olivLaw · European equity research
EssilorLuxottica EL.PA
France · Euronext Paris · ISIN FR0000121667 · Vertical: Listed companies from France
EssilorLuxottica is a Franco-Italian group that designs, manufactures and distributes ophthalmic lenses and eyewear frames, combining owned brands with licences from fashion houses. The group has set growth targets for 2026, and its vertical integration and innovation in medical technology and wearables define its current position as competition increases.
At the close of 05 Nov 2026, EssilorLuxottica (EL.PA) stock was 191.95 EUR (+1.51% on the day), with market capitalisation 87.1 bn EUR, P/E 37.4 on diluted EPS of 5.13 EUR over the last 12 months, dividend yield 2.06%, beta 0.80, 52-week range 139.00–320.70 EUR.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 73.6
- overbought (≥ 70)
- Bollinger (20, 2)
- 135.47 – 201.98
- in the upper half of the band · %B 0.85 · band width 39.4%
- SMA 50 / 200
- 156.06 / 182.36
- mixed trend
- MACD (12, 26, 9)
- 10.37 / 8.27
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +30.8% | −0.6% | +31.5 pp | — |
| 3 months | +12.1% | −4.2% | +16.2 pp | — |
| 6 months | +8.9% | +4.3% | +4.5 pp | — |
| Year to date | −28.9% | +7.5% | −36.4 pp | — |
| 1 year | −39.3% | +9.9% | −49.2 pp | −6.8% |
| 3 years | +13.6% | +49.8% | −36.2 pp | −15.9% |
| 5 years | +4.4% | +42.8% | −38.4 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 67 percentile of its own 3-quarter history (min 34.3, median 35.0, max 45.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | 24.5 bn | 25.4 bn | 26.5 bn |
| Revenue YoY | unavailable | +3.7% | +4.4% |
| Net income | 2.2 bn | 2.3 bn | 2.4 bn |
| Net income YoY | unavailable | +6.4% | +3.1% |
| Diluted EPS | 4.83 | 5.08 | 5.13 |
| Diluted EPS YoY | unavailable | +5.2% | +1.0% |
| net % | 8.8% | 9.0% | 8.9% |
| Free cash flow | unavailable | unavailable | unavailable |
Balance sheet & financial health
Fiscal year 2024 · 31 Dec 2024
- Cash
- 2.3 bn EUR
- Financial debt
- 7.1 bn EUR
- Net debt
- 4.8 bn EUR
- Equity
- 41.0 bn EUR
- Total assets
- 64.3 bn EUR
- Debt / equity
- 0.17x
- Current ratio
- unavailable
- ROE
- 5.9%
- ROA
- 3.8%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (EUR)
Margins
Income statement · EUR
| Line | 2022 | 2023 | 2024 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 24.5 bn | 25.4 bn | 26.5 bn | esef· 11 Mar 2025verified |
| Cost of revenue | 8.9 bn | 9.3 bn | 9.7 bn | esef· 11 Mar 2025verified |
| Gross profit | 15.6 bn | 16.0 bn | 16.8 bn | esef· 11 Mar 2025verified |
| Research & development | 600.0 m | 593.0 m | 630.0 m | esef· 11 Mar 2025verified |
| Operating income | 3.2 bn | 3.2 bn | 3.4 bn | esef· 11 Mar 2025verified |
| Pre-tax income | 3.0 bn | 3.0 bn | 3.3 bn | esef· 11 Mar 2025verified |
| Income tax | 751.0 m | 609.0 m | 800.0 m | esef· 11 Mar 2025verified |
| Net income | 2.2 bn | 2.3 bn | 2.4 bn | esef· 11 Mar 2025verified |
| Diluted EPS | 4.83 | 5.08 | 5.13 | esef· 11 Mar 2025verified |
| Weighted average diluted shares | 445.7 m | 450.8 m | 460.0 m | esef· 11 Mar 2025verified |
| Dividend per share | — | 3.23 | 3.95 | esef· 11 Mar 2025verified |
Balance sheet · EUR
| Line | 2022 | 2023 | 2024 | Source (latest year) |
|---|---|---|---|---|
| Cash | 2.0 bn | 2.6 bn | 2.3 bn | esef· 11 Mar 2025verified |
