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EssilorLuxottica SA
(OTC:ESLOY)
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Rating:70Outperform
Price Target:
$103.00
▲(10.73% Upside)
Action:Upgraded
Date:07/28/26
The score is driven primarily by strong fundamental performance and a notably upbeat earnings update with solid growth, margin progression, and record free cash flow. Offsetting these positives, the stock’s technical setup is weak with the price below all major moving averages, and valuation remains premium at a 32.44 P/E despite a moderate 2.46% dividend yield.
Positive Factors
Vertical integration & distribution
Owning design, manufacturing and retail creates durable margin capture and supply‑chain control. This reduces dependence on third parties, speeds product rollouts, and lets the company optimize channel mix (wholesale vs DTC), supporting stable revenue and margin resilience over the next 2–6 months.
Negative Factors
Rising leverage
A meaningful increase in leverage reduces financial flexibility and raises interest expense sensitivity. Higher debt levels constrain optionality for M&A, buybacks or cyclical buffering, increasing vulnerability to rate moves and potentially pressuring net income and free cash flow in coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration & distribution
Owning design, manufacturing and retail creates durable margin capture and supply‑chain control. This reduces dependence on third parties, speeds product rollouts, and lets the company optimize channel mix (wholesale vs DTC), supporting stable revenue and margin resilience over the next 2–6 months.
Read all positive factors
EssilorLuxottica SA (ESLOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.15B
Dividend Yield2.5%
Average Volume (3M)2.59K
Price to Earnings (P/E)29.6
Beta (1Y)0.89
Revenue Growth15.30%
EPS Growth10.92%
CountryUS
Employees203,791
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.73
Shares Outstanding928,495,100
10 Day Avg. Volume2,986
30 Day Avg. Volume2,591
Financial Highlights & Ratios
PEG Ratio-8.26
Price to Book (P/B)3.18
Price to Sales (P/S)4.34
P/FCF Ratio34.22
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.2
Revenue Forecast (FY)$34.58B
EssilorLuxottica SA Business Overview & Revenue Model
Company Description
EssilorLuxottica S.A., established in Paris, France, in 1849, is a prominent global entity in the optical industry. The company specializes in the creation, production, and worldwide distribution of a diverse range of vision products, including op...
How the Company Makes Money
EssilorLuxottica makes money primarily by selling eyewear products and by earning revenue through distribution and retail channels that bring those products to consumers and eye-care professionals.
Key revenue streams include:
- Ophthalmic lenses...
EssilorLuxottica SA Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 17, 2027
Earnings Call Sentiment Positive
The call presented a predominately positive operational and financial picture: solid double-digit-like improvements in profitability metrics, strong free cash flow, robust regional momentum (notably Asia Pacific), and clear product and strategic progress in wearables, myopia management and medtech. Management acknowledged localized slowdowns (key accounts in North America, flat France, some EMEA licensing softness), currency and tariff timing uncertainties, and a demanding H2 comparison base. Overall the positives (revenue growth, margin recovery, record cash generation, product pipeline and strategic partnerships) materially outweigh the noted operational and timing risks.Positive Updates
Solid Top-Line Growth
Group revenues +9.7% at constant currency (H1 2026) and +5.7% at current rates; Q2 revenue +8.7% at constant currency and +7.2% at current exchange rates, broadly aligned with medium-term guidance.
Negative Updates
Currency Headwinds and Exchange Variance
Current-rate growth lags constant-currency growth (H1: 5.7% vs 9.7%); U.S. dollar devalued ~2.5% against euro in Q2 causing a 1.5 ppt gap reduction but currency exposure remains a modeling risk and could affect H2 depending on FX moves.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Top-Line Growth
Group revenues +9.7% at constant currency (H1 2026) and +5.7% at current rates; Q2 revenue +8.7% at constant currency and +7.2% at current exchange rates, broadly aligned with medium-term guidance.
