BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - NYSE:BAX - US0718131099 - Common Stock
23.99 USD
-0.5 (-2.04%)
23.86 USD
-0.13 (-0.54%)
Taking everything into account, BAX scores 4 out of 10 in our fundamental rating. BAX was compared to 191 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of BAX get a neutral evaluation. Nothing too spectacular is happening here. 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
Looking at the Return On Assets, with a value of -0.74%, BAX is in the better half of the industry, outperforming 70.68% of the companies in the same industry.
Looking at the Return On Equity, with a value of -2.12%, BAX is in the better half of the industry, outperforming 70.16% of the companies in the same industry.
The Return On Invested Capital of BAX (2.60%) is better than 70.68% of its industry peers.
BAX had an Average Return On Invested Capital over the past 3 years of 3.50%. This is below the industry average of 8.46%.
| 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
BAX has a better Operating Margin (5.78%) than 71.20% of its industry peers.
In the last couple of years the Operating Margin of BAX has declined.
With a Gross Margin value of 36.01%, BAX is not doing good in the industry: 70.68% 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 | 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
Compared to 5 years ago, BAX has more shares outstanding
BAX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.37 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BAX (2.37) is better than 65.44% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 27.22, BAX is in the better half of the industry, outperforming 69.63% of the companies in the same industry.
BAX has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
BAX has a worse Debt to Equity ratio (1.30) than 81.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 27.22 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.52
WACC5%
2.3 Liquidity
A Current Ratio of 2.30 indicates that BAX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.30, BAX is in line with its industry, outperforming 45.03% of the companies in the same industry.
BAX has a Quick Ratio of 1.49. This is a normal value and indicates that BAX is financially healthy and should not expect problems in meeting its short term obligations.
BAX has a Quick ratio (1.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
BAX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.80%.
The Earnings Per Share has been decreasing by -4.21% on average over the past years.
The Revenue for BAX has decreased by -27.41% in the past year. This is quite bad
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)-12.8%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-13.24%
Revenue 1Y (TTM)-27.41%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.29%
3.2 Future
Based on estimates for the next years, BAX will show a small growth in Earnings Per Share. The EPS will grow by 3.91% on average per year.
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-9.02%
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
EPS Next 5Y3.91%
Revenue Next Year7.11%
Revenue Next 2Y5.43%
Revenue Next 3Y4.72%
Revenue Next 5Y3.83%
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 9.52 indicates a reasonable valuation of BAX.
BAX's Price/Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 93.72% of the companies in the same industry.
BAX is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
BAX is valuated reasonably with a Price/Forward Earnings ratio of 9.18.
Based on the Price/Forward Earnings ratio, BAX is valued cheaply inside the industry as 93.72% of the companies are valued more expensively.
BAX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.52 | ||
| Fwd PE | 9.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaply inside the industry as 82.20% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAX indicates a somewhat cheap valuation: BAX is cheaper than 79.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.31 | ||
| EV/EBITDA | 13.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
5. Dividend
5.1 Amount
BAX has a Yearly Dividend Yield of 2.78%.
In the last 3 months the price of BAX has falen by -21.65%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
BAX's Dividend Yield is rather good when compared to the industry average which is at 1.69. BAX pays more dividend than 97.91% of the companies in the same industry.
BAX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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 slower than its dividend. This means the dividend growth is not sustainable.
DP-302.58%
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
23.99
-0.5 (-2.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change-3.72%
Ins Owners0.25%
Ins Owner Change10.96%
Market Cap12.32B
Analysts65.45
Price Target29.98 (24.97%)
Short Float %4.51%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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)-1.91%
PT rev (3m)-21.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.59%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-3.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.52 | ||
| Fwd PE | 9.18 | ||
| P/S | 1.13 | ||
| P/FCF | 35.31 | ||
| P/OCF | 16.11 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.36 |
EPS(TTM)2.52
EY10.5%
EPS(NY)2.61
Fwd EY10.9%
FCF(TTM)0.68
FCFY2.83%
OCF(TTM)1.49
OCFY6.21%
SpS21.2
BVpS14.25
TBVpS-5.89
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y-24.28%
ROICexcg 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 | 2.37 |
F-Score3
WACC5%
ROIC/WACC0.52
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)-12.8%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-13.24%
EPS Next Y-9.02%
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
EPS Next 5Y3.91%
Revenue 1Y (TTM)-27.41%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.29%
Revenue Next Year7.11%
Revenue Next 2Y5.43%
Revenue Next 3Y4.72%
Revenue Next 5Y3.83%
EBIT growth 1Y-49.27%
EBIT growth 3Y-23.92%
EBIT growth 5Y-14.31%
EBIT Next Year71.06%
EBIT Next 3Y23.12%
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%