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. There are concerns on the financial health of BHC while its profitability can be described as average. 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.
Of the past 5 years BHC 4 years had a positive operating cash flow.
1.2 Ratios
BHC's Return On Assets of -0.15% is fine compared to the rest of the industry. BHC outperforms 65.71% of its industry peers.
BHC has a better Return On Invested Capital (6.02%) than 88.57% of its industry peers.
BHC had an Average Return On Invested Capital over the past 3 years of 5.45%. This is below the industry average of 7.79%.
The 3 year average ROIC (5.45%) for BHC is below the current ROIC(6.02%), indicating increased profibility in the last year.
| 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
BHC's Operating Margin of 19.03% is amongst the best of the industry. BHC outperforms 88.57% of its industry peers.
BHC's Operating Margin has improved in the last couple of years.
BHC has a Gross Margin of 70.78%. This is amongst the best in the industry. BHC outperforms 91.43% of its industry peers.
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 | 19.03% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BHC is destroying value.
The number of shares outstanding for BHC has been increased compared to 1 year ago.
BHC has more shares outstanding than it did 5 years ago.
BHC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.19, we must say that BHC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BHC (0.19) is better than 62.86% of its industry peers.
BHC has a debt to FCF ratio of 17.69. This is a negative value and a sign of low solvency as BHC would need 17.69 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 17.69, BHC is doing good in the industry, outperforming 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.69 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.91
WACC6.59%
2.3 Liquidity
BHC has a Current Ratio of 1.35. This is a normal value and indicates that BHC is financially healthy and should not expect problems in meeting its short term obligations.
BHC's Current ratio of 1.35 is in line compared to the rest of the industry. BHC outperforms 45.71% of its industry peers.
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.
BHC has a worse Quick ratio (0.97) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.55% over the past year.
The Earnings Per Share has been decreasing by -2.91% on average over the past years.
The Revenue has grown by 9.91% in the past year. This is quite good.
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)3.55%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%2.25%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%5.29%
3.2 Future
BHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.24% yearly.
The Revenue is expected to decrease by -0.38% on average over the next years.
EPS Next Y20.4%
EPS Next 2Y11.09%
EPS Next 3Y15.37%
EPS Next 5Y1.24%
Revenue Next Year4.86%
Revenue Next 2Y4.28%
Revenue Next 3Y3.25%
Revenue Next 5Y-0.38%
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
BHC is valuated cheaply with a Price/Earnings ratio of 1.52.
Based on the Price/Earnings ratio, BHC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.54. BHC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 1.24 indicates a rather cheap valuation of BHC.
BHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. BHC is cheaper than 100.00% of the companies in the same industry.
BHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.52 | ||
| Fwd PE | 1.24 |
4.2 Price Multiples
BHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHC is cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BHC is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.75 | ||
| EV/EBITDA | 7.25 |
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.
BHC's earnings are expected to grow with 15.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
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 (8/7/2025, 7:00:00 PM)
7.92
0 (0%)
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 Cap2.93B
Analysts48.89
Price Target10.2 (28.79%)
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)0%
PT rev (3m)17.65%
EPS NQ rev (1m)1.04%
EPS NQ rev (3m)22.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)9.85%
Revenue NY rev (1m)1.75%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.52 | ||
| Fwd PE | 1.24 | ||
| P/S | 0.22 | ||
| P/FCF | 1.75 | ||
| P/OCF | 1.33 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.25 |
EPS(TTM)5.22
EY65.91%
EPS(NY)6.4
Fwd EY80.83%
FCF(TTM)4.53
FCFY57.17%
OCF(TTM)5.95
OCFY75.08%
SpS36.23
BVpS-4.4
TBVpS-65.66
PEG (NY)0.07
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 | 0.19 |
F-Score5
WACC6.59%
ROIC/WACC0.91
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 Y20.4%
EPS Next 2Y11.09%
EPS Next 3Y15.37%
EPS Next 5Y1.24%
Revenue 1Y (TTM)9.91%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%5.29%
Revenue Next Year4.86%
Revenue Next 2Y4.28%
Revenue Next 3Y3.25%
Revenue Next 5Y-0.38%
EBIT growth 1Y10.77%
EBIT growth 3Y5.56%
EBIT growth 5Y6.8%
EBIT Next Year13.62%
EBIT Next 3Y9.06%
EBIT Next 5Y-0.57%
FCF growth 1Y257.31%
FCF growth 3Y3.22%
FCF growth 5Y0.55%
OCF growth 1Y412.52%
OCF growth 3Y3.85%
OCF growth 5Y1.25%