BAUSCH + LOMB CORP (BLCO.CA) Stock Fundamental Analysis
TSX:BLCO - Toronto Stock Exchange - CA0717051076 - Common Stock - Currency: CAD
Overall BLCO gets a fundamental rating of 4 out of 10. We evaluated BLCO against 15 industry peers in the Health Care Equipment & Supplies industry. While BLCO is still in line with the averages on profitability rating, there are concerns on its financial health. BLCO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BLCO was profitable.
BLCO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BLCO reported negative net income in multiple years.
Of the past 5 years BLCO 4 years had a positive operating cash flow.
1.2 Ratios
BLCO's Return On Assets of -2.70% is amongst the best of the industry. BLCO outperforms 100.00% of its industry peers.
The Return On Equity of BLCO (-5.69%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.78%, BLCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
BLCO had an Average Return On Invested Capital over the past 3 years of 1.45%. This is in line with the industry average of 0.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.7% | ||
| ROE | -5.69% | ||
| ROIC | 0.78% |
ROA(3y)-1.41%
ROA(5y)-0.54%
ROE(3y)-2.87%
ROE(5y)-1.37%
ROIC(3y)1.45%
ROIC(5y)1.75%
1.3 Margins
BLCO has a Operating Margin of 2.63%. This is amongst the best in the industry. BLCO outperforms 100.00% of its industry peers.
BLCO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 60.03%, BLCO is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
In the last couple of years the Gross Margin of BLCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.63% | ||
| PM (TTM) | N/A | ||
| GM | 60.03% |
OM growth 3Y-22.07%
OM growth 5Y-17.92%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.06%
GM growth 5Y-1.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BLCO is destroying value.
The number of shares outstanding for BLCO has been increased compared to 1 year ago.
The number of shares outstanding for BLCO has been increased compared to 5 years ago.
The debt/assets ratio for BLCO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that BLCO is in the distress zone and has some risk of bankruptcy.
BLCO has a Altman-Z score of 0.82. This is amongst the best in the industry. BLCO outperforms 86.67% of its industry peers.
BLCO has a Debt/Equity ratio of 0.75. This is a neutral value indicating BLCO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.75, BLCO perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.11
WACC7.32%
2.3 Liquidity
A Current Ratio of 1.56 indicates that BLCO should not have too much problems paying its short term obligations.
The Current ratio of BLCO (1.56) is better than 73.33% of its industry peers.
A Quick Ratio of 0.96 indicates that BLCO may have some problems paying its short term obligations.
BLCO has a Quick ratio of 0.96. This is in the better half of the industry: BLCO outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
BLCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.36%.
Looking at the last year, BLCO shows a quite strong growth in Revenue. The Revenue has grown by 8.81% in the last year.
Measured over the past years, BLCO shows a small growth in Revenue. The Revenue has been growing by 4.87% on average per year.
EPS 1Y (TTM)-36.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-46.15%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y8.36%
Revenue growth 5Y4.87%
Sales Q2Q%5.1%
3.2 Future
The Earnings Per Share is expected to grow by 24.11% on average over the next years. This is a very strong growth
BLCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.45% yearly.
EPS Next Y-20.51%
EPS Next 2Y12.29%
EPS Next 3Y19.54%
EPS Next 5Y24.11%
Revenue Next Year5.51%
Revenue Next 2Y5.5%
Revenue Next 3Y5.22%
Revenue Next 5Y4.45%
3.3 Evolution
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
A Price/Earnings ratio of 32.50 indicates a quite expensive valuation of BLCO.
Based on the Price/Earnings ratio, BLCO is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. BLCO is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 17.52, the valuation of BLCO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, BLCO is valued cheaper than 93.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BLCO to the average of the S&P500 Index (35.28), we can say BLCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.5 | ||
| Fwd PE | 17.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BLCO is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.23 |
4.3 Compensation for Growth
BLCO has a very decent profitability rating, which may justify a higher PE ratio.
BLCO's earnings are expected to grow with 19.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.29%
EPS Next 3Y19.54%
5. Dividend
5.1 Amount
No dividends for BLCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BLCO (8/7/2025, 7:00:00 PM)
18.85
-0.62 (-3.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners10.83%
Inst Owner ChangeN/A
Ins Owners0.45%
Ins Owner ChangeN/A
Market Cap6.67B
Analysts72.63
Price Target20.74 (10.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-178.13%
Min EPS beat(2)-360.35%
Max EPS beat(2)4.09%
EPS beat(4)3
Avg EPS beat(4)-86.35%
Min EPS beat(4)-360.35%
Max EPS beat(4)6.68%
EPS beat(8)6
Avg EPS beat(8)-34.35%
EPS beat(12)9
Avg EPS beat(12)-16.97%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)1.93%
Revenue beat(8)4
Avg Revenue beat(8)1.13%
Revenue beat(12)7
Avg Revenue beat(12)0.92%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.52%
PT rev (3m)-17.2%
EPS NQ rev (1m)-5.81%
EPS NQ rev (3m)-56.22%
EPS NY rev (1m)-2.82%
EPS NY rev (3m)-26.04%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.5 | ||
| Fwd PE | 17.52 | ||
| P/S | 1 | ||
| P/FCF | N/A | ||
| P/OCF | 29.2 | ||
| P/B | 0.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.23 |
EPS(TTM)0.58
EY3.08%
EPS(NY)1.08
Fwd EY5.71%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.65
OCFY3.42%
SpS18.78
BVpS24.74
TBVpS-6.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.7% | ||
| ROE | -5.69% | ||
| ROCE | 1.09% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.8% | ||
| ROICexgc | 2.61% | ||
| OM | 2.63% | ||
| PM (TTM) | N/A | ||
| GM | 60.03% | ||
| FCFM | N/A |
ROA(3y)-1.41%
ROA(5y)-0.54%
ROE(3y)-2.87%
ROE(5y)-1.37%
ROIC(3y)1.45%
ROIC(5y)1.75%
ROICexc(3y)1.5%
ROICexc(5y)1.8%
ROICexgc(3y)4.98%
ROICexgc(5y)6.16%
ROCE(3y)2.02%
ROCE(5y)2.43%
ROICexcg growth 3Y-21.86%
ROICexcg growth 5Y-17.06%
ROICexc growth 3Y-20.45%
ROICexc growth 5Y-15.79%
OM growth 3Y-22.07%
OM growth 5Y-17.92%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.06%
GM growth 5Y-1.25%
F-Score3
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.57 | ||
| Cap/Depr | 77.31% | ||
| Cap/Sales | 6.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 0.82 |
F-Score3
WACC7.32%
ROIC/WACC0.11
Cap/Depr(3y)53.43%
Cap/Depr(5y)52.81%
Cap/Sales(3y)5.03%
Cap/Sales(5y)5.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-46.15%
EPS Next Y-20.51%
EPS Next 2Y12.29%
EPS Next 3Y19.54%
EPS Next 5Y24.11%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y8.36%
Revenue growth 5Y4.87%
Sales Q2Q%5.1%
Revenue Next Year5.51%
Revenue Next 2Y5.5%
Revenue Next 3Y5.22%
Revenue Next 5Y4.45%
EBIT growth 1Y-42.79%
EBIT growth 3Y-15.55%
EBIT growth 5Y-13.93%
EBIT Next Year40.8%
EBIT Next 3Y21.5%
EBIT Next 5Y15.15%
FCF growth 1Y-244.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-41.96%
OCF growth 3Y-35.71%
OCF growth 5Y-21.91%