BAUSCH HEALTH COS INC (BHC)
CA0717341071 - Common Stock
Taking everything into account, BHC scores 4 out of 10 in our fundamental rating. BHC was compared to 198 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of BHC while its profitability can be described as average. BHC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year BHC was profitable.
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
BHC's Return On Assets of -2.16% is fine compared to the rest of the industry. BHC outperforms 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.48%, BHC belongs to the top of the industry, outperforming 85.13% of the companies in the same industry.
BHC had an Average Return On Invested Capital over the past 3 years of 5.24%. This is significantly below the industry average of 16.40%.
The last Return On Invested Capital (5.48%) for BHC is above the 3 year average (5.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | N/A | ||
| ROIC | 5.48% |
ROA(3y)-2.1%
ROA(5y)-2.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.24%
ROIC(5y)4.7%
1.3 Margins
BHC's Operating Margin of 18.26% is amongst the best of the industry. BHC outperforms 88.21% 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 77.44% of the companies in the same industry.
BHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.26% | ||
| PM (TTM) | N/A | ||
| GM | 70.78% |
OM growth 3Y3.74%
OM growth 5Y25.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y-0.33%
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.
The number of shares outstanding for BHC has been increased compared to 5 years ago.
The debt/assets ratio for BHC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.14, we must say that BHC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.14, BHC is in line with its industry, outperforming 52.82% of the companies in the same industry.
BHC has a debt to FCF ratio of 29.46. This is a negative value and a sign of low solvency as BHC would need 29.46 years to pay back of all of its debts.
BHC has a Debt to FCF ratio of 29.46. This is in the better half of the industry: BHC outperforms 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 29.46 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.8
WACC6.84%
2.3 Liquidity
A Current Ratio of 1.30 indicates that BHC should not have too much problems paying its short term obligations.
The Current ratio of BHC (1.30) is worse than 78.46% of its industry peers.
A Quick Ratio of 0.94 indicates that BHC may have some problems paying its short term obligations.
With a Quick ratio value of 0.94, BHC is not doing good in the industry: 81.03% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.96% over the past year.
Measured over the past years, BHC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.43% on average per year.
The Revenue has been growing slightly by 7.79% in the past year.
BHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.88% yearly.
EPS 1Y (TTM)13.96%
EPS 3Y-4.18%
EPS 5Y-2.43%
EPS growth Q2Q11.65%
Revenue 1Y (TTM)7.79%
Revenue growth 3Y2.94%
Revenue growth 5Y0.88%
Revenue growth Q2Q9.8%
3.2 Future
The Earnings Per Share is expected to grow by 2.33% on average over the next years.
The Revenue is expected to grow by 0.65% on average over the next years.
EPS Next Y12.73%
EPS Next 2Y12.73%
EPS Next 3Y12.78%
EPS Next 5Y2.33%
Revenue Next Year9.27%
Revenue Next 2Y5.97%
Revenue Next 3Y4.35%
Revenue Next 5Y0.65%
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
Based on the Price/Earnings ratio of 2.53, the valuation of BHC can be described as very cheap.
BHC's Price/Earnings ratio is rather cheap when compared to the industry. BHC is cheaper than 98.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.02. BHC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 2.24, the valuation of BHC can be described as very cheap.
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.
When comparing the Price/Forward Earnings ratio of BHC to the average of the S&P500 Index (21.32), we can say BHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.53 | ||
| Fwd PE | 2.24 |
4.2 Price Multiples
BHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHC is cheaper than 88.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BHC is valued cheaply inside the industry as 97.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.27 | ||
| EV/EBITDA | 8.62 |
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 12.78% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y12.73%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
BHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BAUSCH HEALTH COS INC
NYSE:BHC (4/29/2024, 7:04:00 PM)
After market: 8.88 0 (0%)8.88
+0.17 (+1.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.53 | ||
| Fwd PE | 2.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.26% | ||
| PM (TTM) | N/A | ||
| GM | 70.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.96%
EPS 3Y-4.18%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.79%
Revenue growth 3Y2.94%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y