BAUSCH HEALTH COS INC (BHC.CA) Stock Fundamental Analysis
TSX:BHC - Toronto Stock Exchange - CA0717341071 - Common Stock - Currency: CAD
Overall BHC gets a fundamental rating of 4 out of 10. We evaluated BHC against 35 industry peers in the Pharmaceuticals industry. While BHC is still in line with the averages on profitability rating, there are concerns on its financial health. BHC has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
BHC had positive earnings in the past year.
BHC had a positive operating cash flow in the past year.
BHC had negative earnings in each of the past 5 years.
BHC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.15%, BHC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
BHC has a Return On Invested Capital of 6.02%. This is amongst the best in the industry. BHC outperforms 88.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHC is below the industry average of 7.51%.
The last Return On Invested Capital (6.02%) for BHC is above the 3 year average (5.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | N/A | ||
| ROIC | 6.02% |
ROA(3y)-1.07%
ROA(5y)-1.65%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.45%
ROIC(5y)4.93%
1.3 Margins
With an excellent Operating Margin value of 19.03%, BHC belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of BHC has grown nicely.
BHC's Gross Margin of 70.78% is amongst the best of the industry. BHC outperforms 91.43% of its industry peers.
BHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.03% | ||
| PM (TTM) | N/A | ||
| GM | 70.78% |
OM growth 3Y1.02%
OM growth 5Y4.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.24%
GM growth 5Y-0.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BHC is destroying value.
BHC has more shares outstanding than it did 1 year ago.
BHC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BHC has an improved debt to assets ratio.
2.2 Solvency
BHC has an Altman-Z score of 0.18. This is a bad value and indicates that BHC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BHC (0.18) is better than 62.86% of its industry peers.
The Debt to FCF ratio of BHC is 17.69, which is on the high side as it means it would take BHC, 17.69 years of fcf income to pay off all of its debts.
BHC has a Debt to FCF ratio of 17.69. This is comparable to the rest of the industry: BHC outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.69 | ||
| Altman-Z | 0.18 |
ROIC/WACC0.98
WACC6.13%
2.3 Liquidity
A Current Ratio of 1.35 indicates that BHC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.35, BHC perfoms like the industry average, outperforming 45.71% of the companies in the same industry.
BHC has a Quick Ratio of 1.35. This is a bad value and indicates that BHC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BHC (0.97) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
BHC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.01%.
BHC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.91% yearly.
Looking at the last year, BHC shows a quite strong growth in Revenue. The Revenue has grown by 8.53% in the last year.
Measured over the past years, BHC shows a small growth in Revenue. The Revenue has been growing by 2.28% on average per year.
EPS 1Y (TTM)5.01%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%0%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%4.92%
3.2 Future
BHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.37% yearly.
BHC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.18% yearly.
EPS Next Y20.4%
EPS Next 2Y11.09%
EPS Next 3Y15.37%
EPS Next 5Y3.37%
Revenue Next Year3.06%
Revenue Next 2Y4.04%
Revenue Next 3Y3.02%
Revenue Next 5Y-0.18%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 1.19, which indicates a rather cheap valuation of BHC.
Based on the Price/Earnings ratio, BHC is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of BHC to the average of the S&P500 Index (26.29), we can say BHC is valued rather cheaply.
BHC is valuated cheaply with a Price/Forward Earnings ratio of 0.96.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BHC indicates a rather cheap valuation: BHC is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BHC to the average of the S&P500 Index (22.17), we can say BHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.19 | ||
| Fwd PE | 0.96 |
4.2 Price Multiples
BHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHC is cheaper than 82.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BHC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.36 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as BHC's earnings are expected to grow with 15.37% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y11.09%
EPS Next 3Y15.37%
5. Dividend
5.1 Amount
BHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BHC (6/2/2025, 7:00:00 PM)
6.15
-0.07 (-1.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners63.24%
Inst Owner ChangeN/A
Ins Owners11.31%
Ins Owner ChangeN/A
Market Cap2.27B
Analysts48.89
Price Target10.2 (65.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.74%
Min EPS beat(2)-25.13%
Max EPS beat(2)-4.34%
EPS beat(4)2
Avg EPS beat(4)-5.77%
Min EPS beat(4)-25.13%
Max EPS beat(4)5.95%
EPS beat(8)5
Avg EPS beat(8)-0.95%
EPS beat(12)6
Avg EPS beat(12)-6.23%
EPS beat(16)8
Avg EPS beat(16)-5.16%
Revenue beat(2)1
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)0.39%
Revenue beat(4)3
Avg Revenue beat(4)0.79%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)2.66%
Revenue beat(8)6
Avg Revenue beat(8)1.53%
Revenue beat(12)7
Avg Revenue beat(12)0.53%
Revenue beat(16)7
Avg Revenue beat(16)-0.44%
PT rev (1m)17.65%
PT rev (3m)2.56%
EPS NQ rev (1m)20.92%
EPS NQ rev (3m)-10.26%
EPS NY rev (1m)0%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)9.19%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.19 | ||
| Fwd PE | 0.96 | ||
| P/S | 0.17 | ||
| P/FCF | 1.36 | ||
| P/OCF | 1.04 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.1 |
EPS(TTM)5.16
EY83.9%
EPS(NY)6.37
Fwd EY103.64%
FCF(TTM)4.51
FCFY73.3%
OCF(TTM)5.92
OCFY96.26%
SpS36.07
BVpS-4.39
TBVpS-65.36
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | N/A | ||
| ROCE | 8.36% | ||
| ROIC | 6.02% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 29.11% | ||
| OM | 19.03% | ||
| PM (TTM) | N/A | ||
| GM | 70.78% | ||
| FCFM | 12.5% |
ROA(3y)-1.07%
ROA(5y)-1.65%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.45%
ROIC(5y)4.93%
ROICexc(3y)5.7%
ROICexc(5y)5.13%
ROICexgc(3y)40.1%
ROICexgc(5y)34.22%
ROCE(3y)7.57%
ROCE(5y)6.85%
ROICexcg growth 3Y34.27%
ROICexcg growth 5Y-5.74%
ROICexc growth 3Y14.02%
ROICexc growth 5Y12.75%
OM growth 3Y1.02%
OM growth 5Y4.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.24%
GM growth 5Y-0.44%
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.69 | ||
| Debt/EBITDA | 6.84 | ||
| Cap/Depr | 30.43% | ||
| Cap/Sales | 3.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.18 |
F-Score5
WACC6.13%
ROIC/WACC0.98
Cap/Depr(3y)22.53%
Cap/Depr(5y)20.55%
Cap/Sales(3y)3.31%
Cap/Sales(5y)3.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.01%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%0%
EPS Next Y20.4%
EPS Next 2Y11.09%
EPS Next 3Y15.37%
EPS Next 5Y3.37%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%4.92%
Revenue Next Year3.06%
Revenue Next 2Y4.04%
Revenue Next 3Y3.02%
Revenue Next 5Y-0.18%
EBIT growth 1Y10.77%
EBIT growth 3Y5.56%
EBIT growth 5Y6.8%
EBIT Next Year13.62%
EBIT Next 3Y9.06%
EBIT Next 5Y0.97%
FCF growth 1Y257.31%
FCF growth 3Y3.22%
FCF growth 5Y0.55%
OCF growth 1Y412.52%
OCF growth 3Y3.85%
OCF growth 5Y1.25%