Fact based stock research
Alcon (SWX:ALC)
CH0432492467
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Alcon stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 28 (worse than 72% compared with investment alternatives), Alcon (Health Care Supplies, Switzerland) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Alcon are low in value (priced high) with a consolidated Value Rank of 32 (worse than 68% of alternatives). But they show above-average growth (Growth Rank of 52) and are safely financed (Safety Rank of 58, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 28, is a hold recommendation based on Alcon's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Alcon exhibits low value (Obermatt Value Rank of 32), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 52). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 58) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° ViewnewThis stock has achievements: Top 10 Stock.
28-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Alcon
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 33 |
|
49 |
|
41 |
|
32 |
|
| GROWTH | ||||||||
| GROWTH | 86 |
|
51 |
|
47 |
|
52 |
|
| SAFETY | ||||||||
| SAFETY | 24 |
|
19 |
|
39 |
|
58 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
58 |
|
47 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
27 |
|
25 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 28 (worse than 72% compared with investment alternatives), Alcon (Health Care Supplies, Switzerland) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Alcon are low in value (priced high) with a consolidated Value Rank of 32 (worse than 68% of alternatives). But they show above-average growth (Growth Rank of 52) and are safely financed (Safety Rank of 58, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 28, is a hold recommendation based on Alcon's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Alcon exhibits low value (Obermatt Value Rank of 32), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 52). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 58) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 33 |
|
49 |
|
41 |
|
32 |
|
| GROWTH | ||||||||
| GROWTH | 86 |
|
51 |
|
47 |
|
52 |
|
| SAFETY | ||||||||
| SAFETY | 24 |
|
19 |
|
39 |
|
58 |
|
| COMBINED | ||||||||
| COMBINED | 39 |
|
17 |
|
18 |
|
28 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 32 (worse than 68% compared with alternatives), Alcon shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Alcon. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 65, which means that the stock price is lower compared with invested capital than for 65% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 15 which means the stock price compared with what market professionals expect for future profits is higher than 85% of comparable companies, indicating a low value concerning Alcon's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 65 and for the dividend yields rank which is lower than for 68% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 32, is a hold recommendation based on Alcon's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Alcon, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 16 |
|
31 |
|
28 |
|
15 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 39 |
|
29 |
|
35 |
|
31 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 45 |
|
84 |
|
70 |
|
65 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 53 |
|
32 |
|
34 |
|
32 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 33 |
|
49 |
|
41 |
|
32 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 52 (better than 52% compared with alternatives), Alcon shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Alcon. Sales Growth has a below market rank of 34, which means that, currently, professionals expect the company to grow less than 66% of its competitors. The same is valid for Capital Growth, with a rank of 43, and Profit Growth, with a rank of 48. Currently, professionals expect the company to grow its profits less than 52% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 76, which means that the stock returns have recently been above 76% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 52, is a buy recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Alcon, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 69 |
|
27 |
|
26 |
|
34 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 81 |
|
81 |
|
74 |
|
48 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
44 |
|
42 |
|
43 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 60 |
|
49 |
|
53 |
|
76 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 86 |
|
51 |
|
47 |
|
52 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 58 (better than 58% compared with alternatives), the company Alcon has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Alcon is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Alcon and the other two below average. Leverage is at a rank of 69 meaning the company has a below-average debt-to-equity ratio. It has less debt than 69% of its competitors.Refinancing is at a rank of 36, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 64% of its competitors. Liquidity is at a rank of 46, meaning that the company generates less profit to service its debt than 54% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 58 (better than 58% compared with alternatives), Alcon has a financing structure that is safer than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Alcon are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Alcon and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 40 |
|
62 |
|
66 |
|
69 |
|
| REFINANCING | ||||||||
| REFINANCING | 38 |
|
11 |
|
33 |
|
36 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 49 |
|
17 |
|
25 |
|
46 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 24 |
|
19 |
|
39 |
|
58 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
40 |
|
56 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
48 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
70 |
|
46 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
52 |
|
56 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
58 |
|
47 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Alcon from November 28, 2024.
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