ALCON INC (ALC) Stock Fundamental Analysis
USA - NYSE:ALC - CH0432492467 - Common Stock
78.29 USD
-1.39 (-1.74%)
78.31 USD
+0.02 (+0.03%)
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 has a great profitability rating, 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
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
ALC's Return On Assets of 3.61% is fine compared to the rest of the industry. ALC outperforms 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.
With a decent Return On Invested Capital value of 3.93%, ALC is doing good in the industry, outperforming 73.82% of the companies in the same industry.
ALC had an Average Return On Invested Capital over the past 3 years of 3.01%. This is significantly below the industry average of 8.46%.
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
The Profit Margin of ALC (11.28%) is better than 85.34% of its industry peers.
In the last couple of years the Profit Margin of ALC has grown nicely.
Looking at the Operating Margin, with a value of 14.07%, ALC belongs to the top of the industry, outperforming 81.68% of the companies in the same industry.
ALC's Operating Margin has improved in the last couple of years.
ALC has a Gross Margin (54.25%) 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 | 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
ALC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ALC has more shares outstanding than it did 1 year ago.
ALC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ALC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.22 indicates that ALC is not in any danger for bankruptcy at the moment.
ALC's Altman-Z score of 4.22 is fine compared to the rest of the industry. ALC outperforms 75.39% 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 85.86% 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 54.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 4.22 |
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.
ALC has a Current ratio (2.70) which 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 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 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.
The Revenue has been growing slightly by 4.82% in the past year.
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)4.82%
Revenue growth 3Y6.13%
Revenue growth 5Y5.71%
Sales Q2Q%3.83%
3.2 Future
The Earnings Per Share is expected to grow by 12.44% on average over the next years. This is quite good.
ALC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.30% yearly.
EPS Next Y1.91%
EPS Next 2Y8.54%
EPS Next 3Y10.89%
EPS Next 5Y12.44%
Revenue Next Year5.36%
Revenue Next 2Y6.45%
Revenue Next 3Y6.58%
Revenue Next 5Y6.3%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 25.92 indicates a quite expensive valuation of ALC.
Based on the Price/Earnings ratio, ALC is valued a bit cheaper than 76.96% of the companies in the same industry.
ALC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 21.79, which indicates a rather expensive current valuation of ALC.
ALC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALC is cheaper than 78.01% of the companies in the same industry.
ALC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.92 | ||
| Fwd PE | 21.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALC is valued a bit cheaper than the industry average as 78.53% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALC indicates a rather cheap valuation: ALC is cheaper than 82.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.92 | ||
| EV/EBITDA | 16.27 |
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.
The decent profitability rating of ALC may justify a higher PE ratio.
PEG (NY)13.55
PEG (5Y)2.58
EPS Next 2Y8.54%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, ALC is not a good candidate for dividend investing.
ALC's Dividend Yield is rather good when compared to the industry average which is at 1.69. ALC pays more dividend than 91.10% of the companies in the same industry.
With a Dividend Yield of 0.45, ALC pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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
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%
78.29
-1.39 (-1.74%)
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-0.62%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap39.12B
Analysts80
Price Target109.38 (39.71%)
Short Float %1.01%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)-3.31%
PT rev (3m)-3.22%
EPS NQ rev (1m)0%
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)-0.75%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.92 | ||
| Fwd PE | 21.79 | ||
| P/S | 3.94 | ||
| P/FCF | 26.92 | ||
| P/OCF | 18.45 | ||
| P/B | 1.78 | ||
| P/tB | 11.36 | ||
| EV/EBITDA | 16.27 |
EPS(TTM)3.02
EY3.86%
EPS(NY)3.59
Fwd EY4.59%
FCF(TTM)2.91
FCFY3.71%
OCF(TTM)4.24
OCFY5.42%
SpS19.86
BVpS44.03
TBVpS6.89
PEG (NY)13.55
PEG (5Y)2.58
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 | 4.22 |
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 Y1.91%
EPS Next 2Y8.54%
EPS Next 3Y10.89%
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 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%