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Alcon

SWX:ALC
Snowflake Description

Adequate balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ALC
SWX
CHF28B
Market Cap
  1. Home
  2. CH
  3. Healthcare
Company description

Alcon, Inc. develops and manufactures eye care products for eye care professionals and their patients. The last earnings update was 86 days ago. More info.


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ALC Share Price and Events
7 Day Returns
0.2%
SWX:ALC
0.7%
CH Medical Equipment
-0.4%
CH Market
1 Year Returns
-
SWX:ALC
33.3%
CH Medical Equipment
12.3%
CH Market
ALC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Alcon (ALC) 0.2% 1.1% -1.5% - - -
CH Medical Equipment 0.7% 2.5% 4.3% 33.3% 85.6% 109.4%
CH Market -0.4% 2.6% 6.7% 12.3% 21.5% 13.4%
1 Year Return vs Industry and Market
  • No trading data on ALC.
  • No trading data on ALC.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Alcon undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Alcon to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Alcon.

SWX:ALC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year CH Government Bond Rate 3.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SWX:ALC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CH Govt Bond Rate 3.3%
Equity Risk Premium S&P Global 6%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.84
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.84 (1 + (1- 18%) (13.15%))
0.953
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (0.953 * 5.96%)
8.96%

Discounted Cash Flow Calculation for SWX:ALC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Alcon is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SWX:ALC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.96%)
2020 736.95 Analyst x9 676.37
2021 979.61 Analyst x8 825.16
2022 1,473.00 Analyst x2 1,138.76
2023 1,721.00 Analyst x2 1,221.11
2024 1,910.12 Est @ 10.99% 1,243.88
2025 2,075.83 Est @ 8.67% 1,240.66
2026 2,222.28 Est @ 7.05% 1,218.99
2027 2,353.86 Est @ 5.92% 1,185.02
2028 2,474.54 Est @ 5.13% 1,143.37
2029 2,587.67 Est @ 4.57% 1,097.34
Present value of next 10 years cash flows $10,990.00
SWX:ALC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,587.67 × (1 + 3.28%) ÷ (8.96% – 3.28%)
$47,029.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $47,029.87 ÷ (1 + 8.96%)10
$19,943.78
SWX:ALC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $10,990.00 + $19,943.78
$30,933.78
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $30,933.78 / 488.70
$63.3
SWX:ALC Discount to Share Price
Calculation Result
Exchange Rate USD/CHF
(Reporting currency to currency of SWX:ALC)
0.987
Value per Share
(CHF)
= Value per Share in USD x Exchange Rate (USD/CHF)
= $63.3 x 0.987
CHF62.49
Value per share (CHF) From above. CHF62.49
Current discount Discount to share price of CHF58.30
= -1 x (CHF58.30 - CHF62.49) / CHF62.49
6.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Alcon is available for.
Intrinsic value
7%
Share price is CHF58.3 vs Future cash flow value of CHF62.49
Current Discount Checks
For Alcon to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Alcon's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Alcon's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Alcon's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Alcon's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SWX:ALC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $-1.60
SWX:ALC Share Price ** SWX (2019-11-14) in CHF CHF58.3
SWX:ALC Share Price converted to USD reporting currency Exchange rate (CHF/ USD) 1.013 $59.06
Switzerland Medical Equipment Industry PE Ratio Median Figure of 7 Publicly-Listed Medical Equipment Companies 33.29x
Switzerland Market PE Ratio Median Figure of 171 Publicly-Listed Companies 19.37x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Alcon.

