BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
NYSE:BAX - New York Stock Exchange, Inc. - US0718131099 - Common Stock - Currency: USD
BAX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 188 industry peers in the Health Care Equipment & Supplies industry. While BAX is still in line with the averages on profitability rating, there are concerns on its financial health. BAX has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BAX was profitable.
BAX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BAX reported negative net income in multiple years.
In the past 5 years BAX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BAX (-2.63%) is better than 69.68% of its industry peers.
With a decent Return On Equity value of -7.91%, BAX is doing good in the industry, outperforming 68.09% of the companies in the same industry.
BAX's Return On Invested Capital of 3.25% is fine compared to the rest of the industry. BAX outperforms 72.34% of its industry peers.
BAX had an Average Return On Invested Capital over the past 3 years of 3.20%. This is below the industry average of 7.71%.
The 3 year average ROIC (3.20%) for BAX is below the current ROIC(3.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.63% | ||
| ROE | -7.91% | ||
| ROIC | 3.25% |
ROA(3y)-0.58%
ROA(5y)1.52%
ROE(3y)-6.47%
ROE(5y)1.48%
ROIC(3y)3.2%
ROIC(5y)4.54%
1.3 Margins
The Operating Margin of BAX (6.53%) is better than 74.47% of its industry peers.
In the last couple of years the Operating Margin of BAX has declined.
With a Gross Margin value of 36.70%, BAX is not doing good in the industry: 68.62% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BAX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.53% | ||
| PM (TTM) | N/A | ||
| GM | 36.7% |
OM growth 3Y-25.59%
OM growth 5Y-17.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y-2.16%
2. Health
2.1 Basic Checks
BAX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BAX has been increased compared to 1 year ago.
Compared to 5 years ago, BAX has more shares outstanding
Compared to 1 year ago, BAX has a worse debt to assets ratio.
2.2 Solvency
BAX has an Altman-Z score of 2.53. This is not the best score and indicates that BAX is in the grey zone with still only limited risk for bankruptcy at the moment.
BAX's Altman-Z score of 2.53 is fine compared to the rest of the industry. BAX outperforms 63.30% of its industry peers.
BAX has a debt to FCF ratio of 37.17. This is a negative value and a sign of low solvency as BAX would need 37.17 years to pay back of all of its debts.
BAX has a Debt to FCF ratio of 37.17. This is in the better half of the industry: BAX outperforms 69.68% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that BAX has dependencies on debt financing.
The Debt to Equity ratio of BAX (1.33) is worse than 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 37.17 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.59
WACC5.52%
2.3 Liquidity
BAX has a Current Ratio of 2.02. This indicates that BAX is financially healthy and has no problem in meeting its short term obligations.
BAX has a Current ratio of 2.02. This is in the lower half of the industry: BAX underperforms 65.96% of its industry peers.
BAX has a Quick Ratio of 1.40. This is a normal value and indicates that BAX is financially healthy and should not expect problems in meeting its short term obligations.
BAX's Quick ratio of 1.40 is on the low side compared to the rest of the industry. BAX is outperformed by 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
BAX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.43%.
BAX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.21% yearly.
Looking at the last year, BAX shows a very negative growth in Revenue. The Revenue has decreased by -20.17% in the last year.
Measured over the past years, BAX shows a decrease in Revenue. The Revenue has been decreasing by -1.31% on average per year.
EPS 1Y (TTM)-5.43%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-15.38%
Revenue 1Y (TTM)-20.17%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.92%
3.2 Future
BAX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.15% yearly.
BAX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.52% yearly.
EPS Next Y-6.17%
EPS Next 2Y0.66%
EPS Next 3Y3.44%
EPS Next 5Y7.15%
Revenue Next Year7.78%
Revenue Next 2Y5.97%
Revenue Next 3Y5.28%
Revenue Next 5Y5.52%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.83 indicates a reasonable valuation of BAX.
BAX's Price/Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 92.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. BAX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.24, which indicates a very decent valuation of BAX.
Based on the Price/Forward Earnings ratio, BAX is valued cheaper than 89.36% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, BAX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
81.91% of the companies in the same industry are more expensive than BAX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAX indicates a somewhat cheap valuation: BAX is cheaper than 71.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.46 | ||
| EV/EBITDA | 14.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.66%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, BAX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.86, BAX pays a better dividend. On top of this BAX pays more dividend than 96.28% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BAX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
On average, the dividend of BAX grows each year by 6.89%, which is quite nice.
