BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis
NYSE:BHC - CA0717341071 - Common Stock
7.27 USD
+0.1 (+1.39%)
7.35 USD
+0.08 (+1.1%)
Overall BHC gets a fundamental rating of 4 out of 10. We evaluated BHC against 193 industry peers in the Pharmaceuticals industry. BHC has a medium profitability rating, but doesn't score so well on its financial health evaluation. BHC is valued quite cheap, but it does not seem to be growing.
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
Looking at the Return On Assets, with a value of 0.36%, BHC belongs to the top of the industry, outperforming 80.31% of the companies in the same industry.
BHC's Return On Invested Capital of 6.68% is amongst the best of the industry. BHC outperforms 83.42% 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 15.38%.
The 3 year average ROIC (5.98%) for BHC is below the current ROIC(6.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.36% | ||
| ROE | N/A | ||
| ROIC | 6.68% |
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
BHC has a better Profit Margin (0.99%) than 80.31% of its industry peers.
BHC's Operating Margin of 19.13% is amongst the best of the industry. BHC outperforms 87.56% of its industry peers.
BHC's Operating Margin has improved in the last couple of years.
The Gross Margin of BHC (70.70%) is better than 78.24% 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 | 19.13% | ||
| 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
BHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
BHC has a better debt/assets ratio than last year.
2.2 Solvency
BHC has an Altman-Z score of 0.22. This is a bad value and indicates that BHC is not financially healthy and even has some risk of bankruptcy.
BHC has a Altman-Z score (0.22) which is comparable to the rest of the industry.
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.
BHC has a better Debt to FCF ratio (19.69) than 74.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.69 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.95
WACC7%
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 71.50% of its industry peers.
A Quick Ratio of 0.98 indicates that BHC may have some problems paying its short term obligations.
The Quick ratio of BHC (0.98) is worse than 74.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 |
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 been growing slightly by 7.13% in the past year.
The Revenue has been growing slightly by 2.28% on average over the past years.
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
BHC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.15% yearly.
The Revenue is expected to decrease by -0.19% on average over the next years.
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.
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
A Price/Earnings ratio of 1.92 indicates a rather cheap valuation of BHC.
Based on the Price/Earnings ratio, BHC is valued cheaper than 98.45% of the companies in the same industry.
BHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.14.
A Price/Forward Earnings ratio of 1.65 indicates a rather cheap valuation of BHC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BHC indicates a rather cheap valuation: BHC is cheaper than 99.48% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.80. BHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.92 | ||
| Fwd PE | 1.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHC is valued cheaply inside the industry as 92.75% of the companies are valued more expensively.
100.00% of the companies in the same industry are more expensive than BHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.44 | ||
| 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
No dividends for BHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.27
+0.1 (+1.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners58.71%
Inst Owner Change7.38%
Ins Owners11.02%
Ins Owner Change16.27%
Market Cap2.69B
Analysts48.89
Price Target7.35 (1.1%)
Short Float %2.25%
Short Ratio2.25
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)-1.12%
PT rev (3m)-0.32%
EPS NQ rev (1m)-3.46%
EPS NQ rev (3m)-8.96%
EPS NY rev (1m)-12.77%
EPS NY rev (3m)-12.77%
Revenue NQ rev (1m)1.03%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)2.47%
Revenue NY rev (3m)2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.92 | ||
| Fwd PE | 1.65 | ||
| P/S | 0.27 | ||
| P/FCF | 2.44 | ||
| P/OCF | 1.79 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.26 |
EPS(TTM)3.79
EY52.13%
EPS(NY)4.4
Fwd EY60.48%
FCF(TTM)2.99
FCFY41.07%
OCF(TTM)4.07
OCFY56.02%
SpS26.66
BVpS-2.07
TBVpS-46.27
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.36% | ||
| ROE | N/A | ||
| ROCE | 8.46% | ||
| ROIC | 6.68% | ||
| ROICexc | 7.25% | ||
| ROICexgc | 35.32% | ||
| 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)5.98%
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-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
WACC7%
ROIC/WACC0.95
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%