ALCON INC (ALC) Stock Fundamental Analysis

NYSE:ALC • CH0432492467

84.6 USD
-2.58 (-2.96%)
Last: Mar 2, 2026, 03:52 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, ALC scores 5 out of 10 in our fundamental rating. ALC was compared to 184 industry peers in the Health Care Equipment & Supplies industry. ALC scores excellent on profitability, but there are some minor concerns on its financial health. ALC has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year ALC was profitable.
  • ALC had a positive operating cash flow in the past year.
  • 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's Return On Assets of 3.32% is fine compared to the rest of the industry. ALC outperforms 78.80% of its industry peers.
  • With a decent Return On Equity value of 4.74%, ALC is doing good in the industry, outperforming 77.17% of the companies in the same industry.
  • The Return On Invested Capital of ALC (3.94%) is better than 71.74% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ALC is significantly below the industry average of 8.97%.
  • The last Return On Invested Capital (3.94%) for ALC is above the 3 year average (3.01%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.32%
ROE 4.74%
ROIC 3.94%
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

  • Looking at the Profit Margin, with a value of 10.28%, ALC belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ALC has grown nicely.
  • The Operating Margin of ALC (13.63%) is better than 82.07% of its industry peers.
  • In the last couple of years the Operating Margin of ALC has grown nicely.
  • ALC has a Gross Margin (54.26%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of ALC has grown nicely.
Industry RankSector Rank
OM 13.63%
PM (TTM) 10.28%
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

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6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALC is destroying value.
  • Compared to 1 year ago, ALC has more shares outstanding
  • The number of shares outstanding for ALC has been increased compared to 5 years ago.
  • The debt/assets ratio for ALC has been reduced compared to a year ago.
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

  • An Altman-Z score of 4.34 indicates that ALC is not in any danger for bankruptcy at the moment.
  • ALC has a better Altman-Z score (4.34) than 73.91% of its industry peers.
  • ALC has a debt to FCF ratio of 3.63. This is a good value and a sign of high solvency as ALC would need 3.63 years to pay back of all of its debts.
  • The Debt to FCF ratio of ALC (3.63) is better than 81.52% of its industry peers.
  • A Debt/Equity ratio of 0.21 indicates that ALC is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.21, ALC is in line with its industry, outperforming 57.07% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 3.63
Altman-Z 4.34
ROIC/WACC0.83
WACC4.74%
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

  • ALC has a Current Ratio of 2.12. This indicates that ALC is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of ALC (2.12) is comparable to the rest of the industry.
  • A Quick Ratio of 1.30 indicates that ALC should not have too much problems paying its short term obligations.
  • The Quick ratio of ALC (1.30) is worse than 64.13% of its industry peers.
Industry RankSector Rank
Current Ratio 2.12
Quick Ratio 1.3
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

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4

3. Growth

3.1 Past

  • The earnings per share for ALC have decreased by -0.66% in the last year.
  • The Earnings Per Share has been growing by 10.04% on average over the past years. This is quite good.
  • Looking at the last year, ALC shows a small growth in Revenue. The Revenue has grown by 4.34% in the last year.
  • Measured over the past years, ALC shows a small growth in Revenue. The Revenue has been growing by 5.71% on average per year.
EPS 1Y (TTM)-0.66%
EPS 3Y12.36%
EPS 5Y10.04%
EPS Q2Q%-2.47%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%6.41%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.25% on average over the next years. This is quite good.
  • Based on estimates for the next years, ALC will show a small growth in Revenue. The Revenue will grow by 6.14% on average per year.
EPS Next Y0.91%
EPS Next 2Y6.18%
EPS Next 3Y9.52%
EPS Next 5Y11.25%
Revenue Next Year5.11%
Revenue Next 2Y6.23%
Revenue Next 3Y6.36%
Revenue Next 5Y6.14%

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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

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4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 28.20, ALC can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of ALC indicates a somewhat cheap valuation: ALC is cheaper than 74.46% of the companies listed in the same industry.
  • ALC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.07.
  • ALC is valuated rather expensively with a Price/Forward Earnings ratio of 24.60.
  • Based on the Price/Forward Earnings ratio, ALC is valued a bit cheaper than 74.46% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, ALC is valued at the same level.
Industry RankSector Rank
PE 28.2
Fwd PE 24.6
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 78.26% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALC indicates a somewhat cheap valuation: ALC is cheaper than 78.80% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 29.34
EV/EBITDA 17.51
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)31.06
PEG (5Y)2.81
EPS Next 2Y6.18%
EPS Next 3Y9.52%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • ALC has a yearly dividend return of 0.42%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.20, ALC pays a better dividend. On top of this ALC pays more dividend than 90.76% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, ALC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.42%

