Bausch & Lomb Corp BLCO

Morningstar Rating

Company Report

Bausch & Lomb: Interested Buyers Prepare Bids as Potential Sale Work Underway

The Financial Times reported on Sept. 18 that a number of private equity firms, including Blackstone, Advent International, and TPG, are considering offers for Bausch & Lomb. While there is no guarantee that the firm will be sold off, this increasingly looks to be a more likely option than a spinoff, given that Bausch Health—Bausch & Lomb’s parent company, which owns about 88% of its subsidiary—could use the proceeds to pay down its USD 21.2 billion in long-term debt.

Price vs Fair Value

BLCO is trading at a 154% premium.
Price
CAD 25.56
Fair Value
CAD 93.00
Uncertainty
High
1-Star Price
CAD 89.10
5-Star Price
CAD 52.30
Economic Moat
Vygbgph
Capital Allocation
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Bulls Say, Bears Say

Bulls

As a standalone public company, Bausch now has the ability to freely allocate financial resources to innovate and develop businesses that were underfunded under its former parent company.

Bears

Bausch will face margin pressures from upcoming losses of exclusivity on its pharmaceuticals, and this might hinder its efforts to raise margins to a level comparable with that of its close competitors.

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
27.87
Price/Sales
1.47
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield

Company Profile

Bausch & Lomb is one of the largest vision care companies in the U.S. The firm was previously a subsidiary under parent company Bausch Health and it was spun off to become a public company in 2022. It operates in three segments: vision care, surgical, and ophthalmic pharmaceuticals. Vision care is composed of contact lenses, a market which B&L controls 10%, and ocular health products, which includes Biotrue and Lumify. Surgical includes a suite of intraocular lenses, equipment for cataract and vitreoretinal surgeries, as well as surgical instruments. Ophthalmic pharmaceuticals has a diverse lineup of products, including Xipere, Vyzulta, and Lotemax that treat different complications. With over 100 products, B&L has the largest portfolio of eye care prescriptions in the space.
Sector
Healthcare
Industry
Medical Instruments & Supplies
Stock Style Box
Mid Core
Total Number of Employees
13,300

Competitors

Valuation

Metric
BLCO
COO
AFX
Price/Earnings (Normalized)
27.8731.1231.78
Price/Book Value
1.012.763.03
Price/Sales
1.475.773.06
Price/Cash Flow
29.8323.1719.49
Price/Earnings
BLCO
COO
AFX

Financial Strength

Metric
BLCO
COO
AFX
Quick Ratio
0.760.882.34
Current Ratio
1.651.993.51
Interest Coverage
0.285.5812.08
Quick Ratio
BLCO
COO
AFX

Profitability

Metric
BLCO
COO
AFX
Return on Assets (Normalized)
1.77%3.02%
Return on Equity (Normalized)
3.37%4.67%
Return on Invested Capital (Normalized)
4.88%4.23%
Return on Assets
BLCO
COO
AFX

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