Article by Yippee-Ki-Yay

Alcon AG: The Boring Swiss Stock That's Secretly Crushing It

Buy signal | Free publication | 4 Feb 2026

Alcon AG: The Empire of the Eye That Sees Far (And Your Wallet Too) 👁️💰

So, you want to know if Alcon AG deserves a VIP spot in your portfolio? Spoiler alert: this Swiss company, which plays in the big leagues of ophthalmology, has some serious arguments in its favour. Let me break it all down for you with the real figures under the hood.

Who is Alcon AG? The Jedi Master of Vision

Founded in 1945 and based in Geneva, Alcon is THE global boss of eye care. We're talking about a company operating in over 140 countries, helping millions of people see better every single day. Their catalogue? Heavyweight stuff: surgical equipment for cataracts, contact lenses, lasers for refractive surgery, glaucoma solutions... Basically, if it touches the eye, they do it, and they do it well.

With over 25,000 employees and a massive global presence, Alcon combines cutting-edge innovation with financial stability. And the figures I've got in front of me confirm that this machine is running at full throttle.

The 2024 Performance: Houston, We Have Liftoff! 🚀

The Income Statement: Green Everywhere (Well, Almost)

In 2024, Alcon generated $9.911 billion in revenue, a rise of 4.8% compared to the $9.455 billion in 2023. It's not explosive growth, but in the medical sector, consistency is king.

The net income? A magnificent $1.018 billion in 2024, versus $974 million in 2023. That's a progression of +4.5%. Even better: in 2022, they were at only $335 million. In three years, they've tripled their net profit. Respect.

The gross margin remains solid at 55.6% ($5.515 billion), which shows they know how to convert their sales into juicy profits. Operating income climbs to $1.414 billion (+37.8% vs 2023). Basically, the machine generates cash efficiently and consistently.

The Balance Sheet: Solid as a Rock (Well, Almost)

Total assets at the end of 2024: $30.347 billion. That's serious weight. Shareholders' equity stands at $21.553 billion, which gives a reasonable debt-to-equity ratio.

On the debt side, we've got $5.136 billion in total debt (short + long term), versus $1.830 billion in cash and equivalents. The net debt therefore hovers around $3.3 billion, which is manageable for a company of this size. The financial leverage remains under control.

The Cash Flow: The Star of the Show ⭐

Operating cash flow 2024: $2.077 billion, a spectacular increase compared to the $1.388 billion in 2023 (+49.6%). This is THE metric that excites me: Alcon generates real cash, not just accounting profit.

Capital expenditures (CapEx) are $670 million, which leaves a free cash flow of approximately $1.4 billion. With this treasure chest, they easily finance their growth, pay down debt, and distribute dividends ($130 million in 2024).

The Complete Rating: Breaking It All Down 🔍

Right, let's get down to serious business. Here's my rating out of 5 for each important criterion, based on the REAL financial data:

1. Revenue: 4/5 💪

2024 Revenue: $9.911 billion USD (+4.8% vs 2023)

Growth is steady but not spectacular. Alcon progresses calmly, carried by the ageing global population and the explosion of myopia amongst young people. The ophthalmology market is structurally buoyant, and Alcon is perfectly riding this wave.

Historical track record:

  • $7.508bn (2019)
  • $6.833bn (2020, Covid)
  • $8.291bn (2021)
  • $8.717bn (2022)
  • $9.455bn (2023)
  • $9.911bn (2024)

Average annual growth of approximately 7% over 5 years. Solid.

2. Net Income: 4.5/5 📈

2024 Net Income: $1.018 billion USD (+4.5% vs 2023)

Here, we're touching on the sublime. Net income has been multiplied by 3 since 2022 ($335 million). Profitability improves year after year, proof that management is optimising operations.

The Diluted EPS for 2024 is $2.04 USD, versus $1.96 in 2023. And according to forecasts, it should continue climbing: $3.035 USD in 2025, $3.388 in 2026, up to $5.158 in 2029. It's the kind of trajectory that makes long-term investors drool.

3. Debt: 3.5/5 ⚖️

Total Debt: $5.136bn USD
Cash: $1.830bn USD
Net Debt: approximately $3.3bn USD

The debt-to-equity ratio is approximately 23.8% (5.136 / 21.553), which remains reasonable. Long-term debt ($4.538bn) is largely covered by shareholders' equity. And with an operating cash flow of $2 billion per year, Alcon can easily service its debt.

Positive point: forecasts show a progressive reduction in net debt (moving into negative territory from 2027, with -$1.269bn). In other words, they're going to accumulate more cash than they have debt. Nice.

