Bausch & Lomb Corp

Bausch & Lomb maintains a capital structure characterized by significant leverage, with long-term debt of $5.05 billion and short-term debt of $28 million against total equity of $6.38 billion. The debt-to-equity ratio stands at 0.8, while the current ratio is 1.55, indicating adequate short-term liquidity despite a medium liquidity risk assessment. The company holds $367 million in cash and equivalents, resulting in negative net cash after subtracting total debt. Free cash flow is minimal at $14 million, derived from $185 million in operating cash flow and $171 million in capital expenditures.

Profitability metrics reflect a challenging financial period, with net income at -$85 million and operating income at $116 million on revenue of $2.64 billion. Return on equity is -5.65% and return on assets is -2.6%, signaling inefficient capital utilization relative to the equity base. Valuation multiples are elevated, with a price-to-book ratio of 21.23 and an EV/EBITDA of 94.67, suggesting the market prices in significant future restructuring or separation benefits rather than current earnings power.

The company’s revenue is derived from two primary segments: Vision Care and Surgical Products, though specific revenue breakdowns for these segments are not disclosed in the available data. The lack of detailed segment performance metrics limits the ability to assess concentration risk within specific product lines, but the dual-segment structure suggests diversified exposure within the ophthalmic industry.

Growth trajectory analysis is constrained by the absence of historical period data in the input, preventing a year-over-year or quarter-over-quarter revenue trend assessment. The current revenue figure of $2.64 billion serves as the sole baseline for performance evaluation, with no prior periods available to determine momentum or deceleration.

Risk factors are prominent, with medium dilution risk and key flags indicating negative net cash and potential offering risks. The company faces significant operational and strategic risks related to its anticipated separation from Bausch Health Companies Inc., including challenges in managing an independent business, potential conflicts of interest, and the uncertainty of transaction completion. Additional risks include exposure to tariffs, trade restrictions, patent exclusivity loss, and macroeconomic factors such as inflation and exchange rate fluctuations.

Recent events include the filing of an 8-K with material items under code 2.02, indicating significant corporate developments or results of operations. Analyst sentiment is mixed, with a mean recommendation of 2.58 and a mean price target of $18.36, reflecting uncertainty surrounding the separation process and near-term financial performance. The high price target of $21.00 and low of $16.00 further illustrate the wide range of analyst expectations.

Bausch + Lomb Corp (BLCO) has seen a cluster of new institutional investors initiate positions in the company, marking a notable shift in its shareholder base. Recent filings reveal that six distinct investors added stakes in the stock, with the majority of these new positions reported as of March 31, 2026. This influx of new capital represents the first recorded analysis for the ticker, meaning there is no prior baseline for comparison, but the simultaneous entry of multiple holders suggests growing interest from the investment community. The most significant new position among the recent additions was taken by investor ID 478, who acquired 1,224,603 shares valued at approximately $19.5 million. Another substantial entry came from investor ID 486, who purchased 845,914 shares worth roughly $13.5 million. These two investors alone account for the largest share of the new capital inflow, indicating that larger institutional players are beginning to allocate meaningful resources to BLCO. Other notable additions include investor ID 499, who bought 453,179 shares valued at $7.2 million, and investor ID 500, who acquired 292,886 shares worth $4.7 million. Smaller but still notable positions were initiated by investor ID 487 (85,779 shares, $1.4 million), investor ID 504 (11,216 shares, $0.18 million), and investor ID 466, who added 22,274 shares valued at $0.32 million as of June 30, 2024. The diversity in position sizes suggests a broadening appeal across different types of institutional investors. This activity occurs against a backdrop of limited public analyst coverage, with the company currently tracking zero analyst estimates and only one reported officer. With 13 top holders identified in the current dataset, the entry of these new investors adds depth to the shareholder structure. While the lack of prior data prevents a direct delta calculation, the establishment of these new positions provides a fresh foundation for monitoring future ownership trends and potential market sentiment shifts for Bausch + Lomb.

Revenue grew at a 7.5% CAGR from FY2023 to FY2025, indicating consistent top-line expansion despite net losses.

Analysts project 16.7% upside to a mean price target of $18.25, suggesting undervaluation relative to current market price.

Operating income increased 43.4% year-over-year in FY2025, demonstrating significant improvement in core operational profitability.

Free cash flow improved by 10.6% year-over-year in FY2025, showing better cash generation efficiency from operations.

Capex to revenue ratio is best-in-class compared to the medical equipment cohort median, indicating efficient capital allocation.

The company faces high credit risk and high leverage band, with net debt to EBITDA reaching 8.74.

Debt-to-equity ratio of 0.79 places the company in the bottom quartile of its peer cohort.

Cash conversion ratio of -0.79 is in the bottom quartile, indicating poor ability to convert earnings to cash.

Return on equity of -5.6% trails the cohort median of 1.4%, showing inefficient use of shareholder capital.

Revenue $2.64B; Operating income $116.0M.

• ▍Revenue $2.64B
• ▍Operating income $116.0M
• ▍Net margin -3.2%

Revenue $1.24B; Operating income $33.0M.

• ▍Revenue $1.24B
• ▍Operating income $33.0M
• ▍Net margin -5.7%

Revenue $5.10B; Operating income $113.0M.

• ▍Revenue $5.10B
• ▍Operating income $113.0M
• ▍Net margin -7.1%

Revenue $4.79B; Operating income $162.0M.

• ▍Revenue $4.79B
• ▍Operating income $162.0M
• ▍Net margin -6.6%

Revenue $4.79B; Operating income $162.0M.

• ▍Revenue $4.79B
• ▍Operating income $162.0M
• ▍Net margin -6.6%

Revenue $4.15B; Operating income $130.0M.

• ▍Revenue $4.15B
• ▍Operating income $130.0M
• ▍Net margin -6.3%

Revenue $4.15B; Operating income $130.0M.

• ▍Revenue $4.15B
• ▍Operating income $130.0M
• ▍Net margin -6.3%