Alcon (ALC) Stock Analysis – A Brief Overview

By Kim Brooks • Wednesday, August 20 10:13 • Permanent Link

One of the losers of today's trading session was Alcon. Shares of the Ophthalmic goods company plunged -8.7%, and some investors may be wondering if its price of $82.24 would make a good entry point. Here's what you should know if you are considering this investment:

Alcon has moved -4.8% over the last year, and the S&P 500 logged a change of 14.1%
ALC has an average analyst rating of buy and is -21.8% away from its mean target price of $105.17 per share
Its trailing earnings per share (EPS) is $2.25
Alcon has a trailing 12 month Price to Earnings (P/E) ratio of 36.6 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $3.52 and its forward P/E ratio is 23.4
The company has a Price to Book (P/B) ratio of 1.89 in contrast to the S&P 500's average ratio of 4.74
Alcon is part of the Health Care sector, which has an average P/E ratio of 22.94 and an average P/B of 3.19
ALC has reported YOY quarterly earnings growth of 40.0% and gross profit margins of 0.6%
The company has a free cash flow of $1.18 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Alcon Inc. researches, develops, manufactures, distributes, and sells eye care products worldwide. It operates through two segments, Surgical and Vision Care. The company 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 surgical procedures. Its cataract products include Centurion vision system, LenSx laser system, Verion reference unit and Verion digital marker, ARGOS biometer, SMARTCATARACT health platform, NGENUITY 3D visualization system, LuxOR surgical ophthalmic microscope, and ORA system for intra-operative measurements; and implantable products, including monofocal, Toric, and Presbyopia-Correcting IOLs, as well as delivery systems, such as AutonoMe and UltraSert. In addition, it provides Custom Pak surgical procedure packs vitreoretinal products comprising constellation vision systems, procedure packs, lasers and hand-held microsurgical instruments, grieshaber, MIVS instruments, scissors, forceps and micro-instruments, medical grade vitreous tamponades, and Hypervit vitrectomy probes; and refractive surgery products, including WaveLight and Contoura Vision used for LASIK refractive procedure. Further, the company offers daily disposable, reusable, and color-enhancing contact lenses; ocular health products, such as dry eye, ocular allergies, glaucoma, and contact lens care, as well as ocular vitamins and redness relievers. The company was formerly known as Alcon Universal S.A. and changed its name to Alcon Inc. in December 2001. Alcon Inc. was founded in 1945 and is headquartered in Geneva, Switzerland.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.