ALCON INC (ALC) Stock Fundamental Analysis
USA - NYSE:ALC - CH0432492467 - Common Stock
77.38 USD
+2.27 (+3.02%)
77.38 USD
0 (0%)
Taking everything into account, ALC scores 6 out of 10 in our fundamental rating. ALC was compared to 191 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.
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.
ALC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALC (3.61%) is better than 79.06% of its industry peers.
ALC has a Return On Equity of 5.09%. This is in the better half of the industry: ALC outperforms 78.53% of its industry peers.
ALC has a Return On Invested Capital of 3.93%. This is in the better half of the industry: ALC outperforms 73.30% 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 3 year average ROIC (3.01%) for ALC 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
ALC has a better Profit Margin (11.28%) than 85.34% of its industry peers.
In the last couple of years the Profit Margin of ALC has grown nicely.
With an excellent Operating Margin value of 14.07%, ALC belongs to the best of the industry, outperforming 81.15% of the companies in the same industry.
ALC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 54.25%, ALC perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
ALC's Gross Margin has improved in the last couple of years.
| 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), ALC is destroying value.
Compared to 1 year ago, ALC has more shares outstanding
Compared to 5 years ago, ALC has more shares outstanding
The debt/assets ratio for ALC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.11 indicates that ALC is not in any danger for bankruptcy at the moment.
ALC has a Altman-Z score of 4.11. This is in the better half of the industry: ALC outperforms 73.82% of its industry peers.
The Debt to FCF ratio of ALC is 3.58, which is a good value as it means it would take ALC, 3.58 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.58, ALC belongs to the best of the industry, outperforming 85.34% 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.
The Debt to Equity ratio of ALC (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 4.11 |
ROIC/WACC0.82
WACC4.77%
2.3 Liquidity
A Current Ratio of 2.70 indicates that ALC has no problem at all paying its short term obligations.
The Current ratio of ALC (2.70) is comparable to the rest of the industry.
A Quick Ratio of 1.66 indicates that ALC should not have too much problems paying its short term obligations.
ALC has a Quick ratio (1.66) which is comparable to the rest of the industry.
| 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 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.
ALC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.82%.
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)4.82%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%3.83%
3.2 Future
Based on estimates for the next years, ALC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.44% on average per year.
ALC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.30% yearly.
EPS Next Y1.29%
EPS Next 2Y7.54%
EPS Next 3Y10.27%
EPS Next 5Y12.44%
Revenue Next Year5.36%
Revenue Next 2Y6.45%
Revenue Next 3Y6.58%
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 accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.62 indicates a quite expensive valuation of ALC.
Compared to the rest of the industry, the Price/Earnings ratio of ALC indicates a somewhat cheap valuation: ALC is cheaper than 76.44% of the companies listed in the same industry.
ALC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.94, the valuation of ALC can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALC indicates a somewhat cheap valuation: ALC is cheaper than 78.53% of the companies listed in the same industry.
ALC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.62 | ||
| Fwd PE | 21.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALC indicates a somewhat cheap valuation: ALC is cheaper than 78.53% of the companies listed in the same industry.
ALC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALC is cheaper than 82.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.61 | ||
| EV/EBITDA | 15.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)19.85
PEG (5Y)2.55
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.
ALC's Dividend Yield is rather good when compared to the industry average which is at 1.79. ALC pays more dividend than 91.10% of the companies in the same industry.
With a Dividend Yield of 0.47, ALC pays less dividend than the S&P500 average, which is at 2.41.
| 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.
ALC has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ALC pays out 11.61% of its income as dividend. This is a sustainable payout ratio.
DP11.61%
EPS Next 2Y7.54%
EPS Next 3Y10.27%
77.38
+2.27 (+3.02%)
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-0.62%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap38.67B
Analysts80
Price Target107.88 (39.42%)
Short Float %1.28%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.26
Dividend Growth(5Y)N/A
DP11.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-2.34%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)-0.56%
Revenue beat(8)1
Avg Revenue beat(8)-1.91%
Revenue beat(12)2
Avg Revenue beat(12)-1.23%
Revenue beat(16)6
Avg Revenue beat(16)0.08%
PT rev (1m)-1.44%
PT rev (3m)-2.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.4%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-6.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.62 | ||
| Fwd PE | 21.94 | ||
| P/S | 3.9 | ||
| P/FCF | 26.61 | ||
| P/OCF | 18.24 | ||
| P/B | 1.76 | ||
| P/tB | 11.23 | ||
| EV/EBITDA | 15.67 |
EPS(TTM)3.02
EY3.9%
EPS(NY)3.53
Fwd EY4.56%
FCF(TTM)2.91
FCFY3.76%
OCF(TTM)4.24
OCFY5.48%
SpS19.86
BVpS44.03
TBVpS6.89
PEG (NY)19.85
PEG (5Y)2.55
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 | 4.11 |
F-Score6
WACC4.77%
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 5Y12.44%
Revenue 1Y (TTM)4.82%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%3.83%
Revenue Next Year5.36%
Revenue Next 2Y6.45%
Revenue Next 3Y6.58%
Revenue Next 5Y6.3%
EBIT growth 1Y12.13%
EBIT growth 3Y13.34%
EBIT growth 5Y43.18%
EBIT Next Year35.35%
EBIT Next 3Y18.66%
EBIT Next 5Y15.54%
FCF growth 1Y202.71%
FCF growth 3Y104.3%
FCF growth 5Y41.96%
OCF growth 1Y71.52%
OCF growth 3Y15.59%
OCF growth 5Y17.69%