BAUSCH + LOMB CORP (BLCO)
CA0717051076 - Common Stock
Overall BLCO gets a fundamental rating of 3 out of 10. We evaluated BLCO against 191 industry peers in the Health Care Equipment & Supplies industry. While BLCO is still in line with the averages on profitability rating, there are concerns on its financial health. BLCO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BLCO had positive earnings in the past year.
In the past year BLCO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BLCO reported negative net income in multiple years.
BLCO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of BLCO (-2.72%) is better than 65.61% of its industry peers.
With a decent Return On Equity value of -5.59%, BLCO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.28%, BLCO is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BLCO is significantly below the industry average of 8.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.72% | ||
| ROE | -5.59% | ||
| ROIC | 1.28% |
ROA(3y)-0.07%
ROA(5y)0.45%
ROE(3y)-0.59%
ROE(5y)0.21%
ROIC(3y)2.06%
ROIC(5y)2.3%
1.3 Margins
BLCO's Operating Margin of 4.06% is fine compared to the rest of the industry. BLCO outperforms 70.90% of its industry peers.
BLCO's Operating Margin has declined in the last couple of years.
BLCO's Gross Margin of 60.89% is fine compared to the rest of the industry. BLCO outperforms 61.38% of its industry peers.
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 | 4.06% | ||
| 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.
Compared to 1 year ago, BLCO has more shares outstanding
Compared to 1 year ago, BLCO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that BLCO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BLCO (0.95) is comparable to the rest of the industry.
BLCO has a Debt/Equity ratio of 0.70. This is a neutral value indicating BLCO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, BLCO is not doing good in the industry: 69.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.16
WACC8.02%
2.3 Liquidity
BLCO has a Current Ratio of 1.57. This is a normal value and indicates that BLCO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.57, BLCO is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
A Quick Ratio of 0.95 indicates that BLCO may have some problems paying its short term obligations.
BLCO's Quick ratio of 0.95 is on the low side compared to the rest of the industry. BLCO is outperformed by 79.89% of 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.
The Revenue has grown by 18.01% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 18.71% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.32% on average over the next years.
EPS Next Y-16.45%
EPS Next 2Y7.97%
EPS Next 3Y14.25%
EPS Next 5Y18.71%
Revenue Next Year17.14%
Revenue Next 2Y11.53%
Revenue Next 3Y9.4%
Revenue Next 5Y7.32%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.48, which means the current valuation is very expensive for BLCO.
77.25% of the companies in the same industry are more expensive than BLCO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BLCO to the average of the S&P500 Index (27.28), we can say BLCO is valued inline with the index average.
A Price/Forward Earnings ratio of 20.14 indicates a rather expensive valuation of BLCO.
BLCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. BLCO is cheaper than 83.60% of the companies in the same industry.
BLCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.48 | ||
| Fwd PE | 20.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BLCO indicates a rather cheap valuation: BLCO is cheaper than 82.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.31 |
4.3 Compensation for Growth
BLCO's earnings are expected to grow with 14.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.97%
EPS Next 3Y14.25%
5. Dividend
5.1 Amount
BLCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BAUSCH + LOMB CORP
NYSE:BLCO (1/15/2025, 9:48:17 AM)
17.37
+0.13 (+0.75%)
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 Change0%
Ins Owners0.29%
Ins Owner Change2.58%
Market Cap6.12B
Analysts73
Price Target21.5 (23.78%)
Short Float %3%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-0.72%
PT rev (3m)6.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.26%
EPS NY rev (1m)0.87%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.48 | ||
| Fwd PE | 20.14 | ||
| P/S | 1.31 | ||
| P/FCF | N/A | ||
| P/OCF | 27.19 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.31 |
EPS(TTM)0.61
EY3.51%
EPS(NY)0.86
Fwd EY4.97%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.64
OCFY3.68%
SpS13.3
BVpS18.71
TBVpS-3.91
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.72% | ||
| ROE | -5.59% | ||
| ROCE | 1.62% | ||
| ROIC | 1.28% | ||
| ROICexc | 1.32% | ||
| ROICexgc | 4.39% | ||
| 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)2.06%
ROIC(5y)2.3%
ROICexc(3y)2.11%
ROICexc(5y)2.36%
ROICexgc(3y)7.21%
ROICexgc(5y)8.24%
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 | 0.95 |
F-Score4
WACC8.02%
ROIC/WACC0.16
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-16.45%
EPS Next 2Y7.97%
EPS Next 3Y14.25%
EPS Next 5Y18.71%
Revenue 1Y (TTM)18.01%
Revenue growth 3Y6.71%
Revenue growth 5Y2.5%
Sales Q2Q%18.77%
Revenue Next Year17.14%
Revenue Next 2Y11.53%
Revenue Next 3Y9.4%
Revenue Next 5Y7.32%
EBIT growth 1Y-5%
EBIT growth 3Y-7.49%
EBIT growth 5Y-14.12%
EBIT Next Year80.48%
EBIT Next 3Y30.23%
EBIT Next 5Y19.87%
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