ESSILORLUXOTTICA (1EL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EL - FR0000121667 - Common Stock
270.7 EUR
-11.9 (-4.21%)
1EL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 67 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. 1EL is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- 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
- 1EL has a Return On Assets of 3.84%. This is comparable to the rest of the industry: 1EL outperforms 53.73% of its industry peers.
- Looking at the Return On Equity, with a value of 6.29%, 1EL is in line with its industry, outperforming 46.27% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 5.39%, 1EL is in line with its industry, outperforming 47.76% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1EL is below the industry average of 9.84%.
- 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.
- 1EL has a Operating Margin of 12.86%. This is comparable to the rest of the industry: 1EL outperforms 56.72% of its industry peers.
- 1EL's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 61.91%, 1EL is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
- 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
- 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.
- 1EL has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.09 indicates that 1EL is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1EL (4.09) is better than 73.13% of its industry peers.
- 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.
- 1EL has a Debt to FCF ratio of 4.18. This is in the better half of the industry: 1EL outperforms 64.18% of its industry peers.
- A Debt/Equity ratio of 0.25 indicates that 1EL is not too dependend on debt financing.
- 1EL has a Debt to Equity ratio of 0.25. This is in the better half of the industry: 1EL outperforms 67.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.09 |
ROIC/WACC0.69
WACC7.81%
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 80.60% 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 76.12% 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%.
- 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.
- 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
- The Earnings Per Share is expected to grow by 9.60% on average over the next years. This is quite good.
- 1EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.56% yearly.
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
- With a Price/Earnings ratio of 39.40, 1EL can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of 1EL is on the same level as its industry peers.
- 1EL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.38.
- The Price/Forward Earnings ratio is 33.68, which means the current valuation is very expensive for 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 67.16% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. 1EL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.4 | ||
| Fwd PE | 33.68 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1EL.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1EL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.28 | ||
| EV/EBITDA | 20.56 |
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.
- 1EL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.92
PEG (5Y)2.46
EPS Next 2Y8.8%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.40%, 1EL has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.95, 1EL pays a bit more dividend than its industry peers.
- 1EL's Dividend Yield is slightly below the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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%
BIT:1EL (1/16/2026, 7:00:00 PM)
270.7
-11.9 (-4.21%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)10-16 2025-10-16
Earnings (Next)02-11 2026-02-11/amc
Inst Owners28.97%
Inst Owner ChangeN/A
Ins Owners32.07%
Ins Owner ChangeN/A
Market Cap125.37B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.94
Price Target331.34 (22.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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)-0.15%
PT rev (3m)14.25%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.45%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.4 | ||
| Fwd PE | 33.68 | ||
| P/S | 4.6 | ||
| P/FCF | 37.28 | ||
| P/OCF | 25.51 | ||
| P/B | 3.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.56 |
EPS(TTM)6.87
EY2.54%
EPS(NY)8.04
Fwd EY2.97%
FCF(TTM)7.26
FCFY2.68%
OCF(TTM)10.61
OCFY3.92%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)6.92
PEG (5Y)2.46
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 | 4.09 |
F-Score7
WACC7.81%
ROIC/WACC0.69
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 Y5.69%
EPS Next 2Y8.8%
EPS Next 3Y10.77%
EPS Next 5Y9.6%
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 5Y7.56%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.89%
EBIT Next 3Y23.64%
EBIT Next 5Y17.35%
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 5.69% in the next year.