BAUSCH + LOMB CORP (BLCO.CA) Stock Fundamental Analysis
TSX:BLCO - Toronto Stock Exchange - CA0717051076 - Common Stock - Currency: CAD
Taking everything into account, BLCO scores 4 out of 10 in our fundamental rating. BLCO was compared to 16 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BLCO had positive earnings in the past year.
BLCO had a positive operating cash flow in the past year.
In multiple years BLCO reported negative net income over the last 5 years.
BLCO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.35%, BLCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of -4.90%, BLCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.25%, BLCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BLCO is in line with the industry average of 1.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.35% | ||
| ROE | -4.9% | ||
| ROIC | 1.25% |
ROA(3y)-1.41%
ROA(5y)-0.54%
ROE(3y)-2.87%
ROE(5y)-1.37%
ROIC(3y)1.45%
ROIC(5y)1.75%
1.3 Margins
The Operating Margin of BLCO (4.24%) is better than 100.00% of its industry peers.
BLCO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 60.93%, BLCO belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Gross Margin of BLCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.24% | ||
| PM (TTM) | N/A | ||
| GM | 60.93% |
OM growth 3Y-22.07%
OM growth 5Y-17.92%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.06%
GM growth 5Y-1.25%
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.
BLCO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BLCO has been increased compared to 5 years ago.
The debt/assets ratio for BLCO is higher compared to a year ago.
2.2 Solvency
BLCO has an Altman-Z score of 0.80. This is a bad value and indicates that BLCO is not financially healthy and even has some risk of bankruptcy.
BLCO has a Altman-Z score of 0.80. This is amongst the best in the industry. BLCO outperforms 87.50% of its industry peers.
BLCO has a Debt/Equity ratio of 0.73. This is a neutral value indicating BLCO is somewhat dependend on debt financing.
BLCO's Debt to Equity ratio of 0.73 is in line compared to the rest of the industry. BLCO outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.14
WACC8.83%
2.3 Liquidity
BLCO has a Current Ratio of 1.60. This is a normal value and indicates that BLCO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BLCO (1.60) is comparable to the rest of the industry.
BLCO has a Quick Ratio of 1.01. This is a normal value and indicates that BLCO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BLCO (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
BLCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.22%.
Looking at the last year, BLCO shows a quite strong growth in Revenue. The Revenue has grown by 15.56% in the last year.
BLCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.87% yearly.
EPS 1Y (TTM)-16.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%4.17%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y8.36%
Revenue growth 5Y4.87%
Sales Q2Q%9.12%
3.2 Future
BLCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.11% yearly.
Based on estimates for the next years, BLCO will show a small growth in Revenue. The Revenue will grow by 4.77% on average per year.
EPS Next Y7.48%
EPS Next 2Y22.05%
EPS Next 3Y25.23%
EPS Next 5Y24.11%
Revenue Next Year4.73%
Revenue Next 2Y5.14%
Revenue Next 3Y5.31%
Revenue Next 5Y4.77%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
BLCO is valuated rather expensively with a Price/Earnings ratio of 20.56.
100.00% of the companies in the same industry are more expensive than BLCO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.64. BLCO is valued slightly cheaper when compared to this.
BLCO is valuated rather expensively with a Price/Forward Earnings ratio of 19.16.
100.00% of the companies in the same industry are more expensive than BLCO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, BLCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 19.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BLCO is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BLCO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BLCO may justify a higher PE ratio.
BLCO's earnings are expected to grow with 25.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.75
PEG (5Y)N/A
EPS Next 2Y22.05%
EPS Next 3Y25.23%
5. Dividend
5.1 Amount
No dividends for BLCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BLCO (4/23/2025, 7:00:00 PM)
17.68
+1.03 (+6.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners10.12%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap6.25B
Analysts72
Price Target27.52 (55.66%)
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)5.39%
Min EPS beat(2)4.09%
Max EPS beat(2)6.68%
EPS beat(4)3
Avg EPS beat(4)2.37%
Min EPS beat(4)-5.47%
Max EPS beat(4)6.68%
EPS beat(8)6
Avg EPS beat(8)7.14%
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)0
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)-0.08%
Revenue beat(4)2
Avg Revenue beat(4)0.79%
Min Revenue beat(4)-0.16%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)1.72%
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)-3.85%
PT rev (3m)-14.23%
EPS NQ rev (1m)-3.23%
EPS NQ rev (3m)-78.18%
EPS NY rev (1m)-17.25%
EPS NY rev (3m)-22.75%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 19.16 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | 19.45 | ||
| P/B | 0.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.66 |
EPS(TTM)0.86
EY4.86%
EPS(NY)0.92
Fwd EY5.22%
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)0.91
OCFY5.14%
SpS18.77
BVpS25.37
TBVpS-6.05
PEG (NY)2.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.35% | ||
| ROE | -4.9% | ||
| ROCE | 1.73% | ||
| ROIC | 1.25% | ||
| ROICexc | 1.28% | ||
| ROICexgc | 4.29% | ||
| OM | 4.24% | ||
| PM (TTM) | N/A | ||
| GM | 60.93% | ||
| FCFM | N/A |
ROA(3y)-1.41%
ROA(5y)-0.54%
ROE(3y)-2.87%
ROE(5y)-1.37%
ROIC(3y)1.45%
ROIC(5y)1.75%
ROICexc(3y)1.5%
ROICexc(5y)1.8%
ROICexgc(3y)4.98%
ROICexgc(5y)6.16%
ROCE(3y)2.02%
ROCE(5y)2.43%
ROICexcg growth 3Y-21.86%
ROICexcg growth 5Y-17.06%
ROICexc growth 3Y-20.45%
ROICexc growth 5Y-15.79%
OM growth 3Y-22.07%
OM growth 5Y-17.92%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.06%
GM growth 5Y-1.25%
F-Score4
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.42 | ||
| Cap/Depr | 66.74% | ||
| Cap/Sales | 6.07% | ||
| Interest Coverage | 0.49 | ||
| Cash Conversion | 36.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 0.8 |
F-Score4
WACC8.83%
ROIC/WACC0.14
Cap/Depr(3y)53.43%
Cap/Depr(5y)52.81%
Cap/Sales(3y)5.03%
Cap/Sales(5y)5.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%4.17%
EPS Next Y7.48%
EPS Next 2Y22.05%
EPS Next 3Y25.23%
EPS Next 5Y24.11%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y8.36%
Revenue growth 5Y4.87%
Sales Q2Q%9.12%
Revenue Next Year4.73%
Revenue Next 2Y5.14%
Revenue Next 3Y5.31%
Revenue Next 5Y4.77%
EBIT growth 1Y-6.45%
EBIT growth 3Y-15.55%
EBIT growth 5Y-13.93%
EBIT Next Year40.95%
EBIT Next 3Y19.67%
EBIT Next 5Y14.28%
FCF growth 1Y70.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1464.71%
OCF growth 3Y-35.71%
OCF growth 5Y-21.91%