ALCON INC (ALC) Stock Fundamental Analysis
NYSE:ALC - CH0432492467 - Common Stock
82.02 USD
+2.84 (+3.59%)
82.1276 USD
+0.11 (+0.13%)
Taking everything into account, ALC scores 6 out of 10 in our fundamental rating. ALC was compared to 187 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 is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years ALC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.61%, ALC is doing good in the industry, outperforming 78.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.09%, ALC is in the better half of the industry, outperforming 78.07% of the companies in the same industry.
ALC has a Return On Invested Capital of 3.93%. This is in the better half of the industry: ALC outperforms 73.80% 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 8.18%.
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's Profit Margin of 11.28% is amongst the best of the industry. ALC outperforms 85.03% of its industry peers.
ALC's Profit Margin has improved in the last couple of years.
The Operating Margin of ALC (14.07%) is better than 81.28% of its industry peers.
In the last couple of years the Operating Margin of ALC has grown nicely.
ALC has a Gross Margin (54.25%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ALC has grown nicely.
| 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.
ALC has more shares outstanding than it did 1 year ago.
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
ALC has an Altman-Z score of 4.34. This indicates that ALC is financially healthy and has little risk of bankruptcy at the moment.
ALC has a Altman-Z score of 4.34. This is in the better half of the industry: ALC outperforms 77.54% of its industry peers.
ALC has a debt to FCF ratio of 3.58. This is a good value and a sign of high solvency as ALC would need 3.58 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.58, ALC belongs to the best of the industry, outperforming 85.56% 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.
ALC's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. ALC outperforms 52.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 4.34 |
ROIC/WACC0.82
WACC4.78%
2.3 Liquidity
ALC has a Current Ratio of 2.70. This indicates that ALC is financially healthy and has no problem in meeting its short term obligations.
ALC has a Current ratio (2.70) which is comparable to the rest of the industry.
ALC has a Quick Ratio of 1.66. 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 (1.66) which is in line with its industry peers.
| 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 6.38% over the past year.
The Earnings Per Share has been growing by 10.04% on average over the past years. This is quite good.
ALC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.80%.
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)6.38%
EPS 3Y12.36%
EPS 5Y10.04%
EPS Q2Q%-6.41%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%0.29%
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 12.48% on average per year.
ALC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.74% yearly.
EPS Next Y1.91%
EPS Next 2Y8.54%
EPS Next 3Y10.89%
EPS Next 5Y12.48%
Revenue Next Year5.61%
Revenue Next 2Y6.56%
Revenue Next 3Y6.62%
Revenue Next 5Y6.74%
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.
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
With a Price/Earnings ratio of 27.34, ALC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ALC is valued a bit cheaper than the industry average as 75.40% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.24, ALC is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.83, the valuation of ALC can be described as rather expensive.
ALC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALC is cheaper than 75.40% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, ALC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.34 | ||
| Fwd PE | 22.83 |
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 77.01% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALC is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.21 | ||
| EV/EBITDA | 16.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALC does not grow enough to justify the current Price/Earnings ratio.
ALC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)14.29
PEG (5Y)2.72
EPS Next 2Y8.54%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
ALC has a yearly dividend return of 0.44%, which is pretty low.
ALC's Dividend Yield is rather good when compared to the industry average which is at 1.74. ALC pays more dividend than 90.91% of the companies in the same industry.
With a Dividend Yield of 0.44, ALC pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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
11.61% of the earnings are spent on dividend by ALC. This is a low number and sustainable payout ratio.
DP11.61%
EPS Next 2Y8.54%
EPS Next 3Y10.89%
82.02
+2.84 (+3.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners68.39%
Inst Owner Change-1.35%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap40.99B
Analysts81.82
Price Target110.98 (35.31%)
Short Float %1.43%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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)-1.57%
PT rev (3m)-2.5%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-4.4%
EPS NY rev (1m)-5.66%
EPS NY rev (3m)-5.66%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.34 | ||
| Fwd PE | 22.83 | ||
| P/S | 4.13 | ||
| P/FCF | 28.21 | ||
| P/OCF | 19.33 | ||
| P/B | 1.86 | ||
| P/tB | 11.9 | ||
| EV/EBITDA | 16.98 |
EPS(TTM)3
EY3.66%
EPS(NY)3.59
Fwd EY4.38%
FCF(TTM)2.91
FCFY3.55%
OCF(TTM)4.24
OCFY5.17%
SpS19.86
BVpS44.03
TBVpS6.89
PEG (NY)14.29
PEG (5Y)2.72
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 | 4.34 |
F-Score6
WACC4.78%
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)6.38%
EPS 3Y12.36%
EPS 5Y10.04%
EPS Q2Q%-6.41%
EPS Next Y1.91%
EPS Next 2Y8.54%
EPS Next 3Y10.89%
EPS Next 5Y12.48%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%0.29%
Revenue Next Year5.61%
Revenue Next 2Y6.56%
Revenue Next 3Y6.62%
Revenue Next 5Y6.74%
EBIT growth 1Y12.13%
EBIT growth 3Y13.34%
EBIT growth 5Y43.18%
EBIT Next Year44.89%
EBIT Next 3Y21.32%
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%