4. Return on Equity (ROE): 3/5 📊

2024 ROE: 7.179%

Right, this is less glorious. An ROE of 7.2% is decent but not exceptional. To give you an idea, the best companies run at 15-20%. But careful, in the medical sector with heavy assets (equipment, R&D), it's not abnormal to have a more modest ROE.

Forecasts show improvement: 6.417% in 2025, then 7.098% in 2026, 7.805% in 2027... It's climbing slowly but surely. In 2029, we should reach 6.9%. Hmm, it's stagnating a bit. This is Alcon's weak point: the return on equity could be better.

5. Market Performance: 3.5/5 📉

Here, we need to be honest: 2024-2025 has been a bit of a struggle for the share. The current price (CHF 61.58 ≈ $70-72 USD) is down from the 2024 peaks. But look at the forecasts:

  • Expected EPS for 2025: $3.035 USD (vs $2.04 current)
  • Expected EPS for 2026: $3.388 USD
  • Expected EPS for 2027: $3.903 USD

If we apply a conservative valuation multiple of 25x earnings (reasonable for the sector), the share could be worth $84-97 USD by 2026-2027, giving an upside potential of 20-35%. Not bad for a defensive stock.

Book value per share should also climb: $44.173 USD in 2025, $45.954 in 2026, $47.848 in 2027... The company is creating intrinsic value.

🎯 Overall Average: 3.7/5

Verdict: A Gem in Stealth Mode

Alcon isn't the hype startup that's going to 10x your capital in 6 months. It's a mature company, global leader, with solid fundamentals and an impressive ability to generate cash. The recent share price drop? A nice entry point for a patient investor.

Strengths:

  • Steady revenue growth (+5% annual average)
  • Explosion in net income (x3 in 3 years)
  • Massive operating cash flow ($2+ billion/year)
  • Dominant position in a growing market
  • Progressive debt reduction
  • Rising dividends ($0.346 USD in 2025, $0.58 in 2029)

Weaknesses:

  • ROE a bit low (7-8%)
  • Disappointing recent share performance
  • Revenue growth not spectacular
  • Debt to monitor (even though it's decreasing)

2026-2027 Forecasts: Crystal Ball Time 🔮

Right, let's be clear: predicting the future isn't my wizardry thing, but here's what the data from your files shows:

For 2026:

  • Expected Revenue: $11.117 billion USD (+12% vs 2024)
  • Expected Net Income: $1.706 billion USD (+67% vs 2024!)
  • Expected EPS: $3.388 USD
  • Share Price Estimate: $75-85 USD (based on P/E of 22-25x)

For 2027:

  • Expected Revenue: $11.827 billion USD
  • Expected Net Income: $1.960 billion USD
  • Expected EPS: $3.903 USD
  • Share Price Estimate: $85-98 USD

Basically, if you buy at $70-72 USD today (equivalent of CHF 61.58), you can aim for a gain of 20-40% by 2027, not counting dividends. That's solid for a defensive stock.

Conclusion: Alcon, the Wise Choice (Not the Degenerate One) 🦉

Alcon AG isn't the meme stock of the moment. It's not the crypto that's going to 100x nor the tech startup buzzing on Twitter. It's a century-old company, undisputed global leader, helping millions of people see better every day.

Its fundamentals are rock solid: steady growth, rising profitability, massive cash flow, progressive debt reduction. The 2026-2027 forecasts are frankly enticing, with a gain potential of 20-40% within 2-3 years.

The recent share price drop? A golden opportunity to enter at a reduced price. The growing dividends? A significant bonus. The dominant position in a buoyant market (ageing, myopia)? A guarantee of long-term growth.

My final verdict on Alcon. It's the kind of stock that won't make you a millionaire overnight, but will let you sleep soundly knowing your money is working intelligently.

If your portfolio were a meal, Alcon wouldn't be the spectacular dessert, but the nourishing main course that fills you up and gives you energy for what's next. Solid, reliable, and with a little twist of innovation that makes the difference.

So, ready to see the future more clearly (and wealthier) with Alcon? 😎👁️💸

Mandatory disclaimer: This is not financial investment advice. I'm not your FCA-approved adviser, just an analyst who crunches numbers and gives you his opinion. Markets can go up as well as down, and your capital is at risk. Always do your own research and consult a professional if you have doubts. But honestly, Alcon looks like a fairly safe bet. 🤙

  • Signal : Buy
  • Budget/Investment : Medium/High
  • Reinforcement required : No
  • Exposure : Low/Medium
  • Horizon : 2 to 3 years
  • Potential profitability : +20% to +40%
  • Ref. ISIN code : CH0432492467