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EssilorLuxottica SA (FR:EL)
:EL
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EssilorLuxottica SA (EL) AI Stock Analysis

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FR:EL

EssilorLuxottica SA

(EL)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
€183.00
▲(11.93% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily supported by solid financial performance (steady growth and strong gross profitability) but held back by margin softening in 2025, increased leverage, and middling cash conversion. Technically, signals are mixed with a weaker longer-term trend and negative MACD, and valuation is a further headwind due to the higher P/E despite a moderate dividend yield.
Positive Factors
Vertical integration & diversified revenue
Owning lens innovation, frame manufacturing, global distribution and retail creates durable control over cost, quality and margins. Vertical integration supports cross-sell, insulation from supplier shocks, and sustained margin capture across wholesale and direct channels over multiple quarters.
Negative Factors
Rising leverage in 2025
A meaningful debt uptick in 2025 weakens the balance-sheet trajectory and reduces financial flexibility. Higher leverage raises interest expense sensitivity and may constrain strategic investments or buybacks if margins or cash flow soften, increasing medium-term refinancing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration & diversified revenue
Owning lens innovation, frame manufacturing, global distribution and retail creates durable control over cost, quality and margins. Vertical integration supports cross-sell, insulation from supplier shocks, and sustained margin capture across wholesale and direct channels over multiple quarters.
Read all positive factors

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

EssilorLuxottica SA Business Overview & Revenue Model

Company Description
EssilorLuxottica S.A., established in Paris, France, in 1849, is a global enterprise dedicated to the design, production, and distribution of a wide range of ophthalmic products, including corrective lenses, eyewear frames, and sunglasses. The com...
How the Company Makes Money
EssilorLuxottica makes money primarily by selling eyewear products and related services through a mix of wholesale and direct-to-consumer channels. Key revenue streams include: (1) Ophthalmic lenses: designing and manufacturing prescription lenses...

EssilorLuxottica SA Financial Statement Overview

Summary
Strong and stable operating profile with steady 2023–2025 revenue growth and high gross margins (~61–63%). Offsetting factors are softer 2025 operating/EBITDA margins, a notable debt increase in 2025, and cash conversion below net income (~0.69–0.71x), which tempers the overall strength.
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue29.29B28.49B26.51B25.39B24.49B19.82B
Gross Profit17.82B17.25B16.81B16.05B15.59B12.28B
EBITDA6.78B6.54B6.55B6.18B6.10B4.71B
Net Income2.49B2.31B2.36B2.29B2.15B1.45B
Balance Sheet
Total Assets65.06B63.90B64.26B60.52B60.56B59.41B
Cash, Cash Equivalents and Short-Term Investments1.93B3.54B2.25B2.56B1.99B3.33B
Total Debt15.32B14.40B13.22B11.66B12.20B13.02B
Total Liabilities25.13B24.40B23.26B21.63B22.41B23.54B
Stockholders Equity39.22B38.89B40.38B38.24B37.45B35.06B
Cash Flow
Free Cash Flow3.84B3.77B3.35B3.33B3.21B3.52B
Operating Cash Flow5.29B5.29B4.87B4.86B4.78B4.54B
Investing Cash Flow-2.87B-2.64B-3.62B-1.72B-3.29B-8.13B
Financing Cash Flow-3.21B-971.00M-1.65B-2.36B-2.91B-1.97B

EssilorLuxottica SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
€2.18B16.6717.96%4.05%2.15%-2.20%
64
Neutral
€79.78B31.716.19%2.45%7.50%3.48%
64
Neutral
€78.62B17.4418.84%3.25%-3.83%-0.09%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
€35.14B-163.820.49%2.14%-9.23%-129.21%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:EL
EssilorLuxottica SA
171.25
-74.64
-30.35%
FR:CDI
Christian Dior
440.00
12.57
2.94%
FR:ITP
Interparfums
24.84
-4.28
-14.69%
FR:KER
Kering SA
283.40
73.50
35.02%

EssilorLuxottica SA Corporate Events

EssilorLuxottica Publishes 2026 Interim Financial Report After Board Approval
Jul 29, 2026
EssilorLuxottica has released its 2026 Interim Financial Report following Board approval of the condensed consolidated interim financial statements for the six months ended June 30, 2026. The publication provides investors and stakeholders with up...
EssilorLuxottica Delivers Strong H1 Growth and Bets on Intelligent Optical Systems
Jul 28, 2026
EssilorLuxottica reported a strong first half of 2026, with revenue up 9.7% at constant exchange rates and second-quarter growth of 8.7%, supported by an 8.0% rise in comparable-store retail sales. All major regions contributed, with North America...
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.Date of analysis: Aug 06, 2026