| Inventories | 2.8 bn | 2.8 bn | 3.2 bn | esef· 11 Mar 2025verified |
| Property, plant & equipment, net | 4.7 bn | 5.2 bn | 5.7 bn | esef· 11 Mar 2025verified |
| Goodwill | 30.7 bn | 30.3 bn | 32.0 bn | esef· 11 Mar 2025verified |
| Intangibles (excl. goodwill) | 12.1 bn | 11.0 bn | 11.0 bn | esef· 11 Mar 2025verified |
| Total assets | 60.6 bn | 60.5 bn | 64.3 bn | esef· 11 Mar 2025verified |
| Long-term debt | 7.9 bn | 6.6 bn | 7.1 bn | esef· 11 Mar 2025verified |
| Equity | 38.1 bn | 38.9 bn | 41.0 bn | esef· 11 Mar 2025verified |
| Shares outstanding at year end | 441.9 m | 447.9 m | 453.7 m | esef· 11 Mar 2025derived |
Cash flow · EUR
| Line | 2022 | 2023 | 2024 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 4.8 bn | 4.9 bn | 4.9 bn | esef· 11 Mar 2025verified |
| Investing cash flow | -2.6 bn | -1.7 bn | -3.6 bn | esef· 11 Mar 2025verified |
| Financing cash flow | -3.6 bn | -2.4 bn | -1.6 bn | esef· 11 Mar 2025verified |
| Share repurchases | 431.0 m | 271.0 m | 274.0 m | esef· 11 Mar 2025verified |
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 4 of at least 6
- score weight coverage: 33.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 87.1 bn EUR
Key indicators
Coverage and freshness
The data is older than the freshness threshold.
Score by group
33% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 53.72 – 152.88 EUR.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (EUR per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E56.90 – 152.88 (Mid 87.88)20 companies used · median multiple 17.1x · quartiles 11.1x – 29.8x74SW.PA, ABEO.PA, AC.PA, ADP.PA, AF.PA, AI.PA, ALBON.PA, ALCIS.PA, ALCLA.PA, ALFER.PA, ALHEX.PA, ALO.PA, ALPWG.PA, ALSOG.PA, ANTIN.PA, ARAMI.PA, ATE.PA, AUB.PA, AURE.PA, BB.PA
- Dividend discount (DDM)53.72 – 73.25 (Mid 61.98)
Assumptions (illustrative, editorial)
- Risk-free rate
- 3.0%
- Equity risk premium
- 5.5%
- Beta (default)
- 1.00
- Cost of equity
- 8.5%
- Terminal growth
- 2.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 33.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 5.9% | 48 (vs peers) | 31% |
| Net margin · Quality | 8.9% | 90 (vs peers) | 19% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | 37.4x | 17 (vs peers) | 31% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 0.3% | 4 (on a fixed band) | 19% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partialunavailable · 0/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality63/100 · 2/3 factors with a value
- Returns· partial4/100 · 1/2 factors with a value
- Valuation· partial17/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
ESSILORLUXOTTICA (EL.PA). Latest full fiscal year: 2024; data up to 2024-12-31.
Figures computed from the financial statements: revenue 26.5 bn EUR in 2024; YoY growth 4.4%; net margin 8.9%; ROE 6.0%.
The estimated value range is 55.31–113.07 EUR per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 74.93 EUR, the price of 191.95 EUR leaves a potential of -61.0% (value / price − 1) and a margin of safety of -156.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 33.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 8.9%
What contradicts it
- P/E (TTM): 37.4x
- Shareholder yield (distributions): 0.3%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA, FCF yield, Payout ratio (FCF).
