BOSTON SCIENTIFIC CORP (BSX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BSX - US1011371077 - Common Stock
78.2 EUR
-0.4 (-0.51%)
BSX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Health Care Equipment & Supplies industry. BSX scores excellent on profitability, but there are some minor concerns on its financial health. BSX shows excellent growth, but is valued quite expensive already. With these ratings, BSX could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- BSX had positive earnings in the past year.
- In the past year BSX had a positive cash flow from operations.
- Of the past 5 years BSX 4 years were profitable.
- In the past 5 years BSX always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of BSX (6.54%) is better than 73.02% of its industry peers.
- The Return On Equity of BSX (11.93%) is better than 71.43% of its industry peers.
- With a decent Return On Invested Capital value of 8.09%, BSX is doing good in the industry, outperforming 68.25% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BSX is below the industry average of 9.95%.
- The last Return On Invested Capital (8.09%) for BSX is above the 3 year average (6.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 11.93% | ||
| ROIC | 8.09% |
ROA(3y)3.72%
ROA(5y)2.77%
ROE(3y)6.77%
ROE(5y)5.1%
ROIC(3y)6.59%
ROIC(5y)5.7%
1.3 Margins
- Looking at the Profit Margin, with a value of 14.42%, BSX belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
- BSX's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 19.40%, BSX belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
- BSX's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 68.57%, BSX is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
- In the last couple of years the Gross Margin of BSX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.4% | ||
| PM (TTM) | 14.42% | ||
| GM | 68.57% |
OM growth 3Y0.91%
OM growth 5Y1.48%
PM growth 3Y10.12%
PM growth 5Y-24.05%
GM growth 3Y-0.15%
GM growth 5Y-0.56%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BSX is destroying value.
- Compared to 1 year ago, BSX has more shares outstanding
- BSX has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for BSX is higher compared to a year ago.
2.2 Solvency
- BSX has an Altman-Z score of 5.28. This indicates that BSX is financially healthy and has little risk of bankruptcy at the moment.
- BSX has a better Altman-Z score (5.28) than 87.30% of its industry peers.
- BSX has a debt to FCF ratio of 3.03. This is a good value and a sign of high solvency as BSX would need 3.03 years to pay back of all of its debts.
- The Debt to FCF ratio of BSX (3.03) is better than 71.43% of its industry peers.
- A Debt/Equity ratio of 0.48 indicates that BSX is not too dependend on debt financing.
- BSX's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. BSX outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 5.28 |
ROIC/WACC0.83
WACC9.77%
2.3 Liquidity
- A Current Ratio of 1.51 indicates that BSX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.51, BSX is in line with its industry, outperforming 46.03% of the companies in the same industry.
- A Quick Ratio of 0.96 indicates that BSX may have some problems paying its short term obligations.
- BSX has a Quick ratio (0.96) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- BSX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.00%, which is quite impressive.
- Measured over the past years, BSX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.56% on average per year.
- BSX shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.62%.
- BSX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.30% yearly.
EPS 1Y (TTM)25%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%19.05%
Revenue 1Y (TTM)21.62%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%20.34%
3.2 Future
- Based on estimates for the next years, BSX will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.06% on average per year.
- Based on estimates for the next years, BSX will show a quite strong growth in Revenue. The Revenue will grow by 12.60% on average per year.
EPS Next Y22.12%
EPS Next 2Y18.13%
EPS Next 3Y16.37%
EPS Next 5Y15.06%
Revenue Next Year20.92%
Revenue Next 2Y16.08%
Revenue Next 3Y14.31%
Revenue Next 5Y12.6%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- BSX is valuated quite expensively with a Price/Earnings ratio of 31.66.
- BSX's Price/Earnings is on the same level as the industry average.
- BSX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- BSX is valuated quite expensively with a Price/Forward Earnings ratio of 26.63.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BSX is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, BSX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.66 | ||
| Fwd PE | 26.63 |
4.2 Price Multiples
- 63.49% of the companies in the same industry are cheaper than BSX, based on the Enterprise Value to EBITDA ratio.
- BSX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.17 | ||
| EV/EBITDA | 29.11 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of BSX may justify a higher PE ratio.
- BSX's earnings are expected to grow with 16.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)3.31
EPS Next 2Y18.13%
EPS Next 3Y16.37%
5. Dividend
5.1 Amount
- No dividends for BSX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BOSTON SCIENTIFIC CORP / BSX.DE FAQ
What is the ChartMill fundamental rating of BOSTON SCIENTIFIC CORP (BSX.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BSX.DE.
What is the valuation status for BSX stock?
ChartMill assigns a valuation rating of 3 / 10 to BOSTON SCIENTIFIC CORP (BSX.DE). This can be considered as Overvalued.
How profitable is BOSTON SCIENTIFIC CORP (BSX.DE) stock?
BOSTON SCIENTIFIC CORP (BSX.DE) has a profitability rating of 7 / 10.
What is the valuation of BOSTON SCIENTIFIC CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BOSTON SCIENTIFIC CORP (BSX.DE) is 31.66 and the Price/Book (PB) ratio is 5.91.
Can you provide the expected EPS growth for BSX stock?
The Earnings per Share (EPS) of BOSTON SCIENTIFIC CORP (BSX.DE) is expected to grow by 22.12% in the next year.