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
Taking everything into account, ESL scores 4 out of 10 in our fundamental rating. ESL was compared to 68 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.
- In the past year ESL had a positive cash flow from operations.
- 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
- The Return On Assets of ESL (3.84%) 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 45.59% of the companies in the same industry.
- The Return On Invested Capital of ESL (5.39%) 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
- ESL has a Profit Margin of 8.74%. This is comparable to the rest of the industry: ESL outperforms 58.82% of its industry peers.
- ESL's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 12.86%, ESL perfoms like the industry average, outperforming 55.88% of the companies in the same industry.
- In the last couple of years the Operating Margin of ESL has grown nicely.
- The Gross Margin of ESL (61.91%) is better than 61.76% 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
- 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.
- The debt/assets ratio for ESL is higher compared to a year ago.
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.
- The Altman-Z score of ESL (3.95) is better 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.
- ESL's Debt to FCF ratio of 4.18 is fine compared to the rest of the industry. ESL outperforms 63.24% of its industry peers.
- A Debt/Equity ratio of 0.25 indicates that ESL is not too dependend on debt financing.
- The Debt to Equity ratio of ESL (0.25) is better than 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
- A Current Ratio of 0.97 indicates that ESL may have some problems paying its short term obligations.
- ESL has a worse Current ratio (0.97) 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.
- ESL has a Quick ratio of 0.67. This is in the lower half of the industry: ESL underperforms 79.41% of its industry peers.
| 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%.
- ESL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.01% yearly.
- Looking at the last year, ESL shows a small growth in Revenue. The Revenue has grown by 5.45% in the last 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.
- Based on estimates for the next years, ESL will show a small growth in Revenue. The Revenue will grow by 7.56% on average per year.
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.
- 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
- ESL is valuated quite expensively with a Price/Earnings ratio of 37.67.
- Compared to the rest of the industry, the Price/Earnings ratio of ESL is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.32. ESL is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 32.20, the valuation of ESL can be described as expensive.
- Based on the Price/Forward Earnings ratio, ESL is valued a bit more expensive than the industry average as 67.65% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. ESL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.67 | ||
| Fwd PE | 32.2 |
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.
- 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 | 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.
- The decent profitability rating of ESL 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.
- ESL's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| 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%.