BAUSCH + LOMB CORP (BLCO) Stock Fundamental Analysis
NYSE:BLCO - New York Stock Exchange, Inc. - CA0717051076 - Common Stock - Currency: USD
Taking everything into account, BLCO scores 3 out of 10 in our fundamental rating. BLCO was compared to 187 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: BLCO reported negative net income in multiple 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 (-2.70%) than 68.98% of its industry peers.
Looking at the Return On Equity, with a value of -5.69%, BLCO is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.86%, BLCO is in the better half of the industry, outperforming 66.84% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BLCO is significantly below the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.7% | ||
| ROE | -5.69% | ||
| ROIC | 0.86% |
ROA(3y)-1.41%
ROA(5y)-0.54%
ROE(3y)-2.87%
ROE(5y)-1.37%
ROIC(3y)1.59%
ROIC(5y)1.92%
1.3 Margins
Looking at the Operating Margin, with a value of 2.63%, BLCO is in the better half of the industry, outperforming 66.84% of the companies in the same industry.
In the last couple of years the Operating Margin of BLCO has declined.
BLCO's Gross Margin of 60.03% is in line compared to the rest of the industry. BLCO outperforms 59.36% of its industry peers.
BLCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.63% | ||
| PM (TTM) | N/A | ||
| GM | 60.03% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BLCO 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.
BLCO has a worse debt/assets ratio than last year.
2.2 Solvency
BLCO has an Altman-Z score of 0.82. This is a bad value and indicates that BLCO is not financially healthy and even has some risk of bankruptcy.
BLCO's Altman-Z score of 0.82 is in line compared to the rest of the industry. BLCO outperforms 47.59% of its industry peers.
BLCO has a Debt/Equity ratio of 0.75. This is a neutral value indicating BLCO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.75, BLCO is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.12
WACC7.45%
2.3 Liquidity
BLCO has a Current Ratio of 1.56. This is a normal value and indicates that BLCO is financially healthy and should not expect problems in meeting its short term obligations.
BLCO has a Current ratio of 1.56. This is in the lower half of the industry: BLCO underperforms 74.33% of its industry peers.
BLCO has a Quick Ratio of 1.56. This is a bad value and indicates that BLCO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, BLCO is doing worse than 78.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
BLCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.39%.
BLCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.94%.
The Revenue has been growing slightly by 4.87% on average over the past years.
EPS 1Y (TTM)-32.39%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
Revenue 1Y (TTM)11.94%
Revenue growth 3Y8.36%
Revenue growth 5Y4.87%
Sales Q2Q%3.46%
3.2 Future
The Earnings Per Share is expected to grow by 24.11% on average over the next years. This is a very strong growth
BLCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.45% yearly.
EPS Next Y-18.2%
EPS Next 2Y12.29%
EPS Next 3Y19.54%
EPS Next 5Y24.11%
Revenue Next Year5.39%
Revenue Next 2Y5.44%
Revenue Next 3Y5.22%
Revenue Next 5Y4.45%
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
Based on the Price/Earnings ratio of 28.92, the valuation of BLCO can be described as expensive.
Based on the Price/Earnings ratio, BLCO is valued a bit cheaper than the industry average as 75.40% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. BLCO is around the same levels.
A Price/Forward Earnings ratio of 17.75 indicates a rather expensive valuation of BLCO.
Based on the Price/Forward Earnings ratio, BLCO is valued a bit cheaper than the industry average as 79.68% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. BLCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 17.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BLCO is valued a bit cheaper than the industry average as 77.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.26 |
4.3 Compensation for Growth
BLCO's earnings are expected to grow with 19.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.29%
EPS Next 3Y19.54%
5. Dividend
5.1 Amount
BLCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.88
-0.32 (-2.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners10.83%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change20.17%
Market Cap4.91B
Analysts72.63
Price Target15.09 (8.72%)
Short Float %6.29%
Short Ratio3.04
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)1
Avg EPS beat(2)-178.13%
Min EPS beat(2)-360.35%
Max EPS beat(2)4.09%
EPS beat(4)3
Avg EPS beat(4)-86.35%
Min EPS beat(4)-360.35%
Max EPS beat(4)6.68%
EPS beat(8)6
Avg EPS beat(8)-34.35%
EPS beat(12)9
Avg EPS beat(12)-16.97%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)1.93%
Revenue beat(8)4
Avg Revenue beat(8)1.13%
Revenue beat(12)7
Avg Revenue beat(12)0.92%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.08%
PT rev (3m)-21.11%
EPS NQ rev (1m)-9.1%
EPS NQ rev (3m)-54.75%
EPS NY rev (1m)1.15%
EPS NY rev (3m)-25.45%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 17.75 | ||
| P/S | 1.02 | ||
| P/FCF | N/A | ||
| P/OCF | 29.55 | ||
| P/B | 0.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.26 |
EPS(TTM)0.48
EY3.46%
EPS(NY)0.78
Fwd EY5.63%
FCF(TTM)-0.48
FCFYN/A
OCF(TTM)0.47
OCFY3.38%
SpS13.66
BVpS18
TBVpS-4.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.7% | ||
| ROE | -5.69% | ||
| ROCE | 1.09% | ||
| ROIC | 0.86% | ||
| ROICexc | 0.87% | ||
| ROICexgc | 2.86% | ||
| OM | 2.63% | ||
| PM (TTM) | N/A | ||
| GM | 60.03% | ||
| FCFM | N/A |
ROA(3y)-1.41%
ROA(5y)-0.54%
ROE(3y)-2.87%
ROE(5y)-1.37%
ROIC(3y)1.59%
ROIC(5y)1.92%
ROICexc(3y)1.64%
ROICexc(5y)1.97%
ROICexgc(3y)5.47%
ROICexgc(5y)6.76%
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-Score3
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.57 | ||
| Cap/Depr | 77.31% | ||
| Cap/Sales | 6.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 0.82 |
F-Score3
WACC7.45%
ROIC/WACC0.12
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)-32.39%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
EPS Next Y-18.2%
EPS Next 2Y12.29%
EPS Next 3Y19.54%
EPS Next 5Y24.11%
Revenue 1Y (TTM)11.94%
Revenue growth 3Y8.36%
Revenue growth 5Y4.87%
Sales Q2Q%3.46%
Revenue Next Year5.39%
Revenue Next 2Y5.44%
Revenue Next 3Y5.22%
Revenue Next 5Y4.45%
EBIT growth 1Y-42.79%
EBIT growth 3Y-15.55%
EBIT growth 5Y-13.93%
EBIT Next Year40.8%
EBIT Next 3Y21.5%
EBIT Next 5Y15.15%
FCF growth 1Y-244.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-41.96%
OCF growth 3Y-35.71%
OCF growth 5Y-21.91%