ENXTPA:EL

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EssilorLuxottica Société anonyme

Market Cap

€70.1b

Last Updated

2021/07/31 03:53 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless 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 +/- 2% a week.

Volatility Over Time: EL's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

2.6%

EL

0.03%

FR Luxury

0.5%

FR Market


1 Year Return

41.9%

EL

77.9%

FR Luxury

40.0%

FR Market

Return vs Industry: EL underperformed the French Luxury industry which returned 77.9% over the past year.

Return vs Market: EL exceeded the French Market which returned 40% over the past year.


Shareholder returns

ELIndustryMarket
7 Day2.6%0.03%0.5%
30 Day4.0%2.4%1.7%
90 Day15.0%12.2%5.6%
1 Year44.2%41.9%79.9%77.9%43.5%40.0%
3 Year30.7%26.1%107.4%97.5%34.2%23.0%
5 Year48.5%39.6%277.9%247.6%88.1%60.5%

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?

816.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EL (€159.16) is trading above our estimate of fair value (€152.15)

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


Price To Earnings Ratio

PE vs Industry: EL is poor value based on its PE Ratio (816.2x) compared to the French Luxury industry average (31.7x).

PE vs Market: EL is poor value based on its PE Ratio (816.2x) compared to the French market (22x).


Price to Earnings Growth Ratio

PEG Ratio: EL is poor value based on its PEG Ratio (24.4x)


Price to Book Ratio

PB vs Industry: EL's PB Ratio (2.2x) is in line with the FR Luxury industry average.


Future Growth

How is EssilorLuxottica Société anonyme forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

33.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EL's forecast earnings growth (33.4% per year) is above the savings rate (0.4%).

Earnings vs Market: EL's earnings (33.4% per year) are forecast to grow faster than the French market (15.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EL's revenue (9.2% per year) is forecast to grow faster than the French market (6.6% per year).

High Growth Revenue: EL's revenue (9.2% 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 (6.3%).


Past Performance

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

-9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EL has a large one-off loss of €242.0M impacting its December 31 2020 financial results.

Growing Profit Margin: EL's current net profit margins (0.6%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: EL's earnings have declined by 9.9% per year over the past 5 years.

Accelerating Growth: EL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EL had negative earnings growth (-92.1%) over the past year, making it difficult to compare to the Luxury industry average (98.2%).


Return on Equity

High ROE: EL's Return on Equity (0.5%) is considered low.


Financial Health

How is EssilorLuxottica Société anonyme's financial position?


Financial Position Analysis

Short Term Liabilities: EL's short term assets (€13.7B) exceed its short term liabilities (€6.2B).

Long Term Liabilities: EL's short term assets (€13.7B) exceed its long term liabilities (€13.3B).


Debt to Equity History and Analysis

Debt Level: EL's debt to equity ratio (30.4%) is considered satisfactory.

Reducing Debt: EL's debt to equity ratio has reduced from 42.2% to 30.4% over the past 5 years.

Debt Coverage: EL's debt is well covered by operating cash flow (29.7%).

Interest Coverage: EL's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Dividend

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

1.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EL's dividend (1.36%) is higher than the bottom 25% of dividend payers in the French market (1.29%).

High Dividend: EL's dividend (1.36%) is low compared to the top 25% of dividend payers in the French market (3.87%).


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: With its high payout ratio (1143.5%), EL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EL's dividends in 3 years are forecast to be covered by earnings (54.4% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Francesco Milleri (62 yo)

0.58

Tenure

€57,500

Compensation

Mr. Francesco Milleri has been Chief Executive Officer at EssilorLuxottica Société anonyme since December 17, 2020. He serves as Chairman of Salmoiraghi & Viganò. Mr. Milleri has been a Deputy Chairman of ...


Leadership Team

Experienced Management: EL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: EL's board of directors are not considered experienced ( 2.8 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: €70.119b
  • Shares outstanding: 440.56m
  • Website: https://www.essilorluxottica.com

Number of Employees


Location

  • EssilorLuxottica Société anonyme
  • 1-5 rue Paul CEzanne
  • Paris
  • Ile-de-France
  • 75008
  • France

Listings


Biography

EssilorLuxottica Société anonyme designs, manufactures, and distributes ophthalmic lenses, frames, and sunglasses in North America, Europe, Latin America, Asia, Oceania, and Africa. It operates in five seg...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 03:53
End of Day Share Price2021/07/30 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.