EssilorLuxottica SA (EL) AI Stock Analysis

• Market Cap: €111.66B
• Dividend Yield: 1.61%
• Average Volume (3M): 675.77K
• Price to Earnings (P/E): 47.1
• Beta (1Y): 0.90
• Revenue Growth: 4.38%
• EPS Growth: 1.71%
• Country: FR
• Employees: 153,498
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 2.98
• Shares Outstanding: 457,507,200
• 10 Day Avg. Volume: 818,171
• 30 Day Avg. Volume: 675,774
• PEG Ratio: 27.81
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.10
• 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: €272.18
• Price Target Upside: 11.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 72 Outperform
• 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 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 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: 243.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EL	72 Outperform	€111.66B	47.09	6.00%	1.61%	4.38%	1.71%
Sector *	62 Neutral	$6.90B	11.24	2.93%	3.89%	2.68%	-24.71%
HESAF		$285.36B	58.12	28.67%	1.04%	―	―
0NPL		€80.10B	15.39	22.73%	2.92%	―	―
0IIH		€21.01B	18.55	7.52%	3.50%	―	―
0HAU		€238.38B	18.96	19.53%	2.75%	―	―