ALCON INC (2U3.DE) Stock Fundamental Analysis
FRA:2U3 - Deutsche Boerse Ag - CH0432492467 - Common Stock - Currency: EUR
Overall 2U3 gets a fundamental rating of 6 out of 10. We evaluated 2U3 against 58 industry peers in the Health Care Equipment & Supplies industry. 2U3 has an excellent financial health rating, but there are some minor concerns on its profitability. 2U3 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 2U3 was profitable.
In the past year 2U3 had a positive cash flow from operations.
Of the past 5 years 2U3 4 years were profitable.
Each year in the past 5 years 2U3 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 2U3 (3.61%) is comparable to the rest of the industry.
2U3 has a Return On Equity (5.09%) which is in line with its industry peers.
2U3 has a Return On Invested Capital (3.93%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 2U3 is significantly below the industry average of 8.41%.
The last Return On Invested Capital (3.93%) for 2U3 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 2U3 (11.28%) is better than 72.41% of its industry peers.
2U3's Profit Margin has improved in the last couple of years.
The Operating Margin of 2U3 (14.07%) is better than 74.14% of its industry peers.
In the last couple of years the Operating Margin of 2U3 has grown nicely.
2U3 has a Gross Margin (54.25%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 2U3 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), 2U3 is destroying value.
The number of shares outstanding for 2U3 has been increased compared to 1 year ago.
Compared to 5 years ago, 2U3 has more shares outstanding
Compared to 1 year ago, 2U3 has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.45 indicates that 2U3 is not in any danger for bankruptcy at the moment.
2U3's Altman-Z score of 4.45 is amongst the best of the industry. 2U3 outperforms 82.76% of its industry peers.
2U3 has a debt to FCF ratio of 3.58. This is a good value and a sign of high solvency as 2U3 would need 3.58 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.58, 2U3 is in the better half of the industry, outperforming 77.59% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that 2U3 is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.23, 2U3 is in the better half of the industry, outperforming 70.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 4.45 |
ROIC/WACC0.83
WACC4.74%
2.3 Liquidity
A Current Ratio of 2.70 indicates that 2U3 has no problem at all paying its short term obligations.
2U3 has a better Current ratio (2.70) than 75.86% of its industry peers.
A Quick Ratio of 1.66 indicates that 2U3 should not have too much problems paying its short term obligations.
The Quick ratio of 2U3 (1.66) is better than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
2U3 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.38%.
2U3 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.04% yearly.
The Revenue has been growing slightly by 3.80% in the past 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, 2U3 will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.42% on average per year.
Based on estimates for the next years, 2U3 will show a small growth in Revenue. The Revenue will grow by 6.58% on average per year.
EPS Next Y8.02%
EPS Next 2Y11.99%
EPS Next 3Y12.14%
EPS Next 5Y12.42%
Revenue Next Year5.62%
Revenue Next 2Y6.39%
Revenue Next 3Y6.33%
Revenue Next 5Y6.58%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.40, 2U3 can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 2U3 is valued a bit cheaper than the industry average as 70.69% of the companies are valued more expensively.
2U3 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.28, the valuation of 2U3 can be described as rather expensive.
65.52% of the companies in the same industry are more expensive than 2U3, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, 2U3 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.4 | ||
| Fwd PE | 22.28 |
4.2 Price Multiples
2U3's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 2U3 is cheaper than 63.79% of the companies in the same industry.
2U3's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 2U3 is cheaper than 74.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.31 | ||
| EV/EBITDA | 17.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
2U3 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 2U3's earnings are expected to grow with 12.14% in the coming years.
PEG (NY)3.54
PEG (5Y)2.83
EPS Next 2Y11.99%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
2U3 has a yearly dividend return of 0.38%, which is pretty low.
2U3's Dividend Yield is comparable with the industry average which is at 2.19.
With a Dividend Yield of 0.38, 2U3 pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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 2U3. This is a low number and sustainable payout ratio.
DP11.61%
EPS Next 2Y11.99%
EPS Next 3Y12.14%
FRA:2U3 (5/30/2025, 7:00:00 PM)
75.54
-0.22 (-0.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners69.58%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap37.75B
Analysts81.74
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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 | 28.4 | ||
| Fwd PE | 22.28 | ||
| P/S | 4.29 | ||
| P/FCF | 29.31 | ||
| P/OCF | 20.09 | ||
| P/B | 1.94 | ||
| P/tB | 12.36 | ||
| EV/EBITDA | 17.57 |
EPS(TTM)2.66
EY3.52%
EPS(NY)3.39
Fwd EY4.49%
FCF(TTM)2.58
FCFY3.41%
OCF(TTM)3.76
OCFY4.98%
SpS17.61
BVpS39.03
TBVpS6.11
PEG (NY)3.54
PEG (5Y)2.83
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 | 4.45 |
F-Score6
WACC4.74%
ROIC/WACC0.83
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 5Y12.42%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%-0.33%
Revenue Next Year5.62%
Revenue Next 2Y6.39%
Revenue Next 3Y6.33%
Revenue Next 5Y6.58%
EBIT growth 1Y12.13%
EBIT growth 3Y13.34%
EBIT growth 5Y43.18%
EBIT Next Year44.89%
EBIT Next 3Y21.32%
EBIT Next 5Y15.14%
FCF growth 1Y202.71%
FCF growth 3Y104.3%
FCF growth 5Y41.96%
OCF growth 1Y71.52%
OCF growth 3Y15.59%
OCF growth 5Y17.69%