ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis

EPA:EL • FR0000121667

214.4 EUR
-4.9 (-2.23%)
Last: Mar 3, 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 63 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.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • EL had positive earnings in the past year.
  • In the past year EL had a positive cash flow from operations.
  • In the past 5 years EL has always been profitable.
  • EL had a positive operating cash flow in each of the past 5 years.
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 2025 1B 2B 3B 4B 5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.62%, EL is in line with its industry, outperforming 53.97% of the companies in the same industry.
  • The Return On Equity of EL (5.95%) is comparable to the rest of the industry.
  • EL has a Return On Invested Capital of 4.96%. This is comparable to the rest of the industry: EL outperforms 42.86% of its industry peers.
Industry RankSector Rank
ROA 3.62%
ROE 5.95%
ROIC 4.96%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
EL.PA Yearly ROA, ROE, ROICEL.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 8.13%, EL is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
  • EL's Profit Margin has improved in the last couple of years.
  • EL's Operating Margin of 11.85% is in line compared to the rest of the industry. EL outperforms 55.56% of its industry peers.
  • In the last couple of years the Operating Margin of EL has grown nicely.
  • With a Gross Margin value of 59.69%, EL perfoms like the industry average, outperforming 58.73% 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 11.85%
PM (TTM) 8.13%
GM 59.69%
OM growth 3Y-2.08%
OM growth 5Y30.97%
PM growth 3Y-2.57%
PM growth 5Y69.02%
GM growth 3Y-1.64%
GM growth 5Y0.64%
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 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EL is destroying value.
  • There is no outstanding debt for EL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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 3.11. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • EL has a better Altman-Z score (3.11) than 60.32% of its industry peers.
  • The Debt to FCF ratio of EL is 3.82, which is a good value as it means it would take EL, 3.82 years of fcf income to pay off all of its debts.
  • EL has a Debt to FCF ratio of 3.82. This is in the better half of the industry: EL outperforms 63.49% of its industry peers.
  • A Debt/Equity ratio of 0.24 indicates that EL is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.24, EL is doing good in the industry, outperforming 65.08% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 3.82
Altman-Z 3.11
ROIC/WACC0.63
WACC7.9%
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 2025 10B 20B 30B 40B

2.3 Liquidity

  • EL has a Current Ratio of 0.99. 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's Current ratio of 0.99 is on the low side compared to the rest of the industry. EL is outperformed by 80.95% of its industry peers.
  • A Quick Ratio of 0.70 indicates that EL may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.70, EL is doing worse than 76.19% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.7
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 0.90%.
  • EL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.65% yearly.
  • The Revenue has been growing slightly by 7.48% in the past year.
  • EL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.58% yearly.
EPS 1Y (TTM)0.9%
EPS 3Y2.19%
EPS 5Y30.65%
EPS Q2Q%-0.64%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y5.17%
Revenue growth 5Y14.58%
Sales Q2Q%9.45%

3.2 Future

  • EL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.89% yearly.
  • EL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.09% yearly.
EPS Next Y17.32%
EPS Next 2Y16.06%
EPS Next 3Y13.67%
EPS Next 5Y13.89%
Revenue Next Year11.54%
Revenue Next 2Y11.17%
Revenue Next 3Y10.73%
Revenue Next 5Y8.09%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less 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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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • EL is valuated quite expensively with a Price/Earnings ratio of 31.30.
  • Compared to the rest of the industry, the Price/Earnings ratio of EL is on the same level as its industry peers.
  • EL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
  • EL is valuated quite expensively with a Price/Forward Earnings ratio of 26.67.
  • EL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EL is more expensive than 60.32% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.95. EL is around the same levels.
Industry RankSector Rank
PE 31.3
Fwd PE 26.67
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 ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, EL is valued a bit cheaper than the industry average as 63.49% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 26.38
EV/EBITDA 17.33
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.
  • A more expensive valuation may be justified as EL's earnings are expected to grow with 13.67% in the coming years.
PEG (NY)1.81
PEG (5Y)1.02
EPS Next 2Y16.06%
EPS Next 3Y13.67%

