EssilorLuxottica S.A. (EL.PA) stock analysis

In our weekly check, EssilorLuxottica S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 6, red flags: 0.

About EssilorLuxottica S.A.

EssilorLuxottica S.A. is a Healthcare company (Medical - Instruments & Supplies) based in France, listed on PAR as EL.PA.

What our checks show for EL.PA

Warning signs

• The gross margin fell by 1.4 points, to 60.6%: costs are rising faster than prices.
• The net margin is only 8.1%: little room if costs rise.
• The price is 33.6 times earnings (P/E): the market already pays for a lot of future growth.
• The stock has fallen as much as 57% from a peak. Would you have held through that?
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 6.9%.

Strengths

• Operating profit covers interest 12.3 times over.
• The net margin rose by 0.8 points over 5 years, to 8.1%.
• Operating cash flow is 2.29x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 20% a year over the next years.
• Analysts expect the net margin to improve by 3.5 points from today's 8.1%.
• Free cash flow is 13.2% of revenue: cash for dividends, buybacks or growth.

Similar companies

COLO-B.CO · BDX · ISRG · RMD · MDLN · FPH.NZ

Questions

What grade does EssilorLuxottica S.A. (EL.PA) have?

In our weekly check, EssilorLuxottica S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 6, red flags: 0. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of EL.PA stock?

This week's biggest flags for EssilorLuxottica S.A.: Gross margin falling, Thin margins, High P/E. In total 6 of 25 checks show a warning or a red flag.

What does EssilorLuxottica S.A. do?

EssilorLuxottica S.A. is a Healthcare company (Medical - Instruments & Supplies) based in France, listed on PAR as EL.PA.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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