ENXTPA:EL

Stock Analysis Report

EssilorLuxottica Société anonyme

Executive Summary

EssilorLuxottica Société anonyme designs, manufactures, and distributes ophthalmic lenses, frames, and sunglasses North America, Europe, Asia, Oceania, Africa, Latin America, and internationally.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has EssilorLuxottica Société anonyme's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

EL

-2.6%

FR Luxury

0.1%

FR Market


1 Year Return

7.4%

EL

14.8%

FR Luxury

2.1%

FR Market

EL underperformed the Luxury industry which returned 14.8% over the past year.

EL outperformed the Market in France which returned 2.1% over the past year.


Share holder returns

ELIndustryMarket
7 Day1.3%-2.6%0.1%
30 Day1.2%2.0%4.3%
90 Day18.8%0.08%2.0%
1 Year9.5%7.4%16.8%14.8%5.6%2.1%
3 Year16.7%11.6%114.1%102.4%44.8%30.8%
5 Year63.8%53.6%198.2%158.0%61.9%38.0%

Price Volatility Vs. Market

How volatile is EssilorLuxottica Société anonyme's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 week ago | Simply Wall St

Does EssilorLuxottica Société anonyme's (EPA:EL) Past Performance Indicate A Stronger Future?

Valuation

Is EssilorLuxottica Société anonyme undervalued based on future cash flows and its price relative to the stock market?

39.32x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

EssilorLuxottica Société anonyme's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

EssilorLuxottica Société anonyme's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

EssilorLuxottica Société anonyme is overvalued based on earnings compared to the FR Luxury industry average.

EssilorLuxottica Société anonyme is overvalued based on earnings compared to the France market.


Price Based on Expected Growth

EssilorLuxottica Société anonyme is poor value based on expected growth next year.


Price Based on Value of Assets

EssilorLuxottica Société anonyme is overvalued based on assets compared to the FR Luxury industry average.


Next Steps

Future Growth

How is EssilorLuxottica Société anonyme expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

EssilorLuxottica Société anonyme's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).

EssilorLuxottica Société anonyme's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).

EssilorLuxottica Société anonyme's revenue growth is expected to exceed the France market average.

EssilorLuxottica Société anonyme's earnings growth is positive but not above the France market average.

EssilorLuxottica Société anonyme's earnings growth is expected to exceed the low risk savings rate of 0.7%.


Earnings per Share Growth Estimates


Future Return on Equity

EssilorLuxottica Société anonyme is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has EssilorLuxottica Société anonyme performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

EssilorLuxottica Société anonyme's year on year earnings growth rate has been positive over the past 5 years.

EssilorLuxottica Société anonyme's 1-year earnings growth is less than its 5-year average (4.3% vs 8.9%)

EssilorLuxottica Société anonyme's earnings growth has not exceeded the FR Luxury industry average in the past year (4.3% vs 4.3%).


Return on Equity

EssilorLuxottica Société anonyme has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

EssilorLuxottica Société anonyme used its assets less efficiently than the FR Luxury industry average last year based on Return on Assets.


Return on Capital Employed

EssilorLuxottica Société anonyme's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is EssilorLuxottica Société anonyme's financial position?


Financial Position Analysis

EssilorLuxottica Société anonyme is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

EssilorLuxottica Société anonyme's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

EssilorLuxottica Société anonyme's level of debt (12.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (60.4% vs 12.7% today).

Debt is well covered by operating cash flow (58.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 25.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

What is EssilorLuxottica Société anonyme's current dividend yield, its reliability and sustainability?

1.77%

Expected Dividend Yield


Dividend Yield and Payments Analysis

EssilorLuxottica Société anonyme's pays a lower dividend yield than the bottom 25% of dividend payers in France (1.55%).

