(EL) EssilorLuxottica S. A. - Ratings and Ratios
Lenses, Frames, Sunglasses, Equipment, Instruments
Description: EL EssilorLuxottica S. A. September 25, 2025
EssilorLuxottica S.A. (ticker EL) designs, manufactures, and distributes a full spectrum of ophthalmic products-including lenses, frames, sunglasses, and contact lenses-across North America, Europe, Asia-Pacific, the Middle East, Africa, and Latin America. Its portfolio spans premium brands such as Ray-Ban, Oakley, and Varilux, as well as specialty offerings like the SPECTRALIS imaging platform and the HEYEX electronic medical-record suite for eye-care professionals.
The company serves a diversified customer base: independent opticians, large retail chains, e-commerce platforms, and end-consumers through both brick-and-mortar stores and digital channels. In addition to eyewear, EssilorLuxottica supplies optical manufacturing equipment (e.g., lens edging and polishing tools) and consumables under the Satisloh brand, targeting optometry labs, schools, occupational-medicine centers, and military institutions.
Key financial and market indicators (FY 2023) include revenue of roughly €23 billion, an operating margin near 15 %, and a market capitalization of approximately €120 billion, placing the firm among the largest players in the global eye-care sector. Growth is being driven by three primary forces: (1) an aging global population that increases demand for vision correction; (2) rising discretionary spending on premium eyewear in emerging markets; and (3) the rollout of digital lens technologies (e.g., Varilux X series) that command higher price points.
From a sector-level perspective, the eye-care industry benefits from a long-term secular trend of increasing myopia prevalence-estimated by the World Health Organization to affect 2.5 billion people by 2030-creating a stable demand base for both corrective lenses and preventive solutions.
Analysts should monitor the pace of integration between Essilor’s lens-technology pipeline and Luxottica’s retail distribution network, as the synergy potential directly influences margin expansion and cash-flow generation.
For a deeper, data-driven assessment of how EssilorLuxottica’s valuation metrics compare to peer benchmarks, consider reviewing the ValueRay platform’s sector-specific dashboards.
EL Stock Overview
| Market Cap in USD | 167,768m |
| Sub-Industry | Health Care Equipment |
| IPO / Inception |
EL Stock Ratings
| Growth Rating | 85.6% |
| Fundamental | 69.2% |
| Dividend Rating | 67.1% |
| Return 12m vs S&P 500 | 23.3% |
| Analyst Rating | - |
EL Dividends
| Dividend Yield 12m | 1.24% |
| Yield on Cost 5y | 4.05% |
| Annual Growth 5y | 36.14% |
| Payout Consistency | 98.0% |
| Payout Ratio | 76.7% |
EL Growth Ratios
| Growth Correlation 3m | 84.4% |
| Growth Correlation 12m | 58.9% |
| Growth Correlation 5y | 92% |
| CAGR 5y | 24.33% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.14 |
| CAGR/Mean DD 3y (Pain Ratio) | 4.46 |
| Sharpe Ratio 12m | 1.33 |
| Alpha | 28.91 |
| Beta | 0.765 |
| Volatility | 19.86% |
| Current Volume | 315.4k |
| Average Volume 20d | 349.9k |
| Stop Loss | 307.7 (-3%) |
| Signal | -0.04 |
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (4.67b TTM) > 0 and > 6% of Revenue (6% = 3.18b TTM) |
| FCFTA 0.11 (>2.0%) and ΔFCFTA 4.46pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -0.68% (prev -1.91%; Δ 1.23pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.16 (>3.0%) and CFO 9.73b > Net Income 4.67b (YES >=105%, WARN >=100%) |
| Net Debt (11.26b) to EBITDA (13.11b) ratio: 0.86 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.97 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (462.0m) change vs 12m ago 2.85% (target <= -2.0% for YES) |
| Gross Margin 62.67% (prev 63.78%; Δ -1.11pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 86.90% (prev 72.18%; Δ 14.72pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 16.62 (EBITDA TTM 13.11b / Interest Expense TTM 420.0m) >= 6 (WARN >= 3) |
Altman Z'' 2.15
| (A) -0.01 = (Total Current Assets 11.03b - Total Current Liabilities 11.39b) / Total Assets 61.93b |
| (B) 0.25 = Retained Earnings (Balance) 15.53b / Total Assets 61.93b |
| (C) 0.11 = EBIT TTM 6.98b / Avg Total Assets 61.08b |
| (D) 0.57 = Book Value of Equity 13.52b / Total Liabilities 23.52b |
| Total Rating: 2.15 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 69.23
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield 4.23% = 2.12 |
| 3. FCF Margin 12.63% = 3.16 |
| 4. Debt/Equity 0.37 = 2.43 |
| 5. Debt/Ebitda 0.86 = 1.95 |
| 6. ROIC - WACC (= 2.88)% = 3.61 |
| 7. RoE 12.02% = 1.00 |
| 8. Rev. Trend 60.74% = 4.56 |
| 9. EPS Trend -11.89% = -0.59 |
What is the price of EL shares?
