National Vision Holdings (EYE) AI Stock Analysis

• Market Cap: $2.27B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -1.58%
• EPS Growth: 85.04%
• Country: US
• Employees: 13,411
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.13
• Shares Outstanding: 79,309,555
• 10 Day Avg. Volume: 1,640,867
• 30 Day Avg. Volume: 1,926,512
• PEG Ratio: 0.51
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 21.78
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 2.24
• Enterprise Value/Ebitda: 20.11
• 1Y Price Target: $31.78
• Price Target Upside: 11.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $29.00 ▲(1.29% Upside)

National Vision Holdings' overall stock score reflects moderate financial performance with significant challenges in profitability. The technical analysis suggests a neutral to slightly positive trend, while the valuation remains unattractive due to a negative P/E ratio. The earnings call provided a positive outlook with consistent sales growth and strategic initiatives, and the recent corporate event adds stability. However, profitability issues and valuation concerns weigh heavily on the overall score.

Positive Factors

Strategic Transformation

The strategic transformation aims to capture new customer segments and enhance product offerings, potentially driving long-term revenue growth and market expansion.

Operating Margin Expansion

Sustained margin expansion indicates improved operational efficiency and pricing power, enhancing profitability over the long term.

Cost Savings Plan

The cost savings plan through vendor renegotiations and efficiency improvements will strengthen financial health and support future investments.

Negative Factors

Profitability Challenges

Ongoing profitability issues, with negative net income, could hinder reinvestment and growth, posing a risk to long-term financial stability.

Healthcare Cost Headwinds

Rising healthcare costs can pressure margins and increase operational expenses, impacting overall profitability and competitiveness.

Flat Traffic in Cash Pay Segment

Flat traffic in the cash pay segment indicates potential challenges in attracting and retaining price-sensitive customers, affecting sales growth.

National Vision Holdings Business Overview & Revenue Model

Company Description

National Vision Holdings, Inc. (EYE) is a leading optical retail company in the United States, primarily focused on providing affordable eyewear and related services. The company operates a vast network of retail stores under various banners, including America's Best Contacts & Eyeglasses and Eyeglass World. National Vision Holdings specializes in offering a range of products such as prescription eyeglasses, contact lenses, and eye care services, catering to a diverse customer base across different demographics.

How the Company Makes Money

National Vision Holdings generates revenue through multiple streams, primarily from the sale of eyewear products, including prescription glasses and contact lenses. The company offers a variety of pricing options, including value-focused promotions that attract customers seeking affordable eyewear solutions. Additional revenue is derived from eye examinations and vision care services provided in-store. National Vision has established partnerships with major eyewear brands and manufacturers, which helps it to maintain a competitive edge in pricing and product variety. Furthermore, the company's membership plans and vision insurance partnerships contribute to a steady influx of customers, enhancing overall sales and profitability.

National Vision Holdings Financial Statement Overview

Summary

National Vision Holdings is facing profitability challenges despite slight revenue growth. The balance sheet shows a high reliance on debt, and while cash flow generation is improving, it is not sufficient to cover net losses. The company needs to address operational inefficiencies to improve margins and reduce debt reliance.

Income Statement

National Vision Holdings has shown a slight revenue growth in the TTM period with a 1.87% increase. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin remains stable, but the declining EBIT and net profit margins suggest operational challenges.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 0.96, indicating a significant reliance on debt financing. The return on equity is negative, reflecting the company's current unprofitability. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

There is a positive growth in free cash flow, with a 22.86% increase in the TTM period. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the free cash flow to net income ratio suggests that cash flow is not fully covering the net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.92B	1.82B	2.13B	1.64B	2.08B	1.71B
Gross Profit	1.13B	1.06B	1.13B	977.01M	1.17B	925.14M
EBITDA	125.61M	89.58M	53.12M	158.73M	276.74M	178.59M
Net Income	-2.31M	-28.50M	-65.90M	42.12M	128.24M	36.28M
Balance Sheet
Total Assets	1.96B	2.01B	2.17B	2.29B	2.29B	2.33B
Cash, Cash Equivalents and Short-Term Investments	56.03M	73.95M	149.90M	229.43M	305.80M	373.90M
Total Debt	693.57M	816.03M	923.15M	1.00B	973.25M	1.04B
Total Liabilities	1.10B	1.19B	1.34B	1.39B	1.37B	1.43B
Stockholders Equity	858.76M	816.33M	829.42M	901.11M	925.98M	906.50M
Cash Flow
Free Cash Flow	82.95M	38.14M	58.26M	5.65M	163.42M	158.16M
Operating Cash Flow	163.42M	133.65M	173.03M	119.20M	258.94M	234.98M
Investing Cash Flow	-86.02M	-96.09M	-115.82M	-110.89M	-92.90M	-76.41M
Financing Cash Flow	-102.50M	-113.34M	-136.81M	-84.56M	-234.32M	176.28M

National Vision Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.63
• 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 EYE, the sentiment is Positive. The current price of 28.63 is above the 20-day moving average (MA) of 28.63, above the 50-day MA of 26.70, and above the 200-day MA of 21.94, indicating a bullish trend. The MACD of 0.64 indicates Positive momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 49.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EYE.

National Vision Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULTA	78 Outperform	$26.52B	23.49	47.97%	―	5.45%	4.28%
SBH	76 Outperform	$1.50B	8.11	27.54%	―	-0.42%	31.64%
GPC	69 Neutral	$17.45B	21.61	17.05%	3.28%	3.26%	-25.41%
BBY	62 Neutral	$15.05B	23.71	22.49%	5.33%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
EYE	57 Neutral	$2.27B	-865.77	-0.37%	―	-1.58%	85.04%
BBWI	53 Neutral	$4.05B	6.08	―	4.15%	-1.04%	-20.88%

National Vision Holdings Corporate Events

National Vision Extends Agreement with Essilor

On December 13, 2025, National Vision, Inc. and Essilor of America, Inc. agreed to amend their existing Letter Agreement, extending its term by two years to May 31, 2028, and updating pricing terms. This amendment signifies a continued partnership between the two companies, potentially strengthening National Vision’s market position and providing stability in its operations.