BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis
NYSE:BHC - New York Stock Exchange, Inc. - CA0717341071 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to BHC. BHC was compared to 195 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.
In the past year BHC had a positive cash flow from operations.
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 has a better Return On Assets (-0.15%) than 81.54% of its industry peers.
BHC has a Return On Invested Capital of 6.60%. This is amongst the best in the industry. BHC outperforms 84.62% 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 86.67% of its industry peers.
In the last couple of years the Operating Margin of BHC has grown nicely.
BHC's Gross Margin of 70.78% is fine compared to the rest of the industry. BHC outperforms 78.97% 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
BHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BHC has more shares outstanding
The number of shares outstanding for BHC has been increased compared to 5 years ago.
The debt/assets ratio for BHC has been reduced compared to a year ago.
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.
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.
The Debt to FCF ratio of BHC (17.69) is better than 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.69 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.97
WACC6.83%
2.3 Liquidity
A Current Ratio of 1.35 indicates that BHC should not have too much problems paying its short term obligations.
The Current ratio of BHC (1.35) is worse than 74.36% 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 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
BHC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.01%.
The Earnings Per Share has been decreasing by -2.91% on average over the past years.
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
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 Year3.06%
Revenue Next 2Y4.04%
Revenue Next 3Y3.02%
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 1.64.
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.
BHC is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 1.33 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 98.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, BHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.64 | ||
| Fwd PE | 1.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHC is valued cheaply inside the industry as 90.26% of the companies are valued more expensively.
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 | 1.88 | ||
| EV/EBITDA | 7.3 |
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.
A more expensive valuation may be justified as BHC's earnings are expected to grow with 15.37% in the coming years.
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 |
6.18
+0.45 (+7.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners58.71%
Inst Owner Change-3.72%
Ins Owners11.02%
Ins Owner Change15.56%
Market Cap2.28B
Analysts48.89
Price Target7.43 (20.23%)
Short Float %2.66%
Short Ratio3.36
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)0.75%
PT rev (3m)13.76%
EPS NQ rev (1m)20.92%
EPS NQ rev (3m)-13.17%
EPS NY rev (1m)0%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)9.19%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.64 | ||
| Fwd PE | 1.33 | ||
| P/S | 0.23 | ||
| P/FCF | 1.88 | ||
| P/OCF | 1.43 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.3 |
EPS(TTM)3.77
EY61%
EPS(NY)4.65
Fwd EY75.28%
FCF(TTM)3.29
FCFY53.24%
OCF(TTM)4.32
OCFY69.93%
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
WACC6.83%
ROIC/WACC0.97
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%