| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
ALC Overview
Alcon, Inc., an eye care company, researches, develops, manufactures, distributes, and sells eye care products for eye care professionals and their patients worldwide.
Alcon Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CHF75.72 |
| 52 Week High | CHF51.20 |
| 52 Week Low | CHF80.52 |
| Beta | 0.48 |
| 1 Month Change | -3.25% |
| 3 Month Change | 18.39% |
| 1 Year Change | 35.55% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | 30.44% |
Recent News & Updates
Does Alcon (VTX:ALC) Have A Healthy Balance Sheet?
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Alcon's (VTX:ALC) Robust Earnings Are Supported By Other Strong Factors
When companies post strong earnings, the stock generally performs well, just like Alcon Inc.'s ( VTX:ALC ) stock has...
Shareholder Returns
| ALC | CH Medical Equipment | CH Market | |
|---|---|---|---|
| 7D | 5.1% | 4.3% | 0.4% |
| 1Y | 35.6% | 59.2% | 22.4% |
Return vs Industry: ALC underperformed the Swiss Medical Equipment industry which returned 55.3% over the past year.
Return vs Market: ALC exceeded the Swiss Market which returned 21.7% over the past year.
Price Volatility
| ALC volatility | |
|---|---|
| ALC Beta | 0.48 |
| Industry Beta | 0.73 |
| Market Beta | 1 |
Stable Share Price: ALC is not significantly more volatile than the rest of Swiss stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: ALC's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1945 | 23,000 | David Endicott | https://www.alcon.com |
Alcon, Inc., an eye care company, researches, develops, manufactures, distributes, and sells eye care products for eye care professionals and their patients worldwide. The company’s Surgical segment offers equipment, instrumentation and diagnostics, intraocular lenses (IOLs), and other implantables; and consumables, including viscoelastics, surgical solutions, incisional instruments, surgical custom packs, and other products for use in surgical procedures. Its cataract products include centurion vision system, LenSx femtosecond laser, LuxOR surgical ophthalmic microscope, NGENUITY 3D visualization system, and ORA system for intra-operative measurements; custom pak surgical procedure packs; vitreoretinal products comprising constellation vision systems, procedure packs, lasers and hand-held microsurgical instruments, and grieshaber and MIVS instruments, as well as scissors, forceps and micro-instruments, medical grade vitreous tamponades, and Hypervit vitrectomy probes; refractive surgery products, including WaveLight lasers and Contoura Vision used for LASIK treatment; and EX-PRESS glaucoma filtration device; and implantables products, including AcrySof IQ IOLs products include monofocal IOLs and advanced technology IOLs under PanOptix and ReSTOR brands for the correction of presbyopia and astigmatism at the time of cataract surgery.
Alcon Fundamentals Summary
| ALC fundamental statistics | |
|---|---|
| Market Cap | US$40.36b |
| Earnings (TTM) | US$183.00m |
| Revenue (TTM) | US$7.82b |
220.5x
P/E Ratio5.2x
P/S RatioIs ALC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ALC income statement (TTM) | |
|---|---|
| Revenue | US$7.82b |
| Cost of Revenue | US$3.74b |
| Gross Profit | US$4.08b |
| Expenses | US$3.89b |
| Earnings | US$183.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 10, 2021
| Earnings per share (EPS) | 0.37 |
| Gross Margin | 52.14% |
| Net Profit Margin | 2.34% |
| Debt/Equity Ratio | 21.6% |
How did ALC perform over the long term?
See historical performance and comparisonDividends
0.1%
Current Dividend Yield30%
Payout RatioValuation
Is Alcon undervalued compared to its fair value and its price relative to the market?
31.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALC (CHF75.72) is trading below our estimate of fair value (CHF110.38)
Significantly Below Fair Value: ALC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ALC is poor value based on its PE Ratio (220.5x) compared to the Swiss Medical Equipment industry average (52.2x).
PE vs Market: ALC is poor value based on its PE Ratio (220.5x) compared to the Swiss market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: ALC is poor value based on its PEG Ratio (8.2x)
Price to Book Ratio
PB vs Industry: ALC is good value based on its PB Ratio (2.1x) compared to the CH Medical Equipment industry average (6.4x).
Future Growth
How is Alcon forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
26.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALC's forecast earnings growth (26.9% per year) is above the savings rate (-0.3%).
Earnings vs Market: ALC's earnings (26.9% per year) are forecast to grow faster than the Swiss market (9.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ALC's revenue (5.6% per year) is forecast to grow faster than the Swiss market (5.1% per year).
High Growth Revenue: ALC's revenue (5.6% 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 (6.1%).
Past Performance
How has Alcon performed over the past 5 years?
-22.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALC has a large one-off loss of $136.0M impacting its June 30 2021 financial results.
Growing Profit Margin: ALC became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: ALC has become profitable over the past 5 years, growing earnings by -22.9% per year.
Accelerating Growth: ALC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: ALC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (41.1%).
Return on Equity
High ROE: ALC's Return on Equity (1%) is considered low.
Financial Health
How is Alcon's financial position?
Financial Position Analysis
Short Term Liabilities: ALC's short term assets ($5.0B) exceed its short term liabilities ($2.2B).
Long Term Liabilities: ALC's short term assets ($5.0B) do not cover its long term liabilities ($6.5B).
Debt to Equity History and Analysis
Debt Level: ALC's debt to equity ratio (21.6%) is considered satisfactory.
Reducing Debt: ALC's debt to equity ratio has increased from 0.8% to 21.6% over the past 5 years.
Debt Coverage: ALC's debt is well covered by operating cash flow (31.7%).
Interest Coverage: ALC's interest payments on its debt are well covered by EBIT (4.4x coverage).
Balance Sheet
Dividend
What is Alcon current dividend yield, its reliability and sustainability?
0.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ALC's dividend (0.13%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.37%).
High Dividend: ALC's dividend (0.13%) is low compared to the top 25% of dividend payers in the Swiss market (3.66%).
Stability and Growth of Payments
Stable Dividend: ALC is not paying a notable dividend for the Swiss market, therefore no need to check if payments are stable.
Growing Dividend: ALC is not paying a notable dividend for the Swiss market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: ALC is not paying a notable dividend for the Swiss market.
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?
2.9yrs
Average management tenure
CEO
David Endicott (56 yo)
3.25yrs
Tenure
US$8,099,182
Compensation
Mr. David J. Endicott had been the Chief Executive Officer of Alcon, Inc. since July 1, 2018. Mr. Endicott was the President of Hospira Medical Devices at Hospira Inc. since March 10, 2014. Mr. Endicott is...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD8.10M) is above average for companies of similar size in the Swiss market ($USD5.46M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: ALC's management team is considered experienced (2.9 years average tenure).
Board Members
Experienced Board: ALC's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Alcon Inc.'s 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: CHF37.095b
- Shares outstanding: 489.90m
- Website: https://www.alcon.com
Number of Employees
Location
- Alcon Inc.
- Chemin de Blandonnet 8
- 1214 Vernier
- Geneva
- Geneva
- Switzerland
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/25 21:33 |
| End of Day Share Price | 2021/10/25 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.