ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
EPA:EL - Euronext Paris - Matif - FR0000121667 - Common Stock - Currency: EUR
Overall EL gets a fundamental rating of 5 out of 10. We evaluated EL against 57 industry peers in the Health Care Equipment & Supplies industry. EL scores excellent on profitability, but there are some minor 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.
In the past year EL had a positive cash flow from operations.
In the past 5 years EL has always been profitable.
In the past 5 years EL always reported a positive cash flow from operatings.
1.2 Ratios
EL has a Return On Assets of 3.67%. This is in the better half of the industry: EL outperforms 61.40% of its industry peers.
EL has a Return On Equity (5.84%) which is comparable to the rest of the industry.
The Return On Invested Capital of EL (4.99%) is better than 61.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EL is below the industry average of 8.08%.
The last Return On Invested Capital (4.99%) for EL is above the 3 year average (4.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROIC | 4.99% |
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 (8.90%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of EL has grown nicely.
EL has a better Operating Margin (13.01%) than 64.91% 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 62.45%, EL is doing good in the industry, outperforming 63.16% 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 | 13.01% | ||
| PM (TTM) | 8.9% | ||
| GM | 62.45% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 3.80. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
EL has a Altman-Z score of 3.80. This is in the better half of the industry: EL outperforms 68.42% of its industry peers.
The Debt to FCF ratio of EL is 3.94, which is a good value as it means it would take EL, 3.94 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.94, EL is doing good in the industry, outperforming 73.68% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that EL is not too dependend on debt financing.
EL has a better Debt to Equity ratio (0.24) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.8 |
ROIC/WACC0.67
WACC7.5%
2.3 Liquidity
EL has a Current Ratio of 0.95. This is a bad value and indicates that EL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.95, EL is doing worse than 78.95% of the companies in the same industry.
EL has a Quick Ratio of 0.95. 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 0.65. This is in the lower half of the industry: EL underperforms 75.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.82% over the past year.
The Earnings Per Share has been growing by 16.01% on average over the past years. This is quite good.
EL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.38%.
The Revenue has been growing by 8.80% on average over the past years. This is quite good.
EPS 1Y (TTM)3.82%
EPS 3Y13.7%
EPS 5Y16.01%
EPS Q2Q%4.2%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.37%
3.2 Future
EL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.99% yearly.
The Revenue is expected to grow by 6.14% on average over the next years.
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue Next Year6.25%
Revenue Next 2Y6.29%
Revenue Next 3Y6.48%
Revenue Next 5Y6.14%
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.
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
Based on the Price/Earnings ratio of 35.70, the valuation of EL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of EL indicates a somewhat cheap valuation: EL is cheaper than 61.40% of the companies listed in the same industry.
EL is valuated rather expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 30.16, the valuation of EL can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as EL.
EL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.7 | ||
| Fwd PE | 30.16 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is in line with the industry average.
EL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EL is cheaper than 71.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.08 | ||
| EV/EBITDA | 19.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of EL may justify a higher PE ratio.
EL's earnings are expected to grow with 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.94
PEG (5Y)2.23
EPS Next 2Y15.32%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, EL has a reasonable but not impressive dividend return.
EL's Dividend Yield is a higher than the industry average which is at 2.07.
Compared to the average S&P500 Dividend Yield of 2.37, EL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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
49.30% 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.
DP49.3%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPA:EL (7/11/2025, 7:00:00 PM)
242.4
-7.6 (-3.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners29.87%
Inst Owner ChangeN/A
Ins Owners32.47%
Ins Owner ChangeN/A
Market Cap110.90B
Analysts77.33
Price Target278.84 (15.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend2.56
Dividend Growth(5Y)4.5%
DP49.3%
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)-1.63%
PT rev (3m)-4.52%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.7 | ||
| Fwd PE | 30.16 | ||
| P/S | 4.18 | ||
| P/FCF | 33.08 | ||
| P/OCF | 22.75 | ||
| P/B | 2.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.43 |
EPS(TTM)6.79
EY2.8%
EPS(NY)8.04
Fwd EY3.32%
FCF(TTM)7.33
FCFY3.02%
OCF(TTM)10.65
OCFY4.39%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)1.94
PEG (5Y)2.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROCE | 6.42% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 26.04% | ||
| OM | 13.01% | ||
| PM (TTM) | 8.9% | ||
| GM | 62.45% | ||
| FCFM | 12.65% |
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%
ROICexcg growth 3Y0.01%
ROICexcg 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-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 49.13% | ||
| Cap/Sales | 5.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.46% | ||
| Profit Quality | 142.09% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.8 |
F-Score5
WACC7.5%
ROIC/WACC0.67
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)3.82%
EPS 3Y13.7%
EPS 5Y16.01%
EPS Q2Q%4.2%
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.37%
Revenue Next Year6.25%
Revenue Next 2Y6.29%
Revenue Next 3Y6.48%
Revenue Next 5Y6.14%
EBIT growth 1Y9.04%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y15.63%
FCF growth 1Y0.66%
FCF growth 3Y-1.57%
FCF growth 5Y6.95%
OCF growth 1Y0.27%
OCF growth 3Y2.36%
OCF growth 5Y8.12%