SWX:ALC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SWX:ALC Share Price ÷ EPS (both in USD)

= 59.06 ÷ -1.60

-37.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alcon is loss making, we can't compare its value to the CH Medical Equipment industry average.
  • Alcon is loss making, we can't compare the value of its earnings to the Switzerland market.
Price based on expected Growth
Does Alcon's expected growth come at a high price?
Raw Data
SWX:ALC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -37.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
65.5%per year
Switzerland Medical Equipment Industry PEG Ratio Median Figure of 6 Publicly-Listed Medical Equipment Companies 2.34x
Switzerland Market PEG Ratio Median Figure of 124 Publicly-Listed Companies 2.14x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Alcon, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Alcon's assets?
Raw Data
SWX:ALC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $39.84
SWX:ALC Share Price * SWX (2019-11-14) in CHF CHF58.3
SWX:ALC Share Price converted to USD reporting currency Exchange rate (CHF/ USD) 1.013 $59.06
Switzerland Medical Equipment Industry PB Ratio Median Figure of 9 Publicly-Listed Medical Equipment Companies 6.21x
Switzerland Market PB Ratio Median Figure of 214 Publicly-Listed Companies 1.65x
SWX:ALC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SWX:ALC Share Price ÷ Book Value per Share (both in USD)

= 59.06 ÷ 39.84

1.48x

* Primary Listing of Alcon.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alcon is good value based on assets compared to the CH Medical Equipment industry average.
X
Value checks
We assess Alcon's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Alcon has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Alcon expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
65.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alcon expected to grow at an attractive rate?
  • Alcon's earnings growth is expected to exceed the low risk savings rate of 3.3%.
Growth vs Market Checks
  • Alcon's earnings growth is expected to exceed the Switzerland market average.
  • Alcon's revenue growth is expected to exceed the Switzerland market average.
Annual Growth Rates Comparison
Raw Data
SWX:ALC Future Growth Rates Data Sources
Data Point Source Value (per year)
SWX:ALC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 65.5%
SWX:ALC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 5.1%
Switzerland Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 38.7%
Switzerland Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 9.9%
Switzerland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SWX:ALC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:ALC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 9,047 1,816 845 8
2022-12-31 8,571 1,662 649 8
2021-12-31 8,136 1,507 434 17
2020-12-31 7,730 1,310 143 19
2019-12-31 7,393 1,014 -514 19
2019-11-14
SWX:ALC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 7,280 886 -779
2019-03-31 7,217 1,013 -503
2018-12-31 7,153 1,140 -227
2018-09-30 7,123 1,375 175
2017-12-31 6,792 1,218 256
2016-12-31 6,596 1,245 -170

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Alcon's earnings are expected to grow significantly at over 20% yearly.
  • Alcon's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SWX:ALC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Alcon Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:ALC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.55 2.45 1.04 4.00
2022-12-31 1.09 1.86 0.76 4.00
2021-12-31 0.81 1.65 0.27 9.00
2020-12-31 0.29 0.42 0.11 7.00
2019-12-31 -1.00 -0.49 -1.48 8.00
2019-11-14
SWX:ALC Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 -1.60
2019-03-31 -1.03
2018-12-31
2018-09-30
2017-12-31
2016-12-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Alcon is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Alcon's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Switzerland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Switzerland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Alcon has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Alcon performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Alcon's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Alcon does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Alcon's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Alcon's 1-year growth to the CH Medical Equipment industry average as it is not currently profitable.
Earnings and Revenue History
Alcon's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Alcon Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:ALC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 7,280.00 -779.00 2,818.00 620.00
2019-03-31 7,216.50 -503.00 2,804.00 602.50
2018-12-31 7,153.00 -227.00 2,790.00 585.00
2018-09-30 7,123.00 175.00 2,725.00 527.00
2017-12-31 6,792.00 256.00 2,596.00 545.00
2016-12-31 6,596.00 -170.00 2,526.00 481.00
2015-12-31 6,776.00 308.00 2,337.00 457.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Alcon has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Alcon has efficiently used its assets last year compared to the CH Medical Equipment industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Alcon improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Alcon's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Alcon has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Alcon's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Alcon's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Alcon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Alcon's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Alcon's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Alcon Company Filings, last reported 4 months ago.

