Bausch & Lomb Corp (NYSE: BLCO)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0001860742
Market Cap 5.96 Bn
P/B 0.93
P/E -19.54
P/S 1.20
ROIC (Qtr) 3.61
Div Yield % 0.00
Rev 1y % (Qtr) 7.11
Total Debt (Qtr) 4.95 Bn
Debt/Equity (Qtr) 0.77

About

Bausch + Lomb Corporation, commonly known as Bausch + Lomb, is a prominent player in the global eye health industry, dedicated to enhancing and protecting the gift of sight for millions of people worldwide. The company's mission is to enable people to see better and live better, and it achieves this by developing, manufacturing, and marketing a wide range of products primarily focused on eye health. These products are marketed in approximately 100 countries, indicating the company's global reach. Bausch + Lomb's operations are divided into three...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 332M provide 11.86x coverage of short-term debt 28M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 169M provides exceptional 18.78x coverage of minority interest expenses 9M, showing strong core operations.
  • Robust tangible asset base of 5.85B provides 6.10x coverage of working capital 959M, indicating strong operational backing.
  • Strong free cash flow of (196M) provides 2.02x coverage of acquisition spending (97M), indicating disciplined M&A strategy.
  • Cash position of 332M provides exceptional 36.89x coverage of minority interest expenses 9M, indicating strong liquidity.

Bear case

  • Operating cash flow of 169M barely covers its investment activities of (452M), with a coverage ratio of -0.37, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (452M) provide weak support for R&D spending of 370M, which is -1.22x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 332M provide limited coverage of acquisition spending of (97M), which is -3.42x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 169M shows concerning coverage of stock compensation expenses of 112M, with a 1.51 ratio indicating potential earnings quality issues.
  • Free cash flow of (196M) provides weak coverage of capital expenditures of 365M, with a -0.54 ratio suggesting additional external financing needs for growth initiatives.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 174.27 Bn 61.02 17.31 0.00 Bn
2 BDX Becton Dickinson & Co 59.72 Bn 37.77 3.14 19.18 Bn
3 RMD Resmed Inc 39.76 Bn 26.76 7.37 0.85 Bn
4 ALC Alcon Inc 38.93 Bn 37.18 3.82 5.24 Bn
5 WST West Pharmaceutical Services Inc 17.69 Bn 133.13 12.54 0.30 Bn
6 HOLX Hologic Inc 16.81 Bn 30.91 4.07 2.52 Bn
7 COO Cooper Companies, Inc. 16.37 Bn 43.67 4.00 2.51 Bn
8 ALGN Align Technology Inc 13.73 Bn 36.29 3.45 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.77 2.75
EV to Cash from Ops. EV/CFO 63.00 39.87
EV to Debt EV to Debt 2.15 27.09
EV to EBIT EV/EBIT 147.87 32.86
EV to EBITDA EV/EBITDA 20.63 19.31
EV to Free Cash Flow [EV/FCF] EV/FCF -54.32 0.88
EV to Market Cap EV to Market Cap 1.79 -4.26
EV to Revenue EV/Rev 2.14 252.61
Price to Book Value [P/B] P/B 0.93 6.13
Price to Earnings [P/E] P/E -19.54 184.03
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -1.09
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.36
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.74
Interest Coverage Int. cover (Qtr) 0.17 -117.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -28.98 -53.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.14 414.02
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.48
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -51.96 -57.42
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.47 -106.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -31.43 -37.00
EBT Growth (1y) % EBT 1y % (Qtr) -18.31 -42.63
EPS Growth (1y) % EPS 1y % (Qtr) 17.14 -15.05
FCF Growth (1y) % FCF 1y % (Qtr) -237.93 56.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.72 67.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.36 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.18 2.51
Current Ratio Curr Ratio (Qtr) 1.51 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.77 0.55
Interest Cover Ratio Int Coverage (Qtr) 0.17 -117.83
Times Interest Earned Times Interest Earned (Qtr) 0.17 -117.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 10.00 -2,368.59
EBIT Margin % EBIT Margin % (Qtr) 1.45 -2,472.59
EBT Margin % EBT Margin % (Qtr) -7.01 -2,442.52
Gross Margin % Gross Margin % (Qtr) 59.40 30.06
Net Profit Margin % Net Margin % (Qtr) -6.10 -2,438.49