ESSILORLUXOTTICA (1EL.MI) Stock Fundamental Analysis
BIT:1EL - Euronext Milan - FR0000121667 - Common Stock - Currency: EUR
Taking everything into account, 1EL scores 5 out of 10 in our fundamental rating. 1EL was compared to 60 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of 1EL get a neutral evaluation. Nothing too spectacular is happening here. 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.
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 3.67%, 1EL is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
1EL has a Return On Equity of 5.84%. This is comparable to the rest of the industry: 1EL outperforms 58.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.00%, 1EL is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROIC | 5% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 8.90%, 1EL is doing good in the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Profit Margin of 1EL has grown nicely.
1EL has a better Operating Margin (13.01%) than 76.36% of its industry peers.
1EL's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 62.45%, 1EL is doing good in 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1EL is destroying value.
1EL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.75 indicates that 1EL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.75, 1EL is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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.
1EL has a better Debt to FCF ratio (3.94) than 80.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.24, 1EL is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.75 |
ROIC/WACC0.64
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.95 indicates that 1EL may have some problems paying its short term obligations.
With a Current ratio value of 0.95, 1EL is not doing good in the industry: 74.55% of the companies in the same industry are doing better.
1EL has a Quick 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.
The Quick ratio of 1EL (0.65) is worse than 67.27% 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 0.87% 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.
The Revenue has been growing slightly by 4.38% in the past year.
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)0.87%
EPS 3Y16.42%
EPS 5Y16.01%
EPS Q2Q%5.08%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.37%
3.2 Future
The Earnings Per Share is expected to grow by 11.26% on average over the next years. This is quite good.
Based on estimates for the next years, 1EL will show a small growth in Revenue. The Revenue will grow by 6.32% on average per year.
EPS Next Y15.02%
EPS Next 2Y13.58%
EPS Next 3Y13.46%
EPS Next 5Y11.26%
Revenue Next Year9.6%
Revenue Next 2Y8.08%
Revenue Next 3Y7.54%
Revenue Next 5Y6.32%
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.
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
1EL is valuated quite expensively with a Price/Earnings ratio of 52.97.
Compared to the rest of the industry, the Price/Earnings ratio of 1EL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.35. 1EL is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 33.48, the valuation of 1EL can be described as expensive.
1EL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, 1EL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.97 | ||
| Fwd PE | 33.48 |
4.2 Price Multiples
1EL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1EL is cheaper than 67.27% of the companies in the same industry.
1EL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1EL is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.02 | ||
| EV/EBITDA | 20.63 |
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.
1EL's earnings are expected to grow with 13.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.53
PEG (5Y)3.31
EPS Next 2Y13.58%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, 1EL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.26, 1EL pays a bit more dividend than its industry peers.
1EL's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of 1EL has a limited annual growth rate of 0.44%.
Dividend Growth(5Y)0.44%
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.
1EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.3%
EPS Next 2Y13.58%
EPS Next 3Y13.46%
BIT:1EL (3/7/2025, 7:00:00 PM)
271.2
+0.1 (+0.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners31.76%
Inst Owner ChangeN/A
Ins Owners32.45%
Ins Owner ChangeN/A
Market Cap124.08B
Analysts79.35
Price Target285.24 (5.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend1.09
Dividend Growth(5Y)0.44%
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)19.58%
PT rev (3m)25.32%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.83%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.81%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.97 | ||
| Fwd PE | 33.48 | ||
| P/S | 4.68 | ||
| P/FCF | 37.02 | ||
| P/OCF | 25.46 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.63 |
EPS(TTM)5.12
EY1.89%
EPS(NY)8.1
Fwd EY2.99%
FCF(TTM)7.33
FCFY2.7%
OCF(TTM)10.65
OCFY3.93%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)3.53
PEG (5Y)3.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROCE | 6.42% | ||
| ROIC | 5% | ||
| ROICexc | 5.21% | ||
| ROICexgc | 31.88% | ||
| OM | 13.01% | ||
| PM (TTM) | 8.9% | ||
| GM | 62.45% | ||
| FCFM | 12.65% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 | 3.75 |
F-Score5
WACC7.78%
ROIC/WACC0.64
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)0.87%
EPS 3Y16.42%
EPS 5Y16.01%
EPS Q2Q%5.08%
EPS Next Y15.02%
EPS Next 2Y13.58%
EPS Next 3Y13.46%
EPS Next 5Y11.26%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.37%
Revenue Next Year9.6%
Revenue Next 2Y8.08%
Revenue Next 3Y7.54%
Revenue Next 5Y6.32%
EBIT growth 1Y9.04%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year65.98%
EBIT Next 3Y15.91%
EBIT Next 5Y14.35%
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%