ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:EL - FR0000121667 - Common Stock
267.2 EUR
+1 (+0.38%)
Taking everything into account, EL scores 4 out of 10 in our fundamental rating. EL was compared to 67 industry peers in the Health Care Equipment & Supplies industry. While EL is still in line with the averages on profitability rating, there are concerns on its financial health. EL is quite expensive at the moment. It does show a decent growth rate.
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.
- EL had positive earnings in each of the past 5 years.
- 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 55.22% of the companies in the same industry.
- EL has a Return On Equity (6.29%) which is in line with its industry peers.
- EL has a Return On Invested Capital of 5.39%. This is comparable to the rest of the industry: EL outperforms 49.25% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EL is below the industry average of 9.84%.
- 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
- Looking at the Profit Margin, with a value of 8.74%, EL is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
- In the last couple of years the Profit Margin of EL has grown nicely.
- EL has a Operating Margin (12.86%) which is in line with its industry peers.
- EL's Operating Margin has improved in the last couple of years.
- EL has a Gross Margin of 61.91%. This is in the better half of the industry: EL outperforms 64.18% of its industry peers.
- 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.
- The number of shares outstanding for EL has been increased compared to 1 year ago.
- EL has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for EL is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.04 indicates that EL is not in any danger for bankruptcy at the moment.
- EL has a Altman-Z score of 4.04. This is in the better half of the industry: EL outperforms 71.64% of its industry peers.
- 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 65.67% 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.
- Looking at the Debt to Equity ratio, with a value of 0.25, EL is in the better half of the industry, outperforming 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.04 |
ROIC/WACC0.69
WACC7.81%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that EL may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.97, EL is doing worse than 79.10% of the companies in the same industry.
- 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 has a Quick ratio of 0.67. This is in the lower half of the industry: EL underperforms 74.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.00% over the past year.
- Measured over the past years, EL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.01% on average per year.
- EL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.45%.
- 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
- Based on estimates for the next years, EL will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.60% on average per year.
- EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.56% yearly.
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
- A Price/Earnings ratio of 38.89 indicates a quite expensive valuation of EL.
- Compared to the rest of the industry, the Price/Earnings ratio of EL is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of EL to the average of the S&P500 Index (27.38), we can say EL is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 32.84, the valuation of EL can be described as expensive.
- 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 64.18% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, EL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.89 | ||
| Fwd PE | 32.84 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as EL.
- The rest of the industry has a similar Price/Free Cash Flow ratio as EL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.8 | ||
| EV/EBITDA | 20.24 |
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.
- The decent profitability rating of EL may justify a higher PE ratio.
PEG (NY)5.37
PEG (5Y)2.43
EPS Next 2Y9.47%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
- EL has a Yearly Dividend Yield of 1.40%.
- Compared to an average industry Dividend Yield of 0.95, EL pays a bit more dividend than its industry peers.
- EL's Dividend Yield is slightly below the S&P500 average, which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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
- 22.97% 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.
DP22.97%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
EPA:EL (1/20/2026, 5:36:15 PM)
267.2
+1 (+0.38%)
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)02-11 2026-02-11/amc
Inst Owners28.97%
Inst Owner ChangeN/A
Ins Owners32.07%
Ins Owner ChangeN/A
Market Cap123.75B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.94
Price Target331.34 (24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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)0.24%
PT rev (3m)14.09%
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 | 38.89 | ||
| Fwd PE | 32.84 | ||
| P/S | 4.54 | ||
| P/FCF | 36.8 | ||
| P/OCF | 25.18 | ||
| P/B | 3.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.24 |
EPS(TTM)6.87
EY2.57%
EPS(NY)8.14
Fwd EY3.05%
FCF(TTM)7.26
FCFY2.72%
OCF(TTM)10.61
OCFY3.97%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.37
PEG (5Y)2.43
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 | 4.04 |
F-Score7
WACC7.81%
ROIC/WACC0.69
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 38.89 and the Price/Book (PB) ratio is 3.27.
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%.