BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - NYSE:BAX - US0718131099 - Common Stock
23.99 USD
-0.5 (-2.04%)
24.1 USD
+0.11 (+0.46%)
We assign a fundamental rating of 4 out of 10 to BAX. BAX was compared to 190 industry peers in the Health Care Equipment & Supplies industry. BAX has an average financial health and profitability rating. 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.
The reported net income has been mixed in the past 5 years: BAX reported negative net income in multiple years.
In the past 5 years BAX always reported a positive cash flow from operatings.
1.2 Ratios
BAX's Return On Assets of -0.74% is fine compared to the rest of the industry. BAX outperforms 70.53% of its industry peers.
Looking at the Return On Equity, with a value of -2.12%, BAX is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.60%, BAX is in the better half of the industry, outperforming 70.53% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BAX is below the industry average of 8.46%.
| 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 Operating Margin of 5.78%. This is in the better half of the industry: BAX outperforms 71.05% of its industry peers.
In the last couple of years the Operating Margin of BAX has declined.
With a Gross Margin value of 36.01%, BAX is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BAX 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.
BAX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.38 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BAX (2.38) is better than 65.79% 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 Debt to FCF ratio of 27.22. This is in the better half of the industry: BAX outperforms 69.47% 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 81.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 27.22 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.54
WACC4.78%
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 of 2.30. This is comparable to the rest of the industry: BAX outperforms 44.74% of its industry peers.
A Quick Ratio of 1.49 indicates that BAX should not have too much problems paying its short term obligations.
BAX has a Quick ratio of 1.49. This is comparable to the rest of the industry: BAX outperforms 40.53% of 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%.
The Earnings Per Share has been decreasing by -4.21% on average over the past years.
The Revenue for BAX has decreased by -27.41% in the past year. This is quite bad
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.
BAX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y-9.02%
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
EPS Next 5Y3.91%
Revenue Next Year7.11%
Revenue Next 2Y5.43%
Revenue Next 3Y4.72%
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
Based on the Price/Earnings ratio of 9.52, the valuation of BAX can be described as reasonable.
Based on the Price/Earnings ratio, BAX is valued cheaper than 93.16% of the companies in the same industry.
BAX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 9.18, the valuation of BAX can be described as reasonable.
93.68% of the companies in the same industry are more expensive than BAX, based on the Price/Forward Earnings ratio.
BAX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.52 | ||
| Fwd PE | 9.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaply inside the industry as 82.63% 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 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.31 | ||
| EV/EBITDA | 13.53 |
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
With a Yearly Dividend Yield of 2.88%, BAX has a reasonable but not impressive dividend return.
In the last 3 months the price of BAX has falen by -21.65%. 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 1.74, BAX pays a better dividend. On top of this BAX pays more dividend than 97.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, BAX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
On average, the dividend of BAX grows each year by 6.89%, which is quite nice.
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.
BAX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-302.58%
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
23.99
-0.5 (-2.04%)
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 Change10.96%
Market Cap12.32B
Analysts65.45
Price Target29.98 (24.97%)
Short Float %4.51%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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)-1.91%
PT rev (3m)-21.84%
EPS NQ rev (1m)-2.49%
EPS NQ rev (3m)-9.56%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-3.04%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.52 | ||
| Fwd PE | 9.18 | ||
| P/S | 1.13 | ||
| P/FCF | 35.31 | ||
| P/OCF | 16.11 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.53 |
EPS(TTM)2.52
EY10.5%
EPS(NY)2.61
Fwd EY10.9%
FCF(TTM)0.68
FCFY2.83%
OCF(TTM)1.49
OCFY6.21%
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 | 2.38 |
F-Score3
WACC4.78%
ROIC/WACC0.54
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 Year7.11%
Revenue Next 2Y5.43%
Revenue Next 3Y4.72%
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%