ESSILORLUXOTTICA (EL.PA) Stock Fundamental Analysis
Europe - EPA:EL - FR0000121667 - Common Stock
314.4 EUR
+1 (+0.32%)
We assign a fundamental rating of 4 out of 10 to EL. EL was compared to 62 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of EL while its profitability can be described as average. While showing a medium growth rate, EL is valued expensive at the moment.
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.
EL had positive earnings in each of the past 5 years.
In the past 5 years EL always reported a positive cash flow from operatings.
1.2 Ratios
EL's Return On Assets of 3.84% is in line compared to the rest of the industry. EL outperforms 56.45% of its industry peers.
Looking at the Return On Equity, with a value of 6.29%, EL is in line with its industry, outperforming 48.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.39%, EL is in line with its industry, outperforming 51.61% 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 8.76%.
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's Profit Margin of 8.74% is in line compared to the rest of the industry. EL outperforms 56.45% of its industry peers.
EL's Profit Margin has improved in the last couple of years.
EL has a Operating Margin (12.86%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EL has grown nicely.
EL's Gross Margin of 61.91% is fine compared to the rest of the industry. EL outperforms 62.90% 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
EL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 4.58 indicates that EL is not in any danger for bankruptcy at the moment.
EL has a better Altman-Z score (4.58) than 75.81% 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.
The Debt to FCF ratio of EL (4.18) is better than 61.29% of its industry peers.
EL has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
EL has a Debt to Equity ratio (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.58 |
ROIC/WACC0.69
WACC7.81%
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 worse Current ratio (0.97) than 83.87% 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.
EL's Quick ratio of 0.67 is on the low side compared to the rest of the industry. EL is outperformed by 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
EL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.00%.
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.
The Revenue has been growing by 8.80% on average over the past years. This is quite good.
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
EL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.20% yearly.
EL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.39% yearly.
EPS Next Y6.78%
EPS Next 2Y8.91%
EPS Next 3Y9.98%
EPS Next 5Y9.2%
Revenue Next Year4.62%
Revenue Next 2Y5.36%
Revenue Next 3Y5.93%
Revenue Next 5Y6.39%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EL is valuated quite expensively with a Price/Earnings ratio of 45.76.
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 (26.89), we can say EL is valued expensively.
With a Price/Forward Earnings ratio of 39.04, 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 64.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, EL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.76 | ||
| Fwd PE | 39.04 |
4.2 Price Multiples
EL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EL indicates a somewhat cheap valuation: EL is cheaper than 61.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.3 | ||
| EV/EBITDA | 23.53 |
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.
PEG (NY)6.75
PEG (5Y)2.86
EPS Next 2Y8.91%
EPS Next 3Y9.98%
5. Dividend
5.1 Amount
EL has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
EL's Dividend Yield is a higher than the industry average which is at 2.23.
Compared to an average S&P500 Dividend Yield of 2.31, 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
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 2Y8.91%
EPS Next 3Y9.98%
EPA:EL (10/27/2025, 12:59:50 PM)
314.4
+1 (+0.32%)
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 Cap145.61B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts78.67
Price Target290.43 (-7.62%)
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)4.64%
PT rev (3m)5.91%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-9.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.76 | ||
| Fwd PE | 39.04 | ||
| P/S | 5.35 | ||
| P/FCF | 43.3 | ||
| P/OCF | 29.63 | ||
| P/B | 3.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.53 |
EPS(TTM)6.87
EY2.19%
EPS(NY)8.05
Fwd EY2.56%
FCF(TTM)7.26
FCFY2.31%
OCF(TTM)10.61
OCFY3.37%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)6.75
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 | 4.58 |
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 Y6.78%
EPS Next 2Y8.91%
EPS Next 3Y9.98%
EPS Next 5Y9.2%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year4.62%
Revenue Next 2Y5.36%
Revenue Next 3Y5.93%
Revenue Next 5Y6.39%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.93%
EBIT Next 3Y22.99%
EBIT Next 5Y16.01%
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 6.78% in the next year.