BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
USA - NYSE:BSX - US1011371077 - Common Stock
97.69 USD
+0.66 (+0.68%)
97.6102 USD
-0.08 (-0.08%)
BSX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 190 industry peers in the Health Care Equipment & Supplies industry. While BSX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BSX is growing strongly while it is still valued neutral. This is a good combination! This makes BSX very considerable 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.
BSX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years BSX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BSX (6.03%) is better than 83.68% of its industry peers.
Looking at the Return On Equity, with a value of 11.17%, BSX belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.66%, BSX belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
BSX had an Average Return On Invested Capital over the past 3 years of 6.54%. This is in line with the industry average of 8.43%.
The 3 year average ROIC (6.54%) for BSX is below the current ROIC(7.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 11.17% | ||
| ROIC | 7.66% |
ROA(3y)3.72%
ROA(5y)2.77%
ROE(3y)6.77%
ROE(5y)5.1%
ROIC(3y)6.54%
ROIC(5y)5.68%
1.3 Margins
Looking at the Profit Margin, with a value of 13.54%, BSX belongs to the top of the industry, outperforming 90.53% of the companies in the same industry.
BSX's Profit Margin has declined in the last couple of years.
BSX has a Operating Margin of 18.69%. This is amongst the best in the industry. BSX outperforms 90.53% of its industry peers.
In the last couple of years the Operating Margin of BSX has remained more or less at the same level.
BSX's Gross Margin of 68.30% is fine compared to the rest of the industry. BSX outperforms 75.26% of its industry peers.
BSX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.69% | ||
| PM (TTM) | 13.54% | ||
| GM | 68.3% |
OM growth 3Y0.33%
OM growth 5Y1.13%
PM growth 3Y10.12%
PM growth 5Y-24.05%
GM growth 3Y-0.3%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BSX is destroying value.
BSX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BSX has more shares outstanding
BSX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.42 indicates that BSX is not in any danger for bankruptcy at the moment.
The Altman-Z score of BSX (5.42) is better than 81.05% of its industry peers.
The Debt to FCF ratio of BSX is 3.33, which is a good value as it means it would take BSX, 3.33 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.33, BSX belongs to the best of the industry, outperforming 86.32% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that BSX is not too dependend on debt financing.
BSX's Debt to Equity ratio of 0.50 is on the low side compared to the rest of the industry. BSX is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 5.42 |
ROIC/WACC0.92
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.37 indicates that BSX should not have too much problems paying its short term obligations.
The Current ratio of BSX (1.37) is worse than 77.89% of its industry peers.
BSX has a Quick Ratio of 1.37. This is a bad value and indicates that BSX is not financially healthy enough and could expect problems in meeting its short term obligations.
BSX has a worse Quick ratio (0.82) than 85.26% of its industry peers.
The current and quick ratio evaluation for BSX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.91% over the past year.
The Earnings Per Share has been growing by 9.56% on average over the past years. This is quite good.
The Revenue has grown by 21.45% in the past year. This is a very strong growth!
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)26.91%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%20.97%
Revenue 1Y (TTM)21.45%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%22.84%
3.2 Future
The Earnings Per Share is expected to grow by 14.08% on average over the next years. This is quite good.
BSX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.70% yearly.
EPS Next Y20.01%
EPS Next 2Y16.91%
EPS Next 3Y15.57%
EPS Next 5Y14.08%
Revenue Next Year19.6%
Revenue Next 2Y15.24%
Revenue Next 3Y13.53%
Revenue Next 5Y11.7%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
BSX is valuated quite expensively with a Price/Earnings ratio of 34.52.
Based on the Price/Earnings ratio, BSX is valued a bit cheaper than 71.58% of the companies in the same industry.
BSX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 28.47, the valuation of BSX can be described as expensive.
BSX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BSX is cheaper than 72.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BSX to the average of the S&P500 Index (22.87), we can say BSX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 28.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BSX is valued a bit cheaper than the industry average as 71.05% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BSX is valued a bit cheaper than 76.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.55 | ||
| EV/EBITDA | 32.44 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BSX may justify a higher PE ratio.
