ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ESL - FR0000121667 - Common Stock
264.8 EUR
-6 (-2.22%)
We assign a fundamental rating of 4 out of 10 to ESL. ESL was compared to 62 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
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 (3.84%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.29%, ESL is in line with its industry, outperforming 48.39% 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 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESL is below the industry average of 9.74%.
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 61.29% of its industry peers.
In the last couple of years the Profit Margin of ESL has grown nicely.
ESL has a better Operating Margin (12.86%) than 61.29% of its industry peers.
ESL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 61.91%, ESL is in the better half of the industry, outperforming 62.90% 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 | 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.
ESL has more shares outstanding than it did 1 year ago.
ESL has more shares outstanding than it did 5 years ago.
ESL has a worse debt/assets ratio than last year.
2.2 Solvency
ESL has an Altman-Z score of 4.09. This indicates that ESL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.09, ESL is in the better half of the industry, outperforming 72.58% 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.
ESL has a Debt to FCF ratio of 4.18. This is in the better half of the industry: ESL outperforms 62.90% of its industry peers.
ESL has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
ESL's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. ESL outperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.09 |
ROIC/WACC0.7
WACC7.69%
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.
The Current ratio of ESL (0.97) is worse than 80.65% 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.
ESL has a worse Quick ratio (0.67) than 79.03% of its industry peers.
| 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.
ESL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.45%.
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
Based on estimates for the next years, ESL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.05% on average per year.
ESL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.48% yearly.
EPS Next Y7.24%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
EPS Next 5Y11.05%
Revenue Next Year5.99%
Revenue Next 2Y6.94%
Revenue Next 3Y7.45%
Revenue Next 5Y7.48%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 38.54 indicates a quite expensive valuation of ESL.
Compared to the rest of the industry, the Price/Earnings ratio of ESL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.60. ESL is valued slightly more expensive when compared to this.
ESL is valuated quite expensively with a Price/Forward Earnings ratio of 32.54.
ESL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ESL is more expensive than 62.90% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, ESL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.54 | ||
| Fwd PE | 32.54 |
4.2 Price Multiples
ESL's Enterprise Value to EBITDA is on the same level as the industry average.
ESL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.47 | ||
| EV/EBITDA | 20.57 |
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)5.32
PEG (5Y)2.41
EPS Next 2Y9.47%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
ESL has a Yearly Dividend Yield of 1.46%.
ESL's Dividend Yield is a higher than the industry average which is at 1.11.
ESL's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 2Y9.47%
EPS Next 3Y10.9%
FRA:ESL (1/2/2026, 7:00:00 PM)
264.8
-6 (-2.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners28.97%
Inst Owner ChangeN/A
Ins Owners32.07%
Ins Owner ChangeN/A
Market Cap122.64B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target335.22 (26.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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)3.71%
PT rev (3m)20.78%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.54 | ||
| Fwd PE | 32.54 | ||
| P/S | 4.5 | ||
| P/FCF | 36.47 | ||
| P/OCF | 24.96 | ||
| P/B | 3.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.57 |
EPS(TTM)6.87
EY2.59%
EPS(NY)8.14
Fwd EY3.07%
FCF(TTM)7.26
FCFY2.74%
OCF(TTM)10.61
OCFY4.01%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.32
PEG (5Y)2.41
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 | 4.09 |
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 Y7.24%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
EPS Next 5Y11.05%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.99%
Revenue Next 2Y6.94%
Revenue Next 3Y7.45%
Revenue Next 5Y7.48%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.89%
EBIT Next 3Y23.64%
EBIT Next 5Y17.4%
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.
What is the valuation status for ESL stock?
ChartMill assigns a valuation rating of 2 / 10 to ESSILORLUXOTTICA (ESL.DE). This can be considered as Overvalued.
Can you provide the profitability details for ESSILORLUXOTTICA?
ESSILORLUXOTTICA (ESL.DE) has a profitability rating of 6 / 10.
What is the expected EPS growth for ESSILORLUXOTTICA (ESL.DE) stock?
The Earnings per Share (EPS) of ESSILORLUXOTTICA (ESL.DE) is expected to grow by 7.24% in the next year.
How sustainable is the dividend of ESSILORLUXOTTICA (ESL.DE) stock?
The dividend rating of ESSILORLUXOTTICA (ESL.DE) is 5 / 10 and the dividend payout ratio is 22.97%.