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 57 industry peers in the Health Care Equipment & Supplies industry. ESL scores excellent on profitability, but there are concerns on its financial health. 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.
Each year in the past 5 years ESL had a positive operating cash flow.
1.2 Ratios
ESL has a Return On Assets of 3.84%. This is in the better half of the industry: ESL outperforms 63.16% of its industry peers.
Looking at the Return On Equity, with a value of 6.29%, ESL is in line with its industry, outperforming 54.39% of the companies in the same industry.
ESL's Return On Invested Capital of 5.39% is in line compared to the rest of the industry. ESL outperforms 57.89% of its industry peers.
ESL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 8.57%.
The 3 year average ROIC (4.84%) for ESL 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
ESL's Profit Margin of 8.74% is fine compared to the rest of the industry. ESL outperforms 64.91% of its industry peers.
In the last couple of years the Profit Margin of ESL has grown nicely.
Looking at the Operating Margin, with a value of 12.86%, ESL is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
In the last couple of years the Operating Margin of ESL has grown nicely.
ESL's Gross Margin of 61.91% is fine compared to the rest of the industry. ESL outperforms 63.16% of its industry peers.
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 | 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
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.
ESL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ESL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.84 indicates that ESL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.84, ESL is doing good in the industry, outperforming 71.93% of the companies in the same industry.
ESL has a debt to FCF ratio of 4.18. This is a neutral value as ESL would need 4.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.18, ESL is in the better half of the industry, outperforming 70.18% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that ESL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.25, ESL is doing good in the industry, outperforming 61.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 3.84 |
ROIC/WACC0.72
WACC7.49%
2.3 Liquidity
A Current Ratio of 0.97 indicates that ESL may have some problems paying its short term obligations.
With a Current ratio value of 0.97, ESL is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that ESL may have some problems paying its short term obligations.
The Quick ratio of ESL (0.67) is worse than 77.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
ESL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.00%.
Measured over the past years, ESL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.01% on average per year.
Looking at the last year, ESL shows a small growth in Revenue. The Revenue has grown by 5.45% in the last 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%
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 8.99% 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 6.14% on average per year.
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue Next Year5.08%
Revenue Next 2Y5.67%
Revenue Next 3Y6%
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.
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 36.72, 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 (26.41), we can say ESL is valued slightly more expensively.
ESL is valuated quite expensively with a Price/Forward Earnings ratio of 27.94.
ESL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.87, ESL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.72 | ||
| Fwd PE | 27.94 |
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.
70.18% of the companies in the same industry are more expensive than ESL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.32 | ||
| EV/EBITDA | 19.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ESL may justify a higher PE ratio.
ESL's earnings are expected to grow with 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)2.29
EPS Next 2Y15.32%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.57%, ESL has a reasonable but not impressive dividend return.
ESL's Dividend Yield is a higher than the industry average which is at 2.09.
Compared to the average S&P500 Dividend Yield of 2.39, ESL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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
22.97% of the earnings are spent on dividend by ESL. This is a low number and sustainable payout ratio.
ESL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.97%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
FRA:ESL (8/11/2025, 7:00:00 PM)
252.3
-0.5 (-0.2%)
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 Cap115.43B
Analysts77.93
Price Target272.76 (8.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)-3.61%
PT rev (3m)-4.14%
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)-1.1%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.72 | ||
| Fwd PE | 27.94 | ||
| P/S | 4.24 | ||
| P/FCF | 34.32 | ||
| P/OCF | 23.49 | ||
| P/B | 3.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.06 |
EPS(TTM)6.87
EY2.72%
EPS(NY)9.03
Fwd EY3.58%
FCF(TTM)7.35
FCFY2.91%
OCF(TTM)10.74
OCFY4.26%
SpS59.54
BVpS82.67
TBVpS-5.15
PEG (NY)2
PEG (5Y)2.29
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 | 3.84 |
F-Score7
WACC7.49%
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 Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.08%
Revenue Next 2Y5.67%
Revenue Next 3Y6%
Revenue Next 5Y6.14%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y15.63%
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%