ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ESL - FR0000121667 - Common Stock
308.8 EUR
-0.7 (-0.23%)
We assign a fundamental rating of 4 out of 10 to ESL. ESL was compared to 64 industry peers in the Health Care Equipment & Supplies industry. ESL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
ESL had a positive operating cash flow in the past year.
In the past 5 years ESL has always been profitable.
Each year in the past 5 years ESL had a positive operating cash flow.
1.2 Ratios
ESL has a Return On Assets (3.84%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.29%, ESL is in line with its industry, outperforming 44.62% of the companies in the same industry.
ESL has a Return On Invested Capital (5.39%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ESL is below the industry average of 9.33%.
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
ESL has a Profit Margin (8.74%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ESL has grown nicely.
ESL has a Operating Margin (12.86%) which is in line with its industry peers.
ESL's Operating Margin has improved in the last couple of years.
The Gross Margin of ESL (61.91%) is comparable to the rest of the 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESL is destroying value.
ESL has more shares outstanding than it did 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 4.53. This indicates that ESL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ESL (4.53) is better than 76.92% of its industry peers.
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.
With a decent Debt to FCF ratio value of 4.18, ESL is doing good in the industry, outperforming 64.62% of the companies in the same industry.
ESL has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
ESL's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. ESL outperforms 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.53 |
ROIC/WACC0.7
WACC7.74%
2.3 Liquidity
A Current Ratio of 0.97 indicates that ESL may have some problems paying its short term obligations.
The Current ratio of ESL (0.97) is worse than 83.08% of its industry peers.
ESL has a Quick 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 has a worse Quick ratio (0.67) 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.
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 5.45%.
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.
Based on estimates for the next years, ESL will show a small growth in Revenue. The Revenue will grow by 7.48% on average per year.
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 5Y7.48%
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
A Price/Earnings ratio of 44.95 indicates a quite expensive valuation of ESL.
ESL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. ESL is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 37.99, which means the current valuation is very expensive for ESL.
Based on the Price/Forward Earnings ratio, ESL is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
ESL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.95 | ||
| Fwd PE | 37.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ESL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.53 | ||
| EV/EBITDA | 23.21 |
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)6.03
PEG (5Y)2.81
EPS Next 2Y9.42%
EPS Next 3Y10.6%
5. Dividend
5.1 Amount
ESL has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
ESL's Dividend Yield is a higher than the industry average which is at 2.16.
Compared to an average S&P500 Dividend Yield of 2.34, ESL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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.
ESL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.97%
EPS Next 2Y9.42%
EPS Next 3Y10.6%
FRA:ESL (11/28/2025, 7:00:00 PM)
308.8
-0.7 (-0.23%)
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 Cap143.02B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target323.24 (4.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)11.3%
PT rev (3m)18.49%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.64%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.95 | ||
| Fwd PE | 37.99 | ||
| P/S | 5.25 | ||
| P/FCF | 42.53 | ||
| P/OCF | 29.1 | ||
| P/B | 3.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.21 |
EPS(TTM)6.87
EY2.22%
EPS(NY)8.13
Fwd EY2.63%
FCF(TTM)7.26
FCFY2.35%
OCF(TTM)10.61
OCFY3.44%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)6.03
PEG (5Y)2.81
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 | 4.53 |
F-Score7
WACC7.74%
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 Y7.46%
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 5Y7.48%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.93%
EBIT Next 3Y22.99%
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 44.95 and the Price/Book (PB) ratio is 3.78.
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%.