ALCON INC (ALC) Fundamental Analysis & Valuation

NYSE:ALC • CH0432492467

Current stock price

73.74 USD
-0.73 (-0.98%)
Last:

This ALC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ALC Profitability Analysis

1.1 Basic Checks

  • ALC had positive earnings in the past year.
  • In the past year ALC had a positive cash flow from operations.
  • In the past 5 years ALC has always been profitable.
  • In the past 5 years ALC always reported a positive cash flow from operatings.
ALC Yearly Net Income VS EBIT VS OCF VS FCFALC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B 2B

1.2 Ratios

  • The Return On Assets of ALC (3.11%) is better than 76.72% of its industry peers.
  • ALC has a better Return On Equity (4.45%) than 75.66% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 4.32%, ALC is in the better half of the industry, outperforming 74.07% 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 9.31%.
  • The 3 year average ROIC (3.90%) for ALC is below the current ROIC(4.32%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.11%
ROE 4.45%
ROIC 4.32%
ROA(3y)3.25%
ROA(5y)2.45%
ROE(3y)4.63%
ROE(5y)3.51%
ROIC(3y)3.9%
ROIC(5y)3.27%
ALC Yearly ROA, ROE, ROICALC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 4

1.3 Margins

  • ALC has a Profit Margin of 9.42%. This is amongst the best in the industry. ALC outperforms 82.54% of its industry peers.
  • In the last couple of years the Profit Margin of ALC has grown nicely.
  • ALC has a Operating Margin of 14.32%. This is amongst the best in the industry. ALC outperforms 82.01% of its industry peers.
  • In the last couple of years the Operating Margin of ALC has grown nicely.
  • With a Gross Margin value of 55.78%, ALC perfoms like the industry average, outperforming 56.08% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ALC has grown nicely.
Industry RankSector Rank
OM 14.32%
PM (TTM) 9.42%
GM 55.78%
OM growth 3Y31.29%
OM growth 5YN/A
PM growth 3Y34.84%
PM growth 5YN/A
GM growth 3Y0.68%
GM growth 5Y4.47%
ALC Yearly Profit, Operating, Gross MarginsALC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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7

2. ALC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALC is destroying value.
  • ALC has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, ALC has less shares outstanding
  • Compared to 1 year ago, ALC has an improved debt to assets ratio.
ALC Yearly Shares OutstandingALC Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ALC Yearly Total Debt VS Total AssetsALC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • An Altman-Z score of 3.93 indicates that ALC is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.93, ALC is doing good in the industry, outperforming 73.55% of the companies in the same industry.
  • The Debt to FCF ratio of ALC is 3.26, which is a good value as it means it would take ALC, 3.26 years of fcf income to pay off all of its debts.
  • ALC's Debt to FCF ratio of 3.26 is amongst the best of the industry. ALC outperforms 82.01% of its industry peers.
  • ALC has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.21, ALC is in line with its industry, outperforming 56.61% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 3.26
Altman-Z 3.93
ROIC/WACC0.92
WACC4.72%
ALC Yearly LT Debt VS Equity VS FCFALC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B

2.3 Liquidity

  • ALC has a Current Ratio of 2.12. This indicates that ALC is financially healthy and has no problem in meeting its short term obligations.
  • ALC has a Current ratio of 2.12. This is comparable to the rest of the industry: ALC outperforms 40.74% of its industry peers.
  • A Quick Ratio of 1.33 indicates that ALC should not have too much problems paying its short term obligations.
  • The Quick ratio of ALC (1.33) is worse than 64.02% of its industry peers.
Industry RankSector Rank
Current Ratio 2.12
Quick Ratio 1.33
ALC Yearly Current Assets VS Current LiabilitesALC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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5

