Market Cap
CHF30.5b
Last Updated
2020/02/22 00:11 UTC
Data Sources
Company Financials +
Executive Summary
Alcon, Inc. develops and manufactures eye care products for eye care professionals and their patients.
Rewards
Risk Analysis
No risks detected for ALC from our risk checks.
Snowflake Analysis
Adequate balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Alcon's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ALC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.9%
ALC
3.1%
CH Medical Equipment
0.6%
CH Market
1 Year Return
n/a
ALC
34.0%
CH Medical Equipment
16.9%
CH Market
Return vs Industry: Insufficient data to determine how ALC performed against the Swiss Medical Equipment industry.
Return vs Market: Insufficient data to determine how ALC performed against the Swiss Market.
Shareholder returns
| ALC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | 3.1% | 0.6% |
| 30 Day | 3.6% | 5.2% | 1.9% |
| 90 Day | 9.6% | 11.8% | 7.4% |
| 1 Year | n/a | 35.3%34.0% | 22.5%16.9% |
| 3 Year | n/a | 100.8%94.2% | 40.4%23.2% |
| 5 Year | n/a | 175.2%157.3% | 45.3%22.3% |
Price Volatility Vs. Market
How volatile is Alcon's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Does Alcon (VTX:ALC) Have A Healthy Balance Sheet?3 months ago | Simply Wall St
A Look At The Intrinsic Value Of Alcon, Inc. (VTX:ALC)5 months ago | Simply Wall St
Is Alcon (VTX:ALC) Using Too Much Debt?Valuation
Is Alcon undervalued compared to its fair value and its price relative to the market?
1.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALC (CHF62.17) is trading below our estimate of fair value (CHF62.68)
Significantly Below Fair Value: ALC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ALC is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.
PE vs Market: ALC is unprofitable, so we can't compare its PE Ratio to the Swiss market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ALC's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ALC is good value based on its PB Ratio (1.6x) compared to the CH Medical Equipment industry average (6.8x).
Next Steps
Future Growth
How is Alcon forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
83.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.6%).
Earnings vs Market: ALC is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: ALC's is expected to become profitable in the next 3 years.
Revenue vs Market: ALC's revenue (4.8% per year) is forecast to grow faster than the Swiss market (3.4% per year).
High Growth Revenue: ALC's revenue (4.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ALC's Return on Equity is forecast to be low in 3 years time (5.3%).
Next Steps
Past Performance
How has Alcon performed over the past 5 years?
-60.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALC is currently unprofitable.
Growing Profit Margin: ALC is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ALC is unprofitable, and losses have increased over the past 5 years at a rate of -60.8% per year.
Accelerating Growth: Unable to compare ALC's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ALC is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (-9.5%).
Return on Equity
High ROE: ALC has a negative Return on Equity (-3.29%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Alcon's financial position?
Financial Position Analysis
Short Term Liabilities: ALC's short term assets ($4.2B) exceed its short term liabilities ($2.2B).
Long Term Liabilities: ALC's short term assets ($4.2B) do not cover its long term liabilities ($6.0B).
Debt to Equity History and Analysis
Debt Level: ALC's debt to equity ratio (17.9%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if ALC's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
Inventory Level: ALC has a low level of unsold assets or inventory.
Debt Coverage by Assets: ALC's debt is covered by short term assets (assets are 1.2x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable ALC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: ALC is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -37.7% per year.
Next Steps
Dividend
What is Alcon's current dividend yield, its reliability and sustainability?
0.31%
Forecast Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate ALC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ALC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ALC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ALC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ALC's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
David Endicott (54yo)
1.6yrs
Tenure
Mr. David J. Endicott had been the Chief Executive Officer of Alcon, Inc. since July 1, 2018. Mr. Endicott has been the President of Hospira Medical Devices at Hospira Inc. since March 10, 2014. Mr. Endico ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Senior VP & Head of Global Human Resources | 0yrs | US$1.75m | no data | |
| Senior VP and Head of Global Manufacturing & Technical Operations | 0yrs | US$2.03m | no data | |
| CEO & Director | 1.6yrs | no data | no data | |
| Senior VP & CFO | 0.8yrs | no data | no data | |
| Chief Accounting Officer | 0yrs | no data | no data | |
| Senior VP & Chief Information Officer | 0yrs | no data | no data | |
| Senior VP and Head of Global Investor Relations & Communications | 0yrs | no data | no data | |
| Senior VP | 0yrs | no data | no data | |
| Senior VP & Head of Global Corporate Development Strategy | 0yrs | no data | no data | |
| Region President for North America | 4.5yrs | no data | no data |
1.6yrs
Average Tenure
53.5yo
Average Age
Experienced Management: ALC's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: ALC only recently listed within the past 12 months, with total shares outstanding growing by 0% in the past year..
Top Shareholders
Company Information
Alcon, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Alcon, Inc.
- Ticker: ALC
- Exchange: SWX
- Founded: 1945
- Industry: Health Care Supplies
- Sector: Healthcare
- Market Cap: CHF30.490b
- Shares outstanding: 491.70m
- Website: https://www.alcon.com
Number of Employees
Location
- Alcon, Inc.
- Chemin de Blandonnet 8
- 1214 Vernier
- Geneva
- Switzerland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 2U3 | BST (Boerse-Stuttgart) | Yes | Common Shares | DE | EUR | Apr 2019 |
| ALC N | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Apr 2019 |
| 2U3 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Apr 2019 |
| ALC | SWX (SIX Swiss Exchange) | Yes | Common Shares | CH | CHF | Apr 2019 |
| ALC | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Apr 2019 |
| 0A0D | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Apr 2019 |
Biography
Alcon, Inc. develops and manufactures eye care products for eye care professionals and their patients. It offers surgical products, which include technologies and devices for cataract, retinal, glaucoma, and refractive surgery; advanced technology intraocular lenses to treat cataracts and refractive errors, such as presbyopia and astigmatism; and advanced viscoelastics, surgical solutions, surgical packs, and other disposable products for cataract and vitreoretinal surgery. The company also provides pharmaceutical products for elevated intraocular pressure caused by glaucoma; anti-inflammatories; anti-infective to aid in the treatment of bacterial infections and bacterial conjunctivitis; ophthalmic solutions to treat inflammation and pain associated with ocular surgery; eye inflammation and infection solutions following cataract surgery; and vitreomacular adhesion, eye and nasal allergy treatment solutions, and over-the-counter dry eye relief and ocular vitamins. In addition, it offers vision care products, such as contact lenses and lens care products; daily disposable, monthly replacement, and color-enhancing contact lenses for comfortable and convenient vision correction options; contact lens care products; multi-purpose and hydrogen-peroxide based solutions to clean, rinse, and disinfect contact lenses; rewetting drops; and daily protein removers that removes protein deposits from lenses. Alcon, Inc. was formerly known as Alcon Universal S.A. and changed the name to Alcon, Inc. in December 2001. The company was founded in 1945 and is headquartered in Geneva, Switzerland. Alcon, Inc. was previously operating as a subsidiary of Novartis AG. Alcon, Inc.(SWX:ALC) operates independently of Novartis AG as of April 9, 2019.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 00:11 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.