Over the past week, the price has changed by +1.24%, over one month by +14.96%, over three months by +21.76% and over the past year by +49.67%.
Is EssilorLuxottica S. A. a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of EL is around 359.16 EUR . This means that EL is currently undervalued and has a potential upside of +13.19% (Margin of Safety).
Is EL a buy, sell or hold?
What are the forecasts/targets for the EL price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 306.5 | -3.4% |
| Analysts Target Price | - | - |
| ValueRay Target Price | 399.1 | 25.8% |
EL Fundamental Data Overview January 01, 1970
Market Cap EUR = 144.53b (144.53b EUR * 1.0 EUR.EUR)
P/E Trailing = 60.9728
P/E Forward = 34.7222
P/S = 5.3053
P/B = 3.4163
P/EG = 2.8737
Beta = 0.765
Revenue TTM = 53.08b EUR
EBIT TTM = 6.98b EUR
EBITDA TTM = 13.11b EUR
Long Term Debt = 6.81b EUR (from longTermDebt, last quarter)
Short Term Debt = 4.68b EUR (from shortTermDebt, last quarter)
Debt = 14.05b EUR (from shortLongTermDebtTotal, last quarter)
Net Debt = 11.26b EUR (from netDebt column, last quarter)
Enterprise Value = 158.33b EUR (144.53b + Debt 14.05b - CCE 246.0m)
Interest Coverage Ratio = 16.62 (Ebit TTM 6.98b / Interest Expense TTM 420.0m)
FCF Yield = 4.23% (FCF TTM 6.70b / Enterprise Value 158.33b)
FCF Margin = 12.63% (FCF TTM 6.70b / Revenue TTM 53.08b)
Net Margin = 8.80% (Net Income TTM 4.67b / Revenue TTM 53.08b)
Gross Margin = 62.67% ((Revenue TTM 53.08b - Cost of Revenue TTM 19.81b) / Revenue TTM)
Gross Margin QoQ = 63.05% (prev 61.79%)
Tobins Q-Ratio = 2.56 (Enterprise Value 158.33b / Total Assets 61.93b)
Interest Expense / Debt = 1.05% (Interest Expense 147.0m / Debt 14.05b)
Taxrate = 24.16% (463.0m / 1.92b)
NOPAT = 5.29b (EBIT 6.98b * (1 - 24.16%))
Current Ratio = 0.97 (Total Current Assets 11.03b / Total Current Liabilities 11.39b)
Debt / Equity = 0.37 (Debt 14.05b / totalStockholderEquity, last quarter 37.82b)
Debt / EBITDA = 0.86 (Net Debt 11.26b / EBITDA 13.11b)
Debt / FCF = 1.68 (Net Debt 11.26b / FCF TTM 6.70b)
Total Stockholder Equity = 38.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.55% (Net Income 4.67b / Total Assets 61.93b)
RoE = 12.02% (Net Income TTM 4.67b / Total Stockholder Equity 38.87b)
RoCE = 15.28% (EBIT 6.98b / Capital Employed (Equity 38.87b + L.T.Debt 6.81b))
RoIC = 11.00% (NOPAT 5.29b / Invested Capital 48.11b)
WACC = 8.12% (E(144.53b)/V(158.58b) * Re(8.83%) + D(14.05b)/V(158.58b) * Rd(1.05%) * (1-Tc(0.24)))
Discount Rate = 8.83% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.97%
[DCF Debug] Terminal Value 78.93% ; FCFE base≈5.56b ; Y1≈6.85b ; Y5≈11.69b
Fair Price DCF = 371.7 (DCF Value 171.43b / Shares Outstanding 461.2m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -11.89 | EPS CAGR: -67.70% | SUE: 0.0 | # QB: 0
Revenue Correlation: 60.74 | Revenue CAGR: 20.67% | SUE: 1.16 | # QB: 1