BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
NYSE:BAX - New York Stock Exchange, Inc. - US0718131099 - Common Stock - Currency: USD
BAX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 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.
BAX had a positive operating cash flow in the past year.
In multiple years BAX reported negative net income over the last 5 years.
In the past 5 years BAX always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of -2.63%, BAX is doing good in the industry, outperforming 69.68% of the companies in the same industry.
BAX's Return On Equity of -7.91% is fine compared to the rest of the industry. BAX outperforms 68.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.25%, BAX is in the better half of the industry, outperforming 72.34% of the companies in the same industry.
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(3.25%), indicating increased profibility in the last year.
| 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
Looking at the Operating Margin, with a value of 6.53%, BAX is in the better half of the industry, outperforming 74.47% of the companies in the same industry.
BAX's Operating Margin has declined in the last couple of years.
The Gross Margin of BAX (36.70%) is worse than 68.62% of its industry peers.
In the last couple of years the Gross Margin of BAX has declined.
| 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
BAX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BAX has been increased compared to 1 year ago.
The number of shares outstanding for BAX has been increased compared to 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 2.52. 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.
The Altman-Z score of BAX (2.52) is better than 64.36% of its industry peers.
The Debt to FCF ratio of BAX is 37.17, which is on the high side as it means it would take BAX, 37.17 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 37.17, BAX is doing good in the industry, outperforming 69.68% of the companies in the same industry.
BAX has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
BAX has a Debt to Equity ratio of 1.33. This is amonst the worse of the industry: BAX underperforms 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 37.17 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.59
WACC5.48%
2.3 Liquidity
A Current Ratio of 2.02 indicates that BAX has no problem at all paying its short term obligations.
With a Current ratio value of 2.02, BAX is not doing good in the industry: 65.96% of the companies in the same industry are doing better.
A Quick Ratio of 1.40 indicates that BAX should not have too much problems paying its short term obligations.
BAX has a Quick ratio of 1.40. This is in the lower half of the industry: BAX underperforms 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
BAX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.43%.
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.
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
The Earnings Per Share is expected to grow by 7.15% 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 5.52% on average per year.
EPS Next Y-6.17%
EPS Next 2Y0.66%
EPS Next 3Y3.44%
EPS Next 5Y7.15%
Revenue Next Year7.78%
Revenue Next 2Y5.97%
Revenue Next 3Y5.28%
Revenue Next 5Y5.52%
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
BAX is valuated reasonably with a Price/Earnings ratio of 11.76.
Compared to the rest of the industry, the Price/Earnings ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 92.55% of the companies listed in the same industry.
BAX is valuated cheaply when we compare the Price/Earnings ratio to 26.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.18 indicates a reasonable valuation of BAX.
BAX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 89.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. BAX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 81.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BAX is valued a bit cheaper than the industry average as 71.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.13 | ||
| EV/EBITDA | 13.92 |
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 2.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.86, BAX pays a better dividend. On top of this BAX pays more dividend than 96.28% of the companies listed in the same industry.
BAX's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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.
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%
30.7
+0.12 (+0.39%)
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 Change2.19%
Ins Owners0.24%
Ins Owner Change5.4%
Market Cap15.75B
Analysts68.18
Price Target38.6 (25.73%)
Short Float %3.41%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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)-2.93%
PT rev (3m)-1.52%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)1.08%
EPS NY rev (3m)2.1%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)1.59%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 11.18 | ||
| P/S | 1.33 | ||
| P/FCF | 58.13 | ||
| P/OCF | 23.76 | ||
| P/B | 2.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.92 |
EPS(TTM)2.61
EY8.5%
EPS(NY)2.75
Fwd EY8.94%
FCF(TTM)0.53
FCFY1.72%
OCF(TTM)1.29
OCFY4.21%
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 | 2.52 |
F-Score5
WACC5.48%
ROIC/WACC0.59
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 5Y7.15%
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 2Y5.97%
Revenue Next 3Y5.28%
Revenue Next 5Y5.52%
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 5Y21.43%
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%