BAUSCH + LOMB CORP (BLCO) Stock Fundamental Analysis
USA - NYSE:BLCO - CA0717051076 - Common Stock
15.25 USD
+0.06 (+0.39%)
15.25 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to BLCO. BLCO was compared to 190 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. While showing a medium growth rate, BLCO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BLCO was profitable.
In the past year BLCO had a positive cash flow from operations.
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 has a Return On Assets of -1.97%. This is in the better half of the industry: BLCO outperforms 68.42% of its industry peers.
Looking at the Return On Equity, with a value of -4.24%, BLCO is in the better half of the industry, outperforming 68.95% of the companies in the same industry.
BLCO has a better Return On Invested Capital (0.66%) than 65.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BLCO is significantly below the industry average of 8.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.97% | ||
| ROE | -4.24% | ||
| ROIC | 0.66% |
ROA(3y)-1.41%
ROA(5y)-0.54%
ROE(3y)-2.87%
ROE(5y)-1.37%
ROIC(3y)1.59%
ROIC(5y)1.92%
1.3 Margins
With a decent Operating Margin value of 2.04%, BLCO is doing good in the industry, outperforming 66.84% of the companies in the same industry.
BLCO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 59.68%, BLCO is in line with its industry, outperforming 59.47% 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 | 2.04% | ||
| 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.
BLCO has more shares outstanding than it did 5 years ago.
BLCO has a worse debt/assets ratio than last year.
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 comparable to the rest of the industry: BLCO outperforms 50.53% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that BLCO is somewhat dependend on debt financing.
BLCO has a worse Debt to Equity ratio (0.77) than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.09
WACC7.58%
2.3 Liquidity
A Current Ratio of 1.55 indicates that BLCO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.55, BLCO is doing worse than 72.63% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that BLCO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, BLCO is doing worse than 76.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.98 |
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
BLCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.11% yearly.
Based on estimates for the next years, BLCO will show a small growth in Revenue. The Revenue will grow by 4.93% on average per year.
EPS Next Y-12.54%
EPS Next 2Y11.62%
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
With a Price/Earnings ratio of 36.31, BLCO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of BLCO indicates a somewhat cheap valuation: BLCO is cheaper than 71.05% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, BLCO is valued a bit more expensive.
BLCO is valuated rather expensively with a Price/Forward Earnings ratio of 19.74.
Based on the Price/Forward Earnings ratio, BLCO is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.87. BLCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.31 | ||
| Fwd PE | 19.74 |
4.2 Price Multiples
BLCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BLCO is cheaper than 76.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.08 |
4.3 Compensation for Growth
A more expensive valuation may be justified as BLCO's earnings are expected to grow with 19.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.62%
EPS Next 3Y19.01%
5. Dividend
5.1 Amount
BLCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.25
+0.06 (+0.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners10.91%
Inst Owner Change-0.4%
Ins Owners0.45%
Ins Owner Change9.58%
Market Cap5.40B
Analysts72.63
Price Target15.68 (2.82%)
Short Float %7.71%
Short Ratio4.44
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)0.27%
PT rev (3m)3.94%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)-3.12%
EPS NY rev (1m)0%
EPS NY rev (3m)6.93%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.31 | ||
| Fwd PE | 19.74 | ||
| P/S | 1.1 | ||
| P/FCF | N/A | ||
| P/OCF | 29.03 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.08 |
EPS(TTM)0.42
EY2.75%
EPS(NY)0.77
Fwd EY5.07%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.53
OCFY3.45%
SpS13.81
BVpS18.19
TBVpS-4.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.97% | ||
| ROE | -4.24% | ||
| ROCE | 0.83% | ||
| ROIC | 0.66% | ||
| ROICexc | 0.67% | ||
| ROICexgc | 2.14% | ||
| 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)1.59%
ROIC(5y)1.92%
ROICexc(3y)1.64%
ROICexc(5y)1.97%
ROICexgc(3y)5.47%
ROICexgc(5y)6.76%
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 | 0.82 |
F-Score4
WACC7.58%
ROIC/WACC0.09
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-12.54%
EPS Next 2Y11.62%
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 Year44.78%
EBIT Next 3Y21.61%
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%