Education
About Us
Working with TipRanks
Follow Us
EssilorLuxottica SA (ESLOY)
OTHER OTC:ESLOY
Top Page
EssilorLuxottica SA
(OTC:ESLOY)
Rating:77Outperform
Price Target:
$172.00
▲(10.82% Upside)
Positive Factors
Revenue Growth
Consistent revenue growth across multiple regions indicates strong market demand and effective business strategies, supporting long-term expansion.
Innovation and Product Success
The significant growth in Ray-Ban Meta sales highlights successful product innovation and market acceptance, enhancing competitive positioning.
Direct-to-Consumer Channel Performance
Strong performance in the direct-to-consumer channel demonstrates effective customer engagement and sales strategies, bolstering revenue streams.
Negative Factors
Tariff Impact on Margins
Tariff impacts on gross margins can erode profitability, posing a challenge to maintaining margin sustainability in the long term.
E-commerce and Department Store Challenges
Declines in e-commerce and department store sales suggest potential weaknesses in certain distribution channels, affecting overall growth.
Moderate Return on Equity
A moderate ROE indicates less efficient use of equity capital, which could limit shareholder value creation over time.
EssilorLuxottica SA (ESLOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$144.40B
Dividend Yield1.04%
Average Volume (3M)3.54K
Price to Earnings (P/E)54.8
Beta (1Y)0.64
Revenue Growth6.06%
EPS Growth3.53%
CountryUS
Employees153,498
SectorHealthcare
Sector Strength51
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)1.73
Shares Outstanding926,291,100
10 Day Avg. Volume1,666
30 Day Avg. Volume3,537
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue5.29
Enterprise Value/Gross Profit8.34
Enterprise Value/Ebitda21.39
Forecast
1Y Price Target
$172.00Price Target Upside10.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
EssilorLuxottica SA Business Overview & Revenue Model
Company DescriptionEssilorLuxottica SA is a leading global eyewear company formed through the merger of Essilor, a prominent lens manufacturer, and Luxottica, a renowned eyewear designer and retailer. The company operates in the optical and eyewear industry, focusing on the design, manufacture, and distribution of optical lenses, eyewear frames, and sunglasses. It offers a wide range of products under various well-known brands, including Ray-Ban, Oakley, Persol, Vogue Eyewear, and its proprietary lenses and vision care solutions.
How the Company Makes MoneyEssilorLuxottica generates revenue primarily through the sale of eyewear products, including prescription lenses, optical frames, and sunglasses. The company operates through multiple channels, including wholesale distribution to opticians and retailers, as well as direct-to-consumer sales via its retail stores and online platforms. Key revenue streams include the sale of branded eyewear, prescription lenses, and vision care solutions. Significant partnerships with optometric practices and retail chains enhance its distribution network, while its investment in innovation and technology helps to maintain a competitive edge in the industry. Additionally, the company benefits from economies of scale due to its global presence and extensive supply chain.
EssilorLuxottica SA Earnings Call Summary
Earnings Call Date:Jul 28, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 06, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with significant achievements in revenue growth, product innovation, and strategic expansion into MedTech. Despite challenges from tariffs and foreign exchange headwinds, the company's robust product launches and regional performances indicate a positive outlook.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
EssilorLuxottica reported a revenue growth of 7.3% at constant currency for the first half of 2025, with solid momentum across both quarters.
Successful Launch of Smart Glasses
The launch of Oakley Meta and the continued strong performance of Ray-Ban Meta, with sales growing more than 200% year-over-year, are notable achievements in the smart glasses segment.
Expansion in MedTech
The acquisition of Optegra Eye Clinics and the rollout of advanced diagnostics and surgical treatments globally marks a strategic expansion into the MedTech space.
Recognition by Time Magazine
EssilorLuxottica was named among the 100 most influential companies of 2025 by Time Magazine in the category of innovators.
Positive Performance Across Regions
EMEA, Asia, and Latin America delivered high single-digit growth, while North America posted mid-single-digit growth.
Impressive Direct-to-Consumer Growth
High single-digit growth in North America's DTC channel, with LensCrafter delivering high-single-digit comp sales and Sunglass Hut comp sales above 6%.
Innovative Product Launches
Launch of Essilor Stellest 2.0 and successful rollout of Varilux Extensee and other progressive lenses.
Strong Free Cash Flow
EssilorLuxottica generated EUR 951 million in free cash flow for the first half of 2025.
