EssilorLuxottica SA
EssilorLuxottica SA Fundamental Analysis
EssilorLuxottica SA (ESLOY) shows weak financial fundamentals with a PE ratio of 41.22, profit margin of 8.13%, and ROE of 6.02%. The company generates $28.4B 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 43.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ESLOY's fundamental strength across five key dimensions:
Efficiency Score
WeakESLOY struggles to generate sufficient returns from assets.
Valuation Score
ModerateESLOY shows balanced valuation metrics.
Growth Score
WeakESLOY faces weak or negative growth trends.
Financial Health Score
ModerateESLOY shows balanced financial health with some risks.
Profitability Score
WeakESLOY struggles to sustain strong margins.
Key Financial Metrics
Is ESLOY Expensive or Cheap?
P/E Ratio
ESLOY trades at 41.22 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ESLOY's PEG of -12.95 indicates potential undervaluation.
Price to Book
The market values EssilorLuxottica SA at 2.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.70 times EBITDA. This signals the market has high growth expectations.
How Well Does ESLOY Make Money?
Net Profit Margin
For every $100 in sales, EssilorLuxottica SA keeps $8.13 as profit after all expenses.
Operating Margin
Core operations generate 11.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.02 in profit for every $100 of shareholder equity.
ROA
EssilorLuxottica SA generates $3.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EssilorLuxottica SA produces operating cash flow of $5.40B, showing steady but balanced cash generation.
Free Cash Flow
EssilorLuxottica SA generates strong free cash flow of $3.84B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.14 in free cash annually.
FCF Yield
ESLOY converts 4.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.35
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 ESLOY Stacks Against Its Sector Peers
| Metric | ESLOY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.22 | 28.25 | Worse (Expensive) |
| ROE | 6.02% | 780.00% | Weak |
| Net Margin | 8.13% | -20122.00% (disorted) | Weak |
| Debt/Equity | 0.44 | 0.30 | Weak (High Leverage) |
| Current Ratio | 0.99 | 4.66 | Weak Liquidity |
| ROA | 3.61% | -14687.00% (disorted) | Weak |
ESLOY 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 SA'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