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ALCON INC (ALC) Stock Fundamental Analysis

USA - NYSE:ALC - CH0432492467 - Common Stock

76.08 USD
-0.18 (-0.24%)
Last: 10/24/2025, 8:08:37 PM
76.08 USD
0 (0%)
After Hours: 10/24/2025, 8:08:37 PM
Fundamental Rating

5

Taking everything into account, ALC scores 5 out of 10 in our fundamental rating. ALC was compared to 189 industry peers in the Health Care Equipment & Supplies industry. While ALC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ALC has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year ALC was profitable.
In the past year ALC had a positive cash flow from operations.
Of the past 5 years ALC 4 years were profitable.
In the past 5 years ALC always reported a positive cash flow from operatings.
ALC Yearly Net Income VS EBIT VS OCF VS FCFALC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B 2B

1.2 Ratios

ALC has a better Return On Assets (3.42%) than 77.89% of its industry peers.
Looking at the Return On Equity, with a value of 4.85%, ALC is in the better half of the industry, outperforming 76.84% of the companies in the same industry.
ALC has a Return On Invested Capital of 3.87%. This is in the better half of the industry: ALC outperforms 73.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALC is significantly below the industry average of 9.00%.
The last Return On Invested Capital (3.87%) for ALC is above the 3 year average (3.01%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.42%
ROE 4.85%
ROIC 3.87%
ROA(3y)2.6%
ROA(5y)1.44%
ROE(3y)3.72%
ROE(5y)2.06%
ROIC(3y)3.01%
ROIC(5y)N/A
ALC Yearly ROA, ROE, ROICALC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2 -2 4

1.3 Margins

ALC has a better Profit Margin (10.70%) than 84.21% of its industry peers.
ALC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.81%, ALC belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
ALC's Operating Margin has improved in the last couple of years.
ALC's Gross Margin of 54.26% is in line compared to the rest of the industry. ALC outperforms 49.47% of its industry peers.
In the last couple of years the Gross Margin of ALC has grown nicely.
Industry RankSector Rank
OM 13.81%
PM (TTM) 10.7%
GM 54.26%
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%
ALC Yearly Profit, Operating, Gross MarginsALC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALC is destroying value.
Compared to 1 year ago, ALC has more shares outstanding
ALC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALC has an improved debt to assets ratio.
ALC Yearly Shares OutstandingALC Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
ALC Yearly Total Debt VS Total AssetsALC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

ALC has an Altman-Z score of 4.05. This indicates that ALC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ALC (4.05) is better than 73.16% of its industry peers.
The Debt to FCF ratio of ALC is 3.71, which is a good value as it means it would take ALC, 3.71 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.71, ALC belongs to the best of the industry, outperforming 83.68% of the companies in the same industry.
ALC has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.23, ALC perfoms like the industry average, outperforming 56.32% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 3.71
Altman-Z 4.05
ROIC/WACC0.82
WACC4.71%
ALC Yearly LT Debt VS Equity VS FCFALC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

2.3 Liquidity

A Current Ratio of 2.60 indicates that ALC has no problem at all paying its short term obligations.
ALC has a Current ratio (2.60) which is comparable to the rest of the industry.
A Quick Ratio of 1.61 indicates that ALC should not have too much problems paying its short term obligations.
ALC has a Quick ratio of 1.61. This is comparable to the rest of the industry: ALC outperforms 44.21% of its industry peers.
Industry RankSector Rank
Current Ratio 2.6
Quick Ratio 1.61
ALC Yearly Current Assets VS Current LiabilitesALC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.23% over the past year.
Measured over the past years, ALC 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, ALC shows a small growth in Revenue. The Revenue has grown by 4.04% in the last year.
ALC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.71% yearly.
EPS 1Y (TTM)5.23%
EPS 3Y12.36%
EPS 5Y10.04%
EPS Q2Q%2.7%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%3.83%

3.2 Future

ALC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.63% yearly.
The Revenue is expected to grow by 6.30% on average over the next years.
EPS Next Y1.29%
EPS Next 2Y7.54%
EPS Next 3Y10.27%
EPS Next 5Y11.63%
Revenue Next Year5.35%
Revenue Next 2Y6.52%
Revenue Next 3Y6.66%
Revenue Next 5Y6.3%

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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
ALC Yearly Revenue VS EstimatesALC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5B 10B
ALC Yearly EPS VS EstimatesALC Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4 5

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 25.19, the valuation of ALC can be described as expensive.
Based on the Price/Earnings ratio, ALC is valued a bit cheaper than the industry average as 77.37% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALC to the average of the S&P500 Index (26.89), we can say ALC is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.57, ALC is valued on the expensive side.
78.42% of the companies in the same industry are more expensive than ALC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, ALC is valued at the same level.
Industry RankSector Rank
PE 25.19
Fwd PE 21.57
ALC Price Earnings VS Forward Price EarningsALC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ALC is valued a bit cheaper than 78.95% of the companies in the same industry.
ALC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALC is cheaper than 81.58% of the companies in the same industry.
Industry RankSector Rank
P/FCF 26.87
EV/EBITDA 15.63
ALC Per share dataALC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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 ALC may justify a higher PE ratio.
PEG (NY)19.51
PEG (5Y)2.51
EPS Next 2Y7.54%
EPS Next 3Y10.27%

