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BLCO Stock Analysis - Bausch & Lomb Corp AI Rating

BLCO NYSE Ophthalmic Goods CIK: 0001860742
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-12-31
AI Rating
SELL
78% Confidence

📊 BLCO Key Takeaways

Revenue: $5.1B
Net Margin: -7.1%
Free Cash Flow: $-66.0M
Current Ratio: 1.55x
Debt/Equity: 0.78x
EPS: $-1.02
AI Rating: SELL with 78% confidence

Investment Thesis

Bausch & Lomb faces severe profitability challenges despite 6.5% revenue growth, with negative net income of -$360M and negative free cash flow of -$66M indicating operational stress. The company's interest coverage ratio of 0.3x is critically low, suggesting difficulty servicing its $5B debt load, while negative returns on equity (-5.6%) and assets (-2.6%) demonstrate poor capital efficiency.

BLCO Strengths

  • + Revenue growing 6.5% year-over-year, showing demand for ophthalmic products
  • + Reasonable current ratio of 1.55x provides near-term liquidity buffer
  • + Moderate debt-to-equity ratio of 0.78x shows manageable leverage relative to equity base

BLCO Risks

  • ! Critically low interest coverage ratio of 0.3x indicates severe difficulty servicing $5B long-term debt obligations
  • ! Negative free cash flow of -$66M despite positive operating cash flow suggests capital expenditures exceed operating cash generation capacity
  • ! Negative net margin of -7.1% and negative net income of -$360M indicate the company is currently unprofitable at the bottom line
  • ! Negative ROE and ROA indicate shareholder capital is being destroyed rather than efficiently deployed

Key Metrics to Watch

BLCO Financial Metrics

Revenue
$5.1B
Net Income
$-360.0M
EPS (Diluted)
$-1.02
Free Cash Flow
$-66.0M
Total Assets
$14.0B
Cash Position
$383.0M

💡 AI Analyst Insight

Bausch & Lomb Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

BLCO Profitability Ratios

Gross Margin N/A
Operating Margin 2.2%
Net Margin -7.1%
ROE -5.6%
ROA -2.6%
FCF Margin -1.3%

BLCO vs Default Sector

How Bausch & Lomb Corp compares to Default sector averages

Net Margin
BLCO -7.1%
vs
Sector Avg 12.0%
BLCO Sector
ROE
BLCO -5.6%
vs
Sector Avg 15.0%
BLCO Sector
Current Ratio
BLCO 1.6x
vs
Sector Avg 1.8x
BLCO Sector
Debt/Equity
BLCO 0.8x
vs
Sector Avg 0.7x
BLCO Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BLCO Balance Sheet & Liquidity

Current Ratio
1.55x
Quick Ratio
1.04x
Debt/Equity
0.78x
Debt/Assets
53.5%
Interest Coverage
0.27x
Long-term Debt
$5.0B

BLCO 5-Year Financial Trend

BLCO 5-year financial data: Year 2022: Revenue $3.8B, Net Income -$18.0M, EPS $-0.05. Year 2023: Revenue $4.1B, Net Income $182.0M, EPS $0.52. Year 2024: Revenue $4.8B, Net Income $6.0M, EPS $0.02. Year 2025: Revenue $5.1B, Net Income -$260.0M, EPS $-0.74.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Bausch & Lomb Corp's revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.74 indicates the company is currently unprofitable.

BLCO Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-1.3%
Free cash flow / Revenue

BLCO Quarterly Performance

Quarterly financial performance data for Bausch & Lomb Corp including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $1.2B $4.0M $0.01
Q2 2025 $1.2B -$62.0M $-0.18
Q1 2025 $1.1B -$167.0M $-0.48
Q3 2024 $1.0B $4.0M $0.01
Q2 2024 $1.0B -$32.0M $-0.09
Q1 2024 $931.0M -$90.0M $-0.26
Q3 2023 $942.0M $7.0M $0.02
Q2 2023 $941.0M $5.0M $0.01

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BLCO Capital Allocation

Operating Cash Flow
$283.0M
Cash generated from operations
Capital Expenditures
$349.0M
Investment in assets
Dividends
None
No dividend program

BLCO SEC Filings

Access official SEC EDGAR filings for Bausch & Lomb Corp (CIK: 0001860742)

📋 Recent SEC Filings

Date Form Document Action
Mar 10, 2026 4 xslF345X05/form4.xml View →
Mar 10, 2026 4 xslF345X05/form4.xml View →
Mar 10, 2026 4 xslF345X05/form4.xml View →
Mar 4, 2026 4 xslF345X05/form4.xml View →
Mar 3, 2026 4 xslF345X05/form4.xml View →

Frequently Asked Questions about BLCO

What is the AI rating for BLCO?

Bausch & Lomb Corp (BLCO) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BLCO's key strengths?

Revenue growing 6.5% year-over-year, showing demand for ophthalmic products. Reasonable current ratio of 1.55x provides near-term liquidity buffer.

What are the risks of investing in BLCO?

Critically low interest coverage ratio of 0.3x indicates severe difficulty servicing $5B long-term debt obligations. Negative free cash flow of -$66M despite positive operating cash flow suggests capital expenditures exceed operating cash generation capacity.

What is BLCO's revenue and growth?

Bausch & Lomb Corp reported revenue of $5.1B.

Does BLCO pay dividends?

Bausch & Lomb Corp does not currently pay dividends.

Where can I find BLCO SEC filings?

Official SEC filings for Bausch & Lomb Corp (CIK: 0001860742) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BLCO's EPS?

Bausch & Lomb Corp has a diluted EPS of $-1.02.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-12-31 | Powered by Claude AI