Alcon (ALC) AI Stock Analysis

• Market Cap: CHF32.59B
• Dividend Yield: 0.44%
• Average Volume (3M): 871.21K
• Price to Earnings (P/E): 35.9
• Beta (1Y): 0.97
• Revenue Growth: 0.39%
• EPS Growth: -12.46%
• Country: CH
• Employees: 25,599
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.63
• Shares Outstanding: 499,700,000
• 10 Day Avg. Volume: 330,386
• 30 Day Avg. Volume: 871,210
• PEG Ratio: 10.18
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 4.23
• P/FCF Ratio: 29.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF72.62
• Price Target Upside: 12.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: CHF72.00 ▲(11.39% Upside)

Alcon's overall stock score reflects its strong financial performance and positive earnings call, highlighting growth in key areas like vision care and surgical equipment. However, valuation concerns and technical indicators suggest caution, with potential challenges from tariffs and market conditions impacting margins.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong product demand and effective market strategies, supporting long-term business expansion.

Innovation in Product Launches

Successful product launches like Unity VCS enhance competitive positioning and drive future revenue, reflecting a robust R&D pipeline.

Cash Flow Management

Strong cash flow management ensures liquidity and financial flexibility, enabling strategic investments and shareholder returns.

Negative Factors

Gross Margin Pressure

Decreasing gross margins due to tariffs could impact profitability and limit financial resources for reinvestment in growth.

Challenges in Cataract Markets

Slower growth in cataract markets may hinder revenue expansion in a key segment, affecting overall business performance.

Operating Margin Decline

Declining operating margins due to increased R&D investment and tariffs may pressure profitability and strategic flexibility.

Alcon Business Overview & Revenue Model

Company Description

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; EX-PRESS glaucoma filtration device; and implantables products, including AcrySof IQ IOLs products include monofocal IOLs and advanced technology IOLs under the PanOptix and ReSTOR brands for the correction of presbyopia and astigmatism at the time of cataract surgery. Its Vision Care segment provides daily disposable, reusable, and color-enhancing contact lenses; ocular health products, such as dry eye, glaucoma, contact lens care, and ocular allergies; and ocular vitamins and redness relievers under the TOTAL, PRECISION, DAILIES AquaComfort PLUS, Air Optix, Opti-Free, Clear Care, Tears Naturale, Genteal, ICAPS, and Vitalux brands. The company was formerly known as Alcon Universal S.A. and changed the name to Alcon Inc. in December 2001. Alcon Inc. was founded in 1945 and is headquartered in Geneva, Switzerland.

How the Company Makes Money

Alcon generates revenue through multiple streams, primarily from the sale of surgical products and vision care products. The Surgical segment includes revenue from cataract surgery devices, which are critical for treating cataracts, and refractive surgery devices used for vision correction procedures. The Vision Care segment derives income from the sale of contact lenses and lens care products, catering to both daily and extended wear needs. Alcon's revenue model is bolstered by strong relationships with healthcare professionals, hospitals, and clinics, which facilitate widespread distribution of its products. Additionally, the company invests in research and development to innovate new products and improve existing offerings, thereby enhancing its market competitiveness. Strategic partnerships with healthcare providers and participation in global eye care initiatives further contribute to its earnings.

Alcon Financial Statement Overview

Summary

Alcon demonstrates strong financial health with robust revenue and profit growth, improving margins, low leverage, and exceptional cash generation. The income statement, balance sheet, and cash flow statement collectively suggest Alcon is well-positioned for sustained growth and financial stability.

Income Statement

Alcon's income statement shows strong growth and profitability. The gross profit margin increased to 55.6%, indicating efficient cost management. Net profit margin improved to 10.3%, reflecting robust earnings growth. Revenue growth rate from the previous year was 4.8%, maintaining a positive trajectory. EBIT margin increased to 14.3% and EBITDA margin to 27.0%, suggesting enhanced operational efficiency. Overall, Alcon's income statement reflects a solid financial performance with improving margins and consistent revenue growth.

Balance Sheet

Alcon's balance sheet is stable with a debt-to-equity ratio of 0.24, indicating a low level of leverage, which reduces financial risk. Return on equity improved to 4.7%, showing better utilization of equity. The equity ratio is strong at 71.0%, underscoring a robust financial structure. The balance sheet reflects a well-capitalized company with low reliance on debt, although there is room for improvement in returns to shareholders.

Cash Flow

Alcon's cash flow statement is very strong, with a significant free cash flow growth rate of 161.9%, highlighting excellent cash generation. The operating cash flow to net income ratio is 2.04, indicating efficient cash conversion. The free cash flow to net income ratio of 1.38 further confirms strong cash flow management. Overall, the cash flow statements point to excellent liquidity and financial flexibility, supporting future growth and investment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.19B	9.91B	9.46B	8.72B	8.29B	6.83B
Gross Profit	5.61B	5.51B	5.25B	4.75B	4.65B	2.94B
EBITDA	2.05B	2.68B	2.24B	1.72B	1.76B	1.11B
Net Income	1.05B	1.02B	974.00M	335.00M	376.00M	-531.00M
Balance Sheet
Total Assets	31.49B	30.35B	29.61B	29.21B	28.00B	27.60B
Cash, Cash Equivalents and Short-Term Investments	1.50B	1.83B	1.10B	980.00M	1.58B	1.57B
Total Debt	5.23B	5.14B	5.13B	5.07B	4.48B	4.50B
Total Liabilities	9.43B	8.79B	8.99B	9.53B	8.74B	8.78B
Stockholders Equity	22.06B	21.55B	20.62B	19.68B	19.26B	18.82B
Cash Flow
Free Cash Flow	1.59B	1.41B	537.00M	472.00M	165.00M	256.00M
Operating Cash Flow	2.05B	2.08B	1.39B	1.22B	1.34B	823.00M
Investing Cash Flow	-1.37B	-1.17B	-1.09B	-1.86B	-1.20B	-572.00M
Financing Cash Flow	-765.31M	-322.00M	-211.00M	-8.00M	-123.00M	466.00M

Alcon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ALC, the sentiment is Positive. The current price of 64.64 is above the 20-day moving average (MA) of 63.72, above the 50-day MA of 62.25, and below the 200-day MA of 68.02, indicating a neutral trend. The MACD of 0.48 indicates Negative momentum. The RSI at 58.43 is Neutral, neither overbought nor oversold. The STOCH value of 81.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:ALC.

Alcon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOVN	80 Outperform	CHF212.25B	17.88	―	3.18%	7.62%	-18.33%
ALC	75 Outperform	CHF32.59B	35.89	4.82%	0.44%	0.39%	-12.46%
ROG	73 Outperform	$263.44B	27.85	31.98%	2.94%	4.77%	-11.07%
STMN	72 Outperform	CHF15.93B	40.56	―	1.02%	4.49%	45.08%
GALD	70 Outperform	CHF38.89B	119.85	―	0.09%	6.22%	―
SOON	68 Neutral	CHF12.09B	24.06	―	2.14%	3.79%	-7.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%