Negative Updates
Impact of Tariffs
The company faced material inflationary headwinds and volatility related to U.S. tariffs, impacting gross margins.
Foreign Exchange Headwinds
The devaluation of the U.S. dollar against the euro caused a 4 percentage point difference between constant and current exchange results.
Dilution from Ray-Ban Meta
The exponential growth of Ray-Ban Meta contributed to a dilution in gross margins, with a combined effect of over 100 basis points from tariffs and product mix.
Company Guidance
During the EssilorLuxottica Interim Results Management Call for the first half of fiscal year 2025, the company provided several key metrics and strategic insights. The CEO, Francesco Milleri, highlighted a revenue growth of 7.3% at constant currency, despite facing challenges such as inflationary pressures and U.S. tariffs. The company maintained a stable adjusted operating margin year-over-year, reflecting strategic investments in R&D, AI, health data collection, and hearing aids. In terms of geographical performance, EMEA, Asia, and Latin America achieved high single-digit growth, while North America posted mid-single-digit growth. EssilorLuxottica's new ventures, including the launch of Oakley Meta AI glasses and the expansion of Ray-Ban Meta, contributed significantly to this growth, with Ray-Ban Meta sales increasing by over 200% year-over-year. The CFO, Stefano Grassi, noted that free cash flow generation was robust at EUR 951 million for the first six months, aligning with last year's figures, and that future growth would be supported by ongoing strategies to mitigate tariff impacts and leverage supply chain efficiencies.EssilorLuxottica SA Financial Statement Overview
Summary
EssilorLuxottica SA demonstrates strong financial performance with consistent revenue growth, solid profitability margins, a healthy balance sheet with moderate leverage, and efficient cash flow management. The company is well-positioned for growth in the medical equipment and supplies industry.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.51B | 25.39B | 24.49B | 19.82B | 14.43B |
| Gross Profit | 16.81B | 16.05B | 15.59B | 12.28B | 8.49B |
| EBITDA | 6.55B | 6.18B | 6.10B | 4.71B | 2.61B |
| Net Income | 2.36B | 2.29B | 2.15B | 1.45B | 85.00M |
Balance Sheet | |||||
| Total Assets | 64.26B | 60.52B | 60.56B | 59.41B | 52.32B |
| Cash, Cash Equivalents and Short-Term Investments | 2.25B | 2.56B | 1.99B | 3.33B | 8.93B |
| Total Debt | 13.22B | 11.66B | 12.20B | 13.02B | 11.89B |
| Total Liabilities | 23.26B | 21.63B | 22.41B | 23.54B | 19.52B |
| Stockholders Equity | 40.38B | 38.24B | 37.45B | 35.06B | 32.27B |
Cash Flow | |||||
| Free Cash Flow | 3.35B | 3.33B | 3.21B | 3.52B | 2.30B |
| Operating Cash Flow | 4.87B | 4.86B | 4.78B | 4.54B | 2.95B |
| Investing Cash Flow | -3.62B | -1.72B | -3.29B | -8.13B | -574.00M |
| Financing Cash Flow | -1.65B | -2.36B | -2.91B | -1.97B | 1.59B |
EssilorLuxottica SA Technical Analysis
Positive
155.21
Price Trends
149.10
Positive
145.05
Positive
139.17
Positive
Market Momentum
1.33
Positive
56.38
Neutral
94.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESLOY, the sentiment is Positive. The current price of 155.21 is above the 20-day moving average (MA) of 154.98, above the 50-day MA of 149.10, and above the 200-day MA of 139.17, indicating a bullish trend. The MACD of 1.33 indicates Positive momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 94.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESLOY.
EssilorLuxottica SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $144.40B | 54.76 | 6.01% | 1.04% | 6.06% | 3.53% | |
68 Neutral | $3.36B | ― | -2.67% | ― | 14.09% | 80.34% | |
57 Neutral | $5.42B | ― | -4.22% | ― | 8.81% | 40.43% | |
54 Neutral | $2.78B | ― | -37.78% | 4.73% | -5.78% | -445.83% | |
51 Neutral | $8.02B | -0.31 | -43.38% | 2.24% | 22.31% | -2.14% |
* Healthcare Sector Average
Performance Comparison
ESLOY
EssilorLuxottica SA
155.21
40.84
35.71%
XRAY
DENTSPLY SIRONA
13.53
-11.66
-46.29%
WRBY
Warby Parker
26.75
11.75
78.33%
BLCO
Bausch + Lomb Corporation
15.19
-2.61
-14.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.