EssilorLuxottica SA (ESLOY) AI Stock Analysis

• Market Cap: $127.93B
• Dividend Yield: 1.62%
• Average Volume (3M): 4.66K
• Price to Earnings (P/E): 49.4
• Beta (1Y): 0.71
• Revenue Growth: 4.44%
• EPS Growth: 1.76%
• Country: US
• Employees: 153,498
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.55
• Shares Outstanding: 926,291,100
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 4,656
• PEG Ratio: 0.37
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $159.00 ▲(14.69%Upside)

EssilorLuxottica's strong financial performance and positive earnings call outlook are the most significant factors driving the score. Technical analysis indicates mixed momentum, and a high P/E ratio suggests overvaluation, slightly offsetting the positives.

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 primary source is the sale of optical products, including prescription lenses and eyewear frames. This involves both manufacturing and retailing, with a strong global presence in both optical stores and online platforms. The company benefits from a vertically integrated business model, controlling the entire value chain from design to distribution. Additional revenue comes from wholesale to third-party retailers, leveraging its extensive brand portfolio. Furthermore, strategic partnerships and licensing agreements with fashion and luxury brands expand its market reach and product offerings. Factors such as innovation in lens technology, expansion into emerging markets, and synergies from the merger contribute significantly to its earnings.

EssilorLuxottica SA Financial Statement Overview

Summary

EssilorLuxottica SA exhibits strong financial performance with consistent revenue growth, solid profitability metrics, and effective cash flow management. The company maintains a healthy balance sheet with moderate leverage and strong equity positioning, indicating readiness for future growth.

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
	EBIT
3.45B	3.18B	3.26B	2.57B	719.00M
	EBITDA
6.55B	6.18B	6.10B	4.71B	2.61B
	Net Income Common Stockholders
2.36B	2.29B	2.15B	1.45B	85.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.25B	2.56B	1.99B	3.33B	8.93B
	Total Assets
64.26B	60.52B	60.56B	59.41B	52.32B
	Total Debt
13.22B	11.66B	12.20B	13.02B	11.89B
	Net Debt
10.96B	9.10B	10.45B	11.43B	7.21B
	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: Negative
• Last Price: 138.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 138.64 is below the 20-day moving average (MA) of 141.13, below the 50-day MA of 140.80, and above the 200-day MA of 130.15, indicating a neutral trend. The MACD of -0.54 indicates Positive momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 2.15 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESLOY	76 Outperform	$127.93B	49.42	6.07%	1.62%	4.44%	1.76%
MDT	75 Outperform	$109.95B	23.75	9.49%	3.27%	3.62%	31.18%
BSX	72 Outperform	$149.87B	74.22	9.65%	―	19.35%	14.31%
SYK	68 Neutral	$142.65B	50.37	14.26%	0.89%	10.76%	-15.22%
BDX	68 Neutral	$48.32B	32.17	5.97%	2.47%	5.84%	15.12%
BMY	63 Neutral	$95.32B	17.59	31.99%	6.27%	4.62%	―
Sector *	53 Neutral	$5.22B	3.33	-44.36%	7.55%	16.78%	-0.12%