Now trading at a price of $73.84, Alcon has moved -2.5% so far today on a volume of 783,203, compared to its average of 935,075. In contrast, the S&P 500 index moved -0.2%. Read below for a basic value analysis of Alcon.
Alcon shares moved 2.0% over the last 52 weeks, with a high of $81.97 and a low of $55.21. During this time, the stock outperformed the S&P 500 index by 9.7%. As of January 2022, the company's 50-day average price is $69.0. Alcon Inc., an eye care company, researches, develops, manufactures, distributes, and sells eye care products for eye care professionals and their patients worldwide. The large-cap Healthcare company has 24,000 full time employees and is based in Geneva, Switzerland. Alcon has returned a 0.3% dividend yield over the last 12 months.
Exceptional EPS Growth with Healthy Leverage Levels:
|Gross Margins Growth||n/a||-11.89%||30.47%|
|Operating Margins Growth||n/a||-180.0%||200.0%|
|Earnings Per Share||-$1.34||-$1.09||$0.76|
|Free Cash Flow (MM)||$244||$256||$165|
|Capital Expenditures (MM)||-$676||-$567||-$1,180|
|Net Debt / EBITDA||2.2||2.31||1.44|
Alcon Is Overvalued:
Compared to the Healthcare sector's average of 13.21, Alcon has a trailing twelve month P/E ratio of 63.7 and, according to its EPS guidance of 2.51, an expected P/E ratio of 29.4. Alcon's PEG ratio is 0.46 based on its 139.67% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Alcon's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 4.88, which suggests that the company's shares are actually overvalued.
However, Alcon is likely undervalued in terms of its equity because its P/B ratio is 1.8 compared to its sector average of 4.07. The company's shares are now trading 182.5% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * EPS * book value per share) = √(22.5 * 0.76 * 39.957) = $26.14
Alcon Is the Subject of Mixed Market Indicators:
12 analysts are following Alcon and have set target prices ranging from $76 to $96 per share. On average, they have given the company a rating of buy. At the current price of $73.84, ALC is trading -11.65% away from its average analyst target price of $83.58 per share, implying an analyst consensus of some upside potential for the stock.