ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis

Europe • Euronext Paris • EPA:EL • FR0000121667

258.6 EUR
-2 (-0.77%)
Last: Feb 5, 2026, 07:00 PM
Fundamental Rating

4

Overall EL gets a fundamental rating of 4 out of 10. We evaluated EL against 68 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of EL while its profitability can be described as average. EL is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year EL was profitable.
  • EL had a positive operating cash flow in the past year.
  • EL had positive earnings in each of the past 5 years.
  • In the past 5 years EL always reported a positive cash flow from operatings.
EL.PA Yearly Net Income VS EBIT VS OCF VS FCFEL.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.84%, EL is in line with its industry, outperforming 55.88% of the companies in the same industry.
  • EL's Return On Equity of 6.29% is in line compared to the rest of the industry. EL outperforms 48.53% of its industry peers.
  • EL has a Return On Invested Capital of 5.39%. This is comparable to the rest of the industry: EL outperforms 47.06% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for EL is below the industry average of 9.62%.
  • The 3 year average ROIC (4.84%) for EL is below the current ROIC(5.39%), indicating increased profibility in the last year.
Industry RankSector 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%
EL.PA Yearly ROA, ROE, ROICEL.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • With a decent Profit Margin value of 8.74%, EL is doing good in the industry, outperforming 61.76% of the companies in the same industry.
  • In the last couple of years the Profit Margin of EL has grown nicely.
  • EL's Operating Margin of 12.86% is in line compared to the rest of the industry. EL outperforms 58.82% of its industry peers.
  • EL's Operating Margin has improved in the last couple of years.
  • The Gross Margin of EL (61.91%) is better than 64.71% of its industry peers.
  • EL's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
EL.PA Yearly Profit, Operating, Gross MarginsEL.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL is destroying value.
  • The number of shares outstanding for EL has been increased compared to 1 year ago.
  • EL has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, EL has a worse debt to assets ratio.
EL.PA Yearly Shares OutstandingEL.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
EL.PA Yearly Total Debt VS Total AssetsEL.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

  • EL has an Altman-Z score of 3.98. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • EL has a Altman-Z score of 3.98. This is in the better half of the industry: EL outperforms 73.53% of its industry peers.
  • EL has a debt to FCF ratio of 4.18. This is a neutral value as EL would need 4.18 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 4.18, EL is doing good in the industry, outperforming 66.18% of the companies in the same industry.
  • A Debt/Equity ratio of 0.25 indicates that EL is not too dependend on debt financing.
  • EL's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. EL outperforms 69.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 4.18
Altman-Z 3.98
ROIC/WACC0.69
WACC7.79%
EL.PA Yearly LT Debt VS Equity VS FCFEL.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

  • A Current Ratio of 0.97 indicates that EL may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.97, EL is doing worse than 80.88% of the companies in the same industry.
  • EL has a Quick Ratio of 0.97. This is a bad value and indicates that EL is not financially healthy enough and could expect problems in meeting its short term obligations.
  • EL has a worse Quick ratio (0.67) than 76.47% of its industry peers.
Industry RankSector Rank
Current Ratio 0.97
Quick Ratio 0.67
EL.PA Yearly Current Assets VS Current LiabilitesEL.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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5

3. Growth

3.1 Past

  • EL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.00%.
  • Measured over the past years, EL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.01% on average per year.
  • EL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.45%.
  • 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.
  • Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 7.56% on average per year.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
EL.PA Yearly Revenue VS EstimatesEL.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B 40B
EL.PA Yearly EPS VS EstimatesEL.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 37.64, the valuation of EL can be described as expensive.
  • EL's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.67, EL is valued a bit more expensive.
  • Based on the Price/Forward Earnings ratio of 32.17, the valuation of EL can be described as expensive.
  • Based on the Price/Forward Earnings ratio, EL is valued a bit more expensive than 64.71% of the companies in the same industry.
  • EL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
Industry RankSector Rank
PE 37.64
Fwd PE 32.17
EL.PA Price Earnings VS Forward Price EarningsEL.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • EL's Enterprise Value to EBITDA is on the same level as the industry average.
  • EL's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 35.61
EV/EBITDA 19.85
EL.PA Per share dataEL.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EL does not grow enough to justify the current Price/Earnings ratio.
  • EL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.61
PEG (5Y)2.35
EPS Next 2Y8.8%
EPS Next 3Y10.77%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • EL has a Yearly Dividend Yield of 1.55%.
  • EL's Dividend Yield is a higher than the industry average which is at 1.03.
  • EL's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.55%

5.2 History

  • The dividend of EL has a limited annual growth rate of 4.50%.
Dividend Growth(5Y)4.5%
Div Incr Years3
Div Non Decr Years4
EL.PA Yearly Dividends per shareEL.PA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

  • EL pays out 22.97% of its income as dividend. This is a sustainable payout ratio.
  • EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.97%
EPS Next 2Y8.8%
EPS Next 3Y10.77%
EL.PA Yearly Income VS Free CF VS DividendEL.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
EL.PA Dividend Payout.EL.PA Dividend Payout, showing the Payout Ratio.EL.PA Dividend Payout.PayoutRetained Earnings

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ESSILORLUXOTTICA

EPA:EL (2/5/2026, 7:00:00 PM)

258.6

-2 (-0.77%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)10-16
Earnings (Next)02-11
Inst Owners28.97%
Inst Owner ChangeN/A
Ins Owners32.07%
Ins Owner ChangeN/A
Market Cap119.77B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.94
Price Target331.34 (28.13%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.55%
Yearly Dividend2.56
Dividend Growth(5Y)4.5%
DP22.97%
Div Incr Years3
Div Non Decr Years4
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)-0.4%
PT rev (3m)5.23%
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 RankSector Rank
PE 37.64
Fwd PE 32.17
P/S 4.4
P/FCF 35.61
P/OCF 24.37
P/B 3.17
P/tB N/A
EV/EBITDA 19.85
EPS(TTM)6.87
EY2.66%
EPS(NY)8.04
Fwd EY3.11%
FCF(TTM)7.26
FCFY2.81%
OCF(TTM)10.61
OCFY4.1%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)6.61
PEG (5Y)2.35
Graham Number112.36
Profitability
Industry RankSector 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 RankSector 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 3.98
F-Score7
WACC7.79%
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 / EL.PA FAQ

What is the ChartMill fundamental rating of ESSILORLUXOTTICA (EL.PA) stock?

ChartMill assigns a fundamental rating of 4 / 10 to EL.PA.


What is the valuation status for EL stock?

ChartMill assigns a valuation rating of 2 / 10 to ESSILORLUXOTTICA (EL.PA). This can be considered as Overvalued.


What is the profitability of EL stock?

ESSILORLUXOTTICA (EL.PA) 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 (EL.PA) is 37.64 and the Price/Book (PB) ratio is 3.17.


Can you provide the dividend sustainability for EL stock?

The dividend rating of ESSILORLUXOTTICA (EL.PA) is 6 / 10 and the dividend payout ratio is 22.97%.