BAUSCH + LOMB CORP (BLCO) Stock Fundamental Analysis
NYSE:BLCO - CA0717051076 - Common Stock
14.63 USD
+0.08 (+0.55%)
14.63 USD
0 (0%)
Taking everything into account, BLCO scores 3 out of 10 in our fundamental rating. BLCO was compared to 189 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
With a decent Return On Assets value of -1.97%, BLCO is doing good in the industry, outperforming 68.59% of the companies in the same industry.
BLCO has a Return On Equity of -4.24%. This is in the better half of the industry: BLCO outperforms 69.11% of its industry peers.
BLCO's Return On Invested Capital of 0.66% is fine compared to the rest of the industry. BLCO outperforms 65.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BLCO is significantly below the industry average of 8.44%.
| 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 67.02% of its industry peers.
BLCO's Operating Margin has declined in the last couple of years.
The Gross Margin of BLCO (59.68%) is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BLCO is destroying value.
BLCO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BLCO has been increased compared to 5 years ago.
BLCO has a worse debt/assets ratio than last year.
2.2 Solvency
BLCO has an Altman-Z score of 0.80. This is a bad value and indicates that BLCO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.80, BLCO perfoms like the industry average, outperforming 51.31% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that BLCO is somewhat dependend on debt financing.
BLCO has a Debt to Equity ratio of 0.77. This is in the lower half of the industry: BLCO underperforms 73.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.09
WACC7.6%
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 has a worse Current ratio (1.55) than 72.25% 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 Quick ratio of 0.98. This is in the lower half of the industry: BLCO underperforms 76.96% of its industry peers.
| 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%.
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
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-12.54%
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
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
With a Price/Earnings ratio of 34.83, BLCO can be considered very expensive at the moment.
BLCO's Price/Earnings ratio is a bit cheaper when compared to the industry. BLCO is cheaper than 72.77% of the companies in the same industry.
BLCO is valuated rather expensively when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.94, BLCO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLCO indicates a rather cheap valuation: BLCO is cheaper than 80.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.72. BLCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.83 | ||
| Fwd PE | 18.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BLCO is valued a bit cheaper than the industry average as 76.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.66 |
4.3 Compensation for Growth
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 2Y11.62%
EPS Next 3Y19.01%
5. Dividend
5.1 Amount
No dividends for BLCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.63
+0.08 (+0.55%)
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 Cap5.18B
Analysts72.63
Price Target15.68 (7.18%)
Short Float %9.73%
Short Ratio4.81
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)3.65%
PT rev (3m)-1.34%
EPS NQ rev (1m)-4.55%
EPS NQ rev (3m)-15.6%
EPS NY rev (1m)10.02%
EPS NY rev (3m)8.15%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.83 | ||
| Fwd PE | 18.94 | ||
| P/S | 1.06 | ||
| P/FCF | N/A | ||
| P/OCF | 27.84 | ||
| P/B | 0.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.66 |
EPS(TTM)0.42
EY2.87%
EPS(NY)0.77
Fwd EY5.28%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.53
OCFY3.59%
SpS13.82
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 | 0.8 |
F-Score4
WACC7.6%
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%