Alcon (ALC) AI Stock Analysis

• Market Cap: CHF36.34B
• Dividend Yield: 0.38%
• Average Volume (3M): 935.31K
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.94
• Revenue Growth: 3.90%
• EPS Growth: 6.76%
• Country: CH
• Employees: 25,599
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.61
• Shares Outstanding: 499,700,000
• 10 Day Avg. Volume: 880,436
• 30 Day Avg. Volume: 935,309
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: CHF87.28
• Price Target Upside: 20.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 73 Outperform
• Price Target: CHF82.00 ▲(12.76%Upside)

Alcon's strong financial performance and strategic product launches are significant positives, supporting its long-term growth. However, the high P/E ratio and challenges from tariffs and the US surgical market pose risks. The stock demonstrates potential but faces valuation concerns.

Positive Factors

FDA Approval

FDA approval has been secured for TRYPTYR, the drug is indicated for both the signs and symptoms of dry eye disease, which is a significant milestone for ALC.

Product Launch

The product launch cycle is expected to fuel appealing exit rates for 2026, enhancing growth prospects.

Unity DX Launch

Unity DX is a 6-in-1 'whole-eye' analyzer for the clinic, expected to help drive AT-IOL adoption, reduce AT-IOL pre-op time by up to ~50%, lower equipment acquisition cost by up to ~40%, and reduce refractive error with better lens selection.

Negative Factors

Competition

Alcon faces intense competition in the intraocular lenses market, potentially leading to share loss.

Market Challenges

TRYPTYR may face challenges in the market due to burning and stinging side effects reported in trials, which might require additional education for physicians and patients.

Sales Performance

The company's sales in both the Surgical and Vision Care segments were below analyst estimates.

Alcon Business Overview & Revenue Model

Company Description

Alcon (ALC) is a global leader in eye care, dedicated to helping people see brilliantly. The company operates in two main segments: Surgical and Vision Care. Alcon's Surgical division provides advanced technologies and devices for cataract, retinal, refractive surgery, and other surgical procedures. The Vision Care segment focuses on daily disposable, reusable contact lenses, and a comprehensive portfolio of ocular health products.

How the Company Makes Money

Alcon generates revenue primarily through the sale of its surgical equipment, contact lenses, and eye care products. The Surgical segment earns income from the sale of equipment, consumables, and related services used in ophthalmic surgeries. Meanwhile, the Vision Care segment contributes to revenue through the sale of contact lenses and ocular health products, such as lens care solutions and dry eye drops. Alcon's growth is supported by strategic partnerships, research and development investments, and a focus on expanding its product offerings and market presence globally.

Alcon Financial Statement Overview

Summary

Alcon is financially robust with strong revenue and profit growth. The income statement shows improved margins, the balance sheet reflects low leverage and high equity ratios, and cash flow statements demonstrate excellent liquidity and cash generation. Overall, Alcon is well-positioned for sustained growth.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Alcon Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 72.72
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 72.72 is above the 20-day moving average (MA) of 70.24, above the 50-day MA of 70.90, and below the 200-day MA of 76.84, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 59.38 is Neutral, neither overbought nor oversold. The STOCH value of 93.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:ALC.

Alcon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STMN	78 Outperform	CHF17.43B	45.09		0.87%	3.82%	57.08%
NOVN	75 Outperform	CHF177.65B	15.61		3.75%	9.36%	-14.82%
ALC	73 Outperform	CHF36.34B	36.22	5.23%	0.38%	3.90%	6.76%
ROG	71 Outperform	CHF210.23B	22.00	31.98%	3.72%	4.77%	-11.07%
GALD	71 Outperform	CHF31.95B	97.34		0.11%	6.22%	―
LONN	69 Neutral	CHF38.62B	53.33		0.71%	5.93%	29.83%
Sector *	66 Neutral	CHF27.47B	16.67	9.37%	2.17%	28.68%	7.54%