ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis

EPA:EL • FR0000121667

225.2 EUR
-14.1 (-5.89%)
Last: Feb 27, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to EL. EL was compared to 65 industry peers in the Health Care Equipment & Supplies industry. While EL is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, EL is valued expensive at the moment.


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.
  • In the past 5 years EL has always been profitable.
  • Each year in the past 5 years EL had a positive operating cash flow.
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

  • The Return On Assets of EL (3.84%) is comparable to the rest of the industry.
  • EL has a Return On Equity (6.29%) which is in line with its industry peers.
  • EL's Return On Invested Capital of 5.39% is in line compared to the rest of the industry. EL outperforms 46.15% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 9.73%.
  • The last Return On Invested Capital (5.39%) for EL is above the 3 year average (4.84%), which is a sign of increasing profitability.
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

  • Looking at the Profit Margin, with a value of 8.74%, EL is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
  • EL's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 12.86%, EL is in line with its industry, outperforming 58.46% of the companies in the same industry.
  • In the last couple of years the Operating Margin of EL has grown nicely.
  • Looking at the Gross Margin, with a value of 61.91%, EL is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
  • In the last couple of years the Gross Margin of EL has remained more or less at the same level.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL is destroying value.
  • EL has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for EL has been increased compared to 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

  • An Altman-Z score of 3.73 indicates that EL is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.73, EL is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
  • 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.
  • EL has a better Debt to FCF ratio (4.18) than 63.08% of its industry peers.
  • EL has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of EL (0.25) is better than 64.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 4.18
Altman-Z 3.73
ROIC/WACC0.7
WACC7.71%
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.
  • The Current ratio of EL (0.97) is worse than 81.54% of its industry peers.
  • 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.
  • The Quick ratio of EL (0.67) is worse than 76.92% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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%.
  • EL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.01% yearly.
  • The Revenue has been growing slightly by 5.45% in the past year.
  • Measured over the past years, EL shows a quite strong growth in Revenue. The Revenue has been growing by 8.80% on average per year.
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 11.61% on average over the next years. This is quite good.
  • Based on estimates for the next years, EL will show a quite strong growth in Revenue. The Revenue will grow by 8.30% on average per year.
EPS Next Y5.69%
EPS Next 2Y8.8%
EPS Next 3Y10.77%
EPS Next 5Y11.61%
Revenue Next Year5.99%
Revenue Next 2Y6.94%
Revenue Next 3Y7.45%
Revenue Next 5Y8.3%

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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

  • EL is valuated quite expensively with a Price/Earnings ratio of 32.78.
  • EL's Price/Earnings is on the same level as the industry average.
  • EL is valuated rather expensively when we compare the Price/Earnings ratio to 27.10, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 28.02, EL can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, EL is valued a bit more expensive than 63.08% of the companies in the same industry.
  • EL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 32.78
Fwd PE 28.02
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 31.02
EV/EBITDA 18.37
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 an expensive valuation of the company.
  • The decent profitability rating of EL may justify a higher PE ratio.
PEG (NY)5.76
PEG (5Y)2.05
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

  • With a Yearly Dividend Yield of 1.53%, EL has a reasonable but not impressive dividend return.
  • The stock price of EL dropped by -27.05% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • EL's Dividend Yield is a higher than the industry average which is at 1.14.
  • EL's Dividend Yield is comparable with the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 1.53%

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

  • 22.97% of the earnings are spent on dividend by EL. This is a low number and 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 (2/27/2026, 7:00:00 PM)

225.2

-14.1 (-5.89%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-11
Earnings (Next)04-22
Inst Owners28.97%
Inst Owner ChangeN/A
Ins Owners32.07%
Ins Owner ChangeN/A
Market Cap104.33B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts85.16
Price Target337.51 (49.87%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.53%
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)1.86%
PT rev (3m)4.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.65%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
Industry RankSector Rank
PE 32.78
Fwd PE 28.02
P/S 3.83
P/FCF 31.02
P/OCF 21.23
P/B 2.76
P/tB N/A
EV/EBITDA 18.37
EPS(TTM)6.87
EY3.05%
EPS(NY)8.04
Fwd EY3.57%
FCF(TTM)7.26
FCFY3.22%
OCF(TTM)10.61
OCFY4.71%
SpS58.8
BVpS81.64
TBVpS-5.08
PEG (NY)5.76
PEG (5Y)2.05
Graham Number112.34
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 3.73
F-Score7
WACC7.71%
ROIC/WACC0.7
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 5Y11.61%
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 5Y8.3%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.89%
EBIT Next 3Y23.64%
EBIT Next 5Y18.96%
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 5 / 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 32.78 and the Price/Book (PB) ratio is 2.76.


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%.