EssilorLuxottica SA (EL) AI Stock Analysis

• Market Cap: €111.38B
• Dividend Yield: 1.62%
• Average Volume (3M): 657.52K
• Price to Earnings (P/E): 47.0
• Beta (1Y): 0.87
• Revenue Growth: 4.38%
• EPS Growth: 1.71%
• Country: FR
• Employees: 153,498
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 5.20
• Shares Outstanding: 457,507,200
• 10 Day Avg. Volume: 517,899
• 30 Day Avg. Volume: 657,520
• PEG Ratio: 27.43
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €275.73
• Price Target Upside: 13.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

EssilorLuxottica SA demonstrates strong financial performance with consistent revenue growth and robust profitability. However, technical analysis presents mixed signals, and valuation metrics suggest the stock may be overvalued. These factors collectively yield a moderate overall stock score, indicating a need for caution in assessing potential investment opportunities.

Positive Factors

Financial Performance

EssilorLuxottica posted a solid performance overall, especially in DTC (+10.1%) across all geographies.

Market Position

Essilorluxottica is recognized as a structural share taker and prime consolidator in a steadily-growing optical market, showcasing strong innovation from MedTech to Digital and Hearing Care.

Negative Factors

Currency Exchange Risks

10% change in the USD/EUR parity has 6% impact on EPS, highlighting FX risks.

Tariffs

Main uncertainty remains tariffs, principally impacting made-in-China frames imported to the US.

EssilorLuxottica SA Business Overview & Revenue Model

Company Description

EssilorLuxottica SA is a global leader in the design, manufacture, and distribution of ophthalmic lenses, optical equipment, and eyewear, including both prescription glasses and sunglasses. The company operates in the broader sectors of eye care and fashion, serving a diverse customer base worldwide. Formed through the merger of Essilor, a pioneer in vision care solutions, and Luxottica, a leader in eyewear design and retail, the company boasts a portfolio of well-known brands such as Ray-Ban, Oakley, and Persol, along with licensed brands like Giorgio Armani and Chanel.

How the Company Makes Money

EssilorLuxottica generates revenue through a diversified business model that includes the sale of optical lenses, frames, and sunglasses across various distribution channels. The company's revenue streams are primarily derived from its wholesale and retail operations. Wholesale revenue comes from selling products to third-party retailers and eye care professionals, while retail revenue is generated from direct sales to consumers through an extensive network of retail stores and e-commerce platforms. Additionally, the company benefits from a robust licensing business, where it designs and manufactures eyewear for luxury and premium brands. Strategic partnerships with optical professionals and retailers further enhance its market reach and sales capabilities. The company also invests in research and development to drive innovation in lens technology and eyewear design, which helps maintain its competitive edge and attract a loyal customer base.

EssilorLuxottica SA Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

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: 242.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:EL, the sentiment is Negative. The current price of 242.3 is below the 20-day moving average (MA) of 245.27, below the 50-day MA of 257.04, and above the 200-day MA of 233.37, indicating a neutral trend. The MACD of -2.13 indicates Negative momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of -0.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:EL.

EssilorLuxottica SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMS	81 Outperform	$255.33B	56.16	28.67%	0.98%	12.98%	6.62%
MC	75 Outperform	€247.70B	19.73	19.53%	2.69%	-1.71%	-17.20%
CDI	71 Outperform	€82.05B	15.75	22.73%	2.86%	-1.71%	-17.39%
EL	67 Neutral	€111.38B	46.97	6.00%	1.62%	4.38%	1.71%
VIV	67 Neutral	€2.73B	7.22	2.26%	1.45%	57.79%	―
KER	62 Neutral	€21.51B	18.99	7.52%	6.56%	-12.12%	-62.09%
Sector *	61 Neutral	$6.66B	11.77	3.06%	3.96%	2.60%	-21.54%