BAX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of BAX are negative and hence is the payout ratio. BAX will probably not be able to sustain this dividend level.
BAX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP-94.64%
EPS Next 2Y0.66%
EPS Next 3Y3.44%
30.87
+0.75 (+2.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.07%
Inst Owner Change2.19%
Ins Owners0.24%
Ins Owner Change5.4%
Market Cap15.84B
Analysts68.18
Price Target38.6 (25.04%)
Short Float %3.41%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend1.16
Dividend Growth(5Y)6.89%
DP-94.64%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.72%
Min EPS beat(2)10.69%
Max EPS beat(2)12.74%
EPS beat(4)4
Avg EPS beat(4)6.75%
Min EPS beat(4)1.64%
Max EPS beat(4)12.74%
EPS beat(8)7
Avg EPS beat(8)3.03%
EPS beat(12)8
Avg EPS beat(12)2.81%
EPS beat(16)12
Avg EPS beat(16)3.89%
Revenue beat(2)2
Avg Revenue beat(2)1.19%
Min Revenue beat(2)0.46%
Max Revenue beat(2)1.93%
Revenue beat(4)3
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)-0.09%
Revenue beat(12)6
Avg Revenue beat(12)-1.28%
Revenue beat(16)6
Avg Revenue beat(16)-2.32%
PT rev (1m)-2.93%
PT rev (3m)-1.52%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)1.08%
EPS NY rev (3m)2.1%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)1.59%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 11.24 | ||
| P/S | 1.33 | ||
| P/FCF | 58.46 | ||
| P/OCF | 23.89 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.01 |
EPS(TTM)2.61
EY8.45%
EPS(NY)2.75
Fwd EY8.9%
FCF(TTM)0.53
FCFY1.71%
OCF(TTM)1.29
OCFY4.19%
SpS23.17
BVpS13.8
TBVpS-6.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.63% | ||
| ROE | -7.91% | ||
| ROCE | 4.35% | ||
| ROIC | 3.25% | ||
| ROICexc | 3.73% | ||
| ROICexgc | 11.33% | ||
| OM | 6.53% | ||
| PM (TTM) | N/A | ||
| GM | 36.7% | ||
| FCFM | 2.28% |
ROA(3y)-0.58%
ROA(5y)1.52%
ROE(3y)-6.47%
ROE(5y)1.48%
ROIC(3y)3.2%
ROIC(5y)4.54%
ROICexc(3y)3.57%
ROICexc(5y)5.33%
ROICexgc(3y)9.57%
ROICexgc(5y)12.38%
ROCE(3y)4.43%
ROCE(5y)6.16%
ROICexcg growth 3Y-30.34%
ROICexcg growth 5Y-21.96%
ROICexc growth 3Y-22.52%
ROICexc growth 5Y-26.32%
OM growth 3Y-25.59%
OM growth 5Y-17.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y-2.16%
F-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 37.17 | ||
| Debt/EBITDA | 5.59 | ||
| Cap/Depr | 43.12% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 2.53 |
F-Score5
WACC5.52%
ROIC/WACC0.59
Cap/Depr(3y)49.31%
Cap/Depr(5y)63.51%
Cap/Sales(3y)5.12%
Cap/Sales(5y)5.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.43%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-15.38%
EPS Next Y-6.17%
EPS Next 2Y0.66%
EPS Next 3Y3.44%
EPS Next 5Y7.15%
Revenue 1Y (TTM)-20.17%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.92%
Revenue Next Year7.78%
Revenue Next 2Y5.97%
Revenue Next 3Y5.28%
Revenue Next 5Y5.52%
EBIT growth 1Y-37.62%
EBIT growth 3Y-30.01%
EBIT growth 5Y-18.5%
EBIT Next Year78.77%
EBIT Next 3Y25.02%
EBIT Next 5Y21.43%
FCF growth 1Y-64.85%
FCF growth 3Y-27.1%
FCF growth 5Y-16.46%
OCF growth 1Y-55.26%
OCF growth 3Y-22.88%
OCF growth 5Y-13.5%