EssilorLuxottica SA (ESLOY) AI Stock Analysis

• Market Cap: $141.95B
• Dividend Yield: 1.41%
• Average Volume (3M): 2.59K
• Price to Earnings (P/E): 54.1
• Beta (1Y): 0.76
• 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: 926,579,160
• 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: 0.92
• Enterprise Value/Revenue: 4.79
• Enterprise Value/Gross Profit: 7.63
• Enterprise Value/Ebitda: 19.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $171.00 ▲(7.50% 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

Consistent revenue growth

Sustained 7.3% revenue growth at constant currency reflects structurally resilient end-markets and broad product demand. Diversified regional performance (EMEA, Asia, LatAm high single-digits; North America mid-single-digits) reduces concentration risk and supports multi-quarter top-line momentum.

Strong cash generation and liquidity

High operating cash flow relative to net income and positive free cash flow metrics indicate durable cash conversion. Robust cash generation funds R&D, M&A, retail investment and shareholder returns without over-reliance on external financing, supporting long-term strategic flexibility.

Strategic expansion into MedTech

Moving into surgical diagnostics and clinic ownership diversifies revenue toward higher-value health services and creates cross-sell opportunities with optical products. This vertical expansion strengthens the company's moat and reduces reliance on cyclical retail eyewear sales over time.

Negative Factors

Tariff-driven inflationary margin pressure

Persistent tariff and trade-policy costs create structural input-cost risk and supply-chain volatility. These headwinds can compress gross margins over multiple quarters, forcing price increases or margin sacrifices that erode operating leverage and long-term margin sustainability.

Foreign-exchange volatility compresses reported results

Significant FX swings materially alter reported revenue and profit trends for a global operator. Currency volatility can persist for months, making earnings visibility and capital planning more difficult and potentially reducing translated cash flows for reinvestment or payouts.

Modest return on equity

A mid-single-digit ROE signals limited returns on deployed capital relative to peers and raises questions on capital allocation efficiency. Over the medium term this can constrain shareholder value creation unless margins, asset turns, or capital deployment improve materially.

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: Negative
• Last Price: 159.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 156.29, below the 50-day MA of 162.63, and above the 200-day MA of 156.12, indicating a bearish trend. The MACD of -2.97 indicates Negative momentum. The RSI at 38.97 is Neutral, neither overbought nor oversold. The STOCH value of 35.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESLOY	76 Outperform	$141.95B	54.15	6.01%	1.41%	6.06%	3.53%
WRBY	60 Neutral	$3.22B	6,265.79	0.20%	―	14.55%	―
BLCO	55 Neutral	$5.86B	-19.00	-4.69%	―	6.23%	17.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
XRAY	51 Neutral	$2.50B	-2.83	-44.44%	5.61%	-7.08%	-113.81%