3. ALC Growth Analysis

3.1 Past

  • ALC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.33%.
  • Measured over the past years, ALC shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.09% on average per year.
  • Looking at the last year, ALC shows a small growth in Revenue. The Revenue has grown by 4.94% in the last year.
  • ALC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.77% yearly.
EPS 1Y (TTM)0.33%
EPS 3Y11.12%
EPS 5Y24.09%
EPS Q2Q%8.33%
Revenue 1Y (TTM)4.94%
Revenue growth 3Y6.06%
Revenue growth 5Y8.77%
Sales Q2Q%9.08%

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 13.43% yearly.
  • ALC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.35% yearly.
EPS Next Y11.26%
EPS Next 2Y13.39%
EPS Next 3Y13.99%
EPS Next 5Y13.43%
Revenue Next Year7.26%
Revenue Next 2Y6.84%
Revenue Next 3Y7.09%
Revenue Next 5Y6.35%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ALC Yearly Revenue VS EstimatesALC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 5B 10B 15B
ALC Yearly EPS VS EstimatesALC Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4 5

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5

4. ALC Valuation Analysis

4.1 Price/Earnings Ratio

  • ALC is valuated rather expensively with a Price/Earnings ratio of 24.10.
  • ALC's Price/Earnings ratio is a bit cheaper when compared to the industry. ALC is cheaper than 74.60% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of ALC to the average of the S&P500 Index (25.23), we can say ALC is valued inline with the index average.
  • ALC is valuated rather expensively with a Price/Forward Earnings ratio of 21.66.
  • ALC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALC is cheaper than 75.66% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.51. ALC is around the same levels.
Industry RankSector Rank
PE 24.1
Fwd PE 21.66
ALC Price Earnings VS Forward Price EarningsALC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ALC is valued a bit cheaper than the industry average as 78.84% 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 84.66% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 22.92
EV/EBITDA 14.43
ALC Per share dataALC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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 an outstanding profitability rating, which may justify a higher PE ratio.
  • ALC's earnings are expected to grow with 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.14
PEG (5Y)1
EPS Next 2Y13.39%
EPS Next 3Y13.99%

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3

5. ALC Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.47%, ALC is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.24, ALC pays a better dividend. On top of this ALC pays more dividend than 90.48% of the companies listed in the same industry.
  • With a Dividend Yield of 0.47, ALC pays less dividend than the S&P500 average, which is at 1.90.
Industry RankSector 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
ALC Yearly Dividends per shareALC Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

  • ALC pays out 16.94% of its income as dividend. This is a sustainable payout ratio.
DP16.94%
EPS Next 2Y13.39%
EPS Next 3Y13.99%
ALC Yearly Income VS Free CF VS DividendALC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B
ALC Dividend Payout.ALC Dividend Payout, showing the Payout Ratio.ALC Dividend Payout.PayoutRetained Earnings

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ALC Fundamentals: All Metrics, Ratios and Statistics

ALCON INC

NYSE:ALC (3/27/2026, 1:59:45 PM)

