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ALC

AlconSWX:ALC Stock Report

Market Cap

CHF37.1b

7D

5.1%

1Y

35.6%

Updated

25 Oct, 2021

Data

Company Financials +
ALC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends0/6

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

Johnson & Johnson

NYSE:JNJ

US$431.9b

Roche Holding

SWX:ROG

CHF311.0b

Pfizer

NYSE:PFE

US$241.9b

Merck

NYSE:MRK

US$206.7b

Price History & Performance

Summary of all time highs, changes and price drops for Alcon
Historical stock prices
Current Share PriceCHF75.72
52 Week HighCHF51.20
52 Week LowCHF80.52
Beta0.48
1 Month Change-3.25%
3 Month Change18.39%
1 Year Change35.55%
3 Year Changen/a
5 Year Changen/a
Change since IPO30.44%

Recent News & Updates

Sep 15
Does Alcon (VTX:ALC) Have A Healthy Balance Sheet?

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...

Aug 24
Alcon's (VTX:ALC) Robust Earnings Are Supported By Other Strong Factors

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

ALCCH Medical EquipmentCH Market
7D5.1%4.3%0.4%
1Y35.6%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

Is ALC's price volatile compared to industry and market?
ALC volatility
ALC Beta0.48
Industry Beta0.73
Market Beta1

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

FoundedEmployeesCEOWebsite
194523,000David Endicotthttps://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

How do Alcon's earnings and revenue compare to its market cap?
ALC fundamental statistics
Market CapUS$40.36b
Earnings (TTM)US$183.00m
Revenue (TTM)US$7.82b

220.5x

P/E Ratio

5.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALC income statement (TTM)
RevenueUS$7.82b
Cost of RevenueUS$3.74b
Gross ProfitUS$4.08b
ExpensesUS$3.89b
EarningsUS$183.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 10, 2021

Earnings per share (EPS)0.37
Gross Margin52.14%
Net Profit Margin2.34%
Debt/Equity Ratio21.6%

How did ALC perform over the long term?

See historical performance and comparison

Dividends

0.1%

Current Dividend Yield

30%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 21:33
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.