BAUSCH + LOMB CORP (BLCO.CA) Stock Fundamental Analysis
Canada - TSX:BLCO - CA0717051076 - Common Stock
20.63 CAD
+0.13 (+0.63%)
BLCO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of BLCO while its profitability can be described as average. BLCO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BLCO had positive earnings in the past year.
In the past year BLCO had a positive cash flow from operations.
In multiple years BLCO reported negative net income over the last 5 years.
BLCO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BLCO's Return On Assets of -1.97% is amongst the best of the industry. BLCO outperforms 100.00% of its industry peers.
The Return On Equity of BLCO (-4.24%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.60%, BLCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BLCO is in line with the industry average of 0.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.97% | ||
| ROE | -4.24% | ||
| ROIC | 0.6% |
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
Looking at the Operating Margin, with a value of 2.04%, BLCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BLCO has declined.
The Gross Margin of BLCO (59.68%) is better than 73.33% of its industry peers.
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 | 2.04% | ||
| PM (TTM) | N/A | ||
| GM | 59.68% |
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
BLCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BLCO has been increased compared to 1 year ago.
Compared to 5 years ago, BLCO has more shares outstanding
Compared to 1 year ago, BLCO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that BLCO is in the distress zone and has some risk of bankruptcy.
BLCO has a Altman-Z score of 0.80. This is amongst the best in the industry. BLCO outperforms 93.33% of its industry peers.
BLCO has a Debt/Equity ratio of 0.77. This is a neutral value indicating BLCO is somewhat dependend on debt financing.
BLCO has a Debt to Equity ratio (0.77) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.08
WACC7.41%
2.3 Liquidity
BLCO has a Current Ratio of 1.55. This is a normal value and indicates that BLCO is financially healthy and should not expect problems in meeting its short term obligations.
BLCO's Current ratio of 1.55 is fine compared to the rest of the industry. BLCO outperforms 66.67% of its industry peers.
BLCO has a Quick Ratio of 1.55. This is a bad value and indicates that BLCO is not financially healthy enough and could expect problems in meeting its short term obligations.
BLCO has a better Quick ratio (0.98) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for BLCO have decreased strongly by -36.36% in the last year.
The Revenue has grown by 8.81% in the past year. This is quite good.
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
BLCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.11% yearly.
BLCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.93% yearly.
EPS Next Y-12.99%
EPS Next 2Y14.53%
EPS Next 3Y19.01%
EPS Next 5Y24.11%
Revenue Next Year6.66%
Revenue Next 2Y6.19%
Revenue Next 3Y5.62%
Revenue Next 5Y4.93%
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 34.97 indicates a quite expensive valuation of BLCO.
Compared to the rest of the industry, the Price/Earnings ratio of BLCO indicates a rather cheap valuation: BLCO is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BLCO to the average of the S&P500 Index (27.86), we can say BLCO is valued slightly more expensively.
BLCO is valuated rather expensively with a Price/Forward Earnings ratio of 18.20.
Based on the Price/Forward Earnings ratio, BLCO is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.29, BLCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.97 | ||
| Fwd PE | 18.2 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than BLCO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.72 |
4.3 Compensation for Growth
The decent profitability rating of BLCO may justify a higher PE ratio.
BLCO's earnings are expected to grow with 19.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.53%
EPS Next 3Y19.01%
5. Dividend
5.1 Amount
BLCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BLCO (10/2/2025, 7:00:00 PM)
20.63
+0.13 (+0.63%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners11.05%
Inst Owner ChangeN/A
Ins Owners0.44%
Ins Owner ChangeN/A
Market Cap7.30B
Analysts72.63
Price Target21.67 (5.04%)
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)-179.28%
Min EPS beat(2)-360.35%
Max EPS beat(2)1.79%
EPS beat(4)3
Avg EPS beat(4)-86.95%
Min EPS beat(4)-360.35%
Max EPS beat(4)6.68%
EPS beat(8)6
Avg EPS beat(8)-36.55%
EPS beat(12)9
Avg EPS beat(12)-22.21%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-0.39%
Revenue beat(4)0
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)-0.08%
Revenue beat(8)3
Avg Revenue beat(8)0.41%
Revenue beat(12)6
Avg Revenue beat(12)0.75%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.53%
PT rev (3m)5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.12%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)6.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.97 | ||
| Fwd PE | 18.2 | ||
| P/S | 1.07 | ||
| P/FCF | N/A | ||
| P/OCF | 28.18 | ||
| P/B | 0.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.72 |
EPS(TTM)0.59
EY2.86%
EPS(NY)1.13
Fwd EY5.49%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.73
OCFY3.55%
SpS19.25
BVpS25.35
TBVpS-6.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.97% | ||
| ROE | -4.24% | ||
| ROCE | 0.83% | ||
| ROIC | 0.6% | ||
| ROICexc | 0.61% | ||
| ROICexgc | 1.95% | ||
| OM | 2.04% | ||
| PM (TTM) | N/A | ||
| GM | 59.68% | ||
| 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-Score4
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 9.32 | ||
| Cap/Depr | 81.82% | ||
| Cap/Sales | 7.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 0.8 |
F-Score4
WACC7.41%
ROIC/WACC0.08
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-12.99%
EPS Next 2Y14.53%
EPS Next 3Y19.01%
EPS Next 5Y24.11%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y8.36%
Revenue growth 5Y4.87%
Sales Q2Q%5.1%
Revenue Next Year6.66%
Revenue Next 2Y6.19%
Revenue Next 3Y5.62%
Revenue Next 5Y4.93%
EBIT growth 1Y-49.24%
EBIT growth 3Y-15.55%
EBIT growth 5Y-13.93%
EBIT Next Year45.28%
EBIT Next 3Y21.2%
EBIT Next 5Y15.69%
FCF growth 1Y-189.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y75.47%
OCF growth 3Y-35.71%
OCF growth 5Y-21.91%