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Essilorluxottica (OTC) (ESLOY)
:ESLOY
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EssilorLuxottica SA
(OTC:ESLOY)
74Outperform
EssilorLuxottica SA (ESLOY) vs. S&P 500 (SPY)
Market Cap
$133.16B
Dividend Yield1.08%
Average Volume (3M)1.39K
Price to Earnings (P/E)51.4
Beta (1Y)0.68
Revenue Growth4.44%
EPS Growth1.76%
CountryUS
Employees153,498
SectorHealthcare
Sector Strength78
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.81
Shares Outstanding915,014,400
10 Day Avg. Volume0
30 Day Avg. Volume1,393
Financial Highlights & Ratios
PEG Ratio29.16
Price to Book (P/B)N/A
Price to Sales (P/S)3.34
Price to Cash Flow (P/CF)17.10
P/FCF Ratio47.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EssilorLuxottica SA Business Overview & Revenue Model
Company DescriptionEssilorLuxottica SA is a global leader in the design, manufacture, and distribution of ophthalmic lenses, optical equipment, and eyewear. The company is primarily engaged in two sectors: optical lenses and eyewear manufacturing. It offers a wide range of vision care products including prescription lenses, frames, and sunglasses, under various well-known brands such as Ray-Ban, Oakley, and Persol. EssilorLuxottica operates through a network of wholesale and retail channels, ensuring a broad presence in the global eyewear market.
How the Company Makes MoneyEssilorLuxottica generates revenue through multiple streams, primarily from the sale of prescription lenses and eyewear products. The company operates an extensive retail network, including well-known chains like Sunglass Hut and LensCrafters, which contributes significantly to its revenue. Additionally, its wholesale business supplies eyewear and lenses to opticians, optometrists, and other retailers worldwide. EssilorLuxottica also benefits from strategic partnerships and licensing agreements with luxury and fashion brands, allowing it to offer a diverse range of branded eyewear products. These partnerships enhance its product portfolio and market reach, further driving revenue growth. The company's vertically integrated business model, encompassing design, manufacturing, distribution, and retail, helps it maintain control over the value chain and optimize profitability.
EssilorLuxottica SA Financial Statement Overview
Summary
EssilorLuxottica SA exhibits a strong financial profile with consistent revenue growth and solid profitability metrics. The company maintains a healthy balance sheet with moderate leverage and strong equity positioning. Cash flow management is effective, supporting liquidity and investment capabilities.Income Statement
EssilorLuxottica SA has demonstrated strong revenue growth, with a 4.4% increase from 2023 to 2024. The company maintains a solid gross profit margin of 63.4% and a healthy net profit margin of 8.9% for 2024. Both EBIT and EBITDA margins are robust at 13.0% and 24.7%, respectively, indicating efficient operational performance. Overall, the income statement shows consistent growth and profitability.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.33, indicating moderate leverage. The return on equity (ROE) is 5.8%, showing modest returns on shareholder investments. The equity ratio stands at 62.8%, suggesting a strong capital structure with significant equity financing. The company's balance sheet is well-positioned for future growth, though ROE could be improved.78
Positive
Cash Flow
EssilorLuxottica SA has shown stable cash flow performance with a slight increase in free cash flow from 2023 to 2024. The operating cash flow to net income ratio of 2.1 indicates strong cash generation relative to net income, and the free cash flow to net income ratio is 1.4, reflecting efficient capital expenditure management. Overall, the cash flow statement demonstrates solid liquidity and cash management practices.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 25.83B | 26.51B | 25.39B | 24.49B | 19.82B | 14.43B |
| Gross Profit | |||||
| 16.25B | 16.81B | 16.05B | 15.59B | 12.28B | 8.49B |
| EBIT | |||||
| 3.35B | 3.45B | 3.18B | 3.26B | 2.57B | 719.00M |
| EBITDA | |||||
| 5.87B | 6.55B | 6.18B | 6.10B | 4.71B | 2.61B |
| Net Income Common Stockholders | |||||
| 2.29B | 2.36B | 2.29B | 2.15B | 1.45B | 85.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 466.00M | 2.25B | 2.56B | 1.99B | 3.33B | 8.93B |
| Total Assets | |||||
| 11.97B | 64.26B | 60.52B | 60.56B | 59.41B | 52.32B |
| Total Debt | |||||
| 2.58B | 13.22B | 11.66B | 12.20B | 13.02B | 11.89B |
| Net Debt | |||||
| 2.11B | 10.96B | 9.10B | 10.45B | 11.43B | 7.21B |
| Total Liabilities | |||||
| 5.88B | 23.26B | 21.63B | 22.41B | 23.54B | 19.52B |
| Stockholders Equity | |||||
| 5.71B | 40.38B | 38.24B | 37.45B | 35.06B | 32.27B |
| Cash Flow | Free Cash Flow | ||||
| 3.34B | 3.35B | 3.33B | 3.21B | 3.52B | 2.30B |
| Operating Cash Flow | |||||
| 4.82B | 4.87B | 4.86B | 4.78B | 4.54B | 2.95B |
| Investing Cash Flow | |||||
| -1.63B | -3.62B | -1.72B | -3.29B | -8.13B | -574.00M |
| Financing Cash Flow | |||||
| -2.71B | -1.65B | -2.36B | -2.91B | -1.97B | 1.59B |
EssilorLuxottica SA Technical Analysis
Negative
145.26
Price Trends
144.75
Negative
133.28
Positive
123.83
Positive
Market Momentum
0.09
Positive
48.57
Neutral
8.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESLOY, the sentiment is Negative. The current price of 145.26 is above the 20-day moving average (MA) of 144.90, above the 50-day MA of 144.75, and above the 200-day MA of 123.83, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 8.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESLOY.
