BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - NYSE:BAX - US0718131099 - Common Stock
18.47 USD
-0.69 (-3.6%)
18.43 USD
-0.04 (-0.22%)
We assign a fundamental rating of 4 out of 10 to BAX. BAX was compared to 189 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of BAX while its profitability can be described as average. BAX is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
BAX had positive earnings in the past year.
In the past year BAX had a positive cash flow from operations.
In multiple years BAX reported negative net income over the last 5 years.
Each year in the past 5 years BAX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BAX (-0.74%) is better than 70.90% of its industry peers.
BAX has a Return On Equity of -2.12%. This is in the better half of the industry: BAX outperforms 70.37% of its industry peers.
BAX has a Return On Invested Capital of 2.60%. This is in the better half of the industry: BAX outperforms 70.37% of its industry peers.
BAX had an Average Return On Invested Capital over the past 3 years of 3.50%. This is significantly below the industry average of 9.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.74% | ||
| ROE | -2.12% | ||
| ROIC | 2.6% |
ROA(3y)-0.58%
ROA(5y)1.52%
ROE(3y)-6.47%
ROE(5y)1.48%
ROIC(3y)3.5%
ROIC(5y)4.71%
1.3 Margins
The Operating Margin of BAX (5.78%) is better than 70.90% of its industry peers.
In the last couple of years the Operating Margin of BAX has declined.
BAX has a Gross Margin of 36.01%. This is in the lower half of the industry: BAX underperforms 69.84% of its industry peers.
BAX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.78% | ||
| PM (TTM) | N/A | ||
| GM | 36.01% |
OM growth 3Y-19.11%
OM growth 5Y-13.17%
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.
Compared to 1 year ago, BAX has more shares outstanding
BAX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BAX has a worse debt to assets ratio.
2.2 Solvency
BAX has an Altman-Z score of 2.26. 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.
With a decent Altman-Z score value of 2.26, BAX is doing good in the industry, outperforming 63.49% of the companies in the same industry.
BAX has a debt to FCF ratio of 27.22. This is a negative value and a sign of low solvency as BAX would need 27.22 years to pay back of all of its debts.
BAX has a better Debt to FCF ratio (27.22) than 69.31% of its industry peers.
BAX has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
BAX has a Debt to Equity ratio of 1.30. This is in the lower half of the industry: BAX underperforms 79.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 27.22 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.55
WACC4.74%
2.3 Liquidity
BAX has a Current Ratio of 2.30. This indicates that BAX is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.30, BAX perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
A Quick Ratio of 1.49 indicates that BAX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.49, BAX is not doing good in the industry: 60.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The earnings per share for BAX have decreased strongly by -19.93% in the last year.
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 small growth in Revenue. The Revenue has grown by 2.66% in the last year.
BAX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.31% yearly.
EPS 1Y (TTM)-19.93%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-13.75%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.34%
3.2 Future
BAX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.91% yearly.
BAX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y-8.94%
EPS Next 2Y-1.76%
EPS Next 3Y1.09%
EPS Next 5Y3.91%
Revenue Next Year7.13%
Revenue Next 2Y5.44%
Revenue Next 3Y4.73%
Revenue Next 5Y3.83%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 7.66, the valuation of BAX can be described as very cheap.
BAX's Price/Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 95.77% of the companies in the same industry.
BAX is valuated cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.06 indicates a rather cheap valuation of BAX.
97.88% of the companies in the same industry are more expensive than BAX, based on the Price/Forward Earnings ratio.
BAX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.66 | ||
| Fwd PE | 7.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 85.71% of the companies listed in the same industry.
BAX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BAX is cheaper than 80.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.18 | ||
| EV/EBITDA | 11.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.76%
EPS Next 3Y1.09%
5. Dividend
5.1 Amount
BAX has a Yearly Dividend Yield of 3.55%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.80, BAX pays a better dividend. On top of this BAX pays more dividend than 98.41% of the companies listed in the same industry.
BAX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
On average, the dividend of BAX grows each year by 6.89%, which is quite nice.
