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

3.6%

EL

6.6%

FR Luxury

2.9%

FR Market


1 Year Return

17.4%

EL

33.9%

FR Luxury

10.2%

FR Market

Return vs Industry: EL underperformed the French Luxury industry which returned 33.9% over the past year.

Return vs Market: EL exceeded the French Market which returned 10.2% over the past year.


Share holder returns

ELIndustryMarket
7 Day3.6%6.6%2.9%
30 Day3.1%-0.6%-0.3%
90 Day13.6%-1.8%0.1%
1 Year19.6%17.4%36.2%33.9%14.0%10.2%
3 Year27.9%22.2%112.5%100.8%44.3%30.4%
5 Year77.2%66.1%216.8%174.8%75.2%49.3%

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 based on future cash flows and its price relative to the stock market?

39.99x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: EL (€134.35) is trading above our estimate of fair value (€103.42)

Significantly Undervalued: EL is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: EL is poor value based on its PE Ratio (40x) compared to the Luxury industry average (28.8x).

PE vs Market: EL is poor value based on its PE Ratio (40x) compared to the French market (17.1x).


Price Based on Expected Growth

Low PEG Ratio: EL is poor value based on its PEG Ratio (2.1x)


Price Based on Value of Assets

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


Next Steps

Future Growth

How is EssilorLuxottica Société anonyme expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: EL's forecast earnings growth (19.4% per year) is above the savings rate (0.7%).

Earnings vs Market: EL's earnings (19.4% per year) are forecast to grow slower than the French market (11.1% per year).

High Growth Earnings: EL's earnings are forecast to grow, but not significantly.

Revenue vs Market: EL's revenue (5.4% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: EL's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: EL's Return on Equity is forecast to be low in 3 years time (6.5%).


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

Earnings Trend: EL's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: EL's earnings growth over the past year (4.3%) is below its 5-year average (8.9% per year).

Earnings vs Industry: EL earnings growth over the past year (4.3%) underperformed the Luxury industry 4.3%.


Return on Equity

High ROE: EL's Return on Equity (4%) is considered low.


Return on Assets

ROA vs Industry: EL's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: EL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is EssilorLuxottica Société anonyme's financial position?


Financial Position Analysis

Short Term Liabilities: EL's short term assets (€7.1B) exceeds its short term liabilities (€6.8B)

Long Term Liabilities: EL's short term assets (7.1B) do not cover its long term liabilities (7.1B)


Debt to Equity History and Analysis

Debt Level: EL's debt to equity ratio (12.7%) is considered satisfactory

Reducing Debt: EL's debt to equity ratio has reduced from 60.4% to 12.7% over the past 5 years.

Debt Coverage: EL's debt is well covered by operating cash flow (58.2%).

Interest Coverage: EL's interest payments on its debt are well covered by EBIT (25.4x coverage).


Balance Sheet

Inventory Level: EL has a low level of unsold assets or inventory.

Debt Coverage by Assets: EL's debt is covered by short term assets (assets are 1.637410x debt).


Next Steps

Dividend

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

1.79%

Expected Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.6%markettop25%4.6%industryaverage1.6%forecastin3Years1.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: EL's dividend (1.52%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.57%).

High Dividend: EL's dividend (1.52%) is low compared to the top 25% of dividend payers in the French market (4.65%).

Stable Dividend: EL's dividends per share have been stable 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 reasonable payout ratio (60.7%), EL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EL's dividends in 3 years are forecast to be well covered by earnings (49.8% payout ratio).


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?

1.3yrs

Average management tenure


CEO

Hubert Sagnières (63yo)

0yrs

Tenure

€4,395,356

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

Compensation vs. Market: Hubert's total compensation ($USD4.84M) is about average for companies of similar size in the French market ($USD3.51M).

Compensation vs Earnings: Hubert's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

62yo

Average Age

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


Board Age and Tenure

1.0yrs

Average Tenure

63yo

Average Age

Experienced Board: EL's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Leonardo Del Vecchio (84yo)

    Executive Chairman

    • Tenure: 1yrs
    • Compensation: €3.67m
  • Hubert Sagnières (63yo)

    Executive Vice-Chairman & CEO

    • Tenure: 0yrs
    • Compensation: €4.40m
  • Laurent Vacherot (62yo)

    Deputy Chief Executive Officer of Essilor

    • Tenure: 1.8yrs
    • Compensation: €2.99m
  • Eric Thoreux

    Co-Chief Operating Officer & President Sun

    • Tenure: 0.6yrs
  • Jean Carrier-Guillomet

    Co-Chief Operating Officer

    • Tenure: 5.1yrs
  • Stefano Grassi (46yo)

    Co-Chief Financial Officer

    • Tenure: 1yrs
  • Alexander Lunshof

    Corporate Senior Vice President of Legal Affairs

    • Tenure: 4.8yrs
  • Hilary Halper

    Co-Chief Financial Officer

    • Tenure: 1yrs
  • Grita Loebsack (48yo)

    Chief Marketing Officer

    • Tenure: 1.3yrs
  • Véronique Gillet

    Senior Vice President of Investor Relations and Financial Communications

    • Tenure: 0yrs

Board Members

  • Leonardo Del Vecchio (84yo)

    Executive Chairman

    • Tenure: 1yrs
    • Compensation: €3.67m
  • Olivier Pécoux (61yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: €109.91k
  • Bernard Hours (63yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: €96.46k
  • Hubert Sagnières (63yo)

    Executive Vice-Chairman & CEO

    • Tenure: 0yrs
    • Compensation: €4.40m
  • Gérard Cottet (87yo)

    Honorary Chairman

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

    Independent Director

    • Tenure: 1yrs
    • Compensation: €94.80k
  • Bernard Maitenaz

    Honorary Chairman

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

    Independent Director

    • Tenure: 1yrs
    • Compensation: €34.00k
  • Juliette Favre (46yo)

    Employee Shareholders Representative Director

    • Tenure: 4.4yrs
    • Compensation: €65.65k
  • Francesco Milleri (60yo)

    Non-Independent Director

    • Tenure: 1yrs
    • 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: €58.499b
  • Shares outstanding: 435.42m
  • 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)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 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 Analysis2019/10/14 20:42
End of Day Share Price2019/10/14 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.

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