EssilorLuxottica Société anonyme's dividend is below the markets top 25% of dividend payers in France (4.49%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

What is the CEO of EssilorLuxottica Société anonyme's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Hubert Sagnières (63yo)

0yrs

Tenure

€13,120,068

Compensation

Mr. Hubert Sagnières is Executive Vice-Chairman of Essilor International Société Anonyme (also known as EssilorLuxottica Société anonyme) since October 1, 2018, and serves as its Chief Executive Officer, a ...


CEO Compensation Analysis

Hubert's remuneration is higher than average for companies of similar size in France.

Hubert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.2yrs

Average Tenure

62yo

Average Age

The average tenure for the EssilorLuxottica Société anonyme management team is less than 2 years, this suggests a new team.


Board Age and Tenure

0.9yrs

Average Tenure

63yo

Average Age

The average tenure for the EssilorLuxottica Société anonyme board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Leonardo Del Vecchio (84yo)

    Executive Chairman

    • Tenure: 0.9yrs
    • Compensation: €10.97m
  • Hubert Sagnières (63yo)

    Executive Vice-Chairman & CEO

    • Tenure: 0yrs
    • Compensation: €13.12m
  • Laurent Vacherot (62yo)

    Deputy Chief Executive Officer of Essilor

    • Tenure: 1.7yrs
    • Compensation: €2.99m
  • Eric Thoreux

    Co-Chief Operating Officer & President Sun

    • Tenure: 0.5yrs
  • Jean Carrier-Guillomet

    Co-Chief Operating Officer

    • Tenure: 5yrs
  • Stefano Grassi (46yo)

    Co-Chief Financial Officer

    • Tenure: 0.9yrs
  • Alexander Lunshof

    Corporate Senior Vice President of Legal Affairs

    • Tenure: 4.8yrs
  • Hilary Halper

    Co-Chief Financial Officer

    • Tenure: 0.9yrs
  • Grita Loebsack (48yo)

    Chief Marketing Officer

    • Tenure: 1.2yrs
  • Véronique Gillet

    Senior Vice President of Investor Relations and Financial Communications

    • Tenure: 0yrs

Board Members

  • Leonardo Del Vecchio (84yo)

    Executive Chairman

    • Tenure: 0.9yrs
    • Compensation: €10.97m
  • Olivier Pécoux (61yo)

    Independent Director

    • Tenure: 18.7yrs
    • Compensation: €109.91k
  • Bernard Hours (63yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: €96.46k
  • Hubert Sagnières (63yo)

    Executive Vice-Chairman & CEO

    • Tenure: 0yrs
    • Compensation: €13.12m
  • Gérard Cottet (87yo)

    Honorary Chairman

    • Tenure: 0yrs
    • Compensation: €3.40k
  • Jeanette Wong (59yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: €94.80k
  • Bernard Maitenaz

    Honorary Chairman

    • Tenure: 0yrs
  • Lucia Morselli (63yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: €34.00k
  • Juliette Favre (46yo)

    Employee Shareholders Representative Director

    • Tenure: 4.3yrs
    • Compensation: €65.65k
  • Francesco Milleri (60yo)

    Non-Independent Director

    • Tenure: 0.9yrs
    • Compensation: €31.00k

Company Information

EssilorLuxottica Société anonyme's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EssilorLuxottica Société anonyme
  • Ticker: EL
  • Exchange: ENXTPA
  • Founded: 1849
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: €57.462b
  • Shares outstanding: 434.99m
  • Website: https://www.essilorluxottica.com

Number of Employees


Location

  • EssilorLuxottica Société anonyme
  • 1-6 rue Paul Cézanne
  • Paris
  • Ile-de-France
  • 75008
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESLO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
ELENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
ESLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0OMKLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
EIWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
ELU NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
ELBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
ESLO.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMay 2004
ESLCDB (Deutsche Boerse AG)UNSPONSORED ADRDEEURMay 2004

Biography

EssilorLuxottica Société anonyme designs, manufactures, and distributes ophthalmic lenses, frames, and sunglasses North America, Europe, Asia, Oceania, Africa, Latin America, and internationally. It operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 20:46
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.