BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis
NYSE:BHC - New York Stock Exchange, Inc. - CA0717341071 - Common Stock - Currency: USD
BHC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 193 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 is cheap, but on the other hand it scores bad on growth.
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 an excellent Return On Assets value of -0.15%, BHC belongs to the best of the industry, outperforming 81.35% of the companies in the same industry.
BHC has a Return On Invested Capital of 6.60%. This is amongst the best in the industry. BHC outperforms 84.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BHC is significantly below the industry average of 14.87%.
The 3 year average ROIC (5.98%) for BHC is below the current ROIC(6.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | N/A | ||
| ROIC | 6.6% |
ROA(3y)-1.07%
ROA(5y)-1.65%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.98%
ROIC(5y)5.41%
1.3 Margins
The Operating Margin of BHC (19.03%) is better than 86.53% of its industry peers.
BHC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 70.78%, BHC is doing good in the industry, outperforming 78.76% 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 | 19.03% | ||
| 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.
Compared to 1 year ago, BHC has more shares outstanding
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
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.
BHC has a Altman-Z score (0.19) which is in line with 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.
Looking at the Debt to FCF ratio, with a value of 17.69, BHC is in the better half of the industry, outperforming 78.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.69 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.96
WACC6.88%
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 on the low side compared to the rest of the industry. BHC is outperformed by 74.61% 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's Quick ratio of 0.97 is on the low side compared to the rest of the industry. BHC is outperformed by 77.20% 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 5.01% over the past year.
Measured over the past years, BHC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.91% on average per year.
BHC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.53%.
The Revenue has been growing slightly by 2.28% on average over the past years.
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
Based on estimates for the next years, BHC will show a small growth in Earnings Per Share. The EPS will grow by 1.24% on average per year.
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 Year3.06%
Revenue Next 2Y4.04%
Revenue Next 3Y3.02%
Revenue Next 5Y-0.38%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 1.72, which indicates a rather cheap valuation of BHC.
98.96% of the companies in the same industry are more expensive than BHC, based on the Price/Earnings ratio.
BHC is valuated cheaply when we compare the Price/Earnings ratio to 27.48, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 1.39, the valuation of BHC can be described as very cheap.
98.96% of the companies in the same industry are more expensive than BHC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BHC to the average of the S&P500 Index (36.52), we can say BHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.72 | ||
| Fwd PE | 1.39 |
4.2 Price Multiples
BHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHC is cheaper than 90.67% of the companies in the same industry.
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 | 1.97 | ||
| EV/EBITDA | 7.33 |
4.3 Compensation for Growth
BHC's 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)0.08
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 |
6.48
+0.04 (+0.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners58.71%
Inst Owner Change0%
Ins Owners11.02%
Ins Owner Change15.55%
Market Cap2.39B
Analysts48.89
Price Target7.45 (14.97%)
Short Float %2.57%
Short Ratio3.82
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)0.3%
PT rev (3m)13.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.91%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.72 | ||
| Fwd PE | 1.39 | ||
| P/S | 0.25 | ||
| P/FCF | 1.97 | ||
| P/OCF | 1.5 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.33 |
EPS(TTM)3.77
EY58.18%
EPS(NY)4.65
Fwd EY71.8%
FCF(TTM)3.29
FCFY50.78%
OCF(TTM)4.32
OCFY66.69%
SpS26.33
BVpS-3.2
TBVpS-47.71
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | N/A | ||
| ROCE | 8.36% | ||
| ROIC | 6.6% | ||
| ROICexc | 6.96% | ||
| ROICexgc | 31.94% | ||
| 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)5.98%
ROIC(5y)5.41%
ROICexc(3y)6.26%
ROICexc(5y)5.63%
ROICexgc(3y)44%
ROICexgc(5y)37.54%
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
WACC6.88%
ROIC/WACC0.96
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 5Y1.24%
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-0.38%
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%