ALCON INC (1ALC.MI) Stock Fundamental Analysis
Europe - BIT:1ALC - CH0432492467 - Common Stock
75.5 EUR
+75.5 (+Infinity%)
1ALC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 58 industry peers in the Health Care Equipment & Supplies industry. 1ALC has an excellent financial health rating, but there are some minor concerns on its profitability. 1ALC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1ALC was profitable.
1ALC had a positive operating cash flow in the past year.
1ALC had positive earnings in 4 of the past 5 years.
1ALC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1ALC's Return On Assets of 3.61% is in line compared to the rest of the industry. 1ALC outperforms 51.67% of its industry peers.
1ALC's Return On Equity of 5.09% is in line compared to the rest of the industry. 1ALC outperforms 46.67% of its industry peers.
1ALC has a worse Return On Invested Capital (3.93%) than 63.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ALC is significantly below the industry average of 8.65%.
The last Return On Invested Capital (3.93%) for 1ALC is above the 3 year average (3.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 5.09% | ||
| ROIC | 3.93% |
ROA(3y)2.6%
ROA(5y)1.44%
ROE(3y)3.72%
ROE(5y)2.06%
ROIC(3y)3.01%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of 1ALC (11.28%) is better than 71.67% of its industry peers.
In the last couple of years the Profit Margin of 1ALC has grown nicely.
The Operating Margin of 1ALC (14.07%) is better than 68.33% of its industry peers.
1ALC's Operating Margin has improved in the last couple of years.
The Gross Margin of 1ALC (54.25%) is comparable to the rest of the industry.
1ALC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.07% | ||
| PM (TTM) | 11.28% | ||
| GM | 54.25% |
OM growth 3Y6.79%
OM growth 5Y35.45%
PM growth 3Y31.33%
PM growth 5YN/A
GM growth 3Y-0.59%
GM growth 5Y2.7%
2. Health
2.1 Basic Checks
1ALC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 1ALC has been increased compared to 1 year ago.
1ALC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1ALC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.54 indicates that 1ALC is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1ALC (4.54) is better than 81.67% of its industry peers.
The Debt to FCF ratio of 1ALC is 3.58, which is a good value as it means it would take 1ALC, 3.58 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.58, 1ALC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that 1ALC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.23, 1ALC is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 4.54 |
ROIC/WACC0.82
WACC4.79%
2.3 Liquidity
A Current Ratio of 2.70 indicates that 1ALC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.70, 1ALC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.66 indicates that 1ALC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.66, 1ALC is doing good in the industry, outperforming 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.38% over the past year.
Measured over the past years, 1ALC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.04% on average per year.
Looking at the last year, 1ALC shows a small growth in Revenue. The Revenue has grown by 3.80% in the last year.
The Revenue has been growing slightly by 5.71% on average over the past years.
EPS 1Y (TTM)6.38%
EPS 3Y12.36%
EPS 5Y10.04%
EPS Q2Q%-6.41%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%-0.33%
3.2 Future
Based on estimates for the next years, 1ALC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.48% on average per year.
The Revenue is expected to grow by 6.95% on average over the next years.
EPS Next Y8.02%
EPS Next 2Y11.99%
EPS Next 3Y12.14%
EPS Next 5Y12.48%
Revenue Next Year6.15%
Revenue Next 2Y6.87%
Revenue Next 3Y6.82%
Revenue Next 5Y6.95%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.26, which means the current valuation is very expensive for 1ALC.
1ALC's Price/Earnings ratio is a bit cheaper when compared to the industry. 1ALC is cheaper than 66.67% of the companies in the same industry.
1ALC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.29.
A Price/Forward Earnings ratio of 22.99 indicates a rather expensive valuation of 1ALC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ALC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.80. 1ALC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.26 | ||
| Fwd PE | 22.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1ALC.
1ALC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1ALC is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.24 | ||
| EV/EBITDA | 18.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1ALC may justify a higher PE ratio.
A more expensive valuation may be justified as 1ALC's earnings are expected to grow with 12.14% in the coming years.
PEG (NY)3.65
PEG (5Y)2.91
EPS Next 2Y11.99%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, 1ALC is not a good candidate for dividend investing.
1ALC's Dividend Yield is comparable with the industry average which is at 2.14.
