ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:EL - FR0000121667 - Common Stock
306 EUR
-5.2 (-1.67%)
Overall EL gets a fundamental rating of 4 out of 10. We evaluated EL against 60 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EL was profitable.
In the past year EL had a positive cash flow from operations.
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
EL's Return On Assets of 3.84% is in line compared to the rest of the industry. EL outperforms 55.74% of its industry peers.
EL's Return On Equity of 6.29% is in line compared to the rest of the industry. EL outperforms 47.54% of its industry peers.
EL has a Return On Invested Capital (5.39%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for EL is below the industry average of 8.99%.
The last Return On Invested Capital (5.39%) for EL is above the 3 year average (4.84%), which is a sign of increasing profitability.
| 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 Profit Margin (8.74%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of EL has grown nicely.
EL's Operating Margin of 12.86% is in line compared to the rest of the industry. EL outperforms 59.02% of its industry peers.
EL's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 61.91%, EL is doing good in the industry, outperforming 62.30% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EL is destroying value.
Compared to 1 year ago, EL has more shares outstanding
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 4.50. This indicates that EL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EL (4.50) is better than 80.33% of its industry peers.
The Debt to FCF ratio of EL is 4.18, which is a neutral value as it means it would take EL, 4.18 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.18, EL is doing good in the industry, outperforming 63.93% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that EL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, EL is in line with its industry, outperforming 59.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.5 |
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.
EL has a worse Current ratio (0.97) than 81.97% 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.
With a Quick ratio value of 0.67, EL is not doing good in the industry: 78.69% of the companies in the same industry are doing better.
| 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.
The Revenue has been growing slightly by 5.45% in the past 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.
EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.60% yearly.
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
A Price/Earnings ratio of 44.54 indicates a quite expensive valuation of EL.
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 (25.45), we can say EL is valued expensively.
The Price/Forward Earnings ratio is 37.64, which means the current valuation is very expensive for 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 65.57% of the companies listed in the same industry.
EL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.54 | ||
| Fwd PE | 37.64 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as EL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.14 | ||
| EV/EBITDA | 23.02 |
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)5.97
PEG (5Y)2.78
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 2.16.
Compared to an average S&P500 Dividend Yield of 2.42, 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.
EL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.97%
EPS Next 2Y9.42%
EPS Next 3Y10.6%
EPA:EL (11/21/2025, 7:00:00 PM)
306
-5.2 (-1.67%)
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 Cap141.72B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target323.24 (5.63%)
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 | 44.54 | ||
| Fwd PE | 37.64 | ||
| P/S | 5.2 | ||
| P/FCF | 42.14 | ||
| P/OCF | 28.84 | ||
| P/B | 3.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.02 |
EPS(TTM)6.87
EY2.25%
EPS(NY)8.13
Fwd EY2.66%
FCF(TTM)7.26
FCFY2.37%
OCF(TTM)10.61
OCFY3.47%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.97
PEG (5Y)2.78
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 | 4.5 |
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 Y7.46%
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.