Skip to Content

Alcon Inc ALC

Morningstar Rating
$85.69 +4.51 (5.56%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Alcon Earnings: Strong Results Reaffirm Leadership in Surgical Market; Outlook Appears Solid

Narrow-moat Alcon reported fourth-quarter earnings that were better than our expectations. Total sales of $2.4 billion were up 8.3% year over year thanks to a strong performance from the ocular health and equipment business. After ticking up our near-term assumptions and accounting for time value of money impacts, we raised our fair value estimate to $70 per share from $64.

Price vs Fair Value

ALC is trading at a 22% premium.
Price
$85.70
Fair Value
$76.00
Uncertainty
Medium
1-Star Price
$38.20
5-Star Price
$41.00
Economic Moat
Wrtrl
Capital Allocation
Rljgtryn

Bulls Say, Bears Say

Bulls

Alcon is one of the leading visioncare companies in the world, with a record of successful product development, and it will continue to launch technically superior products.

Bears

A failure to help doctors transition from Centurion to a new phacoemulsification machine (upon launch in the next two years) could leave some customers unsatisfied and moving to a different manufacturer.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if ALC is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$81.18
Day Range
$83.6185.95
52-Week Range
$63.7886.20
Bid/Ask
$79.69 / $85.69
Market Cap
$42.14 Bil
Volume/Avg
2.7 Mil / 833,670

Key Statistics

Price/Earnings (Normalized)
31.72
Price/Sales
4.50
Dividend Yield (Trailing)
0.27%
Dividend Yield (Forward)
0.31%
Total Yield
0.27%

Company Profile

Alcon is one of the leading visioncare companies in the world. Following nine years as a Novartis subsidiary, it was spun off as a public company in April 2019. Alcon operates in two segments: visioncare and surgical. Visioncare comprises contact lenses, lenscare solutions, and a suite of ocular health products. With brands like Dailies, Total1, and Air Optix, Alcon controls one fourth of the U.S. contact lens market. Surgical comprises intraocular lenses, ophthalmic surgical equipment, and consumables used during surgeries. Its main products include Centurion, a phacoemulsification device used during cataract surgeries, and a portfolio of IOLs including PanOptix and Vivity. Alcon has one of the largest installed bases of eye surgical equipment in the world.
Sector
Healthcare
Industry
Medical Instruments & Supplies
Stock Style Box
Large Growth
Total Number of Employees
25,178

Competitors

Valuation

Metric
ALC
COO
AFX
Price/Earnings (Normalized)
31.727.3933.42
Price/Book Value
2.042.484.65
Price/Sales
4.505.244.80
Price/Cash Flow
23.7422.8026.64
Price/Earnings
ALC
COO
AFX

Financial Strength

Metric
ALC
COO
AFX
Quick Ratio
1.290.752.41
Current Ratio
2.281.763.40
Interest Coverage
5.164.9226.15
Quick Ratio
ALC
COO
AFX

Profitability

Metric
ALC
COO
AFX
Return on Assets (Normalized)
3.89%3.22%9.84%
Return on Equity (Normalized)
5.67%5.05%13.77%
Return on Invested Capital (Normalized)
5.05%4.47%12.22%
Return on Assets
ALC
COO
AFX
See how this stock stacks up to its competitors with Morningstar Investor

Medical Instruments & Supplies Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ISRG
Intuitive Surgical IncFdfh$136.2 Bil
BDX
Becton Dickinson & CoLbpgy$69.1 Bil
CLPBY
Coloplast A/S ADRBqrj$30.0 Bil
WST
West Pharmaceutical Services IncBqxzx$26.2 Bil
RMD
ResMed IncFwzry$25.6 Bil
BAX
Baxter International IncLvbmdty$21.1 Bil
COO
The Cooper Companies IncDjdyss$18.8 Bil
HOLX
Hologic IncMrskyz$17.4 Bil
TFX
Teleflex IncQyfm$10.6 Bil

Sponsor Center