BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
NYSE:BAX - US0718131099 - Common Stock
24.5 USD
+0.65 (+2.73%)
BAX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. BAX has only an average score on both its financial health and profitability. 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
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
BAX's Return On Assets of -0.74% is fine compared to the rest of the industry. BAX outperforms 70.05% of its industry peers.
With a decent Return On Equity value of -2.12%, BAX is doing good in the industry, outperforming 70.59% of the companies in the same industry.
BAX has a better Return On Invested Capital (2.60%) than 69.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BAX is below the industry average of 8.18%.
| 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 70.59% of its industry peers.
In the last couple of years the Operating Margin of BAX has declined.
BAX's Gross Margin of 36.01% is on the low side compared to the rest of the industry. BAX is outperformed by 70.05% 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
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
BAX has a worse debt/assets ratio than last year.
2.2 Solvency
BAX has an Altman-Z score of 2.36. 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 better Altman-Z score (2.36) than 65.24% 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.
BAX has a better Debt to FCF ratio (27.22) than 69.52% of its industry peers.
A Debt/Equity ratio of 1.30 is on the high side and indicates that BAX has dependencies on debt financing.
The Debt to Equity ratio of BAX (1.30) is worse than 83.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 27.22 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.53
WACC4.9%
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.
BAX has a Current ratio (2.30) which is in line with its industry peers.
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 in line with its industry peers.
| 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%.
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 -27.41%.
The Revenue has been decreasing by -1.31% on average over the past years.
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
The Earnings Per Share is expected to grow by 3.91% on average over the next years.
The Revenue is expected to grow by 3.83% on average over the next years.
EPS Next Y-6.02%
EPS Next 2Y0.78%
EPS Next 3Y3.55%
EPS Next 5Y3.91%
Revenue Next Year7.77%
Revenue Next 2Y5.96%
Revenue Next 3Y5.2%
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
The Price/Earnings ratio is 9.72, which indicates a very decent valuation of BAX.
Based on the Price/Earnings ratio, BAX is valued cheaper than 93.05% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. BAX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.90, the valuation of BAX can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 93.05% of the companies listed in the same industry.
BAX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaper than 82.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BAX is valued a bit cheaper than 78.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.02 | ||
| EV/EBITDA | 13.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.78%
EPS Next 3Y3.55%
5. Dividend
5.1 Amount
BAX has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of BAX has falen by -20.82%. 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 1.76. BAX pays more dividend than 97.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, BAX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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
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 2Y0.78%
EPS Next 3Y3.55%
NYSE:BAX (8/22/2025, 2:37:08 PM)
24.5
+0.65 (+2.73%)
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 Change4.24%
Market Cap12.57B
Analysts67.27
Price Target30.56 (24.73%)
Short Float %3.74%
Short Ratio2.83
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)-20.02%
PT rev (3m)-20.83%
EPS NQ rev (1m)-7.66%
EPS NQ rev (3m)-9.56%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)-1.22%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 8.9 | ||
| P/S | 1.15 | ||
| P/FCF | 36.02 | ||
| P/OCF | 16.43 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.3 |
EPS(TTM)2.52
EY10.29%
EPS(NY)2.75
Fwd EY11.23%
FCF(TTM)0.68
FCFY2.78%
OCF(TTM)1.49
OCFY6.08%
SpS21.22
BVpS14.26
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 | 2.36 |
F-Score3
WACC4.9%
ROIC/WACC0.53
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-6.02%
EPS Next 2Y0.78%
EPS Next 3Y3.55%
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 Year7.77%
Revenue Next 2Y5.96%
Revenue Next 3Y5.2%
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%