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

EL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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

6

1. Profitability

1.1 Basic Checks

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

  • EL has a Return On Assets (3.62%) which is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of 5.95%, EL is in line with its industry, outperforming 47.62% of the companies in the same industry.
  • The Return On Invested Capital of EL (4.96%) is comparable to the rest of the industry.
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 61.90% 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 57.14% 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 59.69%, EL is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
  • EL's Gross Margin has been stable in the last couple of years.
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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4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EL is destroying value.
  • EL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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 3.17. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
  • EL's Altman-Z score of 3.17 is fine compared to the rest of the industry. EL outperforms 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.
  • The Debt to FCF ratio of EL (3.82) is better than 65.08% of its industry peers.
  • A Debt/Equity ratio of 0.24 indicates that EL is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.24, EL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 3.82
Altman-Z 3.17
ROIC/WACC0.63
WACC7.91%
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 has a Current ratio of 0.99. This is in the lower half of the industry: EL underperforms 79.37% of its industry peers.
  • EL has a Quick 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.
  • With a Quick ratio value of 0.70, EL is not doing good in the industry: 74.60% of the companies in the same industry are doing better.
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%.
  • The Earnings Per Share has been growing by 30.65% on average over the past years. This is a very strong growth
  • 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

  • The Earnings Per Share is expected to grow by 13.89% on average over the next years. This is quite good.
  • 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.
  • 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.
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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3

4. Valuation

4.1 Price/Earnings Ratio

  • EL is valuated quite expensively with a Price/Earnings ratio of 32.88.
  • 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 (27.07), we can say EL is valued slightly more expensively.
  • Based on the Price/Forward Earnings ratio of 28.02, the valuation of EL can be described as expensive.
  • EL's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of EL to the average of the S&P500 Index (28.05), we can say EL is valued inline with the index average.
Industry RankSector Rank
PE 32.88
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as EL.
  • EL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EL is cheaper than 65.08% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.7
EV/EBITDA 17.75
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.
  • EL has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as EL's earnings are expected to grow with 13.67% in the coming years.
PEG (NY)1.9
PEG (5Y)1.07
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.
  • In the last 3 months the price of EL has falen by -27.05%. 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 1.06.
  • 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

  • EL pays out 23.63% 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.
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 (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)28.49B
Net Income(TTM)2.31B
Analysts85.16
Price Target331.09 (47.02%)
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 32.88
Fwd PE 28.02
P/S 3.66
P/FCF 27.7
P/OCF 19.72
P/B 2.68
P/tB N/A
EV/EBITDA 17.75
EPS(TTM)6.85
EY3.04%
EPS(NY)8.04
Fwd EY3.57%
FCF(TTM)8.13
FCFY3.61%
OCF(TTM)11.42
OCFY5.07%
SpS61.5
BVpS83.94
TBVpS-4.05
PEG (NY)1.9
PEG (5Y)1.07
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 3.17
F-Score7
WACC7.91%
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 32.88 and the Price/Book (PB) ratio is 2.68.


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%.