BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
NYSE:BAX - New York Stock Exchange, Inc. - US0718131099 - Common Stock - Currency: USD
Taking everything into account, BAX scores 4 out of 10 in our fundamental rating. BAX was compared to 187 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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BAX was profitable.
BAX had a positive operating cash flow in the past year.
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
BAX has a better Return On Assets (-2.63%) than 69.52% of its industry peers.
BAX has a better Return On Equity (-7.91%) than 68.45% of its industry peers.
The Return On Invested Capital of BAX (3.25%) is better than 71.66% 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 7.89%.
The last Return On Invested Capital (3.25%) for BAX is above the 3 year average (3.20%), which is a sign of increasing profitability.
| 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
With a decent Operating Margin value of 6.53%, BAX is doing good in the industry, outperforming 74.33% of the companies in the same industry.
BAX's Operating Margin has declined in the last couple of years.
BAX's Gross Margin of 36.70% is on the low side compared to the rest of the industry. BAX is outperformed by 68.45% of its industry peers.
BAX's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BAX is destroying value.
BAX has more shares outstanding than it did 1 year ago.
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 2.51. 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.
Looking at the Altman-Z score, with a value of 2.51, BAX is in the better half of the industry, outperforming 62.57% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 37.17, BAX is doing good in the industry, outperforming 70.59% of the companies in the same industry.
A Debt/Equity ratio of 1.33 is on the high side and indicates that BAX has dependencies on debt financing.
With a Debt to Equity ratio value of 1.33, BAX is not doing good in the industry: 82.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 37.17 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.49
WACC6.62%
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.
Looking at the Current ratio, with a value of 2.02, BAX is doing worse than 64.17% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that BAX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.40, BAX is not doing good in the industry: 63.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The earnings per share for BAX have decreased by -5.43% in the last year.
The Earnings Per Share has been decreasing by -4.21% on average over the past years.
The Revenue for BAX has decreased by -20.17% in the past year. This is quite bad
BAX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.31% yearly.
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 7.38% yearly.
Based on estimates for the next years, BAX will show a small growth in Revenue. The Revenue will grow by 5.75% on average per year.
EPS Next Y-6.17%
EPS Next 2Y0.66%
EPS Next 3Y3.44%
EPS Next 5Y7.38%
Revenue Next Year7.78%
Revenue Next 2Y5.96%
Revenue Next 3Y5.26%
Revenue Next 5Y5.75%
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.
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
A Price/Earnings ratio of 11.42 indicates a reasonable valuation of BAX.
92.51% 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 26.34.
A Price/Forward Earnings ratio of 10.85 indicates a reasonable valuation of BAX.
89.30% of the companies in the same industry are more expensive than BAX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.19. BAX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaply inside the industry as 80.21% of the companies are valued more expensively.
BAX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BAX is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.43 | ||
| EV/EBITDA | 13.69 |
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
BAX has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.79, BAX pays a better dividend. On top of this BAX pays more dividend than 97.33% 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 | 2.17% |
5.2 History
The dividend of BAX is nicely growing with an annual growth rate of 6.89%!
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
The earnings of BAX are negative and hence is the payout ratio. BAX will probably not be able to sustain this dividend level.
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-94.64%
EPS Next 2Y0.66%
EPS Next 3Y3.44%
29.8
-0.12 (-0.4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners98.16%
Inst Owner Change2.19%
Ins Owners0.25%
Ins Owner Change5.5%
Market Cap15.29B
Analysts68.18
Price Target38.36 (28.72%)
Short Float %3.07%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)-0.64%
PT rev (3m)-3.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)0%
EPS NY rev (3m)2.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.85 | ||
| P/S | 1.29 | ||
| P/FCF | 56.43 | ||
| P/OCF | 23.07 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.69 |
EPS(TTM)2.61
EY8.76%
EPS(NY)2.75
Fwd EY9.21%
FCF(TTM)0.53
FCFY1.77%
OCF(TTM)1.29
OCFY4.34%
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 | 2.51 |
F-Score5
WACC6.62%
ROIC/WACC0.49
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 5Y7.38%
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 2Y5.96%
Revenue Next 3Y5.26%
Revenue Next 5Y5.75%
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 5Y21.63%
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%