Alcon Inc. Ordinary Shares (ALC)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business bought at a sensible price. Alcon has a real franchise in eye care: surgical equipment, intraocular lenses, consumables and vision care, with 25,000 employees. Revenue grew 8.74%, which suggests demand is intact, and trailing free cash flow of $1.6 billion gives a 4.2% FCF yield on the $38 billion market cap. The balance sheet is conservative, with debt-to-equity of 0.25, and a beta of 0.70 implies a less volatile stock. But the quality shown by the numbers is mixed. Return on equity is only 2.94% and return on capital employed 2.80%, while profit growth was negative 23.59%. A Piotroski F-score of 4/9 and Altman Z-score of 2.63 point to a business that is neither clearly distressed nor clearly strong. At the 2026-10-13 close of $63.00, FairStock's P/E is 48.09, and the Graham Number is $36.29, implying the price is about 73.60% above that conservative value mark. P/B is 1.41, and the dividend yield is 0.55%, so the valuation leans heavily on future recovery. The latest quarter shown, 2026-Q2, reported revenue of $2.8 billion, but net income and margin were not available, so I cannot judge profitability there. FairStock assigns no Lynch category because only zero years of filed results are available, needing three. In short, this is a decent business with a promising franchise, but the current price asks me to trust a profit recovery that the latest figures have not yet delivered.

In plain English: Alcon makes eye-care products, including surgical tools and lenses for cataract and vision procedures. Sales are growing, but profits have fallen, and the company earns little on the money invested in it. The share price looks high compared with its yearly profit, so it does not look cheap on these numbers.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer