ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:EL - FR0000121667 - Common Stock
282 EUR
+2.6 (+0.93%)
We assign a fundamental rating of 4 out of 10 to EL. EL was compared to 68 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. While showing a medium growth rate, EL is valued expensive at the moment.
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.
- EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 3.84%, EL perfoms like the industry average, outperforming 54.41% of the companies in the same industry.
- EL's Return On Equity of 6.29% is in line compared to the rest of the industry. EL outperforms 48.53% of 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 9.73%.
- The 3 year average ROIC (4.84%) for EL is below the current ROIC(5.39%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- With a decent Profit Margin value of 8.74%, EL is doing good in the industry, outperforming 60.29% of the companies in the same industry.
- EL's Profit Margin has improved in the last couple of years.
- EL has a Operating Margin of 12.86%. This is comparable to the rest of the industry: EL outperforms 57.35% of its industry peers.
- 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 63.24% of the companies in the same industry.
- EL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
- The debt/assets ratio for EL is higher compared to a year ago.
2.2 Solvency
- EL has an Altman-Z score of 4.19. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.19, EL is doing good in the industry, outperforming 76.47% 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.
- Looking at the Debt to FCF ratio, with a value of 4.18, EL is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- A Debt/Equity ratio of 0.25 indicates that EL is not too dependend on debt financing.
- EL has a Debt to Equity ratio of 0.25. This is in the better half of the industry: EL outperforms 66.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.19 |
ROIC/WACC0.7
WACC7.72%
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 79.41% 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.
- EL's Quick ratio of 0.67 is on the low side compared to the rest of the industry. EL is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.67 |
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.
- The Revenue has been growing by 8.80% on average over the past years. This is quite good.
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 9.60% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.56% on average over the next years.
EPS Next Y7.24%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
EPS Next 5Y9.6%
Revenue Next Year5.99%
Revenue Next 2Y6.94%
Revenue Next 3Y7.45%
Revenue Next 5Y7.56%
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 decreasing.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 41.05, EL can be considered very expensive at the moment.
- 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 27.54, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 34.65 indicates a quite expensive valuation of 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 63.24% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of EL to the average of the S&P500 Index (24.31), we can say EL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.05 | ||
| Fwd PE | 34.65 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.84 | ||
| EV/EBITDA | 21.16 |
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.
- EL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.67
PEG (5Y)2.56
EPS Next 2Y9.47%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
- EL has a Yearly Dividend Yield of 1.45%.
- EL's Dividend Yield is a higher than the industry average which is at 1.13.
- Compared to the average S&P500 Dividend Yield of 1.92, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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
5.3 Sustainability
- EL pays out 22.97% of its income as dividend. This is a sustainable payout ratio.
- EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.97%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
EPA:EL (1/15/2026, 7:00:00 PM)
282
+2.6 (+0.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)10-16 2025-10-16
Earnings (Next)02-03 2026-02-03/amc
Inst Owners28.97%
Inst Owner ChangeN/A
Ins Owners32.07%
Ins Owner ChangeN/A
Market Cap130.61B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.94
Price Target332.68 (17.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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)0.65%
PT rev (3m)14.55%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.05 | ||
| Fwd PE | 34.65 | ||
| P/S | 4.79 | ||
| P/FCF | 38.84 | ||
| P/OCF | 26.58 | ||
| P/B | 3.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.16 |
EPS(TTM)6.87
EY2.44%
EPS(NY)8.14
Fwd EY2.89%
FCF(TTM)7.26
FCFY2.57%
OCF(TTM)10.61
OCFY3.76%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.67
PEG (5Y)2.56
Graham Number112.36
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.19 |
F-Score7
WACC7.72%
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 Y7.24%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
EPS Next 5Y9.6%
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 5Y7.56%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.89%
EBIT Next 3Y23.64%
EBIT Next 5Y17.35%
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 4 / 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 41.05 and the Price/Book (PB) ratio is 3.45.
Can you provide the dividend sustainability for EL stock?
The dividend rating of ESSILORLUXOTTICA (EL.PA) is 5 / 10 and the dividend payout ratio is 22.97%.