Versus the vertical median
Listed companies from France · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AI.PAL'air Liquide Societe Anonyme Pour L'etude Et L'exploitation Des Procedes Georges Claude | 109.3 bn | 33.2 | 12.9% | 12.2% | −2.0% | +26% / +32% |
| EL.PAEssilorluxottica | 87.1 bn | 37.4 | 6.0% | 8.9% | +4.4% | −38% / +12% |
| AC.PAAccor | 13.8 bn | 30.7 | 9.6% | 8.0% | +0.6% | +6% / +56% |
| ADP.PAAeroports De Paris | 11.7 bn | 34.1 | 7.8% | 5.6% | +12.1% | −7% / +4% |
| AKE.PAArkema | 7.1 bn | 115.4 | 0.9% | 0.7% | −5.0% | +12% / −37% |
| ALO.PAAlstom | 5.8 bn | 18.3 | 3.1% | 1.7% | +3.7% | −51% / −4% |
| AF.PAAir France - Klm | 4.3 bn | 13.6 | — | 1.0% | +4.8% | +20% / +9% |
| ATE.PAAlten | 3.1 bn | 29.5 | 4.8% | 2.6% | −1.1% | +33% / −29% |
| BB.PASociete Bic | 2.7 bn | 31.3 | 5.0% | 4.1% | −4.8% | +32% / +5% |
| ANTIN.PAAntin Infrastructure Partners | 1.4 bn | 13.0 | 21.9% | 36.6% | −8.1% | −24% / −35% |
| 74SW.PA74software | 792.7 m | 20.9 | 8.9% | 8.5% | +44.8% | −13% / +41% |
| AUB.PAAubay | 667.4 m | 17.8 | 13.6% | 6.3% | +11.3% | +3% / +45% |
| ASY.PAAssystem | 507.1 m | 69.9 | 2.5% | 1.1% | +7.4% | −19% / −18% |
| ATO.PAAtos Se | 483.0 m | — | -23,400.0% | -17.5% | −16.5% | −45% / −94% |
| ARAMI.PAAramis Group | 298.8 m | 15.0 | 10.0% | 0.8% | +6.3% | −33% / −16% |
| ARVEN.PAArverne Group | 246.1 m | — | -14.0% | -115.3% | +27.0% | +20% / −35% |
| BGO.PACompagnie Chargeurs Invest | 189.4 m | — | -8.6% | -5.7% | −2.9% | unavailable / unavailable |
| ALCIS.PACatering International & Services | 145.0 m | 28.4 | 9.3% | 1.9% | +5.8% | +39% / +107% |
| ALCGM.PACegedim | 144.6 m | — | -2.6% | -1.2% | +10.9% | −26% / −49% |
| ATEME.PAAteme | 144.0 m | 151.3 | 2.8% | 1.0% | +2.2% | +82% / +77% |
| ALHEX.PAHexaom | 144.0 m | 6.7 | 9.9% | 2.2% | +13.1% | −32% / +7% |
| ALBON.PACompagnie Lebon | 111.7 m | 16.5 | 4.2% | 8.8% | −17.9% | +6% / +8% |
| ALHYF.PALhyfe | 75.8 m | — | -33.4% | -570.5% | +287.2% | unavailable / unavailable |
| ALFER.PASergeferrari Group | 61.5 m | 11.5 | 5.1% | 1.5% | +7.4% | −33% / −27% |
| ABEO.PAAbeo | 60.8 m | 7.3 | 6.9% | 3.0% | +12.6% | −13% / −54% |
1- and 3-year price returns: for EL.PA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (EUR)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 114.87 Total return -39% · Per year -39% | 203.10 Total return 8% · Per year 8% | 305.94 Total return 62% · Per year 62% |
| 3 years | 111.22 Total return -37% · Per year -14% | 221.29 Total return 22% · Per year 7% | 366.04 Total return 99% · Per year 26% |
| 5 years | 107.69 Total return -36% · Per year -9% | 241.11 Total return 37% · Per year 7% | 437.95 Total return 144% · Per year 20% |
- Exit P/E± 55.32
- Net margin± 38.73
- Annual revenue growth± 31.82
- Annual dilution± 3.25
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
EssilorLuxottica is a Franco-Italian group that designs, manufactures and distributes ophthalmic lenses and eyewear frames, combining owned brands with licences from fashion houses. The group has set growth targets for 2026, and its vertical integration and innovation in medical technology and wearables define its current position as competition increases.
