BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - NYSE:BAX - US0718131099 - Common Stock
23.86 USD
+0.63 (+2.71%)
23.88 USD
+0.02 (+0.08%)
BAX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 191 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BAX was profitable.
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
Looking at the Return On Assets, with a value of -0.74%, BAX is in the better half of the industry, outperforming 71.20% of the companies in the same industry.
The Return On Equity of BAX (-2.12%) is better than 70.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.60%, BAX is in the better half of the industry, outperforming 70.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BAX is significantly below the industry average of 9.00%.
| 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
The Operating Margin of BAX (5.78%) is better than 71.20% of its industry peers.
BAX's Operating Margin has declined in the last couple of years.
The Gross Margin of BAX (36.01%) is worse than 69.63% 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
BAX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for BAX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.36 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.36, BAX is doing good in the industry, outperforming 64.40% of the companies in the same industry.
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 Debt to FCF ratio of 27.22. This is in the better half of the industry: BAX outperforms 69.63% of its industry peers.
BAX has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
BAX has a Debt to Equity ratio of 1.30. This is amonst the worse of the industry: BAX underperforms 80.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 27.22 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.52
WACC5.02%
2.3 Liquidity
A Current Ratio of 2.30 indicates that BAX has no problem at all paying its short term obligations.
BAX has a Current ratio (2.30) which is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.49, BAX is doing worse than 60.73% of the companies in the same 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%.
BAX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.21% yearly.
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
BAX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.91% yearly.
Based on estimates for the next years, BAX will show a small growth in Revenue. The Revenue will grow by 3.83% on average per year.
EPS Next Y-9.02%
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
EPS Next 5Y3.91%
Revenue Next Year7.12%
Revenue Next 2Y5.44%
Revenue Next 3Y4.73%
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.
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 9.47 indicates a reasonable valuation of BAX.
Compared to the rest of the industry, the Price/Earnings ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 94.24% of the companies listed in the same industry.
BAX is valuated cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
BAX is valuated reasonably with a Price/Forward Earnings ratio of 9.13.
BAX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 94.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. BAX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 9.13 |
4.2 Price Multiples
83.77% of the companies in the same industry are more expensive than BAX, based on the Enterprise Value to EBITDA ratio.
BAX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BAX is cheaper than 79.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.11 | ||
| EV/EBITDA | 13.31 |
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 2.93%.
In the last 3 months the price of BAX has falen by -23.06%. 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 1.79, BAX pays a better dividend. On top of this BAX pays more dividend than 97.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, BAX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
The dividend of BAX is nicely growing with an annual growth rate of 6.89%!
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.
The dividend of BAX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-302.58%
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
23.86
+0.63 (+2.71%)
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 Change-0.07%
Ins Owners0.33%
Ins Owner Change10.96%
Market Cap12.25B
Analysts65.45
Price Target29.3 (22.8%)
Short Float %4.68%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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)-2.27%
PT rev (3m)-23.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 9.13 | ||
| P/S | 1.13 | ||
| P/FCF | 35.11 | ||
| P/OCF | 16.02 | ||
| P/B | 1.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.31 |
EPS(TTM)2.52
EY10.56%
EPS(NY)2.61
Fwd EY10.96%
FCF(TTM)0.68
FCFY2.85%
OCF(TTM)1.49
OCFY6.24%
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 | 2.36 |
F-Score3
WACC5.02%
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 Year7.12%
Revenue Next 2Y5.44%
Revenue Next 3Y4.73%
Revenue Next 5Y3.83%
EBIT growth 1Y-49.27%
EBIT growth 3Y-23.92%
EBIT growth 5Y-14.31%
EBIT Next Year68.12%
EBIT Next 3Y22.59%
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%