NYSE:ALC

Stock Analysis Report

Executive Summary

Alcon, Inc. develops and manufactures eye care products for eye care professionals and their patients.

Snowflake

Fundamentals

Adequate balance sheet with moderate 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


Market Performance


7 Day Return

0.5%

ALC

1.1%

US Medical Equipment

-0.6%

US Market


1 Year Return

n/a

ALC

9.9%

US Medical Equipment

0.6%

US Market

No trading data on ALC.

No trading data on ALC.


Share holder returns

ALCIndustryMarket
7 Day0.5%1.1%-0.6%
30 Day0.07%0.6%2.2%
90 Day-0.08%2.9%1.1%
1 Yearn/a10.8%9.9%2.9%0.6%
3 Yearn/a70.1%64.9%44.6%35.2%
5 Yearn/a138.9%111.8%61.9%44.2%

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

No news available

Valuation

Is Alcon undervalued based on future cash flows and its price relative to the stock market?

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Alcon's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Alcon's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Alcon is loss making, we can't compare its value to the US Medical Equipment industry average.

Alcon is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Alcon, we can't assess if its growth is good value.


Price Based on Value of Assets

Alcon is good value based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Alcon expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

76.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Alcon's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).

Alcon's earnings are expected to grow significantly at over 20% yearly.

Alcon's revenue growth is positive but not above the United States of America market average.

Alcon's earnings growth is expected to exceed the United States of America market average.

Alcon's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Alcon is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Alcon performed over the past 5 years?

-61.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Alcon does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Alcon's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Alcon's 1-year growth to the US Medical Equipment industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Alcon has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Alcon has efficiently used its assets last year compared to the US Medical Equipment industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Alcon improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Alcon's financial position?


Financial Position Analysis

Alcon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Alcon's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Alcon's level of debt (18.1%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Alcon's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

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.

Whilst loss making Alcon has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Alcon has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 42.1% per year.


Next Steps

Dividend

What is Alcon's current dividend yield, its reliability and sustainability?

0.31%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Alcon's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Alcon's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Alcon has not reported any payouts.

Unable to verify if Alcon's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Alcon has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Alcon's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Alcon's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

David Endicott (54yo)

1.2yrs

Tenure

0

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 ...


Management Age and Tenure

1.2yrs

Average Tenure

53.5yo

Average Age

The average tenure for the Alcon management team is less than 2 years, this suggests a new team.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Karen King

    Senior VP and Head of Global Investor Relations & Communications

    • Tenure: 0yrs
  • Ed McGough (58yo)

    Senior VP & Head of Global Manufacturing & Technical Operations

    • Tenure: 0yrs
    • Compensation: US$2.03m
  • Tim Stonesifer (52yo)

    Senior VP & CFO

    • Tenure: 0.4yrs
  • Merrick McCracken

    Senior VP & Head of Global Human Resources

    • Tenure: 0yrs
    • Compensation: US$1.75m
  • David Endicott (54yo)

    CEO & Director

    • Tenure: 1.2yrs
  • Royce Bedward (53yo)

    Senior VP

    • Tenure: 0yrs
  • Sergio Duplan

    Region President for North America

    • Tenure: 4.1yrs
  • Laurent Attias

    Senior VP & Head of Global Corporate Development Strategy

    • Tenure: 0yrs
  • Sue-Jean Lin

    Senior VP & Chief Information Officer

    • Tenure: 0yrs
  • Margaret Buckley

    Chief Accounting Officer

    • Tenure: 0yrs

Board Members

  • Mike Ball (64yo)

    Chairman

    • Tenure: 0yrs
  • Karen May (61yo)

    Director

    • Tenure: 0yrs
  • D. Grossman (59yo)

    Director

    • Tenure: 0yrs
  • Thomas Glanzmann (61yo)

    Director

    • Tenure: 0yrs
  • Dieter Spälti (58yo)

    Director

    • Tenure: 0yrs
  • Scott Maw (52yo)

    Director

    • Tenure: 0yrs
  • David Endicott (54yo)

    CEO & Director

    • Tenure: 1.2yrs
  • Lynn Bleil (56yo)

    Director

    • Tenure: 0yrs
  • Ines Pöschel (51yo)

    Director

    • Tenure: 0yrs
  • Arthur Cummings (57yo)

    Director

    • Tenure: 0yrs

Company Information

Alcon, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alcon, Inc.
  • Ticker: ALC
  • Exchange: NYSE
  • Founded: 1945
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: CHF28.990b
  • Listing Market Cap: CHF29.183b
  • Shares outstanding: 488.70m
  • Website: https://www.alcon.com

Number of Employees


Location

  • Alcon, Inc.
  • 6201 South Freeway
  • Fort Worth
  • Texas
  • 76134-2001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2U3BST (Boerse-Stuttgart)YesCommon SharesDEEURApr 2019
ALC NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNApr 2019
2U3DB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2019
ALCSWX (SIX Swiss Exchange)YesCommon SharesCHCHFApr 2019
ALCNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 2019
0A0DLSE (London Stock Exchange)YesCommon SharesGBUSDApr 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, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 01:02
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.