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1. Company Snapshot

1.a. Company Description

Bausch + Lomb Corporation operates as an eye health company worldwide.It operates through three segments: Vision Care/Consumer Health Care, Ophthalmic Pharmaceuticals, and Surgical.The Vision Care/Consumer Health Care segment provides contact lens that covers the spectrum of wearing modalities, including daily disposable and frequently replaced contact lenses; and contact lens care products, over-the-counter eye drops, eye vitamins, and mineral supplements that address various conditions comprising eye allergies, conjunctivitis, and dry eye.


The Ophthalmic Pharmaceuticals segment offers proprietary and generic pharmaceutical products for post-operative treatments, as well as for the treatment of eye conditions, such as glaucoma, ocular hypertension, and retinal diseases; and contact lenses for therapeutic use.The Surgical segment provides tools and technologies for the treatment of cataracts, and vitreous and retinal eye conditions; and intraocular lenses and delivery systems, phacoemulsification equipment, and other surgical instruments and devices.The company was founded in 1853 and is headquartered in Vaughan, Canada.

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1.b. Last Insights on BLCO

Negative drivers behind Bausch + Lomb Corporation's recent performance include a 41.5% stock price drop since October 2024, driven by a voluntary recall of intraocular lenses due to reports of toxic anterior segment syndrome (TASS), a potential complication in cataract surgery. Wells Fargo downgraded the stock's rating from Buy to Hold, citing concerns related to the recall. Additionally, the company's Q4 2024 earnings beat was overshadowed by a full-year revenue guidance that came in 1.1% below analysts' estimates.

1.c. Company Highlights

2. Bausch + Lomb: Growth Driven by Innovation and Execution

Bausch + Lomb reported second quarter 2025 revenue of $1.278 billion, a 3% increase year-over-year. This growth was driven by strong performance in consumer, contact lenses, and promoted pharmaceuticals. Surgical segment revenue grew 1% in the quarter, absorbing a $29 million impact from the enVista recall. Excluding the recall, the segment grew 15%. The Pharma segment saw a 1% decline in revenue, primarily due to a 29% decline in the U.S. generics business, which the company expects to improve in the second half of the year.

Publication Date: Aug -15

📋 Highlights

Dry Eye Portfolio Strength

The dry eye portfolio continues to be a bright spot, with revenue reaching $115 million, up 19% year-over-year, driven by strong growth in ARTELAC (34%) and Blink (13%). This success is attributed to the growing market for dry eye treatments and Bausch + Lomb's focus on innovative products like LUMIFY, which saw revenue reach $61 million, up 27% year-over-year.

Contact Lens Growth Outpaces the Market

Bausch + Lomb's contact lens business grew 7%, outpacing the market, with particular strength in the Daily SiHy franchise (36% growth). The company's expansion into direct-to-consumer channels, such as the launch of its Opal brand in the U.S., has also contributed to this growth.

Pharmaceutical Pipeline and Generics Outlook

While the generics business faced headwinds in the second quarter, Bausch + Lomb remains confident in its long-term profitability. They are focused on improving execution and supply chain reliability to address these challenges. The company is also optimistic about its pharmaceutical pipeline, which includes several promising candidates for dry eye, glaucoma, and ocular pain.

Valuation Metrics

With a P/E ratio of -12.83 and a P/B ratio of 0.8, Bausch + Lomb appears to be undervalued by the market. However, investors should consider the company's high net debt / EBITDA ratio of 13.35 and the negative free cash flow yield of -3.2%. These metrics suggest that Bausch + Lomb may be taking on significant debt to fund its growth initiatives, which could pose a risk to future profitability.

3. NewsRoom

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BLCO Stock Still 16% Below IPO — Is Silver Point’s $38.7 Million Bet a Turning Point?

Dec -03

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Why Bausch + Lomb (BLCO) Stock Is Up Today

Dec -02

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Bausch + Lomb (BLCO): Is the Current Valuation Overlooked After Recent Share Recovery?

