ALCON INC (ALC) Stock Fundamental Analysis
USA - NYSE:ALC - CH0432492467 - Common Stock
76.08 USD
-0.18 (-0.24%)
76.08 USD
0 (0%)
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.
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.
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 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 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 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
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.
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 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.
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 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.19 | ||
| Fwd PE | 21.57 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.87 | ||
| 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)19.51
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.
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 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%
76.08
-0.18 (-0.24%)
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 Cap38.02B
Revenue(TTM)10.03B
Net Income(TTM)1.07B
Analysts80
Price Target107.88 (41.8%)
Short Float %1.09%
Short Ratio2.34
Dividend
| Industry 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 | 25.19 | ||
| 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 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%.