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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 1.67%, EL has a reasonable but not impressive dividend return.
  • The stock price of EL dropped by -29.15% 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.
  • Compared to an average industry Dividend Yield of 1.06, EL pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, EL has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.67%

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

  • 23.63% 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.
DP23.63%
EPS Next 2Y16.06%
EPS Next 3Y13.67%
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 2025 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 (3/3/2026, 7:00:00 PM)

214.4

-4.9 (-2.23%)

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 Cap99.33B
Revenue(TTM)28.49B
Net Income(TTM)2.31B
Analysts85.16
Price Target331.09 (54.43%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.67%
Yearly Dividend2.56
Dividend Growth(5Y)4.5%
DP23.63%
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)-0.07%
PT rev (3m)2.43%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.75%
Revenue NY rev (3m)5.04%
Valuation
Industry RankSector Rank
PE 31.3
Fwd PE 26.67
P/S 3.49
P/FCF 26.38
P/OCF 18.77
P/B 2.55
P/tB N/A
EV/EBITDA 17.33
EPS(TTM)6.85
EY3.19%
EPS(NY)8.04
Fwd EY3.75%
FCF(TTM)8.13
FCFY3.79%
OCF(TTM)11.42
OCFY5.33%
SpS61.5
BVpS83.94
TBVpS-4.05
PEG (NY)1.81
PEG (5Y)1.02
Graham Number113.74
Profitability
Industry RankSector Rank
ROA 3.62%
ROE 5.95%
ROCE 6.52%
ROIC 4.96%
ROICexc 5.33%
ROICexgc 34.55%
OM 11.85%
PM (TTM) 8.13%
GM 59.69%
FCFM 13.22%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-2.08%
OM growth 5Y30.97%
PM growth 3Y-2.57%
PM growth 5Y69.02%
GM growth 3Y-1.64%
GM growth 5Y0.64%
F-Score7
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 3.82
Debt/EBITDA 1.46
Cap/Depr 48.99%
Cap/Sales 5.35%
Interest Coverage 250
Cash Conversion 81.55%
Profit Quality 162.68%
Current Ratio 0.99
Quick Ratio 0.7
Altman-Z 3.11
F-Score7
WACC7.9%
ROIC/WACC0.63
Cap/Depr(3y)49.88%
Cap/Depr(5y)48.88%
Cap/Sales(3y)5.71%
Cap/Sales(5y)5.75%
Profit Quality(3y)150.08%
Profit Quality(5y)168.44%
High Growth Momentum
Growth
EPS 1Y (TTM)0.9%
EPS 3Y2.19%
EPS 5Y30.65%
EPS Q2Q%-0.64%
EPS Next Y17.32%
EPS Next 2Y16.06%
EPS Next 3Y13.67%
EPS Next 5Y13.89%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y5.17%
Revenue growth 5Y14.58%
Sales Q2Q%9.45%
Revenue Next Year11.54%
Revenue Next 2Y11.17%
Revenue Next 3Y10.73%
Revenue Next 5Y8.09%
EBIT growth 1Y-2.12%
EBIT growth 3Y2.98%
EBIT growth 5Y50.07%
EBIT Next Year73.26%
EBIT Next 3Y27.8%
EBIT Next 5Y18.52%
FCF growth 1Y12.35%
FCF growth 3Y5.46%
FCF growth 5Y10.35%
OCF growth 1Y8.56%
OCF growth 3Y3.42%
OCF growth 5Y12.38%

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 5 / 10.


What is the valuation of ESSILORLUXOTTICA based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ESSILORLUXOTTICA (EL.PA) is 31.3 and the Price/Book (PB) ratio is 2.55.


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 23.63%.