based on estimates for the next years, ESL will show a small growth in Revenue. The Revenue will grow by 6.22% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
Based on the Price/Earnings ratio of 38.81, the valuation of ESL can be described as expensive.
ESL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ESL to the average of the S&P500 Index (27.43), we can say ESL is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 32.92, the valuation of ESL can be described as expensive.
ESL's Price/Forward Earnings is on the same level as the industry average.
ESL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.81 | ||
| Fwd PE | 32.92 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ESL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESL indicates a somewhat cheap valuation: ESL is cheaper than 65.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.27 | ||
| 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.
The decent profitability rating of ESL may justify a higher PE ratio.
PEG (NY)5.59
PEG (5Y)2.42
EPS Next 2Y9.2%
EPS Next 3Y10.05%
5. Dividend
5.1 Amount
ESL has a Yearly Dividend Yield of 1.52%.
ESL'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, ESL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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 Years3
5.3 Sustainability
ESL pays out 22.97% of its income as dividend. This is a sustainable payout ratio.
ESL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.97%
EPS Next 2Y9.2%
EPS Next 3Y10.05%
FRA:ESL (9/11/2025, 7:00:00 PM)
266.6
+1.5 (+0.57%)
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 Cap121.97B
Analysts77.93
Price Target273.4 (2.55%)
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 Years2
Div Non Decr Years3
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)-0.46%
PT rev (3m)-3.38%
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 | 38.81 | ||
| Fwd PE | 32.92 | ||
| P/S | 4.48 | ||
| P/FCF | 36.27 | ||
| P/OCF | 24.82 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.05 |
EPS(TTM)6.87
EY2.58%
EPS(NY)8.1
Fwd EY3.04%
FCF(TTM)7.35
FCFY2.76%
OCF(TTM)10.74
OCFY4.03%
SpS59.54
BVpS82.67
TBVpS-5.15
PEG (NY)5.59
PEG (5Y)2.42
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%