ALCON INC (ALC) Stock Fundamental Analysis
USA - NYSE:ALC - CH0432492467 - Common Stock
73.71 USD
-0.56 (-0.75%)
We assign a fundamental rating of 6 out of 10 to ALC. 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ALC had positive earnings in the past year.
In the past year ALC had a positive cash flow from operations.
Of the past 5 years ALC 4 years were profitable.
Each year in the past 5 years ALC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALC (3.42%) is better than 77.78% of its industry peers.
ALC's Return On Equity of 4.85% is fine compared to the rest of the industry. ALC outperforms 76.72% of its industry peers.
ALC has a better Return On Invested Capital (3.87%) than 73.02% 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 9.12%.
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 Rank | Sector 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
1.3 Margins
The Profit Margin of ALC (10.70%) is better than 84.13% of its industry peers.
ALC's Profit Margin has improved in the last couple of years.
The Operating Margin of ALC (13.81%) is better than 82.01% of its industry peers.
ALC's Operating Margin has improved in the last couple of years.
ALC has a Gross Margin (54.26%) which is in line with its industry peers.
ALC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
ALC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
2.2 Solvency
ALC has an Altman-Z score of 4.00. This indicates that ALC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.00, ALC is doing good in the industry, outperforming 74.07% of the companies in the same industry.
ALC has a debt to FCF ratio of 3.71. This is a good value and a sign of high solvency as ALC would need 3.71 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.71, ALC belongs to the top of the industry, outperforming 82.01% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that ALC is not too dependend on debt financing.
ALC has a Debt to Equity ratio (0.23) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 3.71 | ||
| Altman-Z | 4 |
ROIC/WACC0.82
WACC4.71%
2.3 Liquidity
A Current Ratio of 2.60 indicates that ALC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.60, ALC is in line with its industry, outperforming 52.38% of the companies in the same industry.
ALC has a Quick Ratio of 1.61. This is a normal value and indicates that ALC is financially healthy and should not expect problems in meeting its short term obligations.
ALC has a Quick ratio (1.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
ALC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.23%.
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.
Based on estimates for the next years, ALC will show a small growth in Revenue. The Revenue will grow by 6.30% on average per year.
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.
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
Based on the Price/Earnings ratio of 24.41, the valuation of ALC can be described as rather expensive.
Based on the Price/Earnings ratio, ALC is valued a bit cheaper than the industry average as 78.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.67, ALC is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.90, the valuation of ALC can be described as rather expensive.
79.37% 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 31.86, ALC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.41 | ||
| Fwd PE | 20.9 |
4.2 Price Multiples
ALC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALC is cheaper than 80.42% of the companies in the same industry.
81.48% of the companies in the same industry are more expensive than ALC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.03 | ||
| EV/EBITDA | 15.3 |
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)18.9
PEG (5Y)2.43
EPS Next 2Y7.54%
EPS Next 3Y10.27%
5. Dividend
5.1 Amount
ALC has a yearly dividend return of 0.47%, which is pretty low.
Compared to an average industry Dividend Yield of 1.89, ALC pays a better dividend. On top of this ALC pays more dividend than 91.01% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ALC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
ALC has been paying a dividend for over 5 years, so it has already some track record.
The dividend of ALC decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
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%
NYSE:ALC (11/7/2025, 12:55:50 PM)
73.71
-0.56 (-0.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners69.85%
Inst Owner Change-1.25%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap36.83B
Revenue(TTM)10.03B
Net Income(TTM)1.07B
Analysts80
Price Target107.71 (46.13%)
Short Float %1.21%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.26
Dividend Growth(5Y)N/A
DP15.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-1.53%
PT rev (3m)-4.47%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-3.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.41 | ||
| Fwd PE | 20.9 | ||
| P/S | 3.67 | ||
| P/FCF | 26.03 | ||
| P/OCF | 17.58 | ||
| P/B | 1.67 | ||
| P/tB | 9.85 | ||
| EV/EBITDA | 15.3 |
EPS(TTM)3.02
EY4.1%
EPS(NY)3.53
Fwd EY4.79%
FCF(TTM)2.83
FCFY3.84%
OCF(TTM)4.19
OCFY5.69%
SpS20.06
BVpS44.25
TBVpS7.48
PEG (NY)18.9
PEG (5Y)2.43
Graham Number54.84
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 |
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 6 / 10 to ALC.
Can you provide the valuation status for ALCON INC?
ChartMill assigns a valuation rating of 5 / 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%.