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EssilorLuxottica SA (ESLOY) AI Stock Analysis
EssilorLuxottica SA
(Other OTC:ESLOY)
The stock earns a solid score driven primarily by strong underlying financial performance and a very constructive earnings call that confirms healthy growth, margin recovery and cash generation, but the premium valuation and a weak technical setup with the price below key moving averages temper the outlook and keep the rating below the top tier.
EssilorLuxottica SA (ESLOY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $94.11B
- Dividend Yield
- 2.25%
- Average Volume (3M)
- 122.48K
- Price to Earnings (P/E)
- 34.1
- Beta (1Y)
- 0.88
- Revenue Growth
- 15.30%
- EPS Growth
- 10.92%
- Country
- US
- Employees
- 203,791
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Medical - Instruments & Supplies
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 ophth...
How the Company Makes Money
EssilorLuxottica makes money by selling eyewear and vision-care products and services through a vertically integrated model that spans manufacturing, wholesale distribution, and direct retail. Key revenue streams include: 1) Prescription lenses and l...
EssilorLuxottica SA Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Financial performance is solid, with strong revenue growth, high structural margins and robust, rising cash flow, but recent margin compression, modest returns on capital and a slight uptick in leverage prevent an elite score.
Income Statement
75PositiveBalance Sheet
70PositiveCash Flow
82Very 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 | 6.21B | 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESLOY, the sentiment is Positive. The current price of 102.87 is above the 20-day moving average (MA) of 89.63, above the 50-day MA of 87.73, and below the 200-day MA of 106.48, indicating a neutral trend. The MACD of 4.46 indicates Negative momentum. The RSI at 70.16 is Negative, neither overbought nor oversold. The STOCH value of 90.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESLOY.
EssilorLuxottica SA Peers Comparison
Overall Rating
- ESLOY72Outperform
BLCO65Neutral
COO58Neutral
STAA52Neutral
POCI51Neutral
LUCY38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ESLOY | 72Outperform | $95.63B | 34.13 | 6.39% | 2.25% | 15.30% | 10.92% |
| BLCO | 65Neutral | $7.15B | -64.58 | -1.73% | ― | 8.88% | 63.73% |
| COO | 58Neutral | $11.32B | 20.32 | 6.88% | ― | 4.73% | 43.89% |
| STAA | 52Neutral | $1.23B | 306.75 | 1.08% | ― | 51.30% | ― |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| POCI | 51Neutral | $51.02M | -10.03 | -23.92% | ― | 65.16% | 45.07% |
| LUCY | 38Underperform | $7.24M | -0.61 | -88.90% | ― | 72.50% | 58.34% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ESLOY | Essilorluxottica (OTC) | 102.87 | -76.74 | -42.73% | |
| COO | Cooper Companies | 59.55 | -10.27 | -14.71% | |
| STAA | Staar Surgical Company | 24.54 | -0.72 | -2.85% | |
| POCI | Precision Optics Corporation, Inc. | 4.65 | 0.46 | 10.98% | |
| BLCO | Bausch + Lomb Corporation | 20.00 | 4.75 | 31.15% | |
| LUCY | Innovative Eyewear, Inc. | 0.83 | -0.88 | -51.46% |
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: Oct 28, 2026