ALCON INC (ALC) Stock Fundamental Analysis
USA - NYSE:ALC - CH0432492467 - Common Stock
76.165 USD
+0.09 (+0.11%)
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 has a great profitability rating, 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.
ALC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ALC had a positive operating cash flow.
1.2 Ratios
ALC's Return On Assets of 3.42% is fine compared to the rest of the industry. ALC outperforms 77.78% of its industry peers.
ALC has a better Return On Equity (4.85%) than 76.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.87%, ALC is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
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 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
ALC has a Profit Margin of 10.70%. This is amongst the best in the industry. ALC outperforms 84.13% 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 81.48% of the companies in the same industry.
In the last couple of years the Operating Margin of ALC has grown nicely.
ALC has a Gross Margin (54.26%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALC is destroying value.
The number of shares outstanding for ALC has been increased compared to 1 year ago.
The number of shares outstanding for ALC has been increased compared to 5 years ago.
Compared to 1 year ago, ALC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.05 indicates that ALC is not in any danger for bankruptcy at the moment.
ALC has a Altman-Z score of 4.05. This is in the better half of the industry: ALC outperforms 73.02% 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.
ALC's Debt to FCF ratio of 3.71 is amongst the best of the industry. ALC outperforms 83.60% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that ALC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.23, ALC perfoms like the industry average, outperforming 56.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 3.71 | ||
| Altman-Z | 4.05 |
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.
With a Current ratio value of 2.60, ALC perfoms like the industry average, 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 of 1.61. This is comparable to the rest of the industry: ALC outperforms 43.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.61 |
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 4.04%.
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)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
Based on estimates for the next years, ALC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.63% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
ALC is valuated quite expensively with a Price/Earnings ratio of 25.22.
Based on the Price/Earnings ratio, ALC is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.89. ALC is around the same levels.
Based on the Price/Forward Earnings ratio of 21.59, the valuation of ALC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ALC is valued a bit cheaper than 78.84% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALC to the average of the S&P500 Index (22.99), we can say ALC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 21.59 |
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 78.84% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALC is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.9 | ||
| EV/EBITDA | 15.63 |
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)19.53
PEG (5Y)2.51
EPS Next 2Y7.54%
EPS Next 3Y10.27%
5. Dividend
5.1 Amount
ALC has a yearly dividend return of 0.46%, which is pretty low.
Compared to an average industry Dividend Yield of 1.79, 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 2.31, ALC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector 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
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 (10/27/2025, 12:44:31 PM)
76.165
+0.09 (+0.11%)
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-0.79%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap38.06B
Revenue(TTM)10.03B
Net Income(TTM)1.07B
Analysts80
Price Target107.88 (41.64%)
Short Float %1.21%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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)-1.37%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 21.59 | ||
| P/S | 3.8 | ||
| P/FCF | 26.9 | ||
| P/OCF | 18.17 | ||
| P/B | 1.72 | ||
| P/tB | 10.18 | ||
| EV/EBITDA | 15.63 |
EPS(TTM)3.02
EY3.97%
EPS(NY)3.53
Fwd EY4.63%
FCF(TTM)2.83
FCFY3.72%
OCF(TTM)4.19
OCFY5.5%
SpS20.06
BVpS44.25
TBVpS7.48
PEG (NY)19.53
PEG (5Y)2.51
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 | 4.05 |
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%.