ALCON INC (ALC) Fundamental Analysis & Valuation

NYSE:ALC • CH0432492467

Current stock price

76.28 USD
-1.54 (-1.98%)
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

  • ALC's Return On Assets of 3.11% is fine compared to the rest of the industry. ALC outperforms 76.47% of its industry peers.
  • With a decent Return On Equity value of 4.45%, ALC is doing good in the industry, outperforming 75.40% of the companies in the same industry.
  • The Return On Invested Capital of ALC (4.32%) is better than 73.80% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ALC is significantly below the industry average of 9.12%.
  • The last Return On Invested Capital (4.32%) for ALC is above the 3 year average (3.90%), which is a sign of increasing profitability.
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 82.35% 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 14.32%, ALC belongs to the top of the industry, outperforming 82.89% of the companies in the same industry.
  • ALC's Operating Margin has improved in the last couple of years.
  • ALC has a Gross Margin of 55.78%. This is comparable to the rest of the industry: ALC outperforms 55.62% of its industry peers.
  • ALC's Gross Margin has improved in the last couple of years.
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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8

2. ALC Health Analysis

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 reduced compared to 1 year ago.
  • ALC has less shares outstanding than it did 5 years ago.
  • 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 4.04 indicates that ALC is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.04, ALC is doing good in the industry, outperforming 72.73% of the companies in the same industry.
  • ALC has a debt to FCF ratio of 3.26. This is a good value and a sign of high solvency as ALC would need 3.26 years to pay back of all of its debts.
  • The Debt to FCF ratio of ALC (3.26) is better than 80.21% 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.
  • The Debt to Equity ratio of ALC (0.21) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 3.26
Altman-Z 4.04
ROIC/WACC0.91
WACC4.73%
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

  • A Current Ratio of 2.12 indicates that ALC has no problem at all paying its short term obligations.
  • ALC's Current ratio of 2.12 is on the low side compared to the rest of the industry. ALC is outperformed by 60.96% of its industry peers.
  • ALC has a Quick Ratio of 1.33. This is a normal value and indicates that ALC is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of ALC (1.33) is worse than 66.84% of its industry peers.
  • ALC does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ALC Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 0.33% over the past year.
  • 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.
  • Measured over the past years, ALC shows a quite strong growth in Revenue. The Revenue has been growing by 8.77% on average per year.
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.
  • The Revenue is expected to grow by 6.35% on average over the next years.
EPS Next Y11.48%
EPS Next 2Y13.44%
EPS Next 3Y13.62%
EPS Next 5Y13.43%
Revenue Next Year7.24%
Revenue Next 2Y6.81%
Revenue Next 3Y6.67%
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

  • With a Price/Earnings ratio of 24.93, ALC is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Earnings ratio of ALC indicates a somewhat cheap valuation: ALC is cheaper than 73.80% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.66. ALC is around the same levels.
  • ALC is valuated rather expensively with a Price/Forward Earnings ratio of 22.36.
  • 76.47% 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 38.00, ALC is valued a bit cheaper.
Industry RankSector Rank
PE 24.93
Fwd PE 22.36
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 78.61% of the companies are valued more expensively.
  • ALC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALC is cheaper than 82.89% of the companies in the same industry.
Industry RankSector Rank
P/FCF 23.7
EV/EBITDA 15.03
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.
  • The excellent profitability rating of ALC may justify a higher PE ratio.
  • ALC's earnings are expected to grow with 13.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.17
PEG (5Y)1.03
EPS Next 2Y13.44%
EPS Next 3Y13.62%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. ALC Dividend Analysis

5.1 Amount

  • ALC has a yearly dividend return of 0.45%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.25, ALC pays a better dividend. On top of this ALC pays more dividend than 90.37% of the companies listed in the same industry.
  • With a Dividend Yield of 0.45, ALC pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector 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.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
ALC Yearly Dividends per shareALC Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

5.3 Sustainability

  • 16.94% of the earnings are spent on dividend by ALC. This is a low number and sustainable payout ratio.
DP16.94%
EPS Next 2Y13.44%
EPS Next 3Y13.62%
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 (4/22/2026, 3:46:03 PM)

76.28

-1.54 (-1.98%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-24
Earnings (Next)05-05
Inst Owners68.23%
Inst Owner Change0.16%
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap38.12B
Revenue(TTM)10.40B
Net Income(TTM)980.00M
Analysts76
Price Target108.07 (41.68%)
Short Float %1.01%
Short Ratio2.84
Dividend
Industry RankSector Rank
Dividend Yield 0.45%
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP16.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date05-05
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)-0.88%
PT rev (3m)0.33%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-3.12%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 24.93
Fwd PE 22.36
P/S 3.66
P/FCF 23.7
P/OCF 16.78
P/B 1.73
P/tB 10.11
EV/EBITDA 15.03
EPS(TTM)3.06
EY4.01%
EPS(NY)3.41
Fwd EY4.47%
FCF(TTM)3.22
FCFY4.22%
OCF(TTM)4.54
OCFY5.96%
SpS20.81
BVpS44.09
TBVpS7.55
PEG (NY)2.17
PEG (5Y)1.03
Graham Number55.099 (-27.77%)
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 4.04
F-Score7
WACC4.73%
ROIC/WACC0.91
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 Y11.48%
EPS Next 2Y13.44%
EPS Next 3Y13.62%
EPS Next 5Y13.43%
Revenue 1Y (TTM)4.94%
Revenue growth 3Y6.06%
Revenue growth 5Y8.77%
Sales Q2Q%9.08%
Revenue Next Year7.24%
Revenue Next 2Y6.81%
Revenue Next 3Y6.67%
Revenue Next 5Y6.35%
EBIT growth 1Y4.64%
EBIT growth 3Y39.25%
EBIT growth 5YN/A
EBIT Next Year53.58%
EBIT Next 3Y22.56%
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 7 / 10 to ALC.


What is the valuation status for ALC stock?

ChartMill assigns a valuation rating of 5 / 10 to ALCON INC (ALC). This can be considered as Fairly Valued.


Can you provide the profitability details for ALCON INC?

ALCON INC (ALC) has a profitability rating of 8 / 10.


What is the valuation of ALCON INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ALCON INC (ALC) is 24.93 and the Price/Book (PB) ratio is 1.73.


How sustainable is the dividend of ALCON INC (ALC) stock?

The dividend rating of ALCON INC (ALC) is 3 / 10 and the dividend payout ratio is 16.94%.