Dec -01

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3 Cash-Burning Stocks We Approach with Caution

Nov -24

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Enovis, AMN Healthcare Services, Astrana Health, U.S. Physical Therapy, and AdaptHealth Stocks Trade Up, What You Need To Know

Nov -21

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Bausch + Lomb to Participate in Citi Global Healthcare Conference

Nov -18

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Bausch Health to Participate in the 8th Annual Evercore Healthcare Conference

Nov -18

Source: accessnewswire.com

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Is Bausch + Lomb (NYSE:BLCO) Undervalued? A Fresh Look at Its Current Valuation

Nov -16

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.59%)

6. Segments

Vision Care

Expected Growth: 7%

Bausch + Lomb's Vision Care segment growth is driven by increasing demand for contact lenses and eye care products, particularly in emerging markets. Expanding product portfolio, including daily disposable lenses and orthokeratology, contributes to growth. Additionally, strategic partnerships and acquisitions, such as the purchase of SynergEyes, enhance market presence and capabilities.

Pharmaceuticals

Expected Growth: 9%

Bausch + Lomb's Pharmaceuticals segment growth is driven by increasing demand for prescription medications, particularly in the ophthalmology and dermatology spaces. Strong product pipelines, strategic acquisitions, and expanding geographic presence in emerging markets also contribute to the 9% growth. Additionally, investments in digital health and e-commerce platforms enhance customer engagement and accessibility, further fueling growth.

Surgical

Expected Growth: 8%

Bausch + Lomb's Surgical segment growth is driven by increasing demand for cataract surgeries, expansion in emerging markets, and adoption of advanced technologies such as femtosecond lasers and intraoperative guidance systems. Additionally, the company's strategic acquisitions and partnerships have enhanced its product portfolio and expanded its customer base, contributing to the 8% growth rate.

7. Detailed Products

Contact Lenses

Bausch + Lomb offers a wide range of contact lenses for correcting vision problems such as nearsightedness, farsightedness, astigmatism, and presbyopia.

Cataract Surgery

Bausch + Lomb provides a range of intraocular lenses (IOLs) and surgical equipment for cataract surgery, enabling surgeons to restore vision to patients with cataracts.

Vitrectomy Systems

Bausch + Lomb's vitrectomy systems are designed for retinal surgeons to perform vitreoretinal surgery, treating conditions such as retinal detachment and diabetic retinopathy.

Ophthalmic Pharmaceuticals

Bausch + Lomb develops and commercializes ophthalmic pharmaceuticals for treating various eye conditions, including glaucoma, dry eye, and conjunctivitis.

Refractive Surgery

Bausch + Lomb offers a range of technologies and equipment for refractive surgeons, enabling them to perform LASIK and other refractive surgeries.

8. Bausch + Lomb Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Bausch + Lomb Corporation is medium due to the presence of alternative products and services in the eye care industry. While there are some substitutes available, they are not highly attractive to customers, and the company's products have a strong brand reputation.

Bargaining Power Of Customers

The bargaining power of customers for Bausch + Lomb Corporation is low due to the company's strong brand reputation and the lack of price sensitivity among customers. Customers are loyal to the brand and are willing to pay a premium for high-quality products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Bausch + Lomb Corporation is medium due to the presence of multiple suppliers in the market. While the company has some bargaining power due to its large size, suppliers also have some power due to the specialized nature of the products.

Threat Of New Entrants

The threat of new entrants for Bausch + Lomb Corporation is low due to the high barriers to entry in the eye care industry. The company's strong brand reputation, high research and development costs, and regulatory hurdles make it difficult for new entrants to enter the market.

Intensity Of Rivalry

The intensity of rivalry for Bausch + Lomb Corporation is high due to the presence of several established players in the eye care industry. The company faces intense competition from rivals such as Johnson & Johnson, Alcon, and CooperVision, which leads to high marketing and advertising expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.98%
Debt Cost 4.15%
Equity Weight 60.02%
Equity Cost 6.30%
WACC 5.44%
Leverage 66.60%

11. Quality Control: Bausch + Lomb Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
DENTSPLY SIRONA

A-Score: 4.0/10

Value: 7.7

Growth: 1.4

Quality: 3.1

Yield: 6.0

Momentum: 0.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Envista

A-Score: 3.9/10

Value: 4.5

Growth: 1.2

Quality: 5.1

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Masimo

A-Score: 3.8/10

Value: 4.6

Growth: 4.2

Quality: 3.8

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

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ICU Medical

A-Score: 3.1/10

Value: 5.6

Growth: 4.4

Quality: 3.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Bausch Lomb

A-Score: 2.9/10

Value: 7.2

Growth: 1.9

Quality: 2.5

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Azenta

A-Score: 2.8/10

Value: 5.1

Growth: 2.6

Quality: 4.2

Yield: 0.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.69$

Current Price

22.69$

Potential

-0.00%

Expected Cash-Flows