EssilorLuxottica SA (ESLOY) AI Stock Analysis

• Market Cap: $167.97B
• Dividend Yield: 1.27%
• Average Volume (3M): 2.59K
• Price to Earnings (P/E): 64.0
• Beta (1Y): 0.72
• Revenue Growth: 6.06%
• EPS Growth: 3.53%
• Country: US
• Employees: 153,498
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.73
• Shares Outstanding: 926,291,100
• 10 Day Avg. Volume: 2,986
• 30 Day Avg. Volume: 2,591
• PEG Ratio: 25.46
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 3.99
• P/FCF Ratio: 31.56
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 5.15
• Enterprise Value/Gross Profit: 8.19
• Enterprise Value/Ebitda: 21.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $207.00 ▲(17.46% Upside)

EssilorLuxottica SA demonstrates strong financial performance and positive earnings call sentiment, driven by revenue growth and strategic expansion. Technical analysis shows bullish momentum, though caution is advised due to overbought indicators. Valuation suggests the stock is priced for growth, with a high P/E ratio and modest dividend yield. Overall, the company is well-positioned for continued success, but investors should be mindful of valuation and market conditions.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.

Strategic Expansion

This acquisition enhances EssilorLuxottica's capabilities in med-tech, positioning the company as a leader in innovative eyecare solutions and expanding its market reach.

Cash Flow Management

Strong free cash flow indicates effective cash management, providing liquidity for investments and strategic initiatives, supporting long-term growth.

Negative Factors

Impact of Tariffs

Tariffs pose a risk to profitability by increasing costs, potentially affecting pricing strategies and margins over the long term.

Foreign Exchange Headwinds

Currency fluctuations can impact financial results, affecting international competitiveness and profitability, posing a risk to global operations.

Margin Dilution

While product growth is positive, margin dilution from product mix changes can impact overall profitability, requiring strategic adjustments.

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 through several key streams. The largest portion comes from the sale of ophthalmic lenses, which are essential for vision correction and come in various types, including single vision, bifocal, and progressive lenses. The company also generates significant income from its eyewear segment, which includes both prescription glasses and sunglasses. Additionally, EssilorLuxottica benefits from its extensive retail network, which includes brands like Sunglass Hut and Optical shops, where it sells its products directly to consumers. The company has established numerous partnerships with both eyewear retailers and eye care professionals, enhancing its distribution capabilities. Moreover, ongoing investments in technology and innovation, such as digital dispensing solutions and smart eyewear, contribute to its growth and revenue diversification.

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. Overall, the financial statements indicate a company well-positioned for continued growth and stability 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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.24B	26.51B	25.39B	24.49B	19.82B	14.43B
Gross Profit	17.11B	16.81B	16.05B	15.59B	12.28B	8.49B
EBITDA	6.60B	6.55B	6.18B	6.10B	4.63B	2.61B
Net Income	2.38B	2.36B	2.29B	2.15B	1.45B	85.00M
Balance Sheet
Total Assets	61.93B	64.26B	60.52B	60.56B	59.41B	52.32B
Cash, Cash Equivalents and Short-Term Investments	2.79B	2.25B	2.56B	1.96B	3.29B	8.93B
Total Debt	14.05B	13.22B	11.66B	12.20B	13.02B	11.89B
Total Liabilities	23.52B	23.26B	21.63B	22.41B	23.54B	19.52B
Stockholders Equity	37.82B	40.38B	38.24B	37.45B	35.06B	32.27B
Cash Flow
Free Cash Flow	3.36B	3.35B	3.33B	3.21B	3.52B	2.30B
Operating Cash Flow	4.91B	4.87B	4.86B	4.78B	4.54B	2.95B
Investing Cash Flow	-3.69B	-3.62B	-1.72B	-2.62B	-8.06B	-480.00M
Financing Cash Flow	-359.00M	-1.65B	-2.42B	-3.58B	-2.04B	1.50B

EssilorLuxottica SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 176.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESLOY, the sentiment is Neutral. The current price of 176.23 is below the 20-day moving average (MA) of 179.99, above the 50-day MA of 175.12, and above the 200-day MA of 152.61, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 42.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ESLOY.

EssilorLuxottica SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESLOY	76 Outperform	$167.97B	64.04	6.01%	1.27%	6.06%	3.53%
BLCO	58 Neutral	$5.96B	―	-4.69%	―	6.23%	17.53%
WRBY	57 Neutral	$2.29B	4,939.47	0.20%	―	14.55%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
XRAY	42 Neutral	$2.24B	―	-44.44%	5.69%	-7.08%	-113.81%

EssilorLuxottica SA Corporate Events

EssilorLuxottica’s Earnings Call Highlights Robust Growth

EssilorLuxottica’s recent earnings call painted a predominantly positive picture, underscored by robust revenue growth and notable success in its direct-to-consumer and smart glasses segments. The company’s strategic focus on innovation and acquisitions has propelled its performance, despite facing challenges such as tariff impacts on gross margins and declines in e-commerce and department store sales. Overall, the positive developments significantly outweighed these challenges, setting a promising tone for the future.

EssilorLuxottica Reports Strong Growth in H1 2025

EssilorLuxottica is a global leader in the design, manufacture, and distribution of advanced vision care products and eyewear, operating in the med-tech sector with a focus on innovation and sustainability. The company reported a 7.3% revenue growth in both Q2 and H1 2025, driven by strong performances across all regions and segments. Key highlights include a significant increase in sales of AI glasses, stable operating margins, and robust free cash flow generation. The acquisition of Optegra clinics marks a strategic step into the med-tech journey, enhancing the company’s comprehensive eyecare offerings. Looking forward, EssilorLuxottica remains committed to its growth targets and innovation in the eyewear and med-tech industry, aiming for mid-single-digit annual revenue growth and an adjusted operating profit margin of 19-20% by 2026.