EssilorLuxottica SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $149.74B | 80.20 | 9.03% | ― | 17.60% | 16.84% | |
78 Outperform | $142.48B | 48.09 | 15.26% | 0.88% | 10.23% | -5.74% | |
77 Outperform | $113.49B | 26.90 | 8.42% | 3.19% | 2.72% | 4.48% | |
76 Outperform | $64.90B | 37.55 | 6.92% | 1.80% | 5.89% | 42.05% | |
74 Outperform | $133.16B | 51.42 | 6.07% | 1.08% | 4.44% | 1.76% | |
60 Neutral | $121.17B | ― | -39.10% | 4.18% | 7.32% | -214.24% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% |
* Healthcare Sector Average
Performance Comparison
ESLOY
EssilorLuxottica SA
138.04
27.91
25.34%
BDX
Becton Dickinson
221.59
-17.29
-7.24%
BSX
Boston Scientific
98.50
30.75
45.39%
BMY
Bristol-Myers Squibb
57.82
8.30
16.76%
MDT
Medtronic
87.89
6.71
8.27%
SYK
Stryker
368.15
23.95
6.96%
EssilorLuxottica SA Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 1.42% | Next Earnings Date: Jul 28, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance for EssilorLuxottica in 2024, with significant growth in revenue, innovations in smart glasses and hearing aids, and successful expansion in medtech and eye care. However, there were challenges in specific markets like China, India, and Brazil, and the Ray-Ban Meta product had a dilutive impact on profitability. Overall, the positive achievements and innovations outweigh the challenges.Highlights
Strong Revenue Growth
EssilorLuxottica maintained strong revenue growth with a 9% increase in Q4 and a 6% increase for the full year of 2024.
Stellest Performance
Stellest showed significant growth with a 60% increase in revenue in China and gaining traction in Europe.
Operating Margin Expansion
Adjusted operating margin expanded by 50 basis points, despite labor-driven inflationary pressure.
Innovations in Smart Glasses and Hearing Aids
EssilorLuxottica sold over 2 million units of Ray-Ban Meta glasses and launched Nuance Audio hearing aid glasses in the U.S. and Europe.
Strong Performance Across Regions
All regions reported positive growth at constant exchange rates, with Latin America and Asia Pacific just below 10%, EMEA at 8%, and North America at 3% for the full year.
Significant Free Cash Flow Generation
EssilorLuxottica generated EUR 2.4 billion in free cash flow for the full year 2024.
Expansion in Medtech and Eye Care
Strategic moves in medtech, including Heidelberg's acquisition, enhance capabilities in eye disease diagnostics and management.
Lowlights
Soft Demand in China
Excluding myopia solutions, demand in China was soft, particularly affecting the Bolon brand.
Challenges in India
India experienced a slight decline due to a soft sellout in the frame part of the business in Q4.
Brazil's Negative Performance
Brazil reported negative growth in the lens part of the business due to a tough comparison base.
Dilutive Impact of Ray-Ban Meta
Ray-Ban Meta's profitability was diluted by the electronic component, although it was less dilutive than the previous Ray-Ban Story.
Company Guidance
During the EssilorLuxottica Full Year 2024 Results Management Call, the company reported a revenue growth of 9% in the fourth quarter and 6% for the entire year, driven by strong organic growth and contributions from M&A activities. Key highlights included the successful integration of Supreme and Heidelberg, with Supreme achieving sales growth in line with the group's base. The Stellest line showed a remarkable 60% growth in China and increasing traction in Europe, emphasizing the urgency of addressing myopia globally. The company expanded its adjusted operating margin by 50 basis points in 2024, overcoming inflationary pressures. The Ray-Ban Meta glasses, a collaboration with Meta, sold over 2 million units since its September 2023 launch, with plans to expand production capacity to 10 million units annually by the end of 2025. Additionally, the Nuance audio glasses received FDA clearance for the U.S. market, with plans to launch in Europe, targeting the unmet need for hearing aid solutions. EssilorLuxottica also highlighted its strategic focus on eye care, including diagnostic and surgical guidance capabilities, supported by recent acquisitions and technological advancements.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.