ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ESL - FR0000121667 - Common Stock
270.8 EUR
-0.7 (-0.26%)
ESL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ESL had positive earnings in the past year.
ESL had a positive operating cash flow in the past year.
In the past 5 years ESL has always been profitable.
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 in line with its industry peers.
Looking at the Return On Equity, with a value of 6.29%, ESL is in line with its industry, outperforming 48.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.39%, ESL is in line with its industry, outperforming 50.00% of the companies in the same industry.
ESL had an Average Return On Invested Capital over the past 3 years of 4.84%. This is below the industry average of 9.74%.
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
ESL has a Profit Margin of 8.74%. This is in the better half of the industry: ESL outperforms 61.29% of its industry peers.
In the last couple of years the Profit Margin of ESL has grown nicely.
The Operating Margin of ESL (12.86%) is better than 61.29% of its industry peers.
In the last couple of years the Operating Margin of ESL has grown nicely.
The Gross Margin of ESL (61.91%) is better than 62.90% of its industry peers.
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.
The number of shares outstanding for ESL has been increased compared to 1 year ago.
ESL has more shares outstanding than it did 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 4.09. This indicates that ESL is financially healthy and has little risk of bankruptcy at the moment.
ESL's Altman-Z score of 4.09 is fine compared to the rest of the industry. ESL outperforms 72.58% 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.
ESL has a better Debt to FCF ratio (4.18) than 62.90% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ESL is not too dependend on debt financing.
ESL's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. ESL outperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.09 |
ROIC/WACC0.7
WACC7.7%
2.3 Liquidity
A Current Ratio of 0.97 indicates that ESL may have some problems paying 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 80.65% of its industry peers.
A Quick Ratio of 0.67 indicates that ESL may have some problems paying its short term obligations.
ESL's Quick ratio of 0.67 is on the low side compared to the rest of the industry. ESL is outperformed by 79.03% 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%.
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 11.05% yearly.
The Revenue is expected to grow by 7.48% on average over the next years.
EPS Next Y7.24%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
EPS Next 5Y11.05%
Revenue Next Year5.99%
Revenue Next 2Y6.94%
Revenue Next 3Y7.45%
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.
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
With a Price/Earnings ratio of 39.42, ESL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ESL.
ESL is valuated rather expensively when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 33.28, which means the current valuation is very expensive for ESL.
62.90% of the companies in the same industry are cheaper than ESL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, ESL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.42 | ||
| Fwd PE | 33.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESL is on the same level as its industry peers.
ESL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.29 | ||
| EV/EBITDA | 20.57 |
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)5.44
PEG (5Y)2.46
EPS Next 2Y9.47%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
ESL has a Yearly Dividend Yield of 1.46%.
Compared to an average industry Dividend Yield of 1.11, ESL pays a bit more dividend than its industry peers.
ESL's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 2Y9.47%
EPS Next 3Y10.9%
FRA:ESL (12/30/2025, 7:00:00 PM)
270.8
-0.7 (-0.26%)
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 Cap125.42B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target335.22 (23.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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)3.71%
PT rev (3m)20.78%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.42 | ||
| Fwd PE | 33.28 | ||
| P/S | 4.6 | ||
| P/FCF | 37.29 | ||
| P/OCF | 25.52 | ||
| P/B | 3.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.57 |
EPS(TTM)6.87
EY2.54%
EPS(NY)8.14
Fwd EY3%
FCF(TTM)7.26
FCFY2.68%
OCF(TTM)10.61
OCFY3.92%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.44
PEG (5Y)2.46
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 | 4.09 |
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 Y7.24%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
EPS Next 5Y11.05%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.52%
Revenue Next Year5.99%
Revenue Next 2Y6.94%
Revenue Next 3Y7.45%
Revenue Next 5Y7.48%
EBIT growth 1Y6.6%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year56.89%
EBIT Next 3Y23.64%
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.
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 7.24% in the next year.
How sustainable is the dividend of ESSILORLUXOTTICA (ESL.DE) stock?
The dividend rating of ESSILORLUXOTTICA (ESL.DE) is 5 / 10 and the dividend payout ratio is 22.97%.