EssilorLuxottica SA (ESLOY)
OTHER OTC:ESLOY
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EssilorLuxottica SA
(OTC:ESLOY)
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Rating:67Neutral
Price Target:
$120.00
▼(-24.56% Downside)
Action:DowngradedDate:02/18/26
The score is driven primarily by solid underlying financial performance (strong growth and resilient cash generation) and a supportive earnings outlook, partially offset by rising leverage and near-term margin pressure. Technicals are soft with negative momentum and price below key moving averages, and valuation is stretched given the high P/E with only a modest dividend yield.
Positive Factors
Vertical integration & global retail network
Owning lens manufacturing, branded frames and a large retail/e‑commerce footprint creates a durable competitive advantage. Control of production, distribution and point‑of‑sale cross‑selling sustains higher margins, drives synergies across channels and limits dependence on third‑party distributors.
Negative Factors
Rising leverage and debt trajectory
A higher debt burden reduces financial flexibility and heightens sensitivity to rate moves. With debt rising meaningfully year‑over‑year, the company faces tighter capital allocation tradeoffs between investment, dividends and M&A when interest costs remain elevated.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration & global retail network
Owning lens manufacturing, branded frames and a large retail/e‑commerce footprint creates a durable competitive advantage. Control of production, distribution and point‑of‑sale cross‑selling sustains higher margins, drives synergies across channels and limits dependence on third‑party distributors.
Read all positive factors
EssilorLuxottica SA (ESLOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$101.81B
Dividend Yield1.41%
Average Volume (3M)2.59K
Price to Earnings (P/E)55.7
Beta (1Y)0.77
Revenue Growth6.06%
EPS Growth3.53%
CountryUS
Employees153,498
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)1.73
Shares Outstanding926,579,160
10 Day Avg. Volume2,986
30 Day Avg. Volume2,591
Financial Highlights & Ratios
PEG Ratio-8.27
Price to Book (P/B)3.18
Price to Sales (P/S)4.52
P/FCF Ratio34.22
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue3.60
Enterprise Value/Gross Profit5.98
Enterprise Value/Ebitda17.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.38
Revenue Forecast (FY)$36.74B
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 Optic...
How the Company Makes Money
EssilorLuxottica makes money primarily by selling eyewear products and related services through two main routes: wholesale (selling to third-party professionals and retailers) and direct-to-consumer (selling through company-owned retail stores and...
EssilorLuxottica SA Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and commercial momentum — record revenue growth, record free cash flow, fast consumer adoption of AI glasses and clear progress in myopia management (including FDA authorization) and geographic expansion. These positives are tempered by near-term margin pressure driven by tariffs, unfavorable FX, higher interest costs and product‑mix dilution from the high growth of lower-margin wearables and upfront investment. Management expects scale, price/mix improvements and product evolution to drive margin recovery over the medium term and reaffirmed a 5-year outlook aligned for revenue and operating profit growth.Positive Updates
Record full-year revenue and strong quarterly acceleration
FY2025 revenue EUR 28.5bn, +11% at constant currency; Q4 revenue +18.4% at constant currency (+12.1% at reported FX). Fourth quarter was the strongest quarter of the year with double-digit growth across major regions.
Negative Updates
Gross margin compression
Gross margin declined by ~260 basis points year-over-year. Management attributed roughly one-third of the gross margin impact to U.S. tariffs and two-thirds to product/mix dilution from AI glasses adoption.
Read all updates
Q4-2025 Updates
Positive
Negative
Record full-year revenue and strong quarterly acceleration
FY2025 revenue EUR 28.5bn, +11% at constant currency; Q4 revenue +18.4% at constant currency (+12.1% at reported FX). Fourth quarter was the strongest quarter of the year with double-digit growth across major regions.
Read all positive updates
Company Guidance
EssilorLuxottica said it is fully on track with its long‑term outlook and updated a five‑year plan to deliver broadly aligned growth in revenues and operating profit: FY25 revenue €28.5bn (+11% at constant currency) with Q4 +18.4% cc (+12.1% reported), adjusted operating profit €4.5bn (after ~€300m U.S. tariff and adverse FX headwind), record free cash flow €2.8bn and net debt/EBITDA of 1.7; the group sold >7m AI glasses in 2025 (AI wearables materially contributed to growth but weighed on gross margin, which fell ~260bps), OpEx fell ~170bps as a % of sales, operating‑profit margin was down ~70bps at constant FX (~100bps reported) and net profit down ~50bps cc (~70bps reported); Q4 regional cc growth was North America ~+24%, EMEA ~+16%, Asia Pacific ~+12% and Latin America ~+8%; management expects continued upfront OpEx/CapEx to scale Med‑Tech and wearables, margin recovery as scale is reached, an annualization of tariffs and FX headwinds into 2026, and will review progress at a mid‑year checkpoint (January started with a double‑digit month).EssilorLuxottica SA Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.37B | 26.51B | 25.39B | 24.49B | 19.82B |
| Gross Profit | 16.57B | 16.81B | 16.05B | 15.59B | 12.28B |
| EBITDA | 6.22B | 6.55B | 6.18B | 6.10B | 4.63B |
| Net Income | 2.22B | 2.36B | 2.29B | 2.15B | 1.45B |
Balance Sheet | |||||
| Total Assets | 63.87B | 64.26B | 60.52B | 60.56B | 59.41B |
| Cash, Cash Equivalents and Short-Term Investments | 3.54B | 2.25B | 2.56B | 1.96B | 3.29B |
| Total Debt | 17.04B | 13.22B | 11.66B | 12.20B | 13.02B |
| Total Liabilities | 24.39B | 23.26B | 21.63B | 22.41B | 23.54B |
| Stockholders Equity | 38.87B | 40.38B | 38.24B | 37.45B | 35.06B |
Cash Flow | |||||
| Free Cash Flow | 3.62B | 3.35B | 3.33B | 3.21B | 3.52B |
| Operating Cash Flow | 5.08B | 4.87B | 4.86B | 4.78B | 4.54B |
| Investing Cash Flow | -2.53B | -3.62B | -1.72B | -2.62B | -8.06B |
| Financing Cash Flow | -932.68M | -1.65B | -2.42B | -3.58B | -2.04B |
EssilorLuxottica SA Technical Analysis
Negative
159.07
Price Trends
133.35
Negative
151.10
Negative
153.39
Negative
Market Momentum
-6.18
Negative
26.29
Positive
46.30
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 159.07 is above the 20-day moving average (MA) of 115.85, above the 50-day MA of 133.35, and above the 200-day MA of 153.39, indicating a bearish trend. The MACD of -6.18 indicates Negative momentum. The RSI at 26.29 is Positive, neither overbought nor oversold. The STOCH value of 46.30 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $101.81B | 55.67 | 6.04% | 1.41% | 6.06% | 3.53% | |
60 Neutral | $2.48B | -112.73 | 0.45% | ― | 14.55% | ― | |
60 Neutral | $5.84B | -16.79 | -5.61% | ― | 6.23% | 17.53% | |
52 Neutral | $2.32B | -3.81 | -35.24% | 5.61% | -7.08% | -113.81% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ESLOY
EssilorLuxottica SA
110.46
-15.23
-12.12%
XRAY
DENTSPLY SIRONA
11.63
-1.12
-8.81%
WRBY
Warby Parker
20.29
4.80
30.99%
BLCO
Bausch + Lomb Corporation
16.49
4.62
38.92%
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.