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EssilorLuxottica SA (ESLOY)
OTHER OTC:ESLOY
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EssilorLuxottica SA (ESLOY) AI Stock Analysis

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EssilorLuxottica SA

(OTC:ESLOY)

Rating:77Outperform
Price Target:
$160.00
▲(13.72%Upside)
EssilorLuxottica's strong financial performance and positive earnings call sentiment drive its overall score. Innovations and strategic expansions enhance growth prospects, despite valuation concerns due to a high P/E ratio. Technical indicators show stability, supporting a positive outlook.

EssilorLuxottica SA (ESLOY) vs. SPDR S&P 500 ETF (SPY)

EssilorLuxottica SA Business Overview & Revenue Model

Company DescriptionEssilorLuxottica 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 segments: Wholesale, Retail, Lenses and Optical Instruments, Equipment, and Sunglasses and Readers. The Wholesale segment engages in the manufacture and wholesale distribution of luxury and sports eyewear. The Retail segment retails luxury and sports eyewear. The Lenses and Optical Instruments segment offers lenses and small equipment, including Varilux progressive lenses; Crizal antireflective, anti-smudge, and antistatic lenses; Transitions photochromic lenses; Eyezen lenses for users of computers, tablets, smartphones, and other connected devices; Xperio polarized sun lenses; and Nikon and Kodak corrective lens brands. It also provides lens edging and mounting instruments for opticians and prescription laboratories; optometry instruments for eye care professionals, schools, occupational medicine centers, military, and other institutions; and Transitions Signature Gen 8 photochromic lens, as well as develops solutions for online sales of optical products. The Equipment segment offers digital surfacing machines and lens coating machines to prescription laboratories, integrated optical chains, and lens manufacturers. The Sunglasses and Readers segment provides non-prescription sunglasses and reading glasses under the Foster Grant, Gargoyles, Magnivision, Corinne McCormack, Monkey Monkey, Ryders Eyewear, and SolarShield brands; Reebok, Steve Madden, Betsey Johnson, Nine West, Dockers, French Connection, Ironman, Rawlings, Bodyglove, Panama Jack, Marvel, and Disney; Bolon, Molsion, Qina, and Prosun brands; and Mujosh and Aojo brands. It has a network of 490 prescription laboratories and edging-mounting facilities. The company was formerly known as Essilor International Société Anonyme and changed its name to EssilorLuxottica Société anonyme in October 2018. EssilorLuxottica Société anonyme was founded in 1849 and is headquartered in Paris, France.
How the Company Makes MoneyEssilorLuxottica SA generates revenue through multiple streams primarily centered around its comprehensive portfolio of eyewear products and services. The company earns money by manufacturing and selling high-quality prescription lenses, frames, and sunglasses under well-known brands such as Ray-Ban, Oakley, and Persol, as well as through licensed brands like Prada and Chanel. It operates an extensive retail network with stores like LensCrafters and Sunglass Hut, contributing significantly to its revenue. Additionally, EssilorLuxottica provides optical instruments and equipment for eye care professionals, further diversifying its income sources. Strategic partnerships and acquisitions enhance its market presence, expanding its reach and capability in both retail and wholesale distribution, while its focus on innovation in lens technology and digital solutions supports its growth in the optical industry.

EssilorLuxottica SA Earnings Call Summary

Earnings Call Date:Feb 12, 2025
(Q4-2024)
|
% Change Since: -0.59%|
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.
Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.

EssilorLuxottica SA Financial Statement Overview

Summary
EssilorLuxottica SA demonstrates strong revenue growth and profitability with solid gross and net profit margins. The balance sheet is stable with moderate leverage, and cash flow management is effective, ensuring liquidity and investment capabilities. Overall, the financial statements indicate a strong and stable financial profile.
Income Statement
85
Very Positive
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.
Balance Sheet
78
Positive
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.
Cash Flow
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue26.51B25.39B24.49B19.82B14.43B
Gross Profit16.81B16.05B15.59B12.28B8.49B
EBITDA6.55B6.18B6.10B4.71B2.61B
Net Income2.36B2.29B2.15B1.45B85.00M
Balance Sheet
Total Assets64.26B60.52B60.56B59.41B52.32B
Cash, Cash Equivalents and Short-Term Investments2.25B2.56B1.99B3.33B8.93B
Total Debt13.22B11.66B12.20B13.02B11.89B
Total Liabilities23.26B21.63B22.41B23.54B19.52B
Stockholders Equity40.38B38.24B37.45B35.06B32.27B
Cash Flow
Free Cash Flow3.35B3.33B3.21B3.52B2.30B
Operating Cash Flow4.87B4.86B4.78B4.54B2.95B
Investing Cash Flow-3.62B-1.72B-3.29B-8.13B-574.00M
Financing Cash Flow-1.65B-2.36B-2.91B-1.97B1.59B

EssilorLuxottica SA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price140.70
Price Trends
50DMA
141.00
Negative
100DMA
141.62
Negative
200DMA
132.22
Positive
Market Momentum
MACD
0.52
Negative
RSI
49.80
Neutral
STOCH
36.26
Neutral
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 140.7 is above the 20-day moving average (MA) of 139.91, below the 50-day MA of 141.00, and above the 200-day MA of 132.22, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 49.80 is Neutral, neither overbought nor oversold. The STOCH value of 36.26 is Neutral, 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SYSYK
81
Outperform
$149.60B52.8314.26%0.86%10.76%-15.22%
MDMDT
77
Outperform
$115.21B24.889.49%3.16%3.62%31.18%
77
Outperform
$130.80B50.676.07%1.58%4.44%1.76%
BDBDX
76
Outperform
$50.76B33.795.97%2.35%5.84%15.12%
BSBSX
72
Outperform
$152.68B76.449.65%19.35%14.31%
BMBMY
66
Neutral
$96.34B17.7731.99%5.24%4.62%
52
Neutral
$7.53B0.20-63.81%2.31%16.15%0.40%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ESLOY
EssilorLuxottica SA
140.70
38.16
37.21%
BDX
Becton Dickinson
178.31
-51.25
-22.33%
BSX
Boston Scientific
103.48
26.07
33.68%
BMY
Bristol-Myers Squibb
46.43
5.22
12.67%
MDT
Medtronic
89.22
10.57
13.44%
SYK
Stryker
390.59
58.95
17.78%
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.Date of analysis: Jul 16, 2025