ENXTPA:EL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

EssilorLuxottica Société anonyme

Executive Summary

EssilorLuxottica Société anonyme designs, manufactures, and distributes ophthalmic lenses, frames, and sunglasses in North America, Europe, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


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

Stable Share Price: EL is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EL's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.6%

EL

-1.1%

FR Luxury

-2.3%

FR Market


1 Year Return

-11.3%

EL

13.1%

FR Luxury

-3.4%

FR Market

Return vs Industry: EL underperformed the French Luxury industry which returned 10.8% over the past year.

Return vs Market: EL underperformed the French Market which returned -3.8% over the past year.


Shareholder returns

ELIndustryMarket
7 Day-3.6%-1.1%-2.3%
30 Day-6.3%-0.1%-0.7%
90 Day8.2%12.4%14.6%
1 Year-10.5%-11.3%14.3%13.1%-1.5%-3.4%
3 Year11.1%6.5%75.1%64.0%11.9%2.6%
5 Year11.2%4.3%188.5%163.7%57.5%34.3%

Long-Term 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

Valuation

Is EssilorLuxottica Société anonyme undervalued compared to its fair value and its price relative to the market?

1.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: EL (€120.55) is trading above our estimate of fair value (€98.88)

Significantly Below Fair Value: EL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EL is unprofitable, so we can't compare its PE Ratio to the FR Luxury industry average.

PE vs Market: EL is unprofitable, so we can't compare its PE Ratio to the French market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EL is good value based on its PB Ratio (1.6x) compared to the FR Luxury industry average (1.7x).


Next Steps

Future Growth

How is EssilorLuxottica Société anonyme forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

43.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.4%).

Earnings vs Market: EL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EL's is expected to become profitable in the next 3 years.

Revenue vs Market: EL's revenue (9.4% per year) is forecast to grow faster than the French market (7% per year).

High Growth Revenue: EL's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EL's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

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

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EL is currently unprofitable.

Growing Profit Margin: EL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EL is unprofitable, but has reduced losses over the past 5 years at a rate of 3% per year.

Accelerating Growth: Unable to compare EL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EL is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-23.7%).


Return on Equity

High ROE: EL has a negative Return on Equity (0.19%), as it is currently unprofitable.


Next Steps

Financial Health

How is EssilorLuxottica Société anonyme's financial position?


Financial Position Analysis

Short Term Liabilities: EL's short term assets (€13.0B) exceed its short term liabilities (€5.8B).

Long Term Liabilities: EL's short term assets (€13.0B) do not cover its long term liabilities (€13.9B).


Debt to Equity History and Analysis

Debt Level: EL's debt to equity ratio (29.9%) is considered satisfactory.

Reducing Debt: EL's debt to equity ratio has reduced from 47.5% to 29.9% over the past 5 years.

Debt Coverage: EL's debt is well covered by operating cash flow (22%).

Interest Coverage: EL is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EL's dividend (1.91%) is higher than the bottom 25% of dividend payers in the French market (1.35%).

High Dividend: EL's dividend (1.91%) is low compared to the top 25% of dividend payers in the French market (4.55%).


Stability and Growth of Payments

Stable Dividend: EL's dividend payments have been volatile in the past 10 years.

Growing Dividend: EL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: EL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: EL's dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Francesco Milleri (61 yo)

0.083

Tenure

€2,417,000

Compensation

Mr. Francesco Milleri is the Chief Executive Officer of Essilor International Société Anonyme since December 2020. He serves as Chairman of Salmoiraghi & Viganò. Mr. Milleri has been a Deputy Chairman of L...


Leadership Team

NamePositionTenureCompensationOwnership
Francesco Milleri
CEO & Director0.083yr€2.42m0.00023%
€ 123.1k
Stefano Grassi
Co-Chief Financial Officer2.25yrsno datano data
David Wielemans
Co-Chief Financial Officer0.83yrno datano data
Eric Thoreux
Co-Chief Operating Officer1.83yrsno datano data
Norbert Gorny
Co-Chief Operating Officer1yrno datano data
Alexander Lunshof
Corporate Senior Vice President of Legal Affairs6.08yrsno datano data
Grita Loebsack
Chief Marketing Officer2.5yrsno datano data
Frédéric Mathieu
Corporate Senior Vice President of Human Resources7.33yrsno datano data
Thierry Robin
Senior Vice President of Digital Surfacing Strategic Opportunityno datano datano data
Bertrand Roy
Senior Vice President of Strategic Partnershipsno data€14.00kno data
Patrick Poncin
Corporate Senior Vice President of Equipment Division & Group Support Functionsno datano datano data
Paul du Saillant
Deputy CEO & Director0.83yrno data0.065%
€ 35.0m

1.8yrs

Average Tenure

56yo

Average Age

Experienced Management: EL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Francesco Milleri
CEO & Director0.083yr€2.42m0.00023%
€ 123.1k
Paul du Saillant
Deputy CEO & Director0.83yrno data0.065%
€ 35.0m
Leonardo Del Vecchio
Non-Executive Chairman2.25yrs€4.17m0.086%
€ 46.1m
Olivier Pécoux
Non-Independent Director20yrs€214.43k0.00023%
€ 123.1k
Hubert Sagnières
Non-Executive Vice-Chairmanno data€8.01m0.087%
€ 46.5m
Gérard Cottet
Honorary Chairmanno data€3.40kno data
Kai Yuan Wong
Independent Director2.25yrs€217.60k0.00023%
€ 123.1k
Bernard Maitenaz
Honorary Chairmanno datano datano data
Lucia Morselli
Independent Director2.25yrs€133.13kno data
Annette Messemer
Independent Director4.67yrs€246.85k0.00023%
€ 123.1k
Juliette Favre
Employee Shareholders Representative Director5.67yrs€156.20k0.0012%
€ 658.5k
Delphine Zablocki
Employee Representative Director3.25yrs€143.20k0.000080%
€ 42.8k

2.3yrs

Average Tenure

61yo

Average Age

Experienced Board: EL's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: €53.535b
  • Shares outstanding: 437.02m
  • Website: https://www.essilorluxottica.com

Number of Employees


Location

  • EssilorLuxottica Société anonyme
  • 1-5 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
ELPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
EIWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
EISWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
ELU NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
ELBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
ESLO.YOTCPK (Pink Sheets LLC)UNSPON ADR EACH REP 0.5 ORD SHSUSUSDMay 2004
ESLCDB (Deutsche Boerse AG)UNSPON ADR EACH REP 0.5 ORD SHSDEEURMay 2004

Biography

EssilorLuxottica Société anonyme designs, manufactures, and distributes ophthalmic lenses, frames, and sunglasses in North America, Europe, and internationally. It operates in five segments: Wholesale, Ret...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/25 19:20
End of Day Share Price2021/01/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.