ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
EPA:EL - Euronext Paris - Matif - FR0000121667 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to EL. EL was compared to 60 industry peers in the Health Care Equipment & Supplies industry. EL has only an average score on both its financial health and profitability. EL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EL was profitable.
In the past year EL had a positive cash flow from operations.
Each year in the past 5 years EL has been profitable.
Each year in the past 5 years EL had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.67%, EL perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
EL's Return On Equity of 5.84% is in line compared to the rest of the industry. EL outperforms 54.55% of its industry peers.
EL's Return On Invested Capital of 5.00% is in line compared to the rest of the industry. EL outperforms 56.36% of its industry peers.
| 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
The Profit Margin of EL (8.90%) is better than 69.09% of its industry peers.
EL's Profit Margin has improved in the last couple of years.
The Operating Margin of EL (13.01%) is better than 72.73% of its industry peers.
In the last couple of years the Operating Margin of EL has grown nicely.
EL has a Gross Margin of 62.45%. This is comparable to the rest of the industry: EL outperforms 60.00% of its industry peers.
EL'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EL is destroying value.
EL 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
EL has an Altman-Z score of 3.76. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
EL has a Altman-Z score of 3.76. This is amongst the best in the industry. EL outperforms 83.64% of its industry peers.
EL has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as EL would need 3.94 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.94, EL is doing good in the industry, outperforming 76.36% of the companies in the same industry.
EL has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
EL has a Debt to Equity ratio of 0.24. This is in the better half of the industry: EL outperforms 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.76 |
ROIC/WACC0.64
WACC7.78%
2.3 Liquidity
EL has a Current Ratio of 0.95. 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 Current ratio of 0.95. This is in the lower half of the industry: EL underperforms 78.18% of its industry peers.
EL has a Quick Ratio of 0.95. This is a bad value and indicates that EL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of EL (0.65) is worse than 70.91% 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, EL 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.
EL 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, EL 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
Based on the Price/Earnings ratio of 53.13, the valuation of EL can be described as expensive.
EL's Price/Earnings ratio is in line with the industry average.
EL is valuated expensively when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 33.58, EL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of EL to the average of the S&P500 Index (22.10), we can say EL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.13 | ||
| Fwd PE | 33.58 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EL is cheaper than 63.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EL indicates a somewhat cheap valuation: EL is cheaper than 69.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.12 | ||
| EV/EBITDA | 20.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EL has a very decent profitability rating, which may justify a higher PE ratio.
EL's earnings are expected to grow with 13.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.54
PEG (5Y)3.32
EPS Next 2Y13.58%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.45%.
Compared to an average industry Dividend Yield of 2.26, EL pays a bit more dividend than its industry peers.
EL'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 EL has a limited annual growth rate of 0.44%.
Dividend Growth(5Y)0.44%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
EL pays out 49.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.3%
EPS Next 2Y13.58%
EPS Next 3Y13.46%
EPA:EL (3/7/2025, 7:00:00 PM)
272
+0.5 (+0.18%)
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 Cap124.44B
Analysts79.35
Price Target284.74 (4.68%)
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 Years3
Div Non Decr Years3
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)19.14%
PT rev (3m)24.39%
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 | 53.13 | ||
| Fwd PE | 33.58 | ||
| P/S | 4.69 | ||
| P/FCF | 37.12 | ||
| P/OCF | 25.53 | ||
| P/B | 3.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.69 |
EPS(TTM)5.12
EY1.88%
EPS(NY)8.1
Fwd EY2.98%
FCF(TTM)7.33
FCFY2.69%
OCF(TTM)10.65
OCFY3.92%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)3.54
PEG (5Y)3.32
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 | 3.76 |
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%