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EssilorLuxottica Société anonyme (EPA:EL): A Fundamentally Attractive Investment

Simply Wall St

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Attractive stocks have exceptional fundamentals. In the case of EssilorLuxottica Société anonyme (EPA:EL), there's is a highly-regarded dividend payer that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on EssilorLuxottica Société anonyme here.

Flawless balance sheet established dividend payer

EL's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that EL has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. EL's has produced operating cash levels of 0.5x total debt over the past year, which implies that EL's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ENXTPA:EL Historical Debt, July 1st 2019

For those seeking income streams from their portfolio, EL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.8%.

ENXTPA:EL Historical Dividend Yield, July 1st 2019

Next Steps:

For EssilorLuxottica Société anonyme, I've compiled three essential factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for EL’s future growth? Take a look at our free research report of analyst consensus for EL’s outlook.
  2. Historical Performance: What has EL's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.