Rankings Pharma & medtech EssilorLuxottica
EssilorLuxottica
77
15070100
A view of the same findings, not a new score. How it works
A strong score: the model found few serious problems, but analysts see limited upside from here.
Biggest deductions
- Demand for AI glasses−4
- ROIC−3
- Multiples vs own history and peers−3
Strengths
- Growth and rising earnings+2
- Future segment (myopia)+1
- Moat and diversified base+1
How the score is built
From 100 to 77, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 186.10 EUR
- Median analyst target
- 210.00 EUR
- Upside to median
- +12.8%
- Analysts
- 23
- Target range
- 139.00 – 305.00 EUR
- 52-week change
- −41%
- P/E (trailing)
- 34.8
- Forward P/E
- 24.1
- PEG
- 2.69
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−6 of −30
- −3ROICROIC has been 4.0–5.3% every year in 2021–TTM and ROCE 4.5–7.2%; even when merger goodwill is taken into account, the enormous capital base gives a low return.
- −2Margin (AI glasses dilute)Gross margin fell from 62.5% in 2024 to 59.7% in 2025 (60.0% TTM) as the lower-margin AI glasses grow; Kepler Cheuvreux expects a gross margin in the category of just over half the group's level.
- −1Capital allocationThe share count is rising despite buybacks (+0.9% over a year, dilution of 1–2% annually in 2021–25) due to employee shares (share-based pay EUR 250m TTM), and about EUR 1bn a year is still spent on acquisitions.
Price
Today's multiples against the company's own history and its peers. · 1 finding−3 of −35
- −3Multiples vs own history and peersForward P/E 19.2 vs 24.8–34.9 in 2021–25; EV/EBITDA 11.8 vs 16.9–24.6; P/FCF 17.5 vs 23.4–33.2. Far below its own history after a share price fall of 47% in a year, but trailing P/E is 27.3, EV/EBIT 21.7, and the FCF yield after leases only about 4.3%.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−11 of −35
- −4Demand for AI glassesKepler Cheuvreux downgraded to Sell (price target 244 → 135 EUR) and cut its estimate for smart glasses volume in 2030 from 38 to 15m units (no 'killer app', weak history for computers on the face); RBC cut its price target from 230 to 190 EUR. The stock has fallen 55% since November.
- −3Dependence on Meta and regulationThe AI glasses are sold under Meta's software and partnership – Meta is both a shareholder and a potential competitor – and the European Data Protection Board is preparing a report on smart glasses' privacy risks for October.
- −3Governance (Delfin)The inheritance dispute in Delfin (just under a third of the shares) has become public: heir Leonardo Maria Del Vecchio criticised CEO Francesco Milleri, the board had to back the CEO, and a buyout of two siblings for about EUR 10bn is under way.
- −1Debt and liquidityNet debt rose from 10.9 to EUR 13.4bn in H1 (net debt/EBITDA 2.3x), current ratio 0.89 and quick ratio 0.50.
Plus
Only documented strengths. · 4 findings+5 of +15
- +2Growth and rising earningsRevenue grew 9.7% at constant exchange rates in H1 2026 (Q2 +8.7%), adjusted operating profit +15% and adjusted operating margin +80 bp to 18.9%; FCF in H1 of EUR 1,067m was the highest in five years.
- +1Future segment (myopia)Sales of myopia treatment (Stellest and others) grew 24% in H1 – a structurally growing healthcare segment.
- +1Moat and diversified baseVertically integrated from lenses (Varilux) and frames (Ray-Ban, Oakley) to own stores; both Professional Solutions and Direct to Consumer are growing, and North America grew 7.2% in Q2.
- +1Dividend and buybacks from FCFDividend (EUR 1.67bn) and buybacks (0.91bn) on a TTM basis are below FCF of 3.84bn (2.86bn after leasing).
Caveats
What the score does not capture, or where the data is weak.
Lenses, frames and optical retail chains do not fit the industry list exactly: placed under 'Medicine & medtech' (vision correction, myopia treatment). Reported operating margin (12.8%) and ROIC (5.3%) are depressed by amortisation of intangible assets and goodwill from the 2018 Essilor-Luxottica merger and the GrandVision acquisition; adjusted operating margin is 18.9% (H1 2026, constant exchange rates). Adjusted EPS (EUR 6.79 in 2025) is above reported (4.98); forward P/E 19.2 is based on adjusted figures. About 4 of the 8.7 percentage points of growth in Q2 came from AI glasses; the core business grew 'mid-single digit'. Tariffs gave a net +60 bp on gross margin in H1 due to refunds. Meta is both partner and shareholder. Delfin (the Del Vecchio family, just under a third of the shares) is mentioned under governance. Several price targets (e.g. Jefferies EUR 250) have not been updated after the price decline and are not a finding. Q3 revenue about 16 Oct 2026.
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