ESSILORLUXOTTICA (1EL.MI) Stock Fundamental Analysis
BIT:1EL - Euronext Milan - FR0000121667 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1EL. 1EL was compared to 58 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1EL had positive earnings in the past year.
1EL had a positive operating cash flow in the past year.
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
1EL has a Return On Assets (3.67%) which is in line with its industry peers.
1EL's Return On Equity of 5.84% is in line compared to the rest of the industry. 1EL outperforms 55.17% of its industry peers.
1EL's Return On Invested Capital of 4.99% is in line compared to the rest of the industry. 1EL outperforms 58.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1EL is below the industry average of 8.02%.
The last Return On Invested Capital (4.99%) for 1EL is above the 3 year average (4.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROIC | 4.99% |
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's Profit Margin of 8.90% is fine compared to the rest of the industry. 1EL outperforms 63.79% of its industry peers.
In the last couple of years the Profit Margin of 1EL has grown nicely.
1EL has a better Operating Margin (13.01%) than 62.07% 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 62.45%, 1EL is in the better half of the industry, outperforming 60.34% 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 | 13.01% | ||
| PM (TTM) | 8.9% | ||
| GM | 62.45% |
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
1EL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1EL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1EL has been increased compared to 5 years ago.
Compared to 1 year ago, 1EL has a worse debt to assets ratio.
2.2 Solvency
1EL has an Altman-Z score of 3.60. This indicates that 1EL is financially healthy and has little risk of bankruptcy at the moment.
1EL's Altman-Z score of 3.60 is fine compared to the rest of the industry. 1EL outperforms 70.69% of its industry peers.
The Debt to FCF ratio of 1EL is 3.94, which is a good value as it means it would take 1EL, 3.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1EL (3.94) is better than 70.69% of its industry peers.
1EL has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.24, 1EL perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.6 |
ROIC/WACC0.67
WACC7.48%
2.3 Liquidity
1EL has a Current Ratio of 0.95. 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 Current ratio, with a value of 0.95, 1EL is doing worse than 82.76% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that 1EL may have some problems paying its short term obligations.
1EL has a worse Quick ratio (0.65) than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.82% over the past year.
Measured over the past years, 1EL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.01% on average per year.
Looking at the last year, 1EL shows a small growth in Revenue. The Revenue has grown by 4.38% in the last 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)3.82%
EPS 3Y13.7%
EPS 5Y16.01%
EPS Q2Q%4.2%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.37%
3.2 Future
Based on estimates for the next years, 1EL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.99% on average per year.
Based on estimates for the next years, 1EL will show a small growth in Revenue. The Revenue will grow by 6.14% on average per year.
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue Next Year6.25%
Revenue Next 2Y6.29%
Revenue Next 3Y6.48%
Revenue Next 5Y6.14%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.67, which means the current valuation is very expensive for 1EL.
1EL's Price/Earnings ratio is in line with the industry average.
1EL is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 29.28, 1EL can be considered very expensive at the moment.
1EL's Price/Forward Earnings is on the same level as the industry average.
1EL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.67 | ||
| Fwd PE | 29.28 |
4.2 Price Multiples
1EL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1EL is valued a bit cheaper than the industry average as 67.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.13 | ||
| EV/EBITDA | 18.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1EL may justify a higher PE ratio.
1EL's earnings are expected to grow with 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.89
PEG (5Y)2.16
EPS Next 2Y15.32%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.71%, 1EL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.07, 1EL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, 1EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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
49.30% of the earnings are spent on dividend by 1EL. This is a bit on the high side, but may be sustainable.
The dividend of 1EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.3%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
BIT:1EL (7/1/2025, 7:00:00 PM)
235.4
+0.9 (+0.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners29.87%
Inst Owner ChangeN/A
Ins Owners32.47%
Ins Owner ChangeN/A
Market Cap107.70B
Analysts77.42
Price Target283.08 (20.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend2.56
Dividend Growth(5Y)4.5%
DP49.3%
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)-0.36%
PT rev (3m)-0.76%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.67 | ||
| Fwd PE | 29.28 | ||
| P/S | 4.06 | ||
| P/FCF | 32.13 | ||
| P/OCF | 22.1 | ||
| P/B | 2.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.26 |
EPS(TTM)6.79
EY2.88%
EPS(NY)8.04
Fwd EY3.41%
FCF(TTM)7.33
FCFY3.11%
OCF(TTM)10.65
OCFY4.53%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)1.89
PEG (5Y)2.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROCE | 6.42% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 26.04% | ||
| OM | 13.01% | ||
| PM (TTM) | 8.9% | ||
| GM | 62.45% | ||
| FCFM | 12.65% |
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%
ROICexcg growth 3Y0.01%
ROICexcg 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-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 49.13% | ||
| Cap/Sales | 5.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.46% | ||
| Profit Quality | 142.09% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.6 |
F-Score5
WACC7.48%
ROIC/WACC0.67
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)3.82%
EPS 3Y13.7%
EPS 5Y16.01%
EPS Q2Q%4.2%
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.37%
Revenue Next Year6.25%
Revenue Next 2Y6.29%
Revenue Next 3Y6.48%
Revenue Next 5Y6.14%
EBIT growth 1Y9.04%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y15.63%
FCF growth 1Y0.66%
FCF growth 3Y-1.57%
FCF growth 5Y6.95%
OCF growth 1Y0.27%
OCF growth 3Y2.36%
OCF growth 5Y8.12%