Compared to an average S&P500 Dividend Yield of 2.38, 1ALC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1ALC pays out 11.61% of its income as dividend. This is a sustainable payout ratio.
DP11.61%
EPS Next 2Y11.99%
EPS Next 3Y12.14%
BIT:1ALC (8/1/2025, 7:00:00 PM)
75.5
+75.5 (+Infinity%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners68.39%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap37.73B
Analysts81.82
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.23
Dividend Growth(5Y)N/A
DP11.61%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.84%
Min EPS beat(2)-4.26%
Max EPS beat(2)0.57%
EPS beat(4)3
Avg EPS beat(4)1.13%
Min EPS beat(4)-4.26%
Max EPS beat(4)7.68%
EPS beat(8)6
Avg EPS beat(8)1.96%
EPS beat(12)8
Avg EPS beat(12)2.89%
EPS beat(16)12
Avg EPS beat(16)5.61%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-3.43%
Max Revenue beat(2)-0.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)-0.56%
Revenue beat(8)1
Avg Revenue beat(8)-1.32%
Revenue beat(12)2
Avg Revenue beat(12)-0.76%
Revenue beat(16)6
Avg Revenue beat(16)0.43%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.26 | ||
| Fwd PE | 22.99 | ||
| P/S | 4.43 | ||
| P/FCF | 30.24 | ||
| P/OCF | 20.73 | ||
| P/B | 2 | ||
| P/tB | 12.76 | ||
| EV/EBITDA | 18.1 |
EPS(TTM)2.58
EY3.42%
EPS(NY)3.28
Fwd EY4.35%
FCF(TTM)2.5
FCFY3.31%
OCF(TTM)3.64
OCFY4.82%
SpS17.05
BVpS37.8
TBVpS5.92
PEG (NY)3.65
PEG (5Y)2.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 5.09% | ||
| ROCE | 4.85% | ||
| ROIC | 3.93% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 12.86% | ||
| OM | 14.07% | ||
| PM (TTM) | 11.28% | ||
| GM | 54.25% | ||
| FCFM | 14.64% |
ROA(3y)2.6%
ROA(5y)1.44%
ROE(3y)3.72%
ROE(5y)2.06%
ROIC(3y)3.01%
ROIC(5y)N/A
ROICexc(3y)3.18%
ROICexc(5y)N/A
ROICexgc(3y)10.24%
ROICexgc(5y)N/A
ROCE(3y)3.72%
ROCE(5y)N/A
ROICexcg growth 3Y2.95%
ROICexcg growth 5Y30.08%
ROICexc growth 3Y10.31%
ROICexc growth 5Y41.26%
OM growth 3Y6.79%
OM growth 5Y35.45%
PM growth 3Y31.33%
PM growth 5YN/A
GM growth 3Y-0.59%
GM growth 5Y2.7%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 3.58 | ||
| Debt/EBITDA | 1.91 | ||
| Cap/Depr | 53.75% | ||
| Cap/Sales | 6.72% | ||
| Interest Coverage | 7.59 | ||
| Cash Conversion | 80.39% | ||
| Profit Quality | 129.73% | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 4.54 |
F-Score6
WACC4.79%
ROIC/WACC0.82
Cap/Depr(3y)77.98%
Cap/Depr(5y)73.14%
Cap/Sales(3y)9.96%
Cap/Sales(5y)10.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.38%
EPS 3Y12.36%
EPS 5Y10.04%
EPS Q2Q%-6.41%
EPS Next Y8.02%
EPS Next 2Y11.99%
EPS Next 3Y12.14%
EPS Next 5Y12.48%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%-0.33%
Revenue Next Year6.15%
Revenue Next 2Y6.87%
Revenue Next 3Y6.82%
Revenue Next 5Y6.95%
EBIT growth 1Y12.13%
EBIT growth 3Y13.34%
EBIT growth 5Y43.18%
EBIT Next Year44.89%
EBIT Next 3Y21.32%
EBIT Next 5Y15.19%
FCF growth 1Y202.71%
FCF growth 3Y104.3%
FCF growth 5Y41.96%
OCF growth 1Y71.52%
OCF growth 3Y15.59%
OCF growth 5Y17.69%