BAX has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BAX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
BAX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-302.58%
EPS Next 2Y-1.76%
EPS Next 3Y1.09%
18.47
-0.69 (-3.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.22%
Inst Owner Change-0.1%
Ins Owners0.33%
Ins Owner Change10.96%
Market Cap9.49B
Revenue(TTM)10.64B
Net Income(TTM)-155000000
Analysts65.45
Price Target28.85 (56.2%)
Short Float %5.17%
Short Ratio4.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Yearly Dividend1.16
Dividend Growth(5Y)6.89%
DP-302.58%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.25%
Min EPS beat(2)-4.25%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)5.28%
Min EPS beat(4)-4.25%
Max EPS beat(4)12.74%
EPS beat(8)7
Avg EPS beat(8)3.8%
EPS beat(12)8
Avg EPS beat(12)2.57%
EPS beat(16)11
Avg EPS beat(16)3.26%
Revenue beat(2)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)0.46%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)0.16%
Revenue beat(12)6
Avg Revenue beat(12)-0.72%
Revenue beat(16)6
Avg Revenue beat(16)-2.32%
PT rev (1m)-2.27%
PT rev (3m)-22.59%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-7.4%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.66 | ||
| Fwd PE | 7.06 | ||
| P/S | 0.87 | ||
| P/FCF | 27.18 | ||
| P/OCF | 12.4 | ||
| P/B | 1.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.71 |
EPS(TTM)2.41
EY13.05%
EPS(NY)2.62
Fwd EY14.16%
FCF(TTM)0.68
FCFY3.68%
OCF(TTM)1.49
OCFY8.06%
SpS21.2
BVpS14.25
TBVpS-5.89
PEG (NY)N/A
PEG (5Y)N/A
Graham Number27.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.74% | ||
| ROE | -2.12% | ||
| ROCE | 3.47% | ||
| ROIC | 2.6% | ||
| ROICexc | 2.86% | ||
| ROICexgc | 7.74% | ||
| OM | 5.78% | ||
| PM (TTM) | N/A | ||
| GM | 36.01% | ||
| FCFM | 3.21% |
ROA(3y)-0.58%
ROA(5y)1.52%
ROE(3y)-6.47%
ROE(5y)1.48%
ROIC(3y)3.5%
ROIC(5y)4.71%
ROICexc(3y)3.9%
ROICexc(5y)5.53%
ROICexgc(3y)10.35%
ROICexgc(5y)12.85%
ROCE(3y)4.85%
ROCE(5y)6.42%
ROICexgc growth 3Y-24.28%
ROICexgc growth 5Y-17.95%
ROICexc growth 3Y-15.78%
ROICexc growth 5Y-22.54%
OM growth 3Y-19.11%
OM growth 5Y-13.17%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y-2.16%
F-Score3
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 27.22 | ||
| Debt/EBITDA | 6.3 | ||
| Cap/Depr | 47.38% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 2.26 |
F-Score3
WACC4.74%
ROIC/WACC0.55
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)-19.93%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-13.75%
EPS Next Y-8.94%
EPS Next 2Y-1.76%
EPS Next 3Y1.09%
EPS Next 5Y3.91%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.34%
Revenue Next Year7.13%
Revenue Next 2Y5.44%
Revenue Next 3Y4.73%
Revenue Next 5Y3.83%
EBIT growth 1Y-49.27%
EBIT growth 3Y-23.92%
EBIT growth 5Y-14.31%
EBIT Next Year68.12%
EBIT Next 3Y22.59%
EBIT Next 5Y18.89%
FCF growth 1Y-59.56%
FCF growth 3Y-27.1%
FCF growth 5Y-16.46%
OCF growth 1Y-50.93%
OCF growth 3Y-22.88%
OCF growth 5Y-13.5%
BAXTER INTERNATIONAL INC / BAX FAQ
What is the fundamental rating for BAX stock?
ChartMill assigns a fundamental rating of 4 / 10 to BAX.
What is the valuation status of BAXTER INTERNATIONAL INC (BAX) stock?
ChartMill assigns a valuation rating of 7 / 10 to BAXTER INTERNATIONAL INC (BAX). This can be considered as Undervalued.
What is the profitability of BAX stock?
BAXTER INTERNATIONAL INC (BAX) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for BAX stock?
The Price/Earnings (PE) ratio for BAXTER INTERNATIONAL INC (BAX) is 7.66 and the Price/Book (PB) ratio is 1.3.
What is the financial health of BAXTER INTERNATIONAL INC (BAX) stock?
The financial health rating of BAXTER INTERNATIONAL INC (BAX) is 3 / 10.