EssilorLuxottica SA (ESLOY) AI Stock Analysis

• Market Cap: $147.28B
• Dividend Yield: 1.4%
• Average Volume (3M): 2.71K
• Price to Earnings (P/E): 55.7
• Beta (1Y): 0.63
• Revenue Growth: 6.06%
• EPS Growth: 3.53%
• Country: US
• Employees: 153,498
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.73
• Shares Outstanding: 926,291,100
• 10 Day Avg. Volume: 4,646
• 30 Day Avg. Volume: 2,715
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 5.29
• Enterprise Value/Gross Profit: 8.34
• Enterprise Value/Ebitda: 21.39
• 1Y Price Target: $172.00
• Price Target Upside: 7.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $172.00 ▲(7.93% Upside)

EssilorLuxottica SA's strong financial performance and positive earnings call insights are the most significant factors contributing to its score. The technical analysis indicates positive momentum, though nearing overbought levels, and the high valuation suggests caution. Overall, the company is well-positioned for growth, supported by strategic innovations and market presence.

EssilorLuxottica SA Business Overview & Revenue Model

Company Description

EssilorLuxottica 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 Money

EssilorLuxottica 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 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

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

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

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 159.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 159.36 is above the 20-day moving average (MA) of 151.16, above the 50-day MA of 144.98, and above the 200-day MA of 136.84, indicating a bullish trend. The MACD of 4.07 indicates Negative momentum. The RSI at 67.34 is Neutral, neither overbought nor oversold. The STOCH value of 90.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESLOY	77 Outperform	$147.28B	55.65	6.01%	1.40%	6.06%	3.53%
WRBY	68 Neutral	$3.18B	―	-2.67%	―	14.09%	80.34%
Sector *	62 Neutral	€1.88B	21.92	12.16%	2.05%	7.83%	13.92%
BLCO	55 Neutral	$5.13B	―	-4.22%	―	8.81%	40.43%
XRAY	49 Neutral	$2.80B	―	-37.78%	4.49%	-5.78%	-445.83%