SWOT
Strengths
- Broad portfolio of owned and licensed brands with a strong position in fashion and sport eyewear.
- Vertically integrated model covering the full value chain, from manufacturing to final sale.
- Extensive intellectual property and patent base that supports product innovation.
Weaknesses
- Reliance on licence contracts with high royalties and mandatory marketing obligations constrains margins.
- The complexity of a very wide portfolio can make strategic coordination between brands and divisions harder.
- Expansion into medical technology requires qualified staff and compliance with strict quality standards.
Opportunities
- Expansion into under-served markets could increase access to eye-health services.
- Partnerships in wearables and hearing could open new high-value revenue categories.
- Digitalisation of optics and AI virtual try-on could improve the customer experience.
Threats
- Rising competition from players using new channels and aggressive strategies could reduce margins.
- Climate regulation and carbon taxes could raise costs and complicate supply chains.
- A communication or marketing error could damage consumer trust and the reputation of the brands.
Risks
- Climate and transition riskhigh
Extreme weather events and new regulation could affect operations, costs and the achievement of emissions reduction targets.
- Integrity and brand image riskhigh
Inaccurate information or failure to meet sector standards could damage customer trust and lead to litigation.
- Business model riskmedium
Strategic changes could affect key success factors if their consequences are not anticipated correctly.
- Competitive pressuremedium
The emergence of innovative competitors and new channels could reduce performance if the group does not anticipate them.
- Dependence on licenceslow
Licence contracts with mandatory royalties and marketing investment could become a burden if sales in these lines decline.
Investment thesis
What would need to be true (bull case)
- If vertical integration and technology innovation translate into sustained growth, the group could reach its revenue and margin targets for 2026.
- Partnerships in wearables and hearing could open new high-value categories.
- The broad brand portfolio and existing patents could support a leading position in optics over the long term.
What would break the thesis
- If competitive pressure rises, margins could be hit even if volumes remain stable.
- Costs linked to licences and climate regulation could limit financial flexibility.
- A communication error could damage consumer trust and short-term results.
What to watch
- Progress toward the 2026 revenue and adjusted operating margin targets2026
- Development of the wearables partnership and hearing solutions2027
- Margins in licensed lines after royalties and marketing costsnext 10-K
- Effect of climate regulation on compliance costs2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The group covers the full value chain, from product development and manufacturing to sale to the final consumer, which lets it align its ambitions, operational capacity and stakeholder expectations. Its model combines medical and eye-health needs with fashion and lifestyle, a balance that management describes as a major asset. The portfolio includes owned brands and licensed lines from fashion houses, all run through a global distribution network.
The group has expanded through acquisitions that brought new brands and capabilities, including FGX International, Giorgio Fedon & Figli and Heidelberg Engineering, and through diversification into hearing and wearable devices. The registration document also mentions the partnership with Meta and solutions such as Nuance Audio and HELIX. These directions aim at growth beyond traditional optics.
Growth rests on a brand portfolio and an intellectual property base, including a large number of patents. The vertical integration and innovation strategy aims to keep the competitive advantage over the long term.
Segments
Owned brands and lenses
The segment includes owned brands such as Oakley, Persol, Oliver Peoples, Costa, Arnette and Alain Mikli, covering sport and outdoor through to discreet luxury. It reflects the group's ability to develop high brand-value products.