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

  • ALC pays out 15.85% of its income as dividend. This is a sustainable payout ratio.
DP15.85%
EPS Next 2Y6.18%
EPS Next 3Y9.52%
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

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ALCON INC

NYSE:ALC (3/2/2026, 3:52:02 PM)

84.6

-2.58 (-2.96%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-11
Earnings (Next)03-03
Inst Owners68.39%
Inst Owner Change-1.67%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap42.27B
Revenue(TTM)10.19B
Net Income(TTM)1.05B
Analysts76
Price Target109.03 (28.88%)
Short Float %1.53%
Short Ratio5.19
Dividend
Industry RankSector Rank
Dividend Yield 0.42%
Yearly Dividend0.26
Dividend Growth(5Y)N/A
DP15.85%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.69%
Min EPS beat(2)2.89%
Max EPS beat(2)4.49%
EPS beat(4)3
Avg EPS beat(4)0.92%
Min EPS beat(4)-4.26%
Max EPS beat(4)4.49%
EPS beat(8)7
Avg EPS beat(8)2.38%
EPS beat(12)9
Avg EPS beat(12)2.81%
EPS beat(16)12
Avg EPS beat(16)4.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.25%
Min Revenue beat(2)-2.97%
Max Revenue beat(2)-1.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.12%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-2.16%
Revenue beat(12)2
Avg Revenue beat(12)-1.5%
Revenue beat(16)4
Avg Revenue beat(16)-0.71%
PT rev (1m)1.21%
PT rev (3m)1.21%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.16%
Valuation
Industry RankSector Rank
PE 28.2
Fwd PE 24.6
P/S 4.15
P/FCF 29.34
P/OCF 20.4
P/B 1.91
P/tB 11.56
EV/EBITDA 17.51
EPS(TTM)3
EY3.55%
EPS(NY)3.44
Fwd EY4.06%
FCF(TTM)2.88
FCFY3.41%
OCF(TTM)4.15
OCFY4.9%
SpS20.38
BVpS44.2
TBVpS7.32
PEG (NY)31.06
PEG (5Y)2.81
Graham Number54.62
Profitability
Industry RankSector Rank
ROA 3.32%
ROE 4.74%
ROCE 4.86%
ROIC 3.94%
ROICexc 4.16%
ROICexgc 13.06%
OM 13.63%
PM (TTM) 10.28%
GM 54.26%
FCFM 14.15%
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 0.21
Debt/FCF 3.63
Debt/EBITDA 1.7
Cap/Depr 48.06%
Cap/Sales 6.2%
Interest Coverage 7.46
Cash Conversion 76.71%
Profit Quality 137.63%
Current Ratio 2.12
Quick Ratio 1.3
Altman-Z 4.34
F-Score5
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)-0.66%
EPS 3Y12.36%
EPS 5Y10.04%
EPS Q2Q%-2.47%
EPS Next Y0.91%
EPS Next 2Y6.18%
EPS Next 3Y9.52%
EPS Next 5Y11.25%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%6.41%
Revenue Next Year5.11%
Revenue Next 2Y6.23%
Revenue Next 3Y6.36%
Revenue Next 5Y6.14%
EBIT growth 1Y5.55%
EBIT growth 3Y13.34%
EBIT growth 5Y43.18%
EBIT Next Year37.1%
EBIT Next 3Y18.46%
EBIT Next 5Y14.06%
FCF growth 1Y174.48%
FCF growth 3Y104.3%
FCF growth 5Y41.96%
OCF growth 1Y61.62%
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.


What is the valuation status of ALCON INC (ALC) stock?

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.


Can you provide the PE and PB ratios for ALC stock?

The Price/Earnings (PE) ratio for ALCON INC (ALC) is 28.2 and the Price/Book (PB) ratio is 1.91.


Can you provide the expected EPS growth for ALC stock?

The Earnings per Share (EPS) of ALCON INC (ALC) is expected to grow by 0.91% in the next year.