ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis

EPA:EL • FR0000121667

238.2 EUR
+5.2 (+2.23%)
Last: Feb 20, 2026, 05:36 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

5

EL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 67 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 valied quite expensively at the moment, while 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.
  • 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

  • EL has a Return On Assets (3.84%) which is in line with its industry peers.
  • EL has a Return On Equity (6.29%) which is in line with its industry peers.
  • The Return On Invested Capital of EL (5.39%) is comparable to the rest of the industry.
  • EL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 9.66%.
  • 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

  • The Profit Margin of EL (8.74%) is better than 61.19% of its industry peers.
  • 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 56.72% of its industry peers.
  • EL's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 61.91%, EL is doing good in the industry, outperforming 61.19% of the companies in the same industry.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EL is destroying value.
  • The number of shares outstanding for EL has been increased compared to 1 year ago.
  • Compared to 5 years ago, EL has more shares outstanding
  • 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 3.66. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.66, EL is in the better half of the industry, outperforming 65.67% of the companies in the same industry.
  • The Debt to FCF ratio of EL is 4.18, which is a neutral value as it means it would take EL, 4.18 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.18, EL is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
  • 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 62.69% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 4.18
Altman-Z 3.66
ROIC/WACC0.7
WACC7.75%
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

  • EL has a Current 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 Current ratio of EL (0.97) is worse than 82.09% 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.
  • With a Quick ratio value of 0.67, EL is not doing good in the industry: 77.61% of the companies in the same industry are doing better.
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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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.
  • 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)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

  • EL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.61% yearly.
  • EL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.30% yearly.
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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 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

  • The Price/Earnings ratio is 34.67, which means the current valuation is very expensive for EL.
  • EL's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of EL to the average of the S&P500 Index (27.09), we can say EL is valued slightly more expensively.
  • The Price/Forward Earnings ratio is 29.64, which means the current valuation is very expensive for EL.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of EL indicates a slightly more expensive valuation: EL is more expensive than 67.16% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.98, EL is valued at the same level.
Industry RankSector Rank
PE 34.67
Fwd PE 29.64
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as EL.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of EL is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 32.81
EV/EBITDA 17.94
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)6.09
PEG (5Y)2.17
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.
  • In the last 3 months the price of EL has falen by -23.86%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • EL's Dividend Yield is a higher than the industry average which is at 1.14.
  • Compared to an average S&P500 Dividend Yield of 1.85, EL has a dividend comparable with the average S&P500 company.
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

  • EL pays out 22.97% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of EL is growing, but earnings are growing more, so the dividend growth is 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 (2/20/2026, 5:36:15 PM)

238.2

+5.2 (+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 Cap110.36B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts85.16
Price Target337.51 (41.69%)
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)1.45%
PT rev (3m)7.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.45%
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 34.67
Fwd PE 29.64
P/S 4.05
P/FCF 32.81
P/OCF 22.46
P/B 2.92
P/tB N/A
EV/EBITDA 17.94
EPS(TTM)6.87
EY2.88%
EPS(NY)8.04
Fwd EY3.37%
FCF(TTM)7.26
FCFY3.05%
OCF(TTM)10.61
OCFY4.45%
SpS58.8
BVpS81.64
TBVpS-5.08
PEG (NY)6.09
PEG (5Y)2.17
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 3.66
F-Score7
WACC7.75%
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 34.67 and the Price/Book (PB) ratio is 2.92.


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%.