ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ESL - FR0000121667 - Common Stock
269.6 EUR
-3.1 (-1.14%)
Taking everything into account, ESL scores 4 out of 10 in our fundamental rating. 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
In the past year ESL was profitable.
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.
ESL's Return On Equity of 6.29% is in line compared to the rest of the industry. ESL outperforms 47.69% of its industry peers.
With a Return On Invested Capital value of 5.39%, ESL perfoms like the industry average, outperforming 49.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ESL is below the industry average of 9.74%.
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's Profit Margin of 8.74% is in line compared to the rest of the industry. ESL outperforms 60.00% of its industry peers.
In the last couple of years the Profit Margin of ESL has grown nicely.
With a Operating Margin value of 12.86%, ESL perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
ESL's Operating Margin has improved in the last couple of years.
The Gross Margin of ESL (61.91%) is better than 63.08% 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.
ESL has a worse debt/assets ratio than last year.
2.2 Solvency
ESL has an Altman-Z score of 4.08. This indicates that ESL is financially healthy and has little risk of bankruptcy at the moment.
ESL has a Altman-Z score of 4.08. This is in the better half of the industry: ESL outperforms 70.77% 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.
The Debt to FCF ratio of ESL (4.18) is better than 66.15% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ESL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, ESL is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.7
WACC7.7%
2.3 Liquidity
A Current Ratio of 0.97 indicates that ESL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.97, ESL is doing worse than 80.00% of the companies in the same industry.
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 78.46% of the companies in the same industry.
| 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.
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
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.
Based on estimates for the next years, ESL will show a small growth in Revenue. The Revenue will grow by 7.48% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ESL is valuated quite expensively with a Price/Earnings ratio of 39.24.
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 26.92. ESL is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 33.13, the valuation of ESL can be described as expensive.
Based on the Price/Forward Earnings ratio, ESL is valued a bit more expensive than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, ESL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 33.13 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.13 | ||
| EV/EBITDA | 20.48 |
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)5.42
PEG (5Y)2.45
EPS Next 2Y9.47%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
ESL has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
ESL's Dividend Yield is a higher than the industry average which is at 1.11.
Compared to the average S&P500 Dividend Yield of 2.00, ESL is paying slightly less dividend.
| 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.
ESL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.97%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
FRA:ESL (12/23/2025, 7:00:00 PM)
269.6
-3.1 (-1.14%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners28.84%
Inst Owner ChangeN/A
Ins Owners32.08%
Ins Owner ChangeN/A
Market Cap124.87B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target335.22 (24.34%)
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 | 39.24 | ||
| Fwd PE | 33.13 | ||
| P/S | 4.58 | ||
| P/FCF | 37.13 | ||
| P/OCF | 25.41 | ||
| P/B | 3.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.48 |
EPS(TTM)6.87
EY2.55%
EPS(NY)8.14
Fwd EY3.02%
FCF(TTM)7.26
FCFY2.69%
OCF(TTM)10.61
OCFY3.94%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.42
PEG (5Y)2.45
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 | 4.08 |
F-Score7
WACC7.7%
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.
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 39.24 and the Price/Book (PB) ratio is 3.3.
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%.