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
In the past year BAX was profitable.
BAX had a positive operating cash flow in the past year.
In multiple years BAX reported negative net income over the last 5 years.
BAX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BAX (-2.63%) is better than 69.68% of its industry peers.
With a decent Return On Equity value of -7.91%, BAX is doing good in the industry, outperforming 68.09% of the companies in the same industry.
The Return On Invested Capital of BAX (3.25%) is better than 72.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BAX 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
The Operating Margin of BAX (6.53%) is better than 74.47% of its industry peers.
BAX's Operating Margin has declined in the last couple of years.
BAX has a worse Gross Margin (36.70%) 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BAX is destroying value.
Compared to 1 year ago, BAX has more shares outstanding
Compared to 5 years ago, BAX has more shares outstanding
The debt/assets ratio for BAX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.52 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.52, BAX is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
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.
BAX has a Debt to FCF ratio of 37.17. This is in the better half of the industry: BAX outperforms 69.68% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that BAX has dependencies on debt 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/WACC0.6
WACC5.46%
2.3 Liquidity
A Current Ratio of 2.02 indicates that BAX has no problem at all paying its short term obligations.
BAX has a Current ratio of 2.02. This is in the lower half of the industry: BAX underperforms 65.96% of its industry peers.
BAX has a Quick Ratio of 1.40. 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 worse Quick ratio (1.40) than 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The earnings per share for BAX have decreased by -5.43% in the last year.
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 -20.17%.
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.
The Revenue is expected to grow by 5.52% on average over the next years.
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.
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
The Price/Earnings ratio is 11.66, which indicates a very decent 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 92.55% of the companies listed in the same industry.
BAX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.17.
BAX is valuated reasonably with a Price/Forward Earnings ratio of 11.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 89.36% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BAX to the average of the S&P500 Index (22.10), we can say BAX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaper than 81.91% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAX indicates a somewhat cheap valuation: BAX is cheaper than 71.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.63 | ||
| 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%.
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
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 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%
NYSE:BAX (5/29/2025, 2:03:04 PM)
30.435
-0.14 (-0.47%)
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 Cap15.62B
Analysts68.18
Price Target38.6 (26.83%)
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 | 11.66 | ||
| Fwd PE | 11.08 | ||
| P/S | 1.31 | ||
| P/FCF | 57.63 | ||
| P/OCF | 23.56 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.92 |
EPS(TTM)2.61
EY8.58%
EPS(NY)2.75
Fwd EY9.02%
FCF(TTM)0.53
FCFY1.74%
OCF(TTM)1.29
OCFY4.25%
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
WACC5.46%
ROIC/WACC0.6
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%