ESSILORLUXOTTICA (EL.PA)
FR0000121667 - Common Stock
Overall EL gets a fundamental rating of 5 out of 10. We evaluated EL against 53 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of EL get a neutral evaluation. Nothing too spectacular is happening here. EL has a correct valuation and a medium 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.
EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EL (3.73%) is comparable to the rest of the industry.
EL has a Return On Equity of 5.88%. This is comparable to the rest of the industry: EL outperforms 52.94% of its industry peers.
EL has a Return On Invested Capital (5.09%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for EL is below the industry average of 9.21%.
The last Return On Invested Capital (5.09%) for EL is above the 3 year average (4.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.73% | ||
| ROE | 5.88% | ||
| ROIC | 5.09% |
ROA(3y)3.26%
ROA(5y)2.4%
ROE(3y)5.29%
ROE(5y)3.84%
ROIC(3y)4.31%
ROIC(5y)3.28%
1.3 Margins
EL's Profit Margin of 8.88% is fine compared to the rest of the industry. EL outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of EL has declined.
EL's Operating Margin of 12.72% is fine compared to the rest of the industry. EL outperforms 70.59% of its industry peers.
EL's Operating Margin has been stable in the last couple of years.
EL has a Gross Margin (62.34%) which is in line with its industry peers.
EL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.72% | ||
| PM (TTM) | 8.88% | ||
| GM | 62.34% |
OM growth 3Y59.59%
OM growth 5Y-0.67%
PM growth 3Y148.26%
PM growth 5Y-2.05%
GM growth 3Y2.48%
GM growth 5Y0.08%
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.
Compared to 5 years ago, EL has more shares outstanding
EL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.45 indicates that EL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.45, EL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of EL is 3.57, which is a good value as it means it would take EL, 3.57 years of fcf income to pay off all of its debts.
EL has a Debt to FCF ratio of 3.57. This is amongst the best in the industry. EL outperforms 84.31% of its industry peers.
EL has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of EL (0.20) is better than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.69
WACC7.35%
2.3 Liquidity
A Current Ratio of 0.88 indicates that EL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.88, EL is doing worse than 78.43% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that EL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.62, EL is doing worse than 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.91% over the past year.
Measured over the past 5 years, EL shows a small growth in Earnings Per Share. The EPS has been growing by 4.53% on average per year.
EL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.91%.
EL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.58% yearly.
EPS 1Y (TTM)0.91%
EPS 3Y53.73%
EPS 5Y4.53%
EPS Q2Q%3.53%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y20.74%
Revenue growth 5Y18.58%
Sales Q2Q%3.42%
3.2 Future
Based on estimates for the next years, EL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.76% on average per year.
Based on estimates for the next years, EL will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
EPS Next Y9.82%
EPS Next 2Y11.04%
EPS Next 3Y11.34%
EPS Next 5Y10.76%
Revenue Next Year4.28%
Revenue Next 2Y5.26%
Revenue Next 3Y5.41%
Revenue Next 5Y5.95%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
EL is valuated quite expensively with a Price/Earnings ratio of 31.20.
Based on the Price/Earnings ratio, EL is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of EL to the average of the S&P500 Index (30.52), we can say EL is valued inline with the index average.
A Price/Forward Earnings ratio of 25.81 indicates a quite expensive valuation of EL.
EL's Price/Forward Earnings is on the same level as the industry average.
EL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.2 | ||
| Fwd PE | 25.81 |
4.2 Price Multiples
68.63% of the companies in the same industry are more expensive than EL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EL is valued cheaply inside the industry as 84.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.38 | ||
| EV/EBITDA | 16.62 |
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.
PEG (NY)3.18
PEG (5Y)6.88
EPS Next 2Y11.04%
EPS Next 3Y11.34%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.41, EL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.26, EL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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
50.72% of the earnings are spent on dividend by EL. 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.
DP50.72%
EPS Next 2Y11.04%
EPS Next 3Y11.34%
ESSILORLUXOTTICA
EPA:EL (9/16/2024, 5:35:30 PM)
208.1
-0.7 (-0.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap94.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.2 | ||
| Fwd PE | 25.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.18
PEG (5Y)6.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.73% | ||
| ROE | 5.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.72% | ||
| PM (TTM) | 8.88% | ||
| GM | 62.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0.91%
EPS 3Y53.73%
EPS 5Y
EPS Q2Q%
EPS Next Y9.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.91%
Revenue growth 3Y20.74%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y