ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ESL - FR0000121667 - Common Stock
311 EUR
+3.1 (+1.01%)
ESL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 63 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of ESL while its profitability can be described as average. ESL is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years ESL has been profitable.
ESL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ESL (3.84%) is comparable to the rest of the industry.
The Return On Equity of ESL (6.29%) is comparable to the rest of the industry.
ESL has a Return On Invested Capital (5.39%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ESL is below the industry average of 9.33%.
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
Looking at the Profit Margin, with a value of 8.74%, ESL is in line with its industry, outperforming 58.73% of the companies in the same industry.
ESL's Profit Margin has improved in the last couple of years.
The Operating Margin of ESL (12.86%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ESL has grown nicely.
ESL has a better Gross Margin (61.91%) than 61.90% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESL is destroying value.
Compared to 1 year ago, ESL has more shares outstanding
Compared to 5 years ago, ESL has more shares outstanding
The debt/assets ratio for ESL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.56 indicates that ESL is not in any danger for bankruptcy at the moment.
ESL has a better Altman-Z score (4.56) than 79.37% of its industry peers.
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 65.08% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that ESL is not too dependend on debt financing.
The Debt to Equity ratio of ESL (0.25) is better than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.56 |
ROIC/WACC0.7
WACC7.75%
2.3 Liquidity
ESL has a Current 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.
ESL has a worse Current ratio (0.97) than 82.54% 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.
Looking at the Quick ratio, with a value of 0.67, ESL is doing worse than 79.37% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 16.01% on average over the past years. This is quite good.
Looking at the last year, ESL shows a small growth in Revenue. The Revenue has grown by 5.45% in the last 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
ESL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.05% yearly.
Based on estimates for the next years, ESL will show a small growth in Revenue. The Revenue will grow by 7.60% on average per year.
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
ESL is valuated quite expensively with a Price/Earnings ratio of 45.27.
Compared to the rest of the industry, the Price/Earnings ratio of ESL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.98, ESL is valued quite expensively.
ESL is valuated quite expensively with a Price/Forward Earnings ratio of 38.26.
63.49% of the companies in the same industry are cheaper than ESL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, ESL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.27 | ||
| Fwd PE | 38.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ESL.
Based on the Price/Free Cash Flow ratio, ESL is valued a bit cheaper than the industry average as 60.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.83 | ||
| EV/EBITDA | 23.37 |
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.
PEG (NY)6.07
PEG (5Y)2.83
EPS Next 2Y9.42%
EPS Next 3Y10.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, ESL has a reasonable but not impressive dividend return.
ESL'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, ESL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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.
The dividend of ESL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.97%
EPS Next 2Y9.42%
EPS Next 3Y10.6%
FRA:ESL (11/24/2025, 7:00:00 PM)
311
+3.1 (+1.01%)
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 Cap144.04B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target323.24 (3.94%)
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 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)11.3%
PT rev (3m)18.49%
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 | 45.27 | ||
| Fwd PE | 38.26 | ||
| P/S | 5.29 | ||
| P/FCF | 42.83 | ||
| P/OCF | 29.31 | ||
| P/B | 3.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.37 |
EPS(TTM)6.87
EY2.21%
EPS(NY)8.13
Fwd EY2.61%
FCF(TTM)7.26
FCFY2.33%
OCF(TTM)10.61
OCFY3.41%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)6.07
PEG (5Y)2.83
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 | 4.56 |
F-Score7
WACC7.75%
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 / ESL.DE FAQ
What is the ChartMill fundamental rating of ESSILORLUXOTTICA (ESL.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ESL.DE.
Can you provide the valuation status for ESSILORLUXOTTICA?
ChartMill assigns a valuation rating of 2 / 10 to ESSILORLUXOTTICA (ESL.DE). This can be considered as Overvalued.
What is the profitability of ESL stock?
ESSILORLUXOTTICA (ESL.DE) has a profitability rating of 6 / 10.
What is the valuation of ESSILORLUXOTTICA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ESSILORLUXOTTICA (ESL.DE) is 45.27 and the Price/Book (PB) ratio is 3.81.
Can you provide the dividend sustainability for ESL stock?
The dividend rating of ESSILORLUXOTTICA (ESL.DE) is 5 / 10 and the dividend payout ratio is 22.97%.