BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAX - US0718131099 - Common Stock
18.25 USD
-0.06 (-0.33%)
We assign a fundamental rating of 4 out of 10 to BAX. BAX was compared to 188 industry peers in the Health Care Equipment & Supplies industry. BAX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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.
Each year in the past 5 years BAX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of -1.62%, BAX is doing good in the industry, outperforming 70.74% of the companies in the same industry.
With a decent Return On Equity value of -4.71%, BAX is doing good in the industry, outperforming 71.28% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.04%, BAX is in the better half of the industry, outperforming 71.28% of the companies in the same industry.
BAX had an Average Return On Invested Capital over the past 3 years of 3.50%. This is significantly below the industry average of 8.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.62% | ||
| ROE | -4.71% | ||
| ROIC | 3.04% |
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 (6.37%) is better than 71.81% of its industry peers.
In the last couple of years the Operating Margin of BAX has declined.
With a Gross Margin value of 35.04%, BAX is not doing good in the industry: 71.81% of the companies in the same industry are doing better.
BAX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.37% | ||
| PM (TTM) | N/A | ||
| GM | 35.04% |
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.
The debt/assets ratio for BAX is higher compared to a year ago.
2.2 Solvency
BAX has an Altman-Z score of 2.21. 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 has a Altman-Z score of 2.21. This is in the better half of the industry: BAX outperforms 63.30% of its industry peers.
The Debt to FCF ratio of BAX is 38.94, which is on the high side as it means it would take BAX, 38.94 years of fcf income to pay off all of its debts.
BAX's Debt to FCF ratio of 38.94 is fine compared to the rest of the industry. BAX outperforms 67.55% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that BAX has dependencies on debt financing.
The Debt to Equity ratio of BAX (1.21) is worse than 77.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.68
WACC4.44%
2.3 Liquidity
BAX has a Current Ratio of 1.84. 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 Current ratio of 1.84. This is in the lower half of the industry: BAX underperforms 67.55% of its industry peers.
BAX has a Quick Ratio of 1.18. This is a normal value and indicates that BAX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.18, BAX is doing worse than 69.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
BAX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.93%.
Measured over the past years, BAX shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.21% on average per year.
BAX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.20%.
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)-19.93%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-13.75%
Revenue 1Y (TTM)-21.2%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.34%
3.2 Future
The Earnings Per Share is expected to grow by 1.85% on average over the next years.
Based on estimates for the next years, BAX will show a small growth in Revenue. The Revenue will grow by 2.77% on average per year.
EPS Next Y-11.26%
EPS Next 2Y-6.32%
EPS Next 3Y-1.72%
EPS Next 5Y1.85%
Revenue Next Year5.45%
Revenue Next 2Y3.97%
Revenue Next 3Y3.61%
Revenue Next 5Y2.77%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
BAX is valuated cheaply with a Price/Earnings ratio of 7.57.
96.28% of the companies in the same industry are more expensive than BAX, based on the Price/Earnings ratio.
BAX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.47.
A Price/Forward Earnings ratio of 7.67 indicates a rather cheap valuation of BAX.
BAX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 97.34% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BAX to the average of the S&P500 Index (34.42), we can say BAX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaply inside the industry as 89.36% 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 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.42 | ||
| EV/EBITDA | 10.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.32%
EPS Next 3Y-1.72%
5. Dividend
5.1 Amount
With a yearly dividend of 0.23%, BAX is not a good candidate for dividend investing.
In the last 3 months the price of BAX has falen by -25.39%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.74, BAX pays a better dividend. On top of this BAX pays more dividend than 90.96% of the companies listed in the same industry.
With a Dividend Yield of 0.23, BAX pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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
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-119.65%
EPS Next 2Y-6.32%
EPS Next 3Y-1.72%
NYSE:BAX (11/24/2025, 9:40:03 AM)
18.25
-0.06 (-0.33%)
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 Change8.04%
Ins Owners0.33%
Ins Owner Change9.49%
Market Cap9.37B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price Target25.43 (39.34%)
Short Float %4.97%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend1.16
Dividend Growth(5Y)6.89%
DP-119.65%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.96%
Min EPS beat(2)-4.25%
Max EPS beat(2)14.16%
EPS beat(4)3
Avg EPS beat(4)8.34%
Min EPS beat(4)-4.25%
Max EPS beat(4)14.16%
EPS beat(8)7
Avg EPS beat(8)5.47%
EPS beat(12)9
Avg EPS beat(12)3.78%
EPS beat(16)11
Avg EPS beat(16)3.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-1.44%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)-0.06%
Revenue beat(12)6
Avg Revenue beat(12)-0.48%
Revenue beat(16)6
Avg Revenue beat(16)-2.41%
PT rev (1m)-13.19%
PT rev (3m)-15.17%
EPS NQ rev (1m)-23.45%
EPS NQ rev (3m)-23.36%
EPS NY rev (1m)-2.55%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)-5.94%
Revenue NQ rev (3m)-5.91%
Revenue NY rev (1m)-1.57%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 7.67 | ||
| P/S | 0.85 | ||
| P/FCF | 38.42 | ||
| P/OCF | 12.51 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.18 |
EPS(TTM)2.41
EY13.21%
EPS(NY)2.38
Fwd EY13.03%
FCF(TTM)0.48
FCFY2.6%
OCF(TTM)1.46
OCFY7.99%
SpS21.46
BVpS14.1
TBVpS-5.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number27.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.62% | ||
| ROE | -4.71% | ||
| ROCE | 4.06% | ||
| ROIC | 3.04% | ||
| ROICexc | 3.37% | ||
| ROICexgc | 9.79% | ||
| OM | 6.37% | ||
| PM (TTM) | N/A | ||
| GM | 35.04% | ||
| FCFM | 2.21% |
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 | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Debt/EBITDA | 5.18 | ||
| Cap/Depr | 51.22% | ||
| Cap/Sales | 4.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.21 |
F-Score3
WACC4.44%
ROIC/WACC0.68
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-11.26%
EPS Next 2Y-6.32%
EPS Next 3Y-1.72%
EPS Next 5Y1.85%
Revenue 1Y (TTM)-21.2%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.34%
Revenue Next Year5.45%
Revenue Next 2Y3.97%
Revenue Next 3Y3.61%
Revenue Next 5Y2.77%
EBIT growth 1Y-43.88%
EBIT growth 3Y-23.92%
EBIT growth 5Y-14.31%
EBIT Next Year68.12%
EBIT Next 3Y22.59%
EBIT Next 5Y17.33%
FCF growth 1Y-73.82%
FCF growth 3Y-27.1%
FCF growth 5Y-16.46%
OCF growth 1Y-54.16%
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 7.57 and the Price/Book (PB) ratio is 1.29.
What is the financial health of BAXTER INTERNATIONAL INC (BAX) stock?
The financial health rating of BAXTER INTERNATIONAL INC (BAX) is 3 / 10.