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 58 industry peers in the Health Care Equipment & Supplies industry. While ESL has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, ESL is valued expensive at the moment.
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.
ESL had positive earnings in each of the past 5 years.
ESL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESL has a Return On Assets of 3.67%. This is in the better half of the industry: ESL outperforms 62.07% of its industry peers.
Looking at the Return On Equity, with a value of 5.84%, ESL is in line with its industry, outperforming 58.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.99%, ESL is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ESL is below the industry average of 8.02%.
The 3 year average ROIC (4.84%) for ESL is below the current ROIC(4.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROIC | 4.99% |
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 8.90%. This is in the better half of the industry: ESL outperforms 67.24% of its industry peers.
ESL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.01%, ESL is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
In the last couple of years the Operating Margin of ESL has grown nicely.
ESL has a Gross Margin of 62.45%. This is in the better half of the industry: ESL outperforms 63.79% of its industry peers.
ESL's Gross Margin has been stable in the last couple of years.
| 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.
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 3.63. This indicates that ESL is financially healthy and has little risk of bankruptcy at the moment.
ESL has a better Altman-Z score (3.63) than 67.24% of its industry peers.
The Debt to FCF ratio of ESL is 3.94, which is a good value as it means it would take ESL, 3.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ESL (3.94) is better than 74.14% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that ESL is not too dependend on debt financing.
ESL has a better Debt to Equity ratio (0.24) than 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.63 |
ROIC/WACC0.67
WACC7.48%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ESL may have some problems paying its short term obligations.
ESL has a worse Current ratio (0.95) than 79.31% of its industry peers.
A Quick Ratio of 0.65 indicates that ESL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, ESL is doing worse than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.82% over the past year.
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 4.38% in the past year.
The Revenue has been growing by 8.80% on average over the past years. This is quite good.
EPS 1Y (TTM)3.82%
EPS 3Y13.7%
EPS 5Y16.01%
EPS Q2Q%4.2%
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 8.99% on average per year.
Based on estimates for the next years, ESL will show a small growth in Revenue. The Revenue will grow by 6.14% on average per year.
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue Next Year6.25%
Revenue Next 2Y6.29%
Revenue Next 3Y6.48%
Revenue Next 5Y6.14%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.64, which means the current valuation is very expensive for ESL.
Based on the Price/Earnings ratio, ESL is valued a bit cheaper than 62.07% of the companies in the same industry.
ESL is valuated rather expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 29.26 indicates a quite expensive valuation of ESL.
The rest of the industry has a similar Price/Forward Earnings ratio as ESL.
The average S&P500 Price/Forward Earnings ratio is at 21.90. ESL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.64 | ||
| Fwd PE | 29.26 |
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.
Based on the Price/Free Cash Flow ratio, ESL is valued a bit cheaper than the industry average as 70.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.1 | ||
| EV/EBITDA | 18.4 |
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.
ESL's earnings are expected to grow with 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)2.16
EPS Next 2Y15.32%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.71%, ESL has a reasonable but not impressive dividend return.
ESL's Dividend Yield is a higher than the industry average which is at 2.07.
Compared to the average S&P500 Dividend Yield of 2.42, ESL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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
49.30% of the earnings are spent on dividend by ESL. 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 2Y15.32%
EPS Next 3Y13.79%
FRA:ESL (7/3/2025, 7:00:00 PM)
235.2
-2 (-0.84%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners29.87%
Inst Owner ChangeN/A
Ins Owners32.47%
Ins Owner ChangeN/A
Market Cap107.61B
Analysts77.42
Price Target282.96 (20.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend2.56
Dividend Growth(5Y)4.5%
DP49.3%
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)-0.56%
PT rev (3m)-2.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.64 | ||
| Fwd PE | 29.26 | ||
| P/S | 4.06 | ||
| P/FCF | 32.1 | ||
| P/OCF | 22.08 | ||
| P/B | 2.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.4 |
EPS(TTM)6.79
EY2.89%
EPS(NY)8.04
Fwd EY3.42%
FCF(TTM)7.33
FCFY3.12%
OCF(TTM)10.65
OCFY4.53%
SpS57.94
BVpS88.25
TBVpS-5.83
PEG (NY)1.88
PEG (5Y)2.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.84% | ||
| ROCE | 6.42% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 26.04% | ||
| OM | 13.01% | ||
| PM (TTM) | 8.9% | ||
| GM | 62.45% | ||
| FCFM | 12.65% |
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%
ROICexcg growth 3Y0.01%
ROICexcg 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-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 | 3.63 |
F-Score5
WACC7.48%
ROIC/WACC0.67
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)3.82%
EPS 3Y13.7%
EPS 5Y16.01%
EPS Q2Q%4.2%
EPS Next Y18.39%
EPS Next 2Y15.32%
EPS Next 3Y13.79%
EPS Next 5Y8.99%
Revenue 1Y (TTM)4.38%
Revenue growth 3Y10.18%
Revenue growth 5Y8.8%
Sales Q2Q%5.37%
Revenue Next Year6.25%
Revenue Next 2Y6.29%
Revenue Next 3Y6.48%
Revenue Next 5Y6.14%
EBIT growth 1Y9.04%
EBIT growth 3Y15.34%
EBIT growth 5Y15.84%
EBIT Next Year62.37%
EBIT Next 3Y24.07%
EBIT Next 5Y15.63%
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%