tiprankstipranks
Trending News
More News >
EssilorLuxottica SA (FR:EL)
:EL
Advertisement

EssilorLuxottica SA (EL) AI Stock Analysis

Compare
89 Followers

Top Page

FR:EL

EssilorLuxottica SA

(LSE:EL)

Select Model
Select Model
Select Model
Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
€274.00
▼(-2.21% Downside)
EssilorLuxottica SA's strong financial performance, characterized by robust revenue growth, profitability, and cash flow generation, significantly supports the stock score. Technical analysis indicates stable market momentum, but the high P/E ratio suggests potential overvaluation, tempering the overall score.
Positive Factors
Negative Factors

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

EssilorLuxottica SA Business Overview & Revenue Model

Company DescriptionEssilorLuxottica SA (EL) is a global leader in the eyewear industry, formed from the merger of Essilor, a leading manufacturer of ophthalmic lenses, and Luxottica, a renowned eyewear designer, manufacturer, and distributor. The company operates in two primary sectors: ophthalmic lenses and optical equipment, alongside eyewear products encompassing sunglasses and prescription glasses. EssilorLuxottica's core offerings include advanced lens technology, luxury and fashion eyewear brands, and retail optical chains, providing a comprehensive solution for vision care and eyewear needs worldwide.
How the Company Makes MoneyEssilorLuxottica generates revenue through multiple key streams. The largest segment comes from the sale of ophthalmic lenses, which includes premium and customized lens solutions designed to enhance vision. Additionally, the company earns significant income from its extensive portfolio of eyewear brands, which includes both luxury and mass-market labels. Retail operations also contribute substantially to revenue, with a wide network of optical retail chains and e-commerce platforms. Strategic partnerships with healthcare professionals and organizations further enhance their market presence. The company leverages innovation and technological advancements in lens manufacturing, driving demand for premium products, and capturing a growing market share in the eyewear industry.

EssilorLuxottica SA Financial Statement Overview

Summary
EssilorLuxottica SA presents a comprehensive financial profile with consistent revenue growth, strong profitability, and effective cash flow generation. The income statement reveals solid margins, and the balance sheet shows stability with moderate leverage. However, there is potential to improve asset utilization.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.24B26.51B25.39B24.49B19.82B14.43B
Gross Profit17.01B16.81B16.05B15.59B12.28B8.49B
EBITDA7.24B6.55B6.18B6.10B4.71B2.61B
Net Income2.38B2.36B2.29B2.15B1.45B85.00M
Balance Sheet
Total Assets61.93B64.26B60.52B60.56B59.41B52.32B
Cash, Cash Equivalents and Short-Term Investments2.79B2.25B2.56B1.99B3.33B8.93B
Total Debt14.05B13.22B11.66B12.20B13.02B11.89B
Total Liabilities23.52B23.26B21.63B22.41B23.54B19.52B
Stockholders Equity37.82B40.38B38.24B37.45B35.06B32.27B
Cash Flow
Free Cash Flow3.36B3.35B3.33B3.21B3.52B2.30B
Operating Cash Flow4.91B4.87B4.86B4.78B4.54B2.95B
Investing Cash Flow-3.91B-3.62B-1.72B-3.29B-8.13B-574.00M
Financing Cash Flow-140.00M-1.65B-2.36B-2.91B-1.97B1.59B

EssilorLuxottica SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price280.20
Price Trends
50DMA
263.56
Positive
100DMA
254.39
Positive
200DMA
254.37
Positive
Market Momentum
MACD
3.56
Negative
RSI
63.28
Neutral
STOCH
85.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:EL, the sentiment is Positive. The current price of 280.2 is above the 20-day moving average (MA) of 268.90, above the 50-day MA of 263.56, and above the 200-day MA of 254.37, indicating a bullish trend. The MACD of 3.56 indicates Negative momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 85.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:EL.

EssilorLuxottica SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
€261.76B23.8118.59%2.39%-3.24%-21.24%
78
Outperform
€218.50B48.8526.57%1.21%10.31%0.54%
76
Outperform
€89.23B19.5921.44%2.52%-3.24%-21.65%
76
Outperform
€35.17B47.657.60%2.09%-14.56%-64.91%
72
Outperform
€127.91B53.076.19%1.43%5.45%2.86%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:EL
EssilorLuxottica SA
280.20
73.51
35.56%
FR:RMS
Hermes International
2,145.00
29.23
1.38%
FR:CDI
Christian Dior
515.50
-87.45
-14.50%
FR:KER
Kering SA
286.90
57.51
25.07%
FR:MC
LVMH Moet Hennessy Louis Vuitton
542.90
-103.02
-15.95%
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: Jul 24, 2025