ESSILORLUXOTTICA (ESL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ESL - FR0000121667 - Common Stock
269.6 EUR
-3.1 (-1.14%)
Overall ESL gets a fundamental rating of 4 out of 10. We evaluated ESL against 62 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.
ESL had a positive operating cash flow in the past year.
Each year in the past 5 years ESL has been profitable.
Each year in the past 5 years ESL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.84%, ESL is in line with its industry, outperforming 55.38% of the companies in the same industry.
ESL's Return On Equity of 6.29% is in line compared to the rest of the industry. ESL outperforms 47.69% of its industry peers.
ESL has a Return On Invested Capital of 5.39%. This is comparable to the rest of the industry: ESL outperforms 49.23% of its industry peers.
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
Looking at the Profit Margin, with a value of 8.74%, ESL is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ESL has grown nicely.
ESL's Operating Margin of 12.86% is in line compared to the rest of the industry. ESL outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of ESL has grown nicely.
ESL's Gross Margin of 61.91% is fine compared to the rest of the industry. ESL outperforms 63.08% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESL is destroying value.
The number of shares outstanding for ESL has been increased compared to 1 year ago.
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
An Altman-Z score of 4.08 indicates that ESL is not in any danger for bankruptcy at the moment.
ESL has a Altman-Z score of 4.08. This is in the better half of the industry: ESL outperforms 70.77% 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.
Looking at the Debt to FCF ratio, with a value of 4.18, ESL is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
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 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.7
WACC7.7%
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.
With a Current ratio value of 0.97, ESL is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that ESL may have some problems paying its short term obligations.
ESL has a worse Quick ratio (0.67) than 78.46% 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.
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 Y7.24%
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
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 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 39.24 indicates a quite expensive valuation of ESL.
ESL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.92, ESL is valued a bit more expensive.
The Price/Forward Earnings ratio is 33.13, 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.
The average S&P500 Price/Forward Earnings ratio is at 23.46. ESL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 33.13 |
4.2 Price Multiples
ESL's Enterprise Value to EBITDA ratio is in line with the industry average.
ESL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.13 | ||
| EV/EBITDA | 20.48 |
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)5.42
PEG (5Y)2.45
EPS Next 2Y9.47%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, ESL has a reasonable but not impressive dividend return.
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.
The dividend of ESL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.97%
EPS Next 2Y9.47%
EPS Next 3Y10.9%
FRA:ESL (12/23/2025, 7:00:00 PM)
269.6
-3.1 (-1.14%)
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 Cap124.87B
Revenue(TTM)27.24B
Net Income(TTM)2.38B
Analysts81.29
Price Target335.22 (24.34%)
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 | 39.24 | ||
| Fwd PE | 33.13 | ||
| P/S | 4.58 | ||
| P/FCF | 37.13 | ||
| P/OCF | 25.41 | ||
| P/B | 3.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.48 |
EPS(TTM)6.87
EY2.55%
EPS(NY)8.14
Fwd EY3.02%
FCF(TTM)7.26
FCFY2.69%
OCF(TTM)10.61
OCFY3.94%
SpS58.82
BVpS81.67
TBVpS-5.08
PEG (NY)5.42
PEG (5Y)2.45
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 | 4.08 |
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.
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 39.24 and the Price/Book (PB) ratio is 3.3.
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%.