BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
NYSE:BAX - New York Stock Exchange, Inc. - US0718131099 - Common Stock - Currency: USD
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. While BAX is still in line with the averages on profitability rating, there are concerns on its financial health. BAX is valued correctly, but it does not seem to be growing.
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.
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
BAX has a Return On Assets of -2.52%. This is in the better half of the industry: BAX outperforms 68.25% of its industry peers.
Looking at the Return On Equity, with a value of -9.32%, BAX is in the better half of the industry, outperforming 67.20% of the companies in the same industry.
BAX has a better Return On Invested Capital (3.45%) than 73.02% 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(3.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.52% | ||
| ROE | -9.32% | ||
| ROIC | 3.45% |
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
BAX has a better Operating Margin (7.67%) than 76.19% of its industry peers.
In the last couple of years the Operating Margin of BAX has declined.
BAX's Gross Margin of 38.01% is on the low side compared to the rest of the industry. BAX is outperformed by 69.31% of its industry peers.
BAX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.67% | ||
| PM (TTM) | N/A | ||
| GM | 38.01% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BAX is destroying value.
Compared to 1 year ago, BAX has more shares outstanding
Compared to 5 years ago, BAX has more shares outstanding
The debt/assets ratio for BAX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.05 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BAX's Altman-Z score of 2.05 is fine compared to the rest of the industry. BAX outperforms 62.43% of its industry peers.
BAX has a debt to FCF ratio of 22.91. This is a negative value and a sign of low solvency as BAX would need 22.91 years to pay back of all of its debts.
BAX has a Debt to FCF ratio of 22.91. This is in the better half of the industry: BAX outperforms 70.37% of its industry peers.
A Debt/Equity ratio of 1.79 is on the high side and indicates that BAX has dependencies on debt financing.
BAX's Debt to Equity ratio of 1.79 is on the low side compared to the rest of the industry. BAX is outperformed by 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 22.91 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.64
WACC5.41%
2.3 Liquidity
BAX has a Current Ratio of 1.36. 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 Current ratio, with a value of 1.36, BAX is doing worse than 78.84% of the companies in the same industry.
BAX has a Quick Ratio of 1.05. 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 1.05, BAX is doing worse than 75.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The earnings per share for BAX have decreased by -2.90% in the last year.
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 small growth in Revenue. In the last year, the Revenue has grown by 2.66%.
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)-2.9%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-4.62%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.92%
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 7.15% on average per year.
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-7.18%
EPS Next 2Y0.89%
EPS Next 3Y3.73%
EPS Next 5Y7.15%
Revenue Next Year6.1%
Revenue Next 2Y5.14%
Revenue Next 3Y4.78%
Revenue Next 5Y5.52%
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 11.38, the valuation of BAX can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 93.12% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.18. BAX is valued rather cheaply when compared to this.
BAX is valuated reasonably with a Price/Forward Earnings ratio of 11.06.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 92.59% of the companies listed in the same industry.
BAX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 11.06 |
4.2 Price Multiples
BAX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BAX is cheaper than 85.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 81.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.3 | ||
| EV/EBITDA | 12.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.89%
EPS Next 3Y3.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, BAX has a reasonable but not impressive dividend return.
BAX's Dividend Yield is rather good when compared to the industry average which is at 1.85. BAX pays more dividend than 96.30% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, BAX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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.
The dividend of BAX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-90.91%
EPS Next 2Y0.89%
EPS Next 3Y3.73%
NYSE:BAX (5/5/2025, 3:33:06 PM)
30.5
-0.21 (-0.68%)
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 Change1.37%
Ins Owners0.24%
Ins Owner Change3.84%
Market Cap15.64B
Analysts68.18
Price Target39.7 (30.16%)
Short Float %3.38%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend1.16
Dividend Growth(5Y)6.89%
DP-90.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.32%
Min EPS beat(2)1.94%
Max EPS beat(2)10.69%
EPS beat(4)4
Avg EPS beat(4)5.06%
Min EPS beat(4)1.64%
Max EPS beat(4)10.69%
EPS beat(8)7
Avg EPS beat(8)3.73%
EPS beat(12)8
Avg EPS beat(12)2.99%
EPS beat(16)12
Avg EPS beat(16)4.13%
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)1.93%
Revenue beat(4)3
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)-0.1%
Revenue beat(12)5
Avg Revenue beat(12)-1.67%
Revenue beat(16)6
Avg Revenue beat(16)-2.31%
PT rev (1m)-0.88%
PT rev (3m)1.27%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-5.48%
EPS NY rev (1m)0%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 11.06 | ||
| P/S | 1.22 | ||
| P/FCF | 27.3 | ||
| P/OCF | 15.35 | ||
| P/B | 2.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.6 |
EPS(TTM)2.68
EY8.79%
EPS(NY)2.76
Fwd EY9.04%
FCF(TTM)1.12
FCFY3.66%
OCF(TTM)1.99
OCFY6.51%
SpS25.06
BVpS13.58
TBVpS-6.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.52% | ||
| ROE | -9.32% | ||
| ROCE | 5.12% | ||
| ROIC | 3.45% | ||
| ROICexc | 3.76% | ||
| ROICexgc | 8.07% | ||
| OM | 7.67% | ||
| PM (TTM) | N/A | ||
| GM | 38.01% | ||
| FCFM | 4.46% |
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-Score3
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 22.91 | ||
| Debt/EBITDA | 6.3 | ||
| Cap/Depr | 44.73% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 4.42 | ||
| Cash Conversion | 51.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.05 |
F-Score3
WACC5.41%
ROIC/WACC0.64
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)-2.9%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-4.62%
EPS Next Y-7.18%
EPS Next 2Y0.89%
EPS Next 3Y3.73%
EPS Next 5Y7.15%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.92%
Revenue Next Year6.1%
Revenue Next 2Y5.14%
Revenue Next 3Y4.78%
Revenue Next 5Y5.52%
EBIT growth 1Y-21.12%
EBIT growth 3Y-30.01%
EBIT growth 5Y-18.5%
EBIT Next Year72.49%
EBIT Next 3Y23.04%
EBIT Next 5Y21.43%
FCF growth 1Y-44.58%
FCF growth 3Y-27.1%
FCF growth 5Y-16.46%
OCF growth 1Y-40.96%
OCF growth 3Y-22.88%
OCF growth 5Y-13.5%