ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ESL - FR0000121667 - Common Stock
272.7 EUR
-4.2 (-1.52%)
ESL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 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 quite expensive at the moment. 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 has a Return On Assets (3.84%) which is comparable to the rest of the industry.
ESL's Return On Equity of 6.29% is in line compared to the rest of the industry. ESL outperforms 46.15% of its industry peers.
The Return On Invested Capital of ESL (5.39%) is comparable to the rest of the industry.
ESL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 9.71%.
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
The Profit Margin of ESL (8.74%) is comparable to the rest of the industry.
ESL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.86%, ESL is in line with its industry, outperforming 58.46% of the companies in the same industry.
ESL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 61.91%, ESL is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
ESL'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
ESL 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, ESL has more shares outstanding
Compared to 5 years ago, ESL has more shares outstanding
ESL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.11 indicates that ESL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.11, ESL is doing good in the industry, outperforming 72.31% of the companies in the same industry.
The Debt to FCF ratio of ESL is 4.18, which is a neutral value as it means it would take ESL, 4.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.18, ESL is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that ESL is not too dependend on debt financing.
ESL has a better Debt to Equity ratio (0.25) than 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.11 |
ROIC/WACC0.7
WACC7.7%
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 81.54% of its industry peers.
A Quick Ratio of 0.67 indicates that ESL may have some problems paying its short term obligations.
The Quick ratio of ESL (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
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.
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
ESL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.05% yearly.
The Revenue is expected to grow by 7.48% on average over the next years.
EPS Next Y7.35%
EPS Next 2Y9.64%
EPS Next 3Y10.93%
EPS Next 5Y11.05%
Revenue Next Year5.88%
Revenue Next 2Y6.77%
Revenue Next 3Y7.23%
Revenue Next 5Y7.48%
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.
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 39.69, which means the current valuation is very expensive for ESL.
Compared to the rest of the industry, the Price/Earnings ratio of ESL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.61. ESL is valued slightly more expensive when compared to this.
ESL is valuated quite expensively with a Price/Forward Earnings ratio of 33.41.
Based on the Price/Forward Earnings ratio, ESL is valued a bit more expensive than 63.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.01. ESL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.69 | ||
| Fwd PE | 33.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ESL.
ESL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.56 | ||
| EV/EBITDA | 20.7 |
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 ESL may justify a higher PE ratio.
PEG (NY)5.4
PEG (5Y)2.48
EPS Next 2Y9.64%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
ESL has a Yearly Dividend Yield of 1.43%.
Compared to an average industry Dividend Yield of 1.03, ESL pays a bit more dividend than its industry peers.
ESL's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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
ESL pays out 22.97% of its income as dividend. This is a sustainable payout ratio.
The dividend of ESL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.97%
EPS Next 2Y9.64%
EPS Next 3Y10.93%
FRA:ESL (12/22/2025, 7:00:00 PM)
272.7
-4.2 (-1.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners28.84%
Inst Owner ChangeN/A
Ins Owners32.08%
Ins Owner ChangeN/A
Market Cap126.30B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target331.3 (21.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)5.97%
PT rev (3m)19.37%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.69 | ||
| Fwd PE | 33.41 | ||
| P/S | 4.64 | ||
| P/FCF | 37.56 | ||
| P/OCF | 25.7 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.7 |
EPS(TTM)6.87
EY2.52%
EPS(NY)8.16
Fwd EY2.99%
FCF(TTM)7.26
FCFY2.66%
OCF(TTM)10.61
OCFY3.89%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.4
PEG (5Y)2.48
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 | 4.11 |
F-Score7
WACC7.7%
ROIC/WACC0.7
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 Y7.35%
EPS Next 2Y9.64%
EPS Next 3Y10.93%
EPS Next 5Y11.05%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.88%
Revenue Next 2Y6.77%
Revenue Next 3Y7.23%
Revenue Next 5Y7.48%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year58.38%
EBIT Next 3Y24.03%
EBIT Next 5Y17.4%
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 39.69 and the Price/Book (PB) ratio is 3.34.
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%.