ESSILORLUXOTTICA (1EL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EL - FR0000121667 - Common Stock
279 EUR
+5.1 (+1.86%)
We assign a fundamental rating of 4 out of 10 to 1EL. 1EL was compared to 66 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of 1EL while its profitability can be described as average. While showing a medium growth rate, 1EL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
1EL had positive earnings in the past year.
In the past year 1EL had a positive cash flow from operations.
1EL had positive earnings in each of the past 5 years.
1EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.84%, 1EL is in line with its industry, outperforming 57.58% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for 1EL is below the industry average of 9.66%.
The 3 year average ROIC (4.84%) for 1EL 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
With a decent Profit Margin value of 8.74%, 1EL is doing good in the industry, outperforming 62.12% of the companies in the same industry.
1EL's Profit Margin has improved in the last couple of years.
The Operating Margin of 1EL (12.86%) is better than 60.61% of its industry peers.
In the last couple of years the Operating Margin of 1EL has grown nicely.
Looking at the Gross Margin, with a value of 61.91%, 1EL is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
1EL's Gross Margin has been stable in the last couple of years.
| 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 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.
The debt/assets ratio for 1EL is higher compared to a year ago.
2.2 Solvency
1EL has an Altman-Z score of 4.13. This indicates that 1EL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.13, 1EL is doing good in the industry, outperforming 74.24% of the companies in the same industry.
The Debt to FCF ratio of 1EL is 4.18, which is a neutral value as it means it would take 1EL, 4.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.18, 1EL is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
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 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.13 |
ROIC/WACC0.7
WACC7.71%
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.
1EL has a worse Current ratio (0.97) than 80.30% of its industry peers.
1EL has a Quick 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.
Looking at the Quick ratio, with a value of 0.67, 1EL is doing worse than 78.79% 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.
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.
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
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.
1EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.48% yearly.
EPS Next Y7.35%
EPS Next 2Y9.64%
EPS Next 3Y10.93%
EPS Next 5Y11.05%
Revenue Next Year5.88%
Revenue Next 2Y6.77%
Revenue Next 3Y7.23%
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
1EL is valuated quite expensively with a Price/Earnings ratio of 40.61.
Compared to the rest of the industry, the Price/Earnings ratio of 1EL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of 1EL to the average of the S&P500 Index (26.38), we can say 1EL is valued expensively.
Based on the Price/Forward Earnings ratio of 34.18, the valuation of 1EL can be described as expensive.
63.64% of the companies in the same industry are cheaper than 1EL, based on the Price/Forward Earnings ratio.
1EL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.61 | ||
| Fwd PE | 34.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1EL is on the same level as its industry peers.
1EL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.42 | ||
| EV/EBITDA | 20.78 |
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)5.53
PEG (5Y)2.54
EPS Next 2Y9.64%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.39%, 1EL has a reasonable but not impressive dividend return.
1EL's Dividend Yield is a higher than the industry average which is at 1.16.
Compared to the average S&P500 Dividend Yield of 1.87, 1EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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.
1EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.97%
EPS Next 2Y9.64%
EPS Next 3Y10.93%
BIT:1EL (12/19/2025, 7:00:00 PM)
279
+5.1 (+1.86%)
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 Cap129.22B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target331.84 (18.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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)5.49%
PT rev (3m)19.88%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.61 | ||
| Fwd PE | 34.18 | ||
| P/S | 4.74 | ||
| P/FCF | 38.42 | ||
| P/OCF | 26.3 | ||
| P/B | 3.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.78 |
EPS(TTM)6.87
EY2.46%
EPS(NY)8.16
Fwd EY2.93%
FCF(TTM)7.26
FCFY2.6%
OCF(TTM)10.61
OCFY3.8%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.53
PEG (5Y)2.54
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 | 4.13 |
F-Score7
WACC7.71%
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 Y7.35%
EPS Next 2Y9.64%
EPS Next 3Y10.93%
EPS Next 5Y11.05%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.88%
Revenue Next 2Y6.77%
Revenue Next 3Y7.23%
Revenue Next 5Y7.48%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year58.38%
EBIT Next 3Y24.03%
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.
What is the valuation status for 1EL stock?
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 valuation of ESSILORLUXOTTICA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ESSILORLUXOTTICA (1EL.MI) is 40.61 and the Price/Book (PB) ratio is 3.42.
What is the expected EPS growth for ESSILORLUXOTTICA (1EL.MI) stock?
The Earnings per Share (EPS) of ESSILORLUXOTTICA (1EL.MI) is expected to grow by 7.35% in the next year.