ESSILORLUXOTTICA (1EL.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1EL • FR0000121667
254.7 EUR
+0.2 (+0.08%)
Last: Jan 29, 2026, 07:00 PM
We assign a fundamental rating of 4 out of 10 to 1EL. 1EL was compared to 63 industry peers in the Health Care Equipment & Supplies industry. 1EL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1EL is quite expensive at the moment. It does show a decent growth rate.
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.
- In the past 5 years 1EL always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.84%, 1EL is in line with its industry, outperforming 55.56% of the companies in the same industry.
- 1EL has a Return On Equity of 6.29%. This is comparable to the rest of the industry: 1EL outperforms 49.21% of its industry peers.
- 1EL has a Return On Invested Capital of 5.39%. This is comparable to the rest of the industry: 1EL outperforms 49.21% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1EL is significantly below the industry average of 9.95%.
- 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
- 1EL has a Profit Margin of 8.74%. This is in the better half of the industry: 1EL outperforms 61.90% of its industry peers.
- 1EL's Profit Margin has improved in the last couple of years.
- 1EL has a Operating Margin (12.86%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of 1EL has grown nicely.
- 1EL has a Gross Margin of 61.91%. This is in the better half of the industry: 1EL outperforms 63.49% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1EL is destroying value.
- Compared to 1 year ago, 1EL has more shares outstanding
- Compared to 5 years ago, 1EL has more shares outstanding
- 1EL has a worse debt/assets ratio than last year.
2.2 Solvency
- 1EL has an Altman-Z score of 3.91. This indicates that 1EL is financially healthy and has little risk of bankruptcy at the moment.
- 1EL has a Altman-Z score of 3.91. This is in the better half of the industry: 1EL outperforms 69.84% 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 has a better Debt to FCF ratio (4.18) than 63.49% of its industry peers.
- 1EL has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
- 1EL has a better Debt to Equity ratio (0.25) than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 3.91 |
ROIC/WACC0.69
WACC7.79%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that 1EL may have some problems paying its short term obligations.
- 1EL's Current ratio of 0.97 is on the low side compared to the rest of the industry. 1EL is outperformed by 79.37% of its industry peers.
- 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 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- 1EL 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.
- 1EL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.45%.
- 1EL 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
- The Earnings Per Share is expected to grow by 9.60% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.56% on average over the next years.
EPS Next Y5.69%
EPS Next 2Y8.8%
EPS Next 3Y10.77%
EPS Next 5Y9.6%
Revenue Next Year5.99%
Revenue Next 2Y6.94%
Revenue Next 3Y7.45%
Revenue Next 5Y7.56%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 37.07.
- The rest of the industry has a similar Price/Earnings ratio as 1EL.
- The average S&P500 Price/Earnings ratio is at 28.30. 1EL is valued slightly more expensive when compared to this.
- 1EL is valuated quite expensively with a Price/Forward Earnings ratio of 31.69.
- 61.90% of the companies in the same industry are cheaper than 1EL, based on the Price/Forward Earnings ratio.
- 1EL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.07 | ||
| Fwd PE | 31.69 |
4.2 Price Multiples
- 1EL's Enterprise Value to EBITDA is on the same level as the industry average.
- 1EL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.08 | ||
| EV/EBITDA | 19.44 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 1EL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.51
PEG (5Y)2.32
EPS Next 2Y8.8%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
- 1EL has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.96, 1EL pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1EL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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
- 1EL pays out 22.97% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 1EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.97%
EPS Next 2Y8.8%
EPS Next 3Y10.77%
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 5.69% in the next year.