Recent News
On July 25, 2025 Alcon highlighted Unity VCS surgical innovations and clinical data ahead of the ASRS meeting running July 31–August 2. On August 1, 2025 the company planned to occupy new Fort Worth space as part of a $1.0M buildout. On September 3, 2025 Alcon completed the acquisition of LumiThera, adding the Valeda photobiomodulation system for dry AMD to its portfolio.
Technical Analysis
ADX / DI+/DI-: ADX registers 32.91, signalling a strong trend environment. DI+ shows a dip & reversal at 15.81 while DI- shows a peak & reversal at 35.63; both reversal signals imply waning downside pressure and a tilt toward bullish directional strength, supporting the near-term recovery narrative relative to the current valuation.
MACD: MACD stands at -1.98 with a dip & reversal and a signal line at -2.04; MACD has crossed above its signal line, confirming a shift to bullish momentum and reinforcing the directional cue from the directional indicators for short-term price pressure higher.
MRO: MRO at -34.14 with a peak & reversal indicates the price sits below the model target and offers upward potential; the negative MRO aligns with the momentum signals and supports an expectation of price convergence toward valuation-implied levels.
RSI and Price Positioning: RSI at 39.99 with a dip & reversal shows below-neutral momentum but room to rally. Price at $75.11 sits under the 50-day ($81.71) and 200-day ($87.12) averages while near the 20-day average ($75.79) and above the 1x lower Bollinger band ($73.99), suggesting mean-reversion upside if momentum continues.
Volatility / Volume: 42-day beta at 1.71 indicates elevated short-term sensitivity; 10-day avg volume roughly matches recent volume, implying liquidity adequate for momentum-driven moves without extreme volume divergence. SuperTrend upper at $76.98 provides a near-term resistance reference.
Fundamental Analysis
Profitability: EBIT of $250,000,000 yields an EBIT margin of 9.63%, below the industry peer mean of 14.86% and below the industry peer median of 20.38%. EBIT margin fell QoQ by 48.56% and fell YoY by 27.16%, indicating near-term margin contraction relative to recent periods.
Revenue & Earnings: Total revenue equals $2,596,000,000 with revenue growth reported at 4.97%; revenue growth year-over-year reads 230.50%. Reported EPS of $0.76 beat the estimate of $0.71 by $0.05, an EPS surprise of 7.04%.
Cash Flow & Liquidity: Free cash flow equals $232,000,000 with a free cash flow yield of 0.55%. Cash and short-term investments total $1,408,000,000. Current ratio stands at 2.60 and quick ratio at 1.61, both reflecting adequate near-term liquidity. Cash conversion cycle at 192.71 days compares above the industry peer mean of 136.00 days, indicating longer working-capital duration.
Capital Structure: Total debt equals $5,251,000,000 with net debt $3,327,000,000. Debt-to-assets measures 16.73% and debt-to-equity 23.75%, consistent with modest leverage. Debt-to-EBITDA equals 21.00, reflecting a high coverage multiple driven by the current EBITDA base and warranting focus on cash generation trends.
Margins and Returns: Gross margin at 53.47% sits just below the industry peer mean of 57.20%. Return on equity is 0.80% and return on assets 0.56%, both depressed from prior periods (ROE QoQ down ~49.97%, ROA QoQ down ~50.57%), signaling margin and operating-pressure impacts on returns.
