ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:ESL • FR0000121667
258.8 EUR
+3.2 (+1.25%)
Last: Jan 30, 2026, 07:00 PM
Overall ESL gets a fundamental rating of 4 out of 10. We evaluated ESL against 68 industry peers in the Health Care Equipment & Supplies industry. While ESL is still in line with the averages on profitability rating, there are concerns on its financial health. ESL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- ESL had positive earnings in the past year.
- In the past year ESL had a positive cash flow from operations.
- In the past 5 years ESL has always been profitable.
- ESL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ESL has a Return On Assets of 3.84%. This is comparable to the rest of the industry: ESL outperforms 52.94% of its industry peers.
- With a Return On Equity value of 6.29%, ESL perfoms like the industry average, outperforming 45.59% 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.
- Measured over the past 3 years, the Average Return On Invested Capital for ESL is below the industry average of 9.62%.
- The 3 year average ROIC (4.84%) for ESL 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
- 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.
- ESL has a Operating Margin of 12.86%. This is comparable to the rest of the industry: ESL outperforms 55.88% of its industry peers.
- 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 61.76% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESL is destroying value.
- Compared to 1 year ago, ESL has more shares outstanding
- Compared to 5 years ago, ESL has more shares outstanding
- Compared to 1 year ago, ESL has a worse debt to assets ratio.
2.2 Solvency
- ESL has an Altman-Z score of 3.95. This indicates that ESL is financially healthy and has little risk of bankruptcy at the moment.
- ESL has a better Altman-Z score (3.95) than 73.53% 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.
- The Debt to FCF ratio of ESL (4.18) is better than 63.24% of its industry peers.
- A Debt/Equity ratio of 0.25 indicates that ESL is not too dependend on debt financing.
- ESL has a Debt to Equity ratio of 0.25. This is in the better half of the industry: ESL outperforms 66.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 3.95 |
ROIC/WACC0.69
WACC7.79%
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.
- The Current ratio of ESL (0.97) is worse than 83.82% of its industry peers.
- A Quick Ratio of 0.67 indicates that ESL may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.67, ESL is doing worse than 79.41% of the companies in the same industry.
| 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%.
- The Earnings Per Share has been growing by 16.01% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 5.45% in the past 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 9.60% yearly.
- The Revenue is expected to grow by 7.56% on average over the next years.
EPS Next Y5.69%
EPS Next 2Y8.8%
EPS Next 3Y10.77%
EPS Next 5Y9.6%
Revenue Next Year5.99%
Revenue Next 2Y6.94%
Revenue Next 3Y7.45%
Revenue Next 5Y7.56%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- ESL is valuated quite expensively with a Price/Earnings ratio of 37.67.
- The rest of the industry has a similar Price/Earnings ratio as ESL.
- ESL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.32.
- A Price/Forward Earnings ratio of 32.20 indicates a quite expensive valuation of ESL.
- 67.65% of the companies in the same industry are cheaper than ESL, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ESL to the average of the S&P500 Index (25.57), we can say ESL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.67 | ||
| Fwd PE | 32.2 |
4.2 Price Multiples
- ESL's Enterprise Value to EBITDA is on the same level as the industry average.
- ESL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.64 | ||
| EV/EBITDA | 19.73 |
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)6.62
PEG (5Y)2.35
EPS Next 2Y8.8%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.55%, ESL has a reasonable but not impressive dividend return.
- ESL's Dividend Yield is a higher than the industry average which is at 1.03.
- Compared to an average S&P500 Dividend Yield of 1.83, ESL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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 2Y8.8%
EPS Next 3Y10.77%
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.
What is the valuation status for ESL stock?
ChartMill assigns a valuation rating of 2 / 10 to ESSILORLUXOTTICA (ESL.DE). This can be considered as Overvalued.
Can you provide the profitability details for ESSILORLUXOTTICA?
ESSILORLUXOTTICA (ESL.DE) has a profitability rating of 6 / 10.
What is the expected EPS growth for ESSILORLUXOTTICA (ESL.DE) stock?
The Earnings per Share (EPS) of ESSILORLUXOTTICA (ESL.DE) is expected to grow by 5.69% in the next year.
How sustainable is the dividend of ESSILORLUXOTTICA (ESL.DE) stock?
The dividend rating of ESSILORLUXOTTICA (ESL.DE) is 6 / 10 and the dividend payout ratio is 22.97%.