ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
Europe - FRA:ESL - FR0000121667 - Common Stock
319.5 EUR
+0.2 (+0.06%)
Overall ESL gets a fundamental rating of 4 out of 10. We evaluated ESL against 62 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of ESL while its profitability can be described as average. ESL 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 ESL was profitable.
In the past year ESL had a positive cash flow from operations.
ESL had positive earnings in each of the past 5 years.
In the past 5 years ESL always reported a positive cash flow from operatings.
1.2 Ratios
ESL's Return On Assets of 3.84% is in line compared to the rest of the industry. ESL outperforms 58.06% of its industry peers.
ESL's Return On Equity of 6.29% is in line compared to the rest of the industry. ESL outperforms 50.00% of its industry peers.
ESL's Return On Invested Capital of 5.39% is in line compared to the rest of the industry. ESL outperforms 53.23% of its industry peers.
ESL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 8.76%.
The last Return On Invested Capital (5.39%) for ESL 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
With a Profit Margin value of 8.74%, ESL perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
ESL's Profit Margin has improved in the last couple of years.
The Operating Margin of ESL (12.86%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ESL has grown nicely.
ESL has a Gross Margin of 61.91%. This is in the better half of the industry: ESL outperforms 64.52% of its industry peers.
In the last couple of years the Gross Margin of ESL 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
ESL 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 ESL has been increased compared to 1 year ago.
The number of shares outstanding for ESL has been increased compared to 5 years ago.
Compared to 1 year ago, ESL has a worse debt to assets ratio.
2.2 Solvency
ESL has an Altman-Z score of 4.65. This indicates that ESL is financially healthy and has little risk of bankruptcy at the moment.
ESL's Altman-Z score of 4.65 is fine compared to the rest of the industry. ESL outperforms 72.58% of its industry peers.
ESL has a debt to FCF ratio of 4.18. This is a neutral value as ESL would need 4.18 years to pay back of all of its debts.
The Debt to FCF ratio of ESL (4.18) is better than 62.90% of its industry peers.
ESL has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ESL (0.25) is comparable to the rest of the 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
ESL has a Current Ratio of 0.97. This is a bad value and indicates that ESL is not financially healthy enough and could expect problems in meeting its short term obligations.
ESL's Current ratio of 0.97 is on the low side compared to the rest of the industry. ESL is outperformed by 82.26% of its industry peers.
A Quick Ratio of 0.67 indicates that ESL may have some problems paying its short term obligations.
ESL has a Quick ratio of 0.67. This is in the lower half of the industry: ESL underperforms 79.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
ESL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.00%.
ESL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.01% yearly.
Looking at the last year, ESL shows a small growth in Revenue. The Revenue has grown by 5.45% in the last year.
ESL 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
ESL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.20% yearly.
The Revenue is expected to grow by 6.39% on average over the next years.
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
ESL is valuated quite expensively with a Price/Earnings ratio of 46.51.
ESL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.19, ESL is valued quite expensively.
ESL is valuated quite expensively with a Price/Forward Earnings ratio of 39.67.
ESL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ESL is more expensive than 62.90% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.50. ESL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.51 | ||
| Fwd PE | 39.67 |
4.2 Price Multiples
ESL'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 ESL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44 | ||
| EV/EBITDA | 23.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESL does not grow enough to justify the current Price/Earnings ratio.
ESL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.86
PEG (5Y)2.9
EPS Next 2Y8.91%
EPS Next 3Y9.98%
5. Dividend
5.1 Amount
ESL has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.23, ESL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.27, ESL pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of ESL has a limited annual growth rate of 4.50%.
Dividend Growth(5Y)4.5%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
22.97% of the earnings are spent on dividend by ESL. This is a low number and sustainable payout ratio.
The dividend of ESL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.97%
EPS Next 2Y8.91%
EPS Next 3Y9.98%
FRA:ESL (10/30/2025, 7:00:00 PM)
319.5
+0.2 (+0.06%)
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 Cap147.98B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts78.67
Price Target290.43 (-9.1%)
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 Years2
Div Non Decr Years3
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)5.74%
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 | 46.51 | ||
| Fwd PE | 39.67 | ||
| P/S | 5.43 | ||
| P/FCF | 44 | ||
| P/OCF | 30.11 | ||
| P/B | 3.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.96 |
EPS(TTM)6.87
EY2.15%
EPS(NY)8.05
Fwd EY2.52%
FCF(TTM)7.26
FCFY2.27%
OCF(TTM)10.61
OCFY3.32%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)6.86
PEG (5Y)2.9
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 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 / ESL.DE FAQ
What is the ChartMill fundamental rating of ESSILORLUXOTTICA (ESL.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ESL.DE.
Can you provide the valuation status for ESSILORLUXOTTICA?
ChartMill assigns a valuation rating of 2 / 10 to ESSILORLUXOTTICA (ESL.DE). This can be considered as Overvalued.
What is the profitability of ESL stock?
ESSILORLUXOTTICA (ESL.DE) has a profitability rating of 6 / 10.
What is the valuation of ESSILORLUXOTTICA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ESSILORLUXOTTICA (ESL.DE) is 46.51 and the Price/Book (PB) ratio is 3.91.
Can you provide the dividend sustainability for ESL stock?
The dividend rating of ESSILORLUXOTTICA (ESL.DE) is 5 / 10 and the dividend payout ratio is 22.97%.