EssilorLuxottica S.A.
EssilorLuxottica S.A. Fundamental Analysis
EssilorLuxottica S.A. (EI.SW) shows weak financial fundamentals with a PE ratio of 41.36, profit margin of 8.13%, and ROE of 6.04%. The company generates $46.3B in annual revenue with moderate year-over-year growth of 4.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EI.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakEI.SW struggles to generate sufficient returns from assets.
Valuation Score
ModerateEI.SW shows balanced valuation metrics.
Growth Score
WeakEI.SW faces weak or negative growth trends.
Financial Health Score
ModerateEI.SW shows balanced financial health with some risks.
Profitability Score
WeakEI.SW struggles to sustain strong margins.
Key Financial Metrics
Is EI.SW Expensive or Cheap?
P/E Ratio
EI.SW trades at 41.36 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EI.SW's PEG of -11.99 indicates potential undervaluation.
Price to Book
The market values EssilorLuxottica S.A. at 2.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.57 times EBITDA. This signals the market has high growth expectations.
How Well Does EI.SW Make Money?
Net Profit Margin
For every $100 in sales, EssilorLuxottica S.A. keeps $8.13 as profit after all expenses.
Operating Margin
Core operations generate 11.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.04 in profit for every $100 of shareholder equity.
ROA
EssilorLuxottica S.A. generates $3.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EssilorLuxottica S.A. produces operating cash flow of $8.60B, showing steady but balanced cash generation.
Free Cash Flow
EssilorLuxottica S.A. generates strong free cash flow of $6.12B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.13 in free cash annually.
FCF Yield
EI.SW converts 3.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-11.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How EI.SW Stacks Against Its Sector Peers
| Metric | EI.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.36 | 29.17 | Worse (Expensive) |
| ROE | 6.04% | 701.00% | Weak |
| Net Margin | 8.13% | -43676.00% (disorted) | Weak |
| Debt/Equity | 0.44 | 0.34 | Weak (High Leverage) |
| Current Ratio | 0.99 | 4.45 | Weak Liquidity |
| ROA | 3.62% | -18965.00% (disorted) | Weak |
EI.SW outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews EssilorLuxottica S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
45.77%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
109.46%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
41.28%
Industry Style: Defensive, Growth, Innovation
High Growth