ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:EL - FR0000121667 - Common Stock
312.65 EUR
-0.45 (-0.14%)
Taking everything into account, EL scores 4 out of 10 in our fundamental rating. EL was compared to 63 industry peers in the Health Care Equipment & Supplies industry. EL has a medium profitability rating, but doesn't score so well on its financial health evaluation. EL is valied quite expensively at the moment, while it does show a decent growth rate.
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.
1.2 Ratios
With a Return On Assets value of 3.84%, EL perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.29%, EL is in line with its industry, outperforming 47.62% of the companies in the same industry.
EL has a Return On Invested Capital (5.39%) which is in line with its industry peers.
EL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 9.33%.
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
EL has a better Profit Margin (8.74%) than 60.32% of its industry peers.
EL's Profit Margin has improved in the last couple of years.
EL has a better Operating Margin (12.86%) than 60.32% of its industry peers.
In the last couple of years the Operating Margin of EL has grown nicely.
With a decent Gross Margin value of 61.91%, EL is doing good in the industry, outperforming 63.49% of the companies in the same industry.
In the last couple of years the Gross Margin of EL has remained more or less at the same level.
| 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
EL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
2.2 Solvency
An Altman-Z score of 4.58 indicates that EL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.58, EL is in the better half of the industry, outperforming 77.78% 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.
With a decent Debt to FCF ratio value of 4.18, EL is doing good in the industry, outperforming 66.67% 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 better Debt to Equity ratio (0.25) than 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.58 |
ROIC/WACC0.7
WACC7.75%
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.
With a Current ratio value of 0.97, EL is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
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.
The Quick ratio of EL (0.67) is worse than 77.78% 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.
The Earnings Per Share has been growing by 16.01% on average over the past years. This is quite good.
Looking at the last year, EL shows a small growth in Revenue. The Revenue has grown by 5.45% in the last 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
The Earnings Per Share is expected to grow by 11.05% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.60% on average over the next years.
EPS Next Y7.46%
EPS Next 2Y9.42%
EPS Next 3Y10.6%
EPS Next 5Y11.05%
Revenue Next Year5.73%
Revenue Next 2Y6.28%
Revenue Next 3Y6.67%
Revenue Next 5Y7.6%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 45.51, EL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of EL is on the same level as its industry peers.
EL is valuated expensively when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 38.46, EL can be considered very expensive at the moment.
EL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EL is more expensive than 61.90% of the companies in the same industry.
EL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.51 | ||
| Fwd PE | 38.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EL.
Based on the Price/Free Cash Flow ratio, EL is valued a bit cheaper than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.06 | ||
| EV/EBITDA | 23.51 |
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.
PEG (NY)6.1
PEG (5Y)2.84
EPS Next 2Y9.42%
EPS Next 3Y10.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, EL has a reasonable but not impressive dividend return.
EL's Dividend Yield is a higher than the industry average which is at 2.22.
Compared to an average S&P500 Dividend Yield of 2.41, EL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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.
The dividend of EL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.97%
EPS Next 2Y9.42%
EPS Next 3Y10.6%
EPA:EL (11/27/2025, 5:29:43 PM)
312.65
-0.45 (-0.14%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners29.19%
Inst Owner ChangeN/A
Ins Owners32.47%
Ins Owner ChangeN/A
Market Cap144.80B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target323.24 (3.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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)11.3%
PT rev (3m)18.32%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.64%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.51 | ||
| Fwd PE | 38.46 | ||
| P/S | 5.32 | ||
| P/FCF | 43.06 | ||
| P/OCF | 29.47 | ||
| P/B | 3.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.51 |
EPS(TTM)6.87
EY2.2%
EPS(NY)8.13
Fwd EY2.6%
FCF(TTM)7.26
FCFY2.32%
OCF(TTM)10.61
OCFY3.39%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)6.1
PEG (5Y)2.84
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 | 4.58 |
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 Y7.46%
EPS Next 2Y9.42%
EPS Next 3Y10.6%
EPS Next 5Y11.05%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.73%
Revenue Next 2Y6.28%
Revenue Next 3Y6.67%
Revenue Next 5Y7.6%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.93%
EBIT Next 3Y22.99%
EBIT Next 5Y17.39%
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.
Can you provide the valuation status for ESSILORLUXOTTICA?
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.
Can you provide the financial health for EL stock?
The financial health rating of ESSILORLUXOTTICA (EL.PA) is 3 / 10.
What is the earnings growth outlook for ESSILORLUXOTTICA?
The Earnings per Share (EPS) of ESSILORLUXOTTICA (EL.PA) is expected to grow by 7.46% in the next year.