BAUSCH + LOMB CORP (BLCO.CA) Stock Fundamental Analysis
TSX:BLCO - Toronto Stock Exchange - CA0717051076 - Common Stock - Currency: CAD
BLCO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of BLCO while its profitability can be described as average. BLCO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BLCO was profitable.
BLCO had a positive operating cash flow in the past year.
In multiple years BLCO reported negative net income over the last 5 years.
Of the past 5 years BLCO 4 years had a positive operating cash flow.
1.2 Ratios
BLCO has a better Return On Assets (-2.72%) than 100.00% of its industry peers.
With an excellent Return On Equity value of -5.59%, BLCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
BLCO has a Return On Invested Capital of 1.17%. This is amongst the best in the industry. BLCO outperforms 100.00% of its industry peers.
BLCO had an Average Return On Invested Capital over the past 3 years of 1.87%. This is in line with the industry average of 1.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.72% | ||
| ROE | -5.59% | ||
| ROIC | 1.17% |
ROA(3y)-0.07%
ROA(5y)0.45%
ROE(3y)-0.59%
ROE(5y)0.21%
ROIC(3y)1.87%
ROIC(5y)2.1%
1.3 Margins
The Operating Margin of BLCO (4.06%) is better than 100.00% of its industry peers.
BLCO's Operating Margin has declined in the last couple of years.
The Gross Margin of BLCO (60.89%) is better than 86.67% of its industry peers.
BLCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.06% | ||
| PM (TTM) | N/A | ||
| GM | 60.89% |
OM growth 3Y-13.3%
OM growth 5Y-16.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.05%
GM growth 5Y-1.21%
2. Health
2.1 Basic Checks
BLCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BLCO has been increased compared to 1 year ago.
Compared to 1 year ago, BLCO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that BLCO is in the distress zone and has some risk of bankruptcy.
BLCO has a Altman-Z score of 0.92. This is amongst the best in the industry. BLCO outperforms 86.67% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that BLCO is somewhat dependend on debt financing.
BLCO has a Debt to Equity ratio (0.70) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.92 |
ROIC/WACC0.15
WACC7.74%
2.3 Liquidity
A Current Ratio of 1.57 indicates that BLCO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, BLCO is in line with its industry, outperforming 53.33% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that BLCO may have some problems paying its short term obligations.
BLCO has a Quick ratio (0.95) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for BLCO have decreased strongly by -16.44% in the last year.
BLCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.01%.
Measured over the past years, BLCO shows a small growth in Revenue. The Revenue has been growing by 2.50% on average per year.
EPS 1Y (TTM)-16.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-22.73%
Revenue 1Y (TTM)18.01%
Revenue growth 3Y6.71%
Revenue growth 5Y2.5%
Sales Q2Q%18.77%
3.2 Future
Based on estimates for the next years, BLCO will show a very strong growth in Earnings Per Share. The EPS will grow by 20.20% on average per year.
Based on estimates for the next years, BLCO will show a small growth in Revenue. The Revenue will grow by 6.92% on average per year.
EPS Next Y-17.84%
EPS Next 2Y4.88%
EPS Next 3Y12.65%
EPS Next 5Y20.2%
Revenue Next Year17.04%
Revenue Next 2Y11.1%
Revenue Next 3Y9.32%
Revenue Next 5Y6.92%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.05, BLCO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, BLCO is valued cheaper than 100.00% of the companies in the same industry.
BLCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.19.
The Price/Forward Earnings ratio is 20.18, which indicates a rather expensive current valuation of BLCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLCO indicates a rather cheap valuation: BLCO is cheaper than 100.00% of the companies listed in the same industry.
BLCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 96.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.05 | ||
| Fwd PE | 20.18 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than BLCO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.67 |
4.3 Compensation for Growth
BLCO has a very decent profitability rating, which may justify a higher PE ratio.
BLCO's earnings are expected to grow with 12.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.88%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
No dividends for BLCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BAUSCH + LOMB CORP
TSX:BLCO (2/12/2025, 7:00:00 PM)
23.53
+0.49 (+2.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners11.91%
Inst Owner ChangeN/A
Ins Owners0.29%
Ins Owner ChangeN/A
Market Cap8.29B
Analysts73
Price Target30.41 (29.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.43%
Min EPS beat(2)4.19%
Max EPS beat(2)6.68%
EPS beat(4)3
Avg EPS beat(4)11.18%
Min EPS beat(4)-5.47%
Max EPS beat(4)39.31%
EPS beat(8)6
Avg EPS beat(8)7.15%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.92%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)1.93%
Revenue beat(4)3
Avg Revenue beat(4)1.8%
Min Revenue beat(4)-0.08%
Max Revenue beat(4)3.9%
Revenue beat(8)6
Avg Revenue beat(8)1.93%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.24%
PT rev (3m)4.5%
EPS NQ rev (1m)-2.87%
EPS NQ rev (3m)-10.89%
EPS NY rev (1m)-1.66%
EPS NY rev (3m)-1.66%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.05 | ||
| Fwd PE | 20.18 | ||
| P/S | 1.23 | ||
| P/FCF | N/A | ||
| P/OCF | 25.71 | ||
| P/B | 0.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.67 |
EPS(TTM)0.87
EY3.7%
EPS(NY)1.17
Fwd EY4.96%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)0.92
OCFY3.89%
SpS19.05
BVpS26.8
TBVpS-5.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.72% | ||
| ROE | -5.59% | ||
| ROCE | 1.62% | ||
| ROIC | 1.17% | ||
| ROICexc | 1.2% | ||
| ROICexgc | 4% | ||
| OM | 4.06% | ||
| PM (TTM) | N/A | ||
| GM | 60.89% | ||
| FCFM | N/A |
ROA(3y)-0.07%
ROA(5y)0.45%
ROE(3y)-0.59%
ROE(5y)0.21%
ROIC(3y)1.87%
ROIC(5y)2.1%
ROICexc(3y)1.92%
ROICexc(5y)2.15%
ROICexgc(3y)6.57%
ROICexgc(5y)7.51%
ROCE(3y)2.6%
ROCE(5y)2.92%
ROICexcg growth 3Y-12.27%
ROICexcg growth 5YN/A
ROICexc growth 3Y-11.43%
ROICexc growth 5YN/A
OM growth 3Y-13.3%
OM growth 5Y-16.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.05%
GM growth 5Y-1.21%
F-Score4
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.23 | ||
| Cap/Depr | 63.45% | ||
| Cap/Sales | 6.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 0.92 |
F-Score4
WACC7.74%
ROIC/WACC0.15
Cap/Depr(3y)46.69%
Cap/Depr(5y)47.14%
Cap/Sales(3y)4.71%
Cap/Sales(5y)5.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-22.73%
EPS Next Y-17.84%
EPS Next 2Y4.88%
EPS Next 3Y12.65%
EPS Next 5Y20.2%
Revenue 1Y (TTM)18.01%
Revenue growth 3Y6.71%
Revenue growth 5Y2.5%
Sales Q2Q%18.77%
Revenue Next Year17.04%
Revenue Next 2Y11.1%
Revenue Next 3Y9.32%
Revenue Next 5Y6.92%
EBIT growth 1Y-5%
EBIT growth 3Y-7.49%
EBIT growth 5Y-14.12%
EBIT Next Year80.4%
EBIT Next 3Y29.3%
EBIT Next 5Y18.66%
FCF growth 1Y-136.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-35.34%
OCF growth 3YN/A
OCF growth 5YN/A