Valuation Metrics: P/E at 115.79 and forward P/E at 101.01 reflect elevated multiples relative to earnings; price-to-book at 1.93 sits below the industry peer mean of 4.42. Enterprise-value-to-revenue (EVR) at 17.89 and an enterprise multiple at 185.73 appear rich relative to operating cash metrics. WMDST values the stock as fair-valued, with high multiple levels balanced by cash, scale, and pipeline additions.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-19 |
| NEXT REPORT DATE: | 2025-11-19 |
| CASH FLOW | Begin Period Cash Flow | — |
| Operating Cash Flow | — | |
| Capital Expenditures | — | |
| Change In Working Capital | — | |
| Dividends Paid | — | |
| Cash Flow Delta | — | |
| End Period Cash Flow | — | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.6 B | |
| Forward Revenue | $ 1.6 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.2 B | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | $ 245.0 M | |
| Total Operating Expenses | $ 2.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.4 B | |
| EBITDA | $ 250.0 M | |
| EBIT | $ 250.0 M | |
| Operating Income | $ 247.0 M | |
| Interest Income | $ 4.0 M | |
| Interest Expense | $ 51.0 M | |
| Net Interest Income | $ -47.00 M | |
| Income Before Tax | $ 199.0 M | |
| Tax Provision | $ 23.0 M | |
| Tax Rate | 11.6 % | |
| Net Income | $ 176.0 M | |
| Net Income From Continuing Operations | $ 176.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.71 | |
| EPS Actual | $ 0.76 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 7.042 % | |
| Forward EPS | $ 0.88 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 31.4 B | |
| Intangible Assets | $ 18.4 B | |
| Net Tangible Assets | $ 3.7 B | |
| Total Current Assets | $ 6.3 B | |
| Cash and Short-Term Investments | $ 1.4 B | |
| Cash | $ 1.4 B | |
| Net Receivables | $ 2.0 B | |
| Inventory | $ 2.4 B | |
| Long-Term Investments | $ 397.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 895.0 M | |
| Short-Term Debt | $ 71.0 M | |
| Total Current Liabilities | $ 2.4 B | |
| Net Debt | $ 3.3 B | |
| Total Debt | $ 5.3 B | |
| Total Liabilities | $ 9.3 B | |
| EQUITY | ||
| Total Equity | $ 22.1 B | |
| Retained Earnings | — | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 44.73 | |
| Shares Outstanding | 494.400 M | |
| Revenue Per-Share | $ 5.25 | |
| VALUATION | Market Capitalization | $ 42.6 B |
| Enterprise Value | $ 46.4 B | |
| Enterprise Multiple | 185.731 | |
| Enterprise Multiple QoQ | 69.994 % | |
| Enterprise Multiple YoY | 175.474 % | |
| Enterprise Multiple IPRWA | high: 234.897 ALC: 185.731 median: 76.655 mean: 61.469 low: -228.246 |
|
| EV/R | 17.886 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.419 | |
| Asset To Liability | 3.391 | |
| Debt To Capital | 0.192 | |
| Debt To Assets | 0.167 | |
| Debt To Assets QoQ | -0.125 % | |
| Debt To Assets YoY | 3552.838 % | |
| Debt To Assets IPRWA | high: 1.297 mean: 0.247 ALC: 0.167 median: 0.16 low: 0.002 |
|
| Debt To Equity | 0.237 | |
| Debt To Equity QoQ | 0.589 % | |
| Debt To Equity YoY | 3558.706 % | |
| Debt To Equity IPRWA | high: 2.971 mean: 0.413 median: 0.266 ALC: 0.237 low: -1.733 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.926 | |
| Price To Book QoQ | -9.461 % | |
| Price To Book YoY | -9.275 % | |
| Price To Book IPRWA | high: 17.161 median: 4.499 mean: 4.422 ALC: 1.926 low: -7.981 |
|
| Price To Earnings (P/E) | 115.791 | |
| Price To Earnings QoQ | -10.477 % | |
| Price To Earnings YoY | -4.926 % | |
| Price To Earnings IPRWA | high: 246.592 ALC: 115.791 median: 104.657 mean: 82.907 low: -204.468 |
|
| PE/G Ratio | 28.173 | |
| Price To Sales (P/S) | 16.406 | |
| Price To Sales QoQ | -13.316 % | |
| Price To Sales YoY | -7.884 % | |
| Price To Sales IPRWA | high: 154.906 mean: 21.101 median: 20.417 ALC: 16.406 low: 0.297 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 101.014 | |
| Forward PE/G | 24.578 | |
| Forward P/S | 26.547 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -9.249 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.083 | |
| Asset Turnover Ratio QoQ | 3.225 % | |
| Asset Turnover Ratio YoY | -1.188 % | |
| Asset Turnover Ratio IPRWA | high: 0.482 mean: 0.164 median: 0.135 ALC: 0.083 low: 0.0 |
|
| Receivables Turnover | 1.359 | |
| Receivables Turnover Ratio QoQ | 1.154 % | |
