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EssilorLuxottica SA (FR:EL)
:EL

EssilorLuxottica SA (EL) AI Stock Analysis

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EssilorLuxottica SA

(LSE:EL)

Rating:72Outperform
Price Target:
€275.00
▲(12.75%Upside)
EssilorLuxottica SA presents a strong financial performance with consistent revenue growth and robust profitability. However, the technical analysis shows mixed signals, and the high P/E ratio suggests the stock may be overvalued, which affects its overall attractiveness. The absence of significant earnings call data or corporate events further emphasizes reliance on financial performance and valuation for this assessment.
Positive Factors
Financial Performance
EssilorLuxottica posted a solid performance overall, especially in DTC (+10.1%) across all geographies.
Market Opportunity
The company has a comprehensive portfolio that positions it as the leader in myopia management, addressing a multi-billion market opportunity.
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
Foreign Exchange Risk
10% change in the USD/EUR parity has 6% impact on EPS, highlighting FX risks.
Margin Targets
The margin target for 2026 seems out of reach, but the company remains committed to margin expansion through operating leverage and other strategic measures.
Tariffs
Main uncertainty remains tariffs, principally impacting made-in-China frames imported to the US.

EssilorLuxottica SA (EL) vs. iShares MSCI France ETF (EWQ)

EssilorLuxottica SA Business Overview & Revenue Model

Company DescriptionEssilorLuxottica 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 MoneyEssilorLuxottica 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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
26.51B25.39B24.49B19.82B14.43B
Gross Profit
16.81B16.05B15.59B12.28B8.49B
EBIT
3.45B3.18B3.26B2.57B719.00M
EBITDA
6.55B6.18B6.10B4.71B2.61B
Net Income Common Stockholders
2.36B2.29B2.15B1.45B85.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.25B2.56B1.99B3.33B8.93B
Total Assets
64.26B60.52B60.56B59.41B52.32B
Total Debt
13.22B11.66B12.20B13.02B11.89B
Net Debt
10.96B9.10B10.45B11.43B7.21B
Total Liabilities
23.26B21.63B22.41B23.54B19.52B
Stockholders Equity
40.38B38.24B37.45B35.06B32.27B
Cash FlowFree Cash Flow
3.35B3.33B3.21B3.52B2.30B
Operating Cash Flow
4.87B4.86B4.78B4.54B2.95B
Investing Cash Flow
-3.62B-1.72B-3.29B-8.13B-574.00M
Financing Cash Flow
-1.65B-2.36B-2.91B-1.97B1.59B

EssilorLuxottica SA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price243.90
Price Trends
50DMA
250.96
Negative
100DMA
257.68
Negative
200DMA
237.61
Positive
Market Momentum
MACD
-1.23
Positive
RSI
42.64
Neutral
STOCH
10.47
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 243.9 is below the 20-day moving average (MA) of 251.54, below the 50-day MA of 250.96, and above the 200-day MA of 237.61, indicating a neutral trend. The MACD of -1.23 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 10.47 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FREL
72
Outperform
€111.66B47.096.00%1.61%4.38%1.71%
62
Neutral
$6.90B11.242.93%3.89%2.68%-24.71%
$285.36B58.1228.67%1.04%
€80.10B15.3922.73%2.92%
€21.01B18.557.52%3.50%
€238.38B18.9619.53%2.75%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:EL
EssilorLuxottica SA
243.90
39.38
19.25%
HESAF
Hermes International
2,735.03
362.76
15.29%
GB:0NPL
Christian Dior
444.20
-264.43
-37.32%
GB:0IIH
Kering SA
176.00
-139.25
-44.17%
GB:0HAU
LVMH Moet Hennessy Louis Vuitton
476.65
-263.19
-35.57%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.