73.74

-0.73 (-0.98%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-24
Earnings (Next)N/A
Inst Owners68.03%
Inst Owner Change-1.8%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap36.85B
Revenue(TTM)10.40B
Net Income(TTM)980.00M
Analysts78
Price Target109.03 (47.86%)
Short Float %1.07%
Short Ratio3.14
Dividend
Industry RankSector Rank
Dividend Yield 0.47%
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP16.94%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.66%
Min EPS beat(2)-1.57%
Max EPS beat(2)2.89%
EPS beat(4)2
Avg EPS beat(4)0.39%
Min EPS beat(4)-4.26%
Max EPS beat(4)4.49%
EPS beat(8)6
Avg EPS beat(8)2.04%
EPS beat(12)9
Avg EPS beat(12)2.95%
EPS beat(16)11
Avg EPS beat(16)3.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)-1.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)-1.52%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)2
Avg Revenue beat(12)-1.57%
Revenue beat(16)3
Avg Revenue beat(16)-0.92%
PT rev (1m)1.39%
PT rev (3m)1.21%
EPS NQ rev (1m)-2.1%
EPS NQ rev (3m)-2.1%
EPS NY rev (1m)-1%
EPS NY rev (3m)-3.8%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.2%
Valuation
Industry RankSector Rank
PE 24.1
Fwd PE 21.66
P/S 3.54
P/FCF 22.92
P/OCF 16.23
P/B 1.67
P/tB 9.77
EV/EBITDA 14.43
EPS(TTM)3.06
EY4.15%
EPS(NY)3.4
Fwd EY4.62%
FCF(TTM)3.22
FCFY4.36%
OCF(TTM)4.54
OCFY6.16%
SpS20.81
BVpS44.09
TBVpS7.55
PEG (NY)2.14
PEG (5Y)1
Graham Number55.1
Profitability
Industry RankSector Rank
ROA 3.11%
ROE 4.45%
ROCE 5.22%
ROIC 4.32%
ROICexc 4.58%
ROICexgc 14.26%
OM 14.32%
PM (TTM) 9.42%
GM 55.78%
FCFM 15.46%
ROA(3y)3.25%
ROA(5y)2.45%
ROE(3y)4.63%
ROE(5y)3.51%
ROIC(3y)3.9%
ROIC(5y)3.27%
ROICexc(3y)4.13%
ROICexc(5y)3.45%
ROICexgc(3y)12.95%
ROICexgc(5y)11.34%
ROCE(3y)4.71%
ROCE(5y)3.95%
ROICexgc growth 3Y30.67%
ROICexgc growth 5YN/A
ROICexc growth 3Y37.24%
ROICexc growth 5YN/A
OM growth 3Y31.29%
OM growth 5YN/A
PM growth 3Y34.84%
PM growth 5YN/A
GM growth 3Y0.68%
GM growth 5Y4.47%
F-Score7
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 3.26
Debt/EBITDA 1.63
Cap/Depr 49.66%
Cap/Sales 6.37%
Interest Coverage 7.84
Cash Conversion 80.42%
Profit Quality 164.08%
Current Ratio 2.12
Quick Ratio 1.33
Altman-Z 3.93
F-Score7
WACC4.72%
ROIC/WACC0.92
Cap/Depr(3y)58.03%
Cap/Depr(5y)76.08%
Cap/Sales(3y)7.39%
Cap/Sales(5y)10.1%
Profit Quality(3y)119.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.33%
EPS 3Y11.12%
EPS 5Y24.09%
EPS Q2Q%8.33%
EPS Next Y11.26%
EPS Next 2Y13.39%
EPS Next 3Y13.99%
EPS Next 5Y13.43%
Revenue 1Y (TTM)4.94%
Revenue growth 3Y6.06%
Revenue growth 5Y8.77%
Sales Q2Q%9.08%
Revenue Next Year7.26%
Revenue Next 2Y6.84%
Revenue Next 3Y7.09%
Revenue Next 5Y6.35%
EBIT growth 1Y4.64%
EBIT growth 3Y39.25%
EBIT growth 5YN/A
EBIT Next Year50.46%
EBIT Next 3Y21.86%
EBIT Next 5Y16.5%
FCF growth 1Y14.29%
FCF growth 3YN/A
FCF growth 5Y44.41%
OCF growth 1Y9.34%
OCF growth 3Y23.11%
OCF growth 5Y22.51%

ALCON INC / ALC Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ALCON INC?

ChartMill assigns a fundamental rating of 6 / 10 to ALC.


What is the valuation status of ALCON INC (ALC) stock?

ChartMill assigns a valuation rating of 5 / 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 8 / 10.


Can you provide the PE and PB ratios for ALC stock?

The Price/Earnings (PE) ratio for ALCON INC (ALC) is 24.1 and the Price/Book (PB) ratio is 1.67.


Can you provide the expected EPS growth for ALC stock?

The Earnings per Share (EPS) of ALCON INC (ALC) is expected to grow by 11.26% in the next year.