BAUSCH HEALTH COS INC (BHC.CA) Stock Fundamental Analysis
TSX:BHC - CA0717341071 - Common Stock
10 CAD
-0.12 (-1.19%)
BHC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of BHC while its profitability can be described as average. BHC is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BHC was profitable.
BHC had a positive operating cash flow in the past year.
In the past 5 years BHC always reported negative net income.
Of the past 5 years BHC 4 years had a positive operating cash flow.
1.2 Ratios
BHC has a Return On Assets of 0.36%. This is in the better half of the industry: BHC outperforms 71.43% of its industry peers.
BHC has a Return On Invested Capital of 6.09%. 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 7.75%.
The last Return On Invested Capital (6.09%) for BHC is above the 3 year average (5.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.36% | ||
| ROE | N/A | ||
| ROIC | 6.09% |
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
BHC has a Profit Margin of 0.99%. This is in the better half of the industry: BHC outperforms 74.29% of its industry peers.
The Operating Margin of BHC (19.13%) is better than 85.71% of its industry peers.
BHC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 70.70%, BHC belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
In the last couple of years the Gross Margin of BHC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.13% | ||
| PM (TTM) | 0.99% | ||
| GM | 70.7% |
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.
The number of shares outstanding for BHC has been increased compared to 1 year ago.
Compared to 5 years ago, BHC has more shares outstanding
BHC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.22, we must say that BHC is in the distress zone and has some risk of bankruptcy.
BHC has a Altman-Z score of 0.22. This is comparable to the rest of the industry: BHC outperforms 60.00% of its industry peers.
BHC has a debt to FCF ratio of 19.69. This is a negative value and a sign of low solvency as BHC would need 19.69 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.69, BHC is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.69 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.89
WACC6.86%
2.3 Liquidity
BHC has a Current Ratio of 1.31. This is a normal value and indicates that BHC is financially healthy and should not expect problems in meeting its short term obligations.
BHC has a worse Current ratio (1.31) than 68.57% of its industry peers.
A Quick Ratio of 0.98 indicates that BHC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, BHC is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
BHC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.55%.
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 small growth in Revenue. The Revenue has grown by 7.13% in the last year.
BHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.28% yearly.
EPS 1Y (TTM)3.55%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%2.25%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%5.29%
3.2 Future
The Earnings Per Share is expected to decrease by -0.15% on average over the next years.
Based on estimates for the next years, BHC will show a decrease in Revenue. The Revenue will decrease by -0.19% on average per year.
EPS Next Y5.02%
EPS Next 2Y7.99%
EPS Next 3Y11.04%
EPS Next 5Y-0.15%
Revenue Next Year5.61%
Revenue Next 2Y4.68%
Revenue Next 3Y3.21%
Revenue Next 5Y-0.19%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BHC is valuated cheaply with a Price/Earnings ratio of 1.91.
BHC's Price/Earnings ratio is rather cheap when compared to the industry. BHC is 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 (27.07), we can say BHC is valued rather cheaply.
BHC is valuated cheaply with a Price/Forward Earnings ratio of 1.65.
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 (22.59), we can say BHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.91 | ||
| Fwd PE | 1.65 |
4.2 Price Multiples
88.57% of the companies in the same industry are more expensive than BHC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BHC indicates a rather cheap valuation: BHC is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.43 | ||
| EV/EBITDA | 7.26 |
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.
The decent profitability rating of BHC may justify a higher PE ratio.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y7.99%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
BHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BHC (9/9/2025, 7:00:00 PM)
10
-0.12 (-1.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners58.71%
Inst Owner ChangeN/A
Ins Owners11.02%
Ins Owner ChangeN/A
Market Cap3.70B
Analysts48.89
Price Target10.2 (2%)
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)-16.1%
Min EPS beat(2)-25.13%
Max EPS beat(2)-7.07%
EPS beat(4)1
Avg EPS beat(4)-7.65%
Min EPS beat(4)-25.13%
Max EPS beat(4)5.95%
EPS beat(8)4
Avg EPS beat(8)-2.65%
EPS beat(12)6
Avg EPS beat(12)-3.66%
EPS beat(16)8
Avg EPS beat(16)-5.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)0.36%
Revenue beat(4)3
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)2.66%
Revenue beat(8)6
Avg Revenue beat(8)1.15%
Revenue beat(12)8
Avg Revenue beat(12)0.91%
Revenue beat(16)8
Avg Revenue beat(16)-0.3%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-8.17%
EPS NQ rev (3m)-12.86%
EPS NY rev (1m)-12.77%
EPS NY rev (3m)-12.77%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.91 | ||
| Fwd PE | 1.65 | ||
| P/S | 0.27 | ||
| P/FCF | 2.43 | ||
| P/OCF | 1.78 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.26 |
EPS(TTM)5.23
EY52.3%
EPS(NY)6.07
Fwd EY60.73%
FCF(TTM)4.12
FCFY41.23%
OCF(TTM)5.62
OCFY56.25%
SpS36.82
BVpS-2.85
TBVpS-63.9
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.36% | ||
| ROE | N/A | ||
| ROCE | 8.46% | ||
| ROIC | 6.09% | ||
| ROICexc | 6.6% | ||
| ROICexgc | 32.19% | ||
| OM | 19.13% | ||
| PM (TTM) | 0.99% | ||
| GM | 70.7% | ||
| FCFM | 11.2% |
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-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.69 | ||
| Debt/EBITDA | 6.67 | ||
| Cap/Depr | 32.39% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.16% | ||
| Profit Quality | 1126.53% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 0.22 |
F-Score7
WACC6.86%
ROIC/WACC0.89
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)3.55%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%2.25%
EPS Next Y5.02%
EPS Next 2Y7.99%
EPS Next 3Y11.04%
EPS Next 5Y-0.15%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%5.29%
Revenue Next Year5.61%
Revenue Next 2Y4.68%
Revenue Next 3Y3.21%
Revenue Next 5Y-0.19%
EBIT growth 1Y10.04%
EBIT growth 3Y5.56%
EBIT growth 5Y6.8%
EBIT Next Year13.62%
EBIT Next 3Y9.06%
EBIT Next 5Y-0.22%
FCF growth 1Y266.02%
FCF growth 3Y3.22%
FCF growth 5Y0.55%
OCF growth 1Y451.87%
OCF growth 3Y3.85%
OCF growth 5Y1.25%