3

5. Dividend

5.1 Amount

ALC has a yearly dividend return of 0.46%, which is pretty low.
ALC's Dividend Yield is rather good when compared to the industry average which is at 1.79. ALC pays more dividend than 91.05% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, ALC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.46%

5.2 History

ALC has been paying a dividend for over 5 years, so it has already some track record.
ALC has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
ALC Yearly Dividends per shareALC Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

15.47% of the earnings are spent on dividend by ALC. This is a low number and sustainable payout ratio.
DP15.47%
EPS Next 2Y7.54%
EPS Next 3Y10.27%
ALC Yearly Income VS Free CF VS DividendALC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B
ALC Dividend Payout.ALC Dividend Payout, showing the Payout Ratio.ALC Dividend Payout.PayoutRetained Earnings

ALCON INC

NYSE:ALC (10/24/2025, 8:08:37 PM)

After market: 76.08 0 (0%)

76.08

-0.18 (-0.24%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)08-19 2025-08-19/amc
Earnings (Next)11-12 2025-11-12/amc
Inst Owners69.85%
Inst Owner Change-0.79%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap38.02B
Revenue(TTM)10.03B
Net Income(TTM)1.07B
Analysts80
Price Target107.88 (41.8%)
Short Float %1.09%
Short Ratio2.34
Dividend
Industry RankSector Rank
Dividend Yield 0.46%
Yearly Dividend0.26
Dividend Growth(5Y)N/A
DP15.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date05-13 2025-05-13 (0.28)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.12%
Min EPS beat(2)-4.26%
Max EPS beat(2)4.49%
EPS beat(4)3
Avg EPS beat(4)2.12%
Min EPS beat(4)-4.26%
Max EPS beat(4)7.68%
EPS beat(8)6
Avg EPS beat(8)1.75%
EPS beat(12)8
Avg EPS beat(12)2.4%
EPS beat(16)12
Avg EPS beat(16)4.71%
Revenue beat(2)0
Avg Revenue beat(2)-3.2%
Min Revenue beat(2)-3.43%
Max Revenue beat(2)-2.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.34%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-2.33%
Revenue beat(12)2
Avg Revenue beat(12)-1.44%
Revenue beat(16)5
Avg Revenue beat(16)-0.52%
PT rev (1m)-1.37%
PT rev (3m)-4.32%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-3.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.23%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.26%
Valuation
Industry RankSector Rank
PE 25.19
Fwd PE 21.57
P/S 3.79
P/FCF 26.87
P/OCF 18.15
P/B 1.72
P/tB 10.17
EV/EBITDA 15.63
EPS(TTM)3.02
EY3.97%
EPS(NY)3.53
Fwd EY4.64%
FCF(TTM)2.83
FCFY3.72%
OCF(TTM)4.19
OCFY5.51%
SpS20.06
BVpS44.25
TBVpS7.48
PEG (NY)19.51
PEG (5Y)2.51
Graham Number54.84
Profitability
Industry RankSector Rank
ROA 3.42%
ROE 4.85%
ROCE 4.78%
ROIC 3.87%
ROICexc 4.07%
ROICexgc 12.21%
OM 13.81%
PM (TTM) 10.7%
GM 54.26%
FCFM 14.11%
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
ROICexgc growth 3Y2.95%
ROICexgc 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-Score5
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 3.71
Debt/EBITDA 1.91
Cap/Depr 52.59%
Cap/Sales 6.78%
Interest Coverage 7.52
Cash Conversion 78.26%
Profit Quality 131.87%
Current Ratio 2.6
Quick Ratio 1.61
Altman-Z 4.05
F-Score5
WACC4.71%
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)5.23%
EPS 3Y12.36%
EPS 5Y10.04%
EPS Q2Q%2.7%
EPS Next Y1.29%
EPS Next 2Y7.54%
EPS Next 3Y10.27%
EPS Next 5Y11.63%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%3.83%
Revenue Next Year5.35%
Revenue Next 2Y6.52%
Revenue Next 3Y6.66%
Revenue Next 5Y6.3%
EBIT growth 1Y9.67%
EBIT growth 3Y13.34%
EBIT growth 5Y43.18%
EBIT Next Year35.35%
EBIT Next 3Y18.66%
EBIT Next 5Y15.03%
FCF growth 1Y346.37%
FCF growth 3Y104.3%
FCF growth 5Y41.96%
OCF growth 1Y81.07%
OCF growth 3Y15.59%
OCF growth 5Y17.69%

ALCON INC / ALC FAQ

Can you provide the ChartMill fundamental rating for ALCON INC?

ChartMill assigns a fundamental rating of 5 / 10 to ALC.


Can you provide the valuation status for ALCON INC?

ChartMill assigns a valuation rating of 4 / 10 to ALCON INC (ALC). This can be considered as Fairly Valued.


How profitable is ALCON INC (ALC) stock?

ALCON INC (ALC) has a profitability rating of 7 / 10.


What is the financial health of ALCON INC (ALC) stock?

The financial health rating of ALCON INC (ALC) is 6 / 10.


Is the dividend of ALCON INC sustainable?

The dividend rating of ALCON INC (ALC) is 3 / 10 and the dividend payout ratio is 15.47%.