Read all positive updates
Company Guidance
Management reiterated its medium‑term guidance of "solid revenue growth at constant currency," noting H1 revenues +9.7% cc (+5.7% reported) and Q2 +8.7% cc (+7.2% reported), while warning of a demanding H2 comparison but expressing confidence in delivering the financial ambition; by region Q2 was North America +7.2% cc, EMEA +8% cc, Asia‑Pacific +17% cc and Latin America +6.7% cc, with the core business up mid‑single‑digit and wearables nearly doubling in Q2 (analyst‑estimated contribution ≈4pp to Q2 growth). Profitability guidance pointed to gross profit accretion (+10bps), operating profit up 80bps at constant currency (50bps reported), net profit up 50bps cc (20bps reported) and operating expenses improving ~80bps of revenue despite continued R&D/medtech investments; free cash flow guidance is underpinned by €1.067bn generated in H1 (strongest in five years, >€100m ahead of prior year). Management also highlighted a net +60bps tariff benefit in H1 (with possible additional refunds in H2), a reduced constant/reported gap to 1.5pp after a ~2.5% USD devaluation in Q2 (potential H2 currency tailwind), and expects continued margin progression, controlled cost/inflation and revenue support from initiatives such as Stellest in ~11,000 US doors, myopia solutions (+25% in H1, >20% quarter‑on‑quarter), wearable rollouts and the Applied Materials partnership.EssilorLuxottica SA Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.47B | 28.49B | 26.51B | 25.39B | 24.49B | 19.82B |
| Gross Profit | 17.94B | 17.25B | 16.81B | 16.05B | 15.59B | 12.28B |
| EBITDA | 6.83B | 6.60B | 6.55B | 6.18B | 6.10B | 4.63B |
| Net Income | 2.52B | 2.22B | 2.36B | 2.29B | 2.15B | 1.45B |
Balance Sheet | ||||||
| Total Assets | 65.03B | 63.87B | 64.26B | 60.52B | 60.56B | 59.41B |
| Cash, Cash Equivalents and Short-Term Investments | 1.93B | 3.54B | 2.25B | 2.56B | 1.96B | 3.29B |
| Total Debt | 15.31B | 14.40B | 13.22B | 11.66B | 12.20B | 13.02B |
| Total Liabilities | 25.12B | 24.39B | 23.26B | 21.63B | 22.41B | 23.54B |
| Stockholders Equity | 39.20B | 38.87B | 40.38B | 38.24B | 37.45B | 35.06B |
Cash Flow | ||||||
| Free Cash Flow | 3.95B | 3.62B | 3.35B | 3.33B | 3.21B | 3.52B |
| Operating Cash Flow | 5.44B | 5.08B | 4.87B | 4.86B | 4.78B | 4.54B |
| Investing Cash Flow | -2.94B | -2.53B | -3.62B | -1.72B | -2.62B | -8.06B |
| Financing Cash Flow | -3.29B | -932.68M | -1.65B | -2.42B | -3.58B | -2.04B |
EssilorLuxottica SA Technical Analysis
Negative
93.02
Price Trends
97.75
Negative
102.38
Negative
128.25
Negative
Market Momentum
-0.28
Positive
42.13
Neutral
3.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESLOY, the sentiment is Negative. The current price of 93.02 is below the 20-day moving average (MA) of 95.84, below the 50-day MA of 97.75, and below the 200-day MA of 128.25, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 42.13 is Neutral, neither overbought nor oversold. The STOCH value of 3.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESLOY.
EssilorLuxottica SA Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $87.15B | 29.59 | 6.39% | 2.49% | 15.30% | 10.92% | |
63 Neutral | $6.09B | -35.55 | -2.67% | ― | 8.85% | 37.70% | |
61 Neutral | $47.99M | -6.30 | -37.47% | ― | 64.18% | 28.90% | |
57 Neutral | $14.86B | 63.64 | 2.84% | ― | 6.09% | -42.65% | |
55 Neutral | $1.31B | 301.13 | 1.08% | ― | 51.30% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
44 Neutral | $6.32M | -0.52 | -83.38% | ― | 72.50% | 58.34% |
* Healthcare Sector Average
ESLOY
EssilorLuxottica SA
92.58
-60.99
-39.72%
COO
Cooper Co
75.10
1.57
2.14%
STAA
Staar Surgical
24.09
-3.90
-13.93%
POCI
Precision Optics Corporation
4.18
-0.45
-9.72%
BLCO
Bausch + Lomb Corporation
17.00
2.54
17.57%
LUCY
Innovative Eyewear, Inc.
0.70
-1.32
-65.35%
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.