SWX:ALC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 19,452.00 3,522.00 721.00
2019-03-31 22,639.00 203.00 227.00
2018-12-31 22,639.00 114.00 227.00
2018-09-30 22,282.00 115.00 139.00
2017-12-31 23,029.00 111.00 172.00
2016-12-31 23,012.00 196.00 162.00
2015-12-31 23,637.00 218.00 285.00
  • Alcon's level of debt (18.1%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Alcon's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Alcon has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Alcon has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 42.1% per year.
X
Financial health checks
We assess Alcon's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Alcon has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Alcon's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Alcon dividends. Estimated to be 0.32% next year.
If you bought CHF2,000 of Alcon shares you are expected to receive CHF0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Alcon's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Alcon's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SWX:ALC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
Switzerland Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 1%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 163 Stocks 2.9%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.2%
Switzerland Bottom 25% Dividend Yield 25th Percentile 1.8%
Switzerland Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SWX:ALC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.29 1.00
2022-12-31 0.25 1.00
2021-12-31 0.26 8.00
2020-12-31 0.21 9.00
2019-12-31 0.10 10.00
2019-11-14

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Alcon has not reported any payouts.
  • Unable to verify if Alcon's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Alcon's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Alcon has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Alcon's dividends in 3 years as they are not expected to pay a notable one for Switzerland.
X
Income/ dividend checks
We assess Alcon's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Alcon afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Alcon has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Alcon's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Endicott
AGE 54
TENURE AS CEO 1.3 years
CEO Bio

Mr. David J. Endicott had been the Chief Executive Officer of Alcon, Inc. since July 1, 2018. Mr. Endicott has been the President of Hospira Medical Devices at Hospira Inc. since March 10, 2014. Mr. Endicott is a Director of Alcon, Inc. Mr. Endicott served as a Corporate Vice President and President of Allergan Medical, Asia Pacific and Latin America at Allergan Inc. since April 2011. He served as Corporate Vice President and President of Allergan Medical at Allergan, Inc. since August 2010. He served as Corporate Vice President and President of Europe, Africa and Middle East at Allergan, Inc. from October 2004 to August 2010 and managed the expansion of Allergan's business internationally, including Allergan's entry into new markets such as Turkey and Poland. He served as Senior Vice President of U.S. Specialty Pharmaceuticals from January 2004 to October 2004, Vice President and General Manager of Canada from February 2000 to December 2003 and Vice President of U.S. Managed Markets since 1998. He served as a Director of ZELTIQ Aesthetics, Inc. since April 25, 2016 until April 28, 2017. He served various roles at Allergan since joining Allergan Medical in 1986. He served as a Director of Orexigen Therapeutics, Inc. since November 30, 2012 until July 27, 2018. Mr. Endicott earned his Bachelor's Degree in Chemistry from Whitman College, his Master's in Business Administration from the University of Southern California and is a Graduate of the Harvard Business School Advanced Management Program.

CEO Compensation
  • Insufficient data for David to compare compensation growth.
  • Insufficient data for David to establish whether their remuneration is reasonable compared to companies of similar size in Switzerland.
Management Team Tenure

Average tenure and age of the Alcon management team in years:

1.3
Average Tenure
53.5
Average Age
  • The average tenure for the Alcon management team is less than 2 years, this suggests a new team.
Management Team

Merrick McCracken

TITLE
Senior VP & Head of Global Human Resources
COMPENSATION
$2M

Ed McGough

TITLE
Senior VP & Head of Global Manufacturing & Technical Operations
COMPENSATION
$2M
AGE
58

