BAXTER INTERNATIONAL INC (BAX)
US0718131099 - Common Stock
Taking everything into account, BAX scores 5 out of 10 in our fundamental rating. BAX was compared to 196 industry peers in the Health Care Equipment & Supplies industry. BAX has an average financial health and profitability rating. BAX has a correct valuation and a medium growth rate.
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.
Of the past 5 years BAX 4 years were profitable.
BAX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BAX's Return On Assets of 9.39% is amongst the best of the industry. BAX outperforms 91.84% of its industry peers.
BAX's Return On Equity of 31.61% is amongst the best of the industry. BAX outperforms 98.98% of its industry peers.
With a decent Return On Invested Capital value of 4.54%, BAX is doing good in the industry, outperforming 76.53% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BAX is below the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | 31.61% | ||
| ROIC | 4.54% |
ROA(3y)1.54%
ROA(5y)3.13%
ROE(3y)1.35%
ROE(5y)5.89%
ROIC(3y)4.64%
ROIC(5y)6.46%
1.3 Margins
BAX's Profit Margin of 17.93% is amongst the best of the industry. BAX outperforms 94.39% of its industry peers.
BAX's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.44%, BAX is doing good in the industry, outperforming 76.53% of the companies in the same industry.
BAX's Operating Margin has declined in the last couple of years.
BAX has a worse Gross Margin (35.89%) than 67.86% of its industry peers.
In the last couple of years the Gross Margin of BAX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.44% | ||
| PM (TTM) | 17.93% | ||
| GM | 35.89% |
OM growth 3Y-17.93%
OM growth 5Y-12.41%
PM growth 3Y23.84%
PM growth 5Y5.18%
GM growth 3Y-3.31%
GM growth 5Y-3.63%
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
BAX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BAX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.21 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BAX has a Altman-Z score of 2.21. This is in the better half of the industry: BAX outperforms 63.27% of its industry peers.
BAX has a debt to FCF ratio of 13.34. This is a negative value and a sign of low solvency as BAX would need 13.34 years to pay back of all of its debts.
The Debt to FCF ratio of BAX (13.34) is better than 75.00% of its industry peers.
BAX has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
BAX's Debt to Equity ratio of 1.32 is on the low side compared to the rest of the industry. BAX is outperformed by 83.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 13.34 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.53
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.48 indicates that BAX should not have too much problems paying its short term obligations.
The Current ratio of BAX (1.48) is worse than 83.16% of its industry peers.
A Quick Ratio of 1.04 indicates that BAX should not have too much problems paying its short term obligations.
The Quick ratio of BAX (1.04) is worse than 82.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for BAX have decreased strongly by -22.86% in the last year.
The Earnings Per Share has been decreasing by -2.41% on average over the past years.
BAX shows a small growth in Revenue. In the last year, the Revenue has grown by 1.13%.
The Revenue has been growing slightly by 5.94% on average over the past years.
EPS 1Y (TTM)-22.86%
EPS 3Y-4.4%
EPS 5Y-2.41%
EPS growth Q2Q0%
Revenue 1Y (TTM)1.13%
Revenue growth 3Y8.26%
Revenue growth 5Y5.94%
Revenue growth Q2Q-0.05%
3.2 Future
Based on estimates for the next years, BAX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.49% on average per year.
BAX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.93% yearly.
EPS Next Y8.45%
EPS Next 2Y9.93%
EPS Next 3Y10.98%
EPS Next 5Y11.49%
Revenue Next Year2.47%
Revenue Next 2Y3.1%
Revenue Next 3Y3.44%
Revenue Next 5Y4.93%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.64 indicates a correct valuation of BAX.
Based on the Price/Earnings ratio, BAX is valued cheaper than 91.84% of the companies in the same industry.
BAX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.83.
Based on the Price/Forward Earnings ratio of 13.50, the valuation of BAX can be described as correct.
94.39% of the companies in the same industry are more expensive than BAX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, BAX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaper than 91.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BAX is valued cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.47 | ||
| EV/EBITDA | 12.24 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BAX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.73
PEG (5Y)N/A
EPS Next 2Y9.93%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
BAX has a Yearly Dividend Yield of 2.75%. Purely for dividend investing, there may be better candidates out there.
BAX's Dividend Yield is rather good when compared to the industry average which is at 2.96. BAX pays more dividend than 97.96% of the companies in the same industry.
BAX's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
5.2 History
The dividend of BAX is nicely growing with an annual growth rate of 10.18%!
BAX has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)10.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
22.06% of the earnings are spent on dividend by BAX. This is a low number and sustainable payout ratio.
BAX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP22.06%
EPS Next 2Y9.93%
EPS Next 3Y10.98%
BAXTER INTERNATIONAL INC
NYSE:BAX (4/17/2024, 7:04:00 PM)
After market: 39.52 0 (0%)39.52
-0.05 (-0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 13.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | 31.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.44% | ||
| PM (TTM) | 17.93% | ||
| GM | 35.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-22.86%
EPS 3Y-4.4%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.13%
Revenue growth 3Y8.26%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y