BSX's earnings are expected to grow with 15.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.73
PEG (5Y)3.61
EPS Next 2Y16.91%
EPS Next 3Y15.57%
5. Dividend
5.1 Amount
No dividends for BSX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
97.69
+0.66 (+0.68%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.45%
Inst Owner Change0.03%
Ins Owners0.15%
Ins Owner Change-2.38%
Market Cap144.75B
Analysts85
Price Target126.25 (29.24%)
Short Float %1.29%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.53%
Min EPS beat(2)2.49%
Max EPS beat(2)10.56%
EPS beat(4)4
Avg EPS beat(4)6.23%
Min EPS beat(4)2.49%
Max EPS beat(4)10.56%
EPS beat(8)8
Avg EPS beat(8)6.12%
EPS beat(12)11
Avg EPS beat(12)5.14%
EPS beat(16)15
Avg EPS beat(16)4.28%
Revenue beat(2)2
Avg Revenue beat(2)1.7%
Min Revenue beat(2)0.97%
Max Revenue beat(2)2.43%
Revenue beat(4)4
Avg Revenue beat(4)2.15%
Min Revenue beat(4)0.97%
Max Revenue beat(4)3.16%
Revenue beat(8)8
Avg Revenue beat(8)2.1%
Revenue beat(12)11
Avg Revenue beat(12)2.01%
Revenue beat(16)12
Avg Revenue beat(16)1.41%
PT rev (1m)0.38%
PT rev (3m)4.27%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)2.36%
EPS NY rev (1m)0%
EPS NY rev (3m)2.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 28.47 | ||
| P/S | 7.83 | ||
| P/FCF | 41.55 | ||
| P/OCF | 33.79 | ||
| P/B | 6.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 32.44 |
EPS(TTM)2.83
EY2.9%
EPS(NY)3.43
Fwd EY3.51%
FCF(TTM)2.35
FCFY2.41%
OCF(TTM)2.89
OCFY2.96%
SpS12.48
BVpS15.13
TBVpS-1.97
PEG (NY)1.73
PEG (5Y)3.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 11.17% | ||
| ROCE | 9.51% | ||
| ROIC | 7.66% | ||
| ROICexc | 7.77% | ||
| ROICexgc | 26.52% | ||
| OM | 18.69% | ||
| PM (TTM) | 13.54% | ||
| GM | 68.3% | ||
| FCFM | 18.84% |
ROA(3y)3.72%
ROA(5y)2.77%
ROE(3y)6.77%
ROE(5y)5.1%
ROIC(3y)6.54%
ROIC(5y)5.68%
ROICexc(3y)6.7%
ROICexc(5y)5.9%
ROICexgc(3y)22.68%
ROICexgc(5y)19.43%
ROCE(3y)8.12%
ROCE(5y)7.05%
ROICexcg growth 3Y8.56%
ROICexcg growth 5Y6.81%
ROICexc growth 3Y4.36%
ROICexc growth 5Y5.23%
OM growth 3Y0.33%
OM growth 5Y1.13%
PM growth 3Y10.12%
PM growth 5Y-24.05%
GM growth 3Y-0.3%
GM growth 5Y-0.65%
F-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.33 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 60.84% | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.77% | ||
| Profit Quality | 139.08% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 5.42 |
F-Score5
WACC8.36%
ROIC/WACC0.92
Cap/Depr(3y)57.82%
Cap/Depr(5y)54.13%
Cap/Sales(3y)4.78%
Cap/Sales(5y)4.85%
Profit Quality(3y)134.31%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.91%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%20.97%
EPS Next Y20.01%
EPS Next 2Y16.91%
EPS Next 3Y15.57%
EPS Next 5Y14.08%
Revenue 1Y (TTM)21.45%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%22.84%
Revenue Next Year19.6%
Revenue Next 2Y15.24%
Revenue Next 3Y13.53%
Revenue Next 5Y11.7%
EBIT growth 1Y26.44%
EBIT growth 3Y12.47%
EBIT growth 5Y10.54%
EBIT Next Year35.67%
EBIT Next 3Y20.23%
EBIT Next 5Y14.94%
FCF growth 1Y131.03%
FCF growth 3Y26.15%
FCF growth 5Y16.61%
OCF growth 1Y101.7%
OCF growth 3Y22.44%
OCF growth 5Y13.34%