Fashion house licences
Licensed lines such as Armani, Prada, Burberry, Chanel, Dolce&Gabbana and Ralph Lauren are produced and distributed under exclusive contracts lasting five to 15 years. These contracts require royalty payments and marketing investment, but give access to the fashion houses' reputation.
Market context
The global optical market is driven by the need for vision correction and by demand for eyewear as a fashion accessory. The group aims to serve under-served markets too, which could widen its customer base if access to eye-health services grows.
The group's targeted growth of about 5 percent a year at constant exchange rates through 2026 depends on demand trends in Europe, North America and Asia. Exchange-rate effects and consumer spending could still change results in any given period.
Trends
- Digital innovation and wearablestailwind
The partnership with Meta and AI-powered virtual try-on tools could open new product categories and shopping experiences. If adoption of these technologies grows, it could support revenue growth in new segments.
- Rising competitive pressureheadwind
New competitors selling innovative products through different channels, with aggressive pricing, could reduce margins. The registration document notes that artificial intelligence is also changing the competitive environment.
- Climate regulation and the green transitionmixed
New rules such as carbon taxes could raise compliance costs and change supply chains. At the same time, demand for recycled and bio-based materials could become an advantage for a group that adopts them early.
- Consumer expectations on responsibilitymixed
Consumers attach growing importance to transparency and sustainable initiatives, and a communication error could damage trust in the brands. Pressure on ethics and marketing standards rises as the business diversifies.
Competitive position
The group faces competition from players selling innovative products through new channels with aggressive strategies, and from companies using artificial intelligence in medical technology. The registration document shows that failing to anticipate these shifts could hurt commercial performance.
Competition plays out across lenses and optical services, and in fashion and sport eyewear, where luxury and sports brands compete for consumer attention. The group responds with acquisitions, partnerships and product innovation.
- Luxury eyewear houses
Fashion and luxury brands that produce eyewear under licence compete for the same clientele, sometimes through their own eyewear lines.
- Ophthalmic lens manufacturers
Lens industry players compete on product quality, technology and distribution channels to opticians.
- Wearable device companies
New entrants from consumer electronics developing smart glasses could compete directly with the group's wearables initiatives.
- Online eyewear retailers
Digital sales channels with aggressive pricing could reduce pressure on margins in traditional retail.
News & filings
In the press
- EssilorLuxottica's smart glasses boom runs into tougher regulatory scrutinyCNA (Channel NewsAsia) · 20 Oct 2026 · EN
- FT: Armani готов продать свои акции LVMH, L’Oreal и EssilorLuxotticaKommersant (RU) · 27 Sept 2026 · RU
- Mişcări importante în piaţa modei: Armani se pregăteşte să înceapă negocieri oficiale cu cei trei potenţiali investitori desemnaţi în testamentul lui Giorgio Armani: LVMH, L’Oréal şi EssilorLuxottica, pentru a discuta vânzarea unui pachet minoritar de acţiuniZiarul Financiar · 27 Sept 2026 · RO
- Analyst Darling EssilorLuxottica Gets Rare Sell Call After RoutBloomberg Markets · 17 Sept 2026 · EN
- EssilorLuxottica Managers Defend Their CEO After Heir Lashes OutBloomberg Markets · 11 Sept 2026 · EN
- FOTO Meta (Facebook) lansează noi perechi de ochelari inteligenți, în colaborare cu EssilorLuxottica și cu Kylie JennerStartupCafe.ro · 23 Jun 2026 · RO
- Giorgio Armani ar putea vinde un pachet de 15% din acţiunile sale către LVMH, L’Oréal şi EssilorLuxotticaMoney.ro · 11 May 2026 · RO
Annual reports (ESEF)
- Annual report 202411 Mar 2025
- Annual report 202318 Mar 2024
Sources
- [1] Annual report, fiscal year ended 2024-12-31 (ESEF) · SEC / EssilorLuxottica · 31 Dec 2024
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.