ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
Europe - EPA:EL - FR0000121667 - Common Stock
314.9 EUR
-4 (-1.25%)
EL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 60 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 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.
Each year in the past 5 years EL has been profitable.
EL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.84%, EL is in line with its industry, outperforming 55.00% of the companies in the same industry.
With a Return On Equity value of 6.29%, EL perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
With a Return On Invested Capital value of 5.39%, EL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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's Profit Margin of 8.74% is in line compared to the rest of the industry. EL outperforms 56.67% of its industry peers.
EL's Profit Margin has improved in the last couple of years.
EL has a Operating Margin of 12.86%. This is comparable to the rest of the industry: EL outperforms 58.33% of its industry peers.
In the last couple of years the Operating Margin of EL has grown nicely.
EL has a better Gross Margin (61.91%) than 61.67% 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.
Compared to 1 year ago, EL has more shares outstanding
Compared to 5 years ago, EL has more shares outstanding
The debt/assets ratio for EL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.65 indicates that EL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.65, EL is doing good in the industry, outperforming 80.00% 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 61.67% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that EL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.25, EL perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.65 |
ROIC/WACC0.69
WACC7.82%
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.
EL has a Current ratio of 0.97. This is amonst the worse of the industry: EL underperforms 83.33% 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.
The Quick ratio of EL (0.67) is worse than 80.00% 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.
Measured over the past years, EL shows a quite strong growth in Revenue. The Revenue has been growing by 8.80% on average per year.
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 11.05% on average per year.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
The Price/Earnings ratio is 45.84, which means the current valuation is very expensive for 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 (25.89), we can say EL is valued expensively.
A Price/Forward Earnings ratio of 38.74 indicates a quite expensive valuation of EL.
66.67% of the companies in the same industry are cheaper than EL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, EL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.84 | ||
| Fwd PE | 38.74 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as EL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.37 | ||
| EV/EBITDA | 23.92 |
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)6.15
PEG (5Y)2.86
EPS Next 2Y9.42%
EPS Next 3Y10.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, EL has a reasonable but not impressive dividend return.
EL's Dividend Yield is a higher than the industry average which is at 2.11.
Compared to an average S&P500 Dividend Yield of 2.44, EL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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 2Y9.42%
EPS Next 3Y10.6%
EPA:EL (11/17/2025, 4:49:14 PM)
314.9
-4 (-1.25%)
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 Cap145.85B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target314.87 (-0.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)8.42%
PT rev (3m)15.26%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.64%
EPS NY rev (3m)-9.23%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.84 | ||
| Fwd PE | 38.74 | ||
| P/S | 5.35 | ||
| P/FCF | 43.37 | ||
| P/OCF | 29.68 | ||
| P/B | 3.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.92 |
EPS(TTM)6.87
EY2.18%
EPS(NY)8.13
Fwd EY2.58%
FCF(TTM)7.26
FCFY2.31%
OCF(TTM)10.61
OCFY3.37%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)6.15
PEG (5Y)2.86
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 | 4.65 |
F-Score7
WACC7.82%
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 5 / 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 4 / 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.