We are maintaining our fair value estimate of EUR 162 for wide-moat EssilorLuxottica as the company reported solid sales in first-quarter 2024. We believe high exposure to optical products reduces the cyclicality of EssilorLuxottica, but that is well reflected in the share price, which we view as expensive at 28 times forward FactSet consensus earnings.
EssilorLuxottica is the leader in the fragmented eyewear industry, more than twice the size of the next-biggest player, which allows manufacturing at scale.
As a serial acquirer EssilorLuxottica faces operational risk when integrating targets.
|
Metric
|
EL
|
COO
|
|---|---|---|
Price/Earnings (Normalized) | 29.91 | 27.13 |
Price/Book Value | 2.42 | 2.33 |
Price/Sales | 3.64 | 4.91 |
Price/Cash Flow | 17.35 | 20.83 |
|
Metric
|
EL
|
COO
|
|---|---|---|
Quick Ratio | 0.63 | 0.81 |
Current Ratio | 1.00 | 1.86 |
Interest Coverage | 15.90 | 4.77 |
|
Metric
|
EL
|
COO
|
|---|---|---|
Return on Assets (Normalized) | 4.87% | 2.49% |
Return on Equity (Normalized) | 7.79% | 3.88% |
Return on Invested Capital (Normalized) | 6.03% | 3.63% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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