BAUSCH + LOMB CORP (BLCO) Stock Fundamental Analysis
USA - NYSE:BLCO - CA0717051076 - Common Stock
15.75 USD
+0.75 (+5%)
15.75 USD
0 (0%)
BLCO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 190 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 is quite expensive at the moment. It does show a decent growth rate.
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 better Return On Assets (-1.97%) than 69.47% of its industry peers.
The Return On Equity of BLCO (-4.24%) is better than 69.47% of its industry peers.
With a decent Return On Invested Capital value of 0.66%, BLCO is doing good in the industry, outperforming 65.79% of the companies in the same industry.
BLCO had an Average Return On Invested Capital over the past 3 years of 1.59%. This is significantly below the industry average of 8.88%.
| 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
BLCO's Operating Margin of 2.04% is fine compared to the rest of the industry. BLCO outperforms 67.89% of its industry peers.
In the last couple of years the Operating Margin of BLCO has declined.
BLCO has a Gross Margin (59.68%) which is in line with its industry peers.
BLCO's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BLCO is destroying value.
BLCO has more shares outstanding than it did 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
BLCO has an Altman-Z score of 0.81. This is a bad value and indicates that BLCO is not financially healthy and even has some risk of bankruptcy.
BLCO has a Altman-Z score (0.81) which is comparable to the rest of the industry.
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 72.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.09
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.55 indicates that BLCO should not have too much problems paying its short term obligations.
BLCO has a worse Current ratio (1.55) than 72.63% of its industry peers.
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 77.37% of the companies in the same industry.
| 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.
BLCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.81%.
BLCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.87% yearly.
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
Based on estimates for the next years, BLCO will show a very strong growth in Earnings Per Share. The EPS will grow by 24.11% on average per year.
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-12.99%
EPS Next 2Y14.53%
EPS Next 3Y19.01%
EPS Next 5Y24.11%
Revenue Next Year6.68%
Revenue Next 2Y6.25%
Revenue Next 3Y5.69%
Revenue Next 5Y4.93%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 37.50, the valuation of BLCO can be described as expensive.
Based on the Price/Earnings ratio, BLCO is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
BLCO is valuated rather expensively when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
BLCO is valuated rather expensively with a Price/Forward Earnings ratio of 19.37.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLCO indicates a rather cheap valuation: BLCO is cheaper than 80.53% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BLCO to the average of the S&P500 Index (23.18), we can say BLCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.5 | ||
| Fwd PE | 19.37 |
4.2 Price Multiples
76.84% 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 | 18.91 |
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 2Y14.53%
EPS Next 3Y19.01%
5. Dividend
5.1 Amount
No dividends for BLCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.75
+0.75 (+5%)
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 Change-0.01%
Ins Owners0.44%
Ins Owner Change9.58%
Market Cap5.58B
Analysts72
Price Target15.35 (-2.54%)
Short Float %7.68%
Short Ratio4.41
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)-2.13%
PT rev (3m)1.45%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)-6.04%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)9.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.5 | ||
| Fwd PE | 19.37 | ||
| P/S | 1.14 | ||
| P/FCF | N/A | ||
| P/OCF | 29.98 | ||
| P/B | 0.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.91 |
EPS(TTM)0.42
EY2.67%
EPS(NY)0.81
Fwd EY5.16%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.53
OCFY3.34%
SpS13.81
BVpS18.19
TBVpS-4.48
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 | 0.81 |
F-Score4
WACC7.48%
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-12.99%
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 Year6.68%
Revenue Next 2Y6.25%
Revenue Next 3Y5.69%
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%