David Endicott

TITLE
CEO & Director
AGE
54
TENURE
1.3 yrs

Tim Stonesifer

TITLE
Senior VP & CFO
AGE
52
TENURE
0.6 yrs

Margaret Buckley

TITLE
Chief Accounting Officer

Sue-Jean Lin

TITLE
Senior VP & Chief Information Officer

Karen King

TITLE
Senior VP and Head of Global Investor Relations & Communications

Royce Bedward

TITLE
Senior VP
AGE
53

Laurent Attias

TITLE
Senior VP & Head of Global Corporate Development Strategy

Sergio Duplan

TITLE
Region President for North America
TENURE
4.3 yrs
Board of Directors

Mike Ball

TITLE
Chairman
AGE
64

David Endicott

TITLE
CEO & Director
AGE
54

Scott Maw

TITLE
Director
AGE
52

Karen May

TITLE
Director
AGE
61

Lynn Bleil

TITLE
Director
AGE
56

Arthur Cummings

TITLE
Director
AGE
57

Thomas Glanzmann

TITLE
Director
AGE
61

D. Grossman

TITLE
Director
AGE
59

Ines Pöschel

TITLE
Director
AGE
51

Dieter Spälti

TITLE
Director
AGE
58
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CHF) Value (CHF)
X
Management checks
We assess Alcon's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Alcon has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Calculating The Fair Value Of Alcon, Inc. (VTX:ALC)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $802.2m $1.1b $1.3b $1.6b $1.8b $2.0b $2.1b $2.3b $2.4b $2.6b Growth Rate Estimate Source Analyst x12 Analyst x12 Analyst x6 Analyst x5 Est @ 14.06% Est @ 10.82% Est @ 8.56% Est @ 6.97% Est @ 5.86% Est @ 5.09% Present Value ($, Millions) Discounted @ 8.73% $737.8 $925.6 $1.0k $1.1k $1.2k $1.2k $1.2k $1.2k $1.1k $1.1k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $10.8b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$2.6b × (1 + 3.3%) ÷ (8.7% – 3.3%) = US$48b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$48b ÷ ( 1 + 8.7%)10 = $20.93b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $31.71b. … SWX:ALC Intrinsic value, July 18th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Company Info

Description

Alcon, Inc. develops and manufactures eye care products for eye care professionals and their patients. It offers surgical products, which include technologies and devices for cataract, retinal, glaucoma, and refractive surgery; advanced technology intraocular lenses to treat cataracts and refractive errors, such as presbyopia and astigmatism; and advanced viscoelastics, surgical solutions, surgical packs, and other disposable products for cataract and vitreoretinal surgery. The company also provides pharmaceutical products for elevated intraocular pressure caused by glaucoma; anti-inflammatories; anti-infective to aid in the treatment of bacterial infections and bacterial conjunctivitis; ophthalmic solutions to treat inflammation and pain associated with ocular surgery; eye inflammation and infection solutions following cataract surgery; and vitreomacular adhesion, eye and nasal allergy treatment solutions, and over-the-counter dry eye relief and ocular vitamins. In addition, it offers vision care products, such as contact lenses and lens care products; daily disposable, monthly replacement, and color-enhancing contact lenses for comfortable and convenient vision correction options; contact lens care products; multi-purpose and hydrogen-peroxide based solutions to clean, rinse, and disinfect contact lenses; rewetting drops; and daily protein removers that removes protein deposits from lenses. Alcon, Inc. was formerly known as Alcon Universal S.A. and changed the name to Alcon, Inc. in December 2001. The company was founded in 1945 and is headquartered in Geneva, Switzerland. Alcon, Inc. was previously operating as a subsidiary of Novartis AG. Alcon, Inc.(SWX:ALC) operates independently of Novartis AG as of April 9, 2019.

Details
Name: Alcon, Inc.
ALC
Exchange: SWX
Founded: 1945
CHF28,491,210,000
488,700,000
Website: http://www.alcon.com
Address: Alcon, Inc.
Chemin de Blandonnet 8,
1214 Vernier,
Geneva,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SWX ALC Common Shares SIX Swiss Exchange CH CHF 09. Apr 2019
NYSE ALC Common Shares New York Stock Exchange US USD 09. Apr 2019
DB 2U3 Common Shares Deutsche Boerse AG DE EUR 09. Apr 2019
BST 2U3 Common Shares Boerse-Stuttgart DE EUR 09. Apr 2019
LSE 0A0D Common Shares London Stock Exchange GB USD 09. Apr 2019
BMV ALC N Common Shares Bolsa Mexicana de Valores MX MXN 09. Apr 2019
Number of employees
Current staff
Staff numbers
20,000
Alcon employees.
Industry
Health Care Supplies
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/14 22:22
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/11/13
Last earnings filing: 2019/08/20
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.