ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
FRA:ESL - Deutsche Boerse Ag - FR0000121667 - Common Stock - Currency: EUR
Taking everything into account, ESL scores 5 out of 10 in our fundamental rating. ESL was compared to 60 industry peers in the Health Care Equipment & Supplies industry. ESL has an average financial health and profitability rating. 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.
Each year in the past 5 years ESL had a positive operating cash flow.
1.2 Ratios
ESL has a Return On Assets of 3.67%. This is in the better half of the industry: ESL outperforms 61.82% of its industry peers.
ESL has a Return On Equity (5.84%) which is in line with its industry peers.
ESL has a Return On Invested Capital (5.00%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROIC | 5% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ESL (8.90%) is better than 70.91% of its industry peers.
In the last couple of years the Profit Margin of ESL has grown nicely.
The Operating Margin of ESL (13.01%) is better than 74.55% of its industry peers.
In the last couple of years the Operating Margin of ESL has grown nicely.
Looking at the Gross Margin, with a value of 62.45%, ESL is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
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 | 13.01% | ||
| PM (TTM) | 8.9% | ||
| GM | 62.45% |
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.
ESL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ESL has an Altman-Z score of 3.75. This indicates that ESL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.75, ESL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
ESL has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as ESL would need 3.94 years to pay back of all of its debts.
ESL has a Debt to FCF ratio of 3.94. This is in the better half of the industry: ESL outperforms 78.18% of its industry peers.
ESL has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
ESL has a better Debt to Equity ratio (0.24) than 67.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.75 |
ROIC/WACC0.64
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ESL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.95, ESL is doing worse than 76.36% of the companies in the same industry.
ESL has a Quick Ratio of 0.95. This is a bad value and indicates that ESL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.65, ESL is doing worse than 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ESL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.87%.
Measured over the past years, ESL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.01% on average per year.
ESL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.38%.
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)0.87%
EPS 3Y16.42%
EPS 5Y16.01%
EPS Q2Q%5.08%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.37%
3.2 Future
Based on estimates for the next years, ESL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.26% on average per year.
The Revenue is expected to grow by 6.32% on average over the next years.
EPS Next Y15.02%
EPS Next 2Y13.58%
EPS Next 3Y13.46%
EPS Next 5Y11.26%
Revenue Next Year9.6%
Revenue Next 2Y8.08%
Revenue Next 3Y7.54%
Revenue Next 5Y6.32%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 53.09, ESL can be considered very expensive at the moment.
ESL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.35. ESL is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 33.55, the valuation of ESL can be described as expensive.
ESL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, ESL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.09 | ||
| Fwd PE | 33.55 |
4.2 Price Multiples
65.45% of the companies in the same industry are more expensive than ESL, based on the Enterprise Value to EBITDA ratio.
70.91% of the companies in the same industry are more expensive than ESL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.1 | ||
| EV/EBITDA | 20.67 |
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.
The decent profitability rating of ESL may justify a higher PE ratio.
A more expensive valuation may be justified as ESL's earnings are expected to grow with 13.46% in the coming years.
PEG (NY)3.53
PEG (5Y)3.31
EPS Next 2Y13.58%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
ESL has a Yearly Dividend Yield of 1.45%.
Compared to an average industry Dividend Yield of 2.26, ESL pays a bit more dividend than its industry peers.
ESL's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of ESL has a limited annual growth rate of 0.44%.
Dividend Growth(5Y)0.44%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ESL pays out 49.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ESL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.3%
EPS Next 2Y13.58%
EPS Next 3Y13.46%
FRA:ESL (3/7/2025, 7:00:00 PM)
271.8
+3.2 (+1.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners31.76%
Inst Owner ChangeN/A
Ins Owners32.45%
Ins Owner ChangeN/A
Market Cap124.35B
Analysts79.35
Price Target284.25 (4.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend1.09
Dividend Growth(5Y)0.44%
DP49.3%
Div Incr Years2
Div Non Decr Years2
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)19.35%
PT rev (3m)23.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.83%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.81%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.09 | ||
| Fwd PE | 33.55 | ||
| P/S | 4.69 | ||
| P/FCF | 37.1 | ||
| P/OCF | 25.51 | ||
| P/B | 3.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.67 |
EPS(TTM)5.12
EY1.88%
EPS(NY)8.1
Fwd EY2.98%
FCF(TTM)7.33
FCFY2.7%
OCF(TTM)10.65
OCFY3.92%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)3.53
PEG (5Y)3.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROCE | 6.42% | ||
| ROIC | 5% | ||
| ROICexc | 5.21% | ||
| ROICexgc | 31.88% | ||
| OM | 13.01% | ||
| PM (TTM) | 8.9% | ||
| GM | 62.45% | ||
| FCFM | 12.65% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 49.13% | ||
| Cap/Sales | 5.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.46% | ||
| Profit Quality | 142.09% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.75 |
F-Score5
WACC7.78%
ROIC/WACC0.64
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)0.87%
EPS 3Y16.42%
EPS 5Y16.01%
EPS Q2Q%5.08%
EPS Next Y15.02%
EPS Next 2Y13.58%
EPS Next 3Y13.46%
EPS Next 5Y11.26%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.37%
Revenue Next Year9.6%
Revenue Next 2Y8.08%
Revenue Next 3Y7.54%
Revenue Next 5Y6.32%
EBIT growth 1Y9.04%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year65.98%
EBIT Next 3Y15.91%
EBIT Next 5Y14.35%
FCF growth 1Y0.66%
FCF growth 3Y-1.57%
FCF growth 5Y6.95%
OCF growth 1Y0.27%
OCF growth 3Y2.36%
OCF growth 5Y8.12%