ESSILORLUXOTTICA (1EL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EL - FR0000121667 - Common Stock
265.6 EUR
-5.6 (-2.06%)
We assign a fundamental rating of 4 out of 10 to 1EL. 1EL was compared to 65 industry peers in the Health Care Equipment & Supplies industry. While 1EL is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, 1EL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1EL was profitable.
In the past year 1EL had a positive cash flow from operations.
Each year in the past 5 years 1EL has been profitable.
In the past 5 years 1EL always reported a positive cash flow from operatings.
1.2 Ratios
1EL's Return On Assets of 3.84% is in line compared to the rest of the industry. 1EL outperforms 53.23% of its industry peers.
1EL has a Return On Equity (6.29%) which is in line with its industry peers.
The Return On Invested Capital of 1EL (5.39%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1EL is significantly below the industry average of 10.04%.
The last Return On Invested Capital (5.39%) for 1EL 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
1EL has a Profit Margin (8.74%) which is comparable to the rest of the industry.
1EL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.86%, 1EL is in line with its industry, outperforming 59.68% of the companies in the same industry.
1EL's Operating Margin has improved in the last couple of years.
1EL's Gross Margin of 61.91% is fine compared to the rest of the industry. 1EL outperforms 61.29% of its industry peers.
In the last couple of years the Gross Margin of 1EL 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), 1EL is destroying value.
The number of shares outstanding for 1EL has been increased compared to 1 year ago.
1EL has more shares outstanding than it did 5 years ago.
1EL has a worse debt/assets ratio than last year.
2.2 Solvency
1EL has an Altman-Z score of 4.03. This indicates that 1EL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1EL (4.03) is better than 74.19% of its industry peers.
1EL has a debt to FCF ratio of 4.18. This is a neutral value as 1EL would need 4.18 years to pay back of all of its debts.
1EL's Debt to FCF ratio of 4.18 is fine compared to the rest of the industry. 1EL outperforms 61.29% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that 1EL is not too dependend on debt financing.
1EL's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. 1EL outperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.03 |
ROIC/WACC0.7
WACC7.7%
2.3 Liquidity
1EL has a Current Ratio of 0.97. This is a bad value and indicates that 1EL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.97, 1EL is not doing good in the industry: 82.26% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that 1EL may have some problems paying its short term obligations.
1EL has a worse Quick ratio (0.67) than 80.65% 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.
The Earnings Per Share has been growing by 16.01% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.45% in the past year.
Measured over the past years, 1EL 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
1EL 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, 1EL 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
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
Based on the Price/Earnings ratio of 38.66, the valuation of 1EL can be described as expensive.
1EL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. 1EL is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 32.64 indicates a quite expensive valuation of 1EL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1EL indicates a slightly more expensive valuation: 1EL is more expensive than 62.90% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. 1EL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.66 | ||
| Fwd PE | 32.64 |
4.2 Price Multiples
1EL's Enterprise Value to EBITDA ratio is in line with the industry average.
1EL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.58 | ||
| EV/EBITDA | 20.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1EL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1EL may justify a higher PE ratio.
PEG (NY)5.34
PEG (5Y)2.41
EPS Next 2Y9.47%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, 1EL has a reasonable but not impressive dividend return.
1EL's Dividend Yield is a higher than the industry average which is at 0.98.
Compared to the average S&P500 Dividend Yield of 1.94, 1EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of 1EL has a limited annual growth rate of 4.50%.
Dividend Growth(5Y)4.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
22.97% of the earnings are spent on dividend by 1EL. This is a low number and sustainable payout ratio.
The dividend of 1EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.97%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
BIT:1EL (1/2/2026, 7:00:00 PM)
265.6
-5.6 (-2.06%)
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 Cap123.01B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target331.71 (24.89%)
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 Years0
Div Non Decr Years0
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)2.59%
PT rev (3m)19.83%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.66 | ||
| Fwd PE | 32.64 | ||
| P/S | 4.52 | ||
| P/FCF | 36.58 | ||
| P/OCF | 25.03 | ||
| P/B | 3.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.2 |
EPS(TTM)6.87
EY2.59%
EPS(NY)8.14
Fwd EY3.06%
FCF(TTM)7.26
FCFY2.73%
OCF(TTM)10.61
OCFY3.99%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.34
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 | 4.03 |
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 / 1EL.MI FAQ
What is the fundamental rating for 1EL stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1EL.MI.
Can you provide the valuation status for ESSILORLUXOTTICA?
ChartMill assigns a valuation rating of 2 / 10 to ESSILORLUXOTTICA (1EL.MI). This can be considered as Overvalued.
What is the profitability of 1EL stock?
ESSILORLUXOTTICA (1EL.MI) has a profitability rating of 6 / 10.
What is the financial health of ESSILORLUXOTTICA (1EL.MI) stock?
The financial health rating of ESSILORLUXOTTICA (1EL.MI) is 3 / 10.
Can you provide the expected EPS growth for 1EL stock?
The Earnings per Share (EPS) of ESSILORLUXOTTICA (1EL.MI) is expected to grow by 7.24% in the next year.