BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
NYSE:BSX - New York Stock Exchange, Inc. - US1011371077 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BSX. BSX was compared to 187 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 is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes BSX very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year BSX was profitable.
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
BSX has a better Return On Assets (5.06%) than 83.96% of its industry peers.
BSX has a Return On Equity of 9.15%. This is amongst the best in the industry. BSX outperforms 83.96% of its industry peers.
With an excellent Return On Invested Capital value of 7.57%, BSX belongs to the best of the industry, outperforming 85.03% 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 7.89%.
The 3 year average ROIC (6.54%) for BSX is below the current ROIC(7.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 9.15% | ||
| ROIC | 7.57% |
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
BSX's Profit Margin of 11.58% is amongst the best of the industry. BSX outperforms 87.70% of its industry peers.
In the last couple of years the Profit Margin of BSX has declined.
With an excellent Operating Margin value of 18.78%, BSX belongs to the best of the industry, outperforming 91.44% of the companies in the same industry.
BSX's Operating Margin has been stable in the last couple of years.
The Gross Margin of BSX (68.65%) is better than 76.47% of its industry peers.
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 | 18.78% | ||
| PM (TTM) | 11.58% | ||
| GM | 68.65% |
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
BSX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BSX has been increased compared to 1 year ago.
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 6.00. This indicates that BSX is financially healthy and has little risk of bankruptcy at the moment.
BSX has a better Altman-Z score (6.00) than 81.82% of its industry peers.
BSX has a debt to FCF ratio of 3.75. This is a good value and a sign of high solvency as BSX would need 3.75 years to pay back of all of its debts.
BSX has a Debt to FCF ratio of 3.75. This is amongst the best in the industry. BSX outperforms 86.63% of its industry peers.
BSX has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
BSX has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: BSX outperforms 42.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 6 |
ROIC/WACC0.88
WACC8.64%
2.3 Liquidity
BSX has a Current Ratio of 1.45. This is a normal value and indicates that BSX is financially healthy and should not expect problems in meeting its short term obligations.
BSX has a Current ratio of 1.45. This is in the lower half of the industry: BSX underperforms 77.01% of its industry peers.
BSX has a Quick Ratio of 1.45. This is a bad value and indicates that BSX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BSX (0.88) is worse than 82.35% of its industry peers.
BSX does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.45 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.17% over the past year.
BSX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.56% yearly.
Looking at the last year, BSX shows a quite strong growth in Revenue. The Revenue has grown by 19.35% in the last year.
Measured over the past years, BSX shows a quite strong growth in Revenue. The Revenue has been growing by 9.30% on average per year.
EPS 1Y (TTM)26.17%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%33.93%
Revenue 1Y (TTM)19.35%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%20.93%
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 12.43% on average per year.
The Revenue is expected to grow by 10.66% on average over the next years. This is quite good.
EPS Next Y17.44%
EPS Next 2Y15.26%
EPS Next 3Y14.33%
EPS Next 5Y12.43%
Revenue Next Year17.34%
Revenue Next 2Y13.99%
Revenue Next 3Y12.68%
Revenue Next 5Y10.66%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
BSX is valuated quite expensively with a Price/Earnings ratio of 38.22.
Compared to the rest of the industry, the Price/Earnings ratio of BSX indicates a somewhat cheap valuation: BSX is cheaper than 71.12% of the companies listed in the same industry.
BSX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 30.95, BSX can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, BSX is valued a bit cheaper than the industry average as 71.12% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. BSX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.22 | ||
| Fwd PE | 30.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BSX indicates a somewhat cheap valuation: BSX is cheaper than 68.98% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BSX indicates a somewhat cheap valuation: BSX is cheaper than 74.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.66 | ||
| EV/EBITDA | 35.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BSX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of BSX may justify a higher PE ratio.
A more expensive valuation may be justified as BSX's earnings are expected to grow with 14.33% in the coming years.
PEG (NY)2.19
PEG (5Y)4
EPS Next 2Y15.26%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
No dividends for BSX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
103.2
-0.66 (-0.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.03%
Inst Owner Change0.01%
Ins Owners0.15%
Ins Owner Change-0.94%
Market Cap152.68B
Analysts84.62
Price Target121.08 (17.33%)
Short Float %1.19%
Short Ratio2.33
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)8.08%
Min EPS beat(2)5.6%
Max EPS beat(2)10.56%
EPS beat(4)4
Avg EPS beat(4)7.06%
Min EPS beat(4)5.6%
Max EPS beat(4)10.56%
EPS beat(8)8
Avg EPS beat(8)6.71%
EPS beat(12)11
Avg EPS beat(12)5.15%
EPS beat(16)15
Avg EPS beat(16)4.51%
Revenue beat(2)2
Avg Revenue beat(2)1.51%
Min Revenue beat(2)0.97%
Max Revenue beat(2)2.04%
Revenue beat(4)4
Avg Revenue beat(4)1.92%
Min Revenue beat(4)0.97%
Max Revenue beat(4)3.16%
Revenue beat(8)8
Avg Revenue beat(8)2.02%
Revenue beat(12)10
Avg Revenue beat(12)1.79%
Revenue beat(16)12
Avg Revenue beat(16)1.49%
PT rev (1m)1.17%
PT rev (3m)1.14%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)0.15%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.22 | ||
| Fwd PE | 30.95 | ||
| P/S | 8.7 | ||
| P/FCF | 50.66 | ||
| P/OCF | 40.05 | ||
| P/B | 6.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.6 |
EPS(TTM)2.7
EY2.62%
EPS(NY)3.33
Fwd EY3.23%
FCF(TTM)2.04
FCFY1.97%
OCF(TTM)2.58
OCFY2.5%
SpS11.86
BVpS15.01
TBVpS-1.14
PEG (NY)2.19
PEG (5Y)4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 9.15% | ||
| ROCE | 9.4% | ||
| ROIC | 7.57% | ||
| ROICexc | 7.73% | ||
| ROICexgc | 25.4% | ||
| OM | 18.78% | ||
| PM (TTM) | 11.58% | ||
| GM | 68.65% | ||
| FCFM | 17.17% |
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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.75 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 61.86% | ||
| Cap/Sales | 4.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.12% | ||
| Profit Quality | 148.25% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 6 |
F-Score5
WACC8.64%
ROIC/WACC0.88
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)26.17%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%33.93%
EPS Next Y17.44%
EPS Next 2Y15.26%
EPS Next 3Y14.33%
EPS Next 5Y12.43%
Revenue 1Y (TTM)19.35%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%20.93%
Revenue Next Year17.34%
Revenue Next 2Y13.99%
Revenue Next 3Y12.68%
Revenue Next 5Y10.66%
EBIT growth 1Y30.17%
EBIT growth 3Y12.47%
EBIT growth 5Y10.54%
EBIT Next Year32.67%
EBIT Next 3Y19.08%
EBIT Next 5Y13.71%
FCF growth 1Y151.8%
FCF growth 3Y26.15%
FCF growth 5Y16.61%
OCF growth 1Y114.76%
OCF growth 3Y22.44%
OCF growth 5Y13.34%