| Receivables Turnover Ratio YoY | -0.595 % | |
| Receivables Turnover Ratio IPRWA | high: 3.864 mean: 1.501 median: 1.457 ALC: 1.359 low: 0.477 |
|
| Inventory Turnover | 0.51 | |
| Inventory Turnover Ratio QoQ | 7.879 % | |
| Inventory Turnover Ratio YoY | 5.71 % | |
| Inventory Turnover Ratio IPRWA | high: 3.161 mean: 0.755 median: 0.714 ALC: 0.51 low: 0.003 |
|
| Days Sales Outstanding (DSO) | 67.137 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 192.71 | |
| Cash Conversion Cycle Days QoQ | 1.274 % | |
| Cash Conversion Cycle Days YoY | 0.19 % | |
| Cash Conversion Cycle Days IPRWA | high: 401.407 ALC: 192.71 mean: 136.005 median: 114.45 low: -252.738 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.669 | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 26.8 B | |
| Net Invested Capital | $ 26.8 B | |
| Invested Capital | $ 26.8 B | |
| Net Tangible Assets | $ 3.7 B | |
| Net Working Capital | $ 3.9 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.581 | |
| Current Ratio | 2.601 | |
| Current Ratio QoQ | -3.693 % | |
| Current Ratio YoY | 1.678 % | |
| Current Ratio IPRWA | high: 14.715 ALC: 2.601 mean: 2.233 median: 1.821 low: 0.353 |
|
| Quick Ratio | 1.614 | |
| Quick Ratio QoQ | -2.666 % | |
| Quick Ratio YoY | 3.322 % | |
| Quick Ratio IPRWA | high: 10.15 mean: 1.645 ALC: 1.614 median: 1.303 low: 0.411 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 21.004 | |
| Cost Of Debt | 0.863 % | |
| Interest Coverage Ratio | 4.902 | |
| Interest Coverage Ratio QoQ | -48.122 % | |
| Interest Coverage Ratio YoY | -25.728 % | |
| Interest Coverage Ratio IPRWA | high: 274.877 mean: 26.791 median: 18.769 ALC: 4.902 low: -384.45 |
|
| Operating Cash Flow Ratio | 0.0 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 72.707 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.222 % | |
| Revenue Growth | 4.974 % | |
| Revenue Growth QoQ | -529.163 % | |
| Revenue Growth YoY | 230.498 % | |
| Revenue Growth IPRWA | high: 47.668 % mean: 7.653 % median: 7.569 % ALC: 4.974 % low: -31.512 % |
|
| Earnings Growth | 4.11 % | |
| Earnings Growth QoQ | 195.896 % | |
| Earnings Growth YoY | -180.148 % | |
| Earnings Growth IPRWA | high: 200.0 % median: 15.596 % mean: 15.318 % ALC: 4.11 % low: -227.273 % |
|
| MARGINS | ||
| Gross Margin | 53.467 % | |
| Gross Margin QoQ | -4.393 % | |
| Gross Margin YoY | -2.872 % | |
| Gross Margin IPRWA | high: 94.498 % mean: 57.203 % median: 56.435 % ALC: 53.467 % low: 6.0 % |
|
| EBIT Margin | 9.63 % | |
| EBIT Margin QoQ | -48.563 % | |
| EBIT Margin YoY | -27.161 % | |
| EBIT Margin IPRWA | high: 33.87 % median: 20.382 % mean: 14.858 % ALC: 9.63 % low: -1000.426 % |
|
| Return On Sales (ROS) | 9.515 % | |
| Return On Sales QoQ | -49.177 % | |
| Return On Sales YoY | -28.031 % | |
| Return On Sales IPRWA | high: 35.533 % median: 18.417 % mean: 13.122 % ALC: 9.515 % low: -1349.836 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 232.0 M | |
| Free Cash Flow Yield | 0.545 % | |
| Free Cash Flow Yield QoQ | -33.537 % | |
| Free Cash Flow Yield YoY | -40.889 % | |
| Free Cash Flow Yield IPRWA | high: 11.539 % mean: 0.749 % median: 0.679 % ALC: 0.545 % low: -40.868 % |
|
| Free Cash Growth | -39.583 % | |
| Free Cash Growth QoQ | — | |
| Free Cash Growth YoY | -136.969 % | |
| Free Cash Growth IPRWA | high: 337.277 % mean: 12.185 % median: -1.288 % ALC: -39.583 % low: -261.538 % |
|
| Free Cash To Net Income | 1.318 | |
| Cash Flow Margin | 0.0 % | |
| Cash Flow To Earnings | 0.0 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.564 % | |
| Return On Assets QoQ | -50.57 % | |
| Return On Assets YoY | -25.0 % | |
| Return On Assets IPRWA | high: 19.773 % median: 2.151 % mean: 1.89 % ALC: 0.564 % low: -72.965 % |
|
| Return On Capital Employed (ROCE) | 0.863 % | |
| Return On Equity (ROE) | 0.008 | |
| Return On Equity QoQ | -49.969 % | |
| Return On Equity YoY | -25.258 % | |
| Return On Equity IPRWA | high: 0.769 median: 0.035 ALC: 0.008 mean: 0.002 low: -1.731 |
|
| DuPont ROE | 0.798 % | |
| Return On Invested Capital (ROIC) | 0.824 % | |
| Return On Invested Capital QoQ | -43.793 % | |
| Return On Invested Capital YoY | -103.877 % | |
| Return On Invested Capital IPRWA | high: 20.851 % mean: 3.067 % median: 2.936 % ALC: 0.824 % low: -30.099 % |
|