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EssilorLuxottica SA (FR:EL)
:EL

EssilorLuxottica SA (EL) AI Stock Analysis

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EssilorLuxottica SA

(LSE:EL)

Rating:67Neutral
Price Target:
€268.00
▲(14.38%Upside)
EssilorLuxottica SA presents strong financial performance with consistent growth and profitability, providing a solid foundation. However, technical indicators suggest a bearish trend, and the stock's high P/E ratio raises valuation concerns. The lack of guidance or sentiment insights from the earnings call adds uncertainty to the outlook.
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
Foreign exchange risk
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 (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
EssilorLuxottica SA presents a comprehensive financial profile marked by consistent revenue growth, strong profitability, and sound balance sheet management. The company's efficient cash flow generation further supports its financial health. While the balance sheet is stable, enhancing asset utilization could drive further improvements.
Income Statement
85
Very Positive
EssilorLuxottica SA shows a strong revenue growth trend with a 4.37% increase from 2023 to 2024. The company maintains solid profitability, evidenced by a gross profit margin of 63.41% and a net profit margin of 8.90% in 2024. The EBIT margin of 13.01% and EBITDA margin of 24.72% further underscore its robust operating performance. Consistent revenue growth and strong margins highlight a well-managed income statement.
Balance Sheet
78
Positive
The company has a healthy equity base with a debt-to-equity ratio of 0.33, indicating moderate leverage. The return on equity (ROE) is a respectable 5.84%, suggesting efficient use of equity capital. The equity ratio stands at 62.84%, reflecting a strong balance sheet with significant equity backing. Overall, the balance sheet exhibits stability, though there is room for improving asset utilization.
Cash Flow
82
Very Positive
EssilorLuxottica SA demonstrates a stable cash flow position with a free cash flow to net income ratio of 1.42, indicating strong cash generation relative to net income. The operating cash flow to net income ratio is 2.07, highlighting efficient cash conversion. Free cash flow growth was modest at 0.66% from 2023 to 2024, but the overall cash flow metrics suggest solid liquidity and operational cash control.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue26.51B25.39B24.49B19.82B14.43B
Gross Profit16.81B16.05B15.59B12.28B8.49B
EBITDA6.55B6.18B6.10B4.71B2.61B
Net Income2.36B2.29B2.15B1.45B85.00M
Balance Sheet
Total Assets64.26B60.52B60.56B59.41B52.32B
Cash, Cash Equivalents and Short-Term Investments2.25B2.56B1.99B3.33B8.93B
Total Debt13.22B11.66B12.20B13.02B11.89B
Total Liabilities23.26B21.63B22.41B23.54B19.52B
Stockholders Equity40.38B38.24B37.45B35.06B32.27B
Cash Flow
Free Cash Flow3.35B3.33B3.21B3.52B2.30B
Operating Cash Flow4.87B4.86B4.78B4.54B2.95B
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 Price234.30
Price Trends
50DMA
247.67
Negative
100DMA
256.83
Negative
200DMA
240.63
Negative
Market Momentum
MACD
-3.77
Positive
RSI
36.41
Neutral
STOCH
8.70
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 234.3 is below the 20-day moving average (MA) of 242.97, below the 50-day MA of 247.67, and below the 200-day MA of 240.63, indicating a bearish trend. The MACD of -3.77 indicates Positive momentum. The RSI at 36.41 is Neutral, neither overbought nor oversold. The STOCH value of 8.70 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FREL
67
Neutral
€108.23B45.086.00%1.46%4.38%1.71%
67
Neutral
¥253.98B13.046.57%2.83%5.07%-11.36%
$278.99B56.3428.67%3.80%
€77.22B14.8322.73%3.04%
€22.58B19.607.52%7.54%
€224.45B17.8119.53%2.91%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:EL
EssilorLuxottica SA
234.30
35.68
17.96%
HESAF
Hermes International
2,676.90
437.06
19.51%
GB:0NPL
Christian Dior
428.00
-220.73
-34.02%
GB:0IIH
Kering SA
181.12
-147.80
-44.93%
GB:0HAU
LVMH Moet Hennessy Louis Vuitton
447.45
-251.21
-35.96%
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: Jun 13, 2025