ALCON INC (1ALC.MI) Stock Fundamental Analysis
BIT:1ALC - Euronext Milan - CH0432492467 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1ALC. 1ALC was compared to 59 industry peers in the Health Care Equipment & Supplies industry. While 1ALC has a great health rating, its profitability is only average at the moment. 1ALC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1ALC had positive earnings in the past year.
In the past year 1ALC had a positive cash flow from operations.
1ALC had positive earnings in 4 of the past 5 years.
In the past 5 years 1ALC always reported a positive cash flow from operatings.
1.2 Ratios
1ALC has a Return On Assets of 3.61%. This is comparable to the rest of the industry: 1ALC outperforms 52.54% of its industry peers.
1ALC's Return On Equity of 5.09% is in line compared to the rest of the industry. 1ALC outperforms 47.46% of its industry peers.
1ALC has a Return On Invested Capital of 3.93%. This is in the lower half of the industry: 1ALC underperforms 61.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ALC is significantly below the industry average of 8.10%.
The 3 year average ROIC (3.01%) for 1ALC is below the current ROIC(3.93%), indicating increased profibility in the last year.
| 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 72.88% of its industry peers.
In the last couple of years the Profit Margin of 1ALC has grown nicely.
1ALC has a Operating Margin of 14.07%. This is in the better half of the industry: 1ALC outperforms 69.49% of its industry peers.
In the last couple of years the Operating Margin of 1ALC has grown nicely.
1ALC's Gross Margin of 54.25% is in line compared to the rest of the industry. 1ALC outperforms 49.15% of its industry peers.
In the last couple of years the Gross Margin of 1ALC has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1ALC is destroying value.
The number of shares outstanding for 1ALC has been increased compared to 1 year ago.
The number of shares outstanding for 1ALC has been increased compared to 5 years ago.
1ALC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.48 indicates that 1ALC is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1ALC (4.48) is better than 83.05% of its industry peers.
1ALC has a debt to FCF ratio of 3.58. This is a good value and a sign of high solvency as 1ALC would need 3.58 years to pay back of all of its debts.
1ALC has a better Debt to FCF ratio (3.58) than 76.27% of its industry peers.
1ALC has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
1ALC has a better Debt to Equity ratio (0.23) than 66.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 4.48 |
ROIC/WACC0.82
WACC4.79%
2.3 Liquidity
1ALC has a Current Ratio of 2.70. This indicates that 1ALC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of 1ALC (2.70) is better than 74.58% of its industry peers.
1ALC has a Quick Ratio of 1.66. This is a normal value and indicates that 1ALC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1ALC (1.66) is better than 72.88% of its industry peers.
| 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.
1ALC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.80%.
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
The Earnings Per Share is expected to grow by 12.48% on average over the next years. This is quite good.
1ALC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.95% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1ALC is valuated quite expensively with a Price/Earnings ratio of 28.71.
1ALC's Price/Earnings ratio is a bit cheaper when compared to the industry. 1ALC is cheaper than 66.10% of the companies in the same industry.
1ALC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.82.
1ALC is valuated rather expensively with a Price/Forward Earnings ratio of 22.51.
1ALC's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of 1ALC to the average of the S&P500 Index (36.21), we can say 1ALC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.71 | ||
| Fwd PE | 22.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ALC is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ALC indicates a somewhat cheap valuation: 1ALC is cheaper than 71.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.61 | ||
| EV/EBITDA | 17.75 |
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.
1ALC's earnings are expected to grow with 12.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.58
PEG (5Y)2.86
EPS Next 2Y11.99%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.39%, 1ALC is not a good candidate for dividend investing.
1ALC's Dividend Yield is comparable with the industry average which is at 2.08.
With a Dividend Yield of 0.39, 1ALC pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
11.61% of the earnings are spent on dividend by 1ALC. This is a low number and 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
Analysts80.91
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
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 | 28.71 | ||
| Fwd PE | 22.51 | ||
| P/S | 4.33 | ||
| P/FCF | 29.61 | ||
| P/OCF | 20.29 | ||
| P/B | 1.96 | ||
| P/tB | 12.49 | ||
| EV/EBITDA | 17.75 |
EPS(TTM)2.63
EY3.48%
EPS(NY)3.35
Fwd EY4.44%
FCF(TTM)2.55
FCFY3.38%
OCF(TTM)3.72
OCFY4.93%
SpS17.42
BVpS38.61
TBVpS6.04
PEG (NY)3.58
PEG (5Y)2.86
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 | 4.48 |
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%