BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
NYSE:BSX - US1011371077 - Common Stock
106.39 USD
+1.28 (+1.22%)
105.89 USD
-0.5 (-0.47%)
Overall BSX gets a fundamental rating of 6 out of 10. We evaluated BSX against 185 industry peers in the Health Care Equipment & Supplies industry. While BSX has a great profitability rating, there are some minor concerns on its financial health. BSX is not overvalued while it is showing excellent growth. This is an interesting 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
BSX has a Return On Assets of 6.03%. This is amongst the best in the industry. BSX outperforms 83.24% of its industry peers.
With an excellent Return On Equity value of 11.17%, BSX belongs to the best of the industry, outperforming 86.49% 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 83.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BSX is in line with the industry average of 8.44%.
The last Return On Invested Capital (7.66%) for BSX is above the 3 year average (6.54%), which is a sign of increasing profitability.
| 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
BSX has a Profit Margin of 13.54%. This is amongst the best in the industry. BSX outperforms 89.73% of its industry peers.
In the last couple of years the Profit Margin of BSX has declined.
Looking at the Operating Margin, with a value of 18.69%, BSX belongs to the top of the industry, outperforming 89.73% 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 68.30%, BSX is in the better half of the industry, outperforming 75.14% 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 | 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.
Compared to 1 year ago, BSX has more shares outstanding
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 5.86 indicates that BSX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.86, BSX belongs to the top of the industry, outperforming 83.24% of the companies in the same industry.
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 85.95% of the companies in the same industry.
BSX has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
BSX has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: BSX underperforms 60.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 5.86 |
ROIC/WACC0.9
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.37 indicates that BSX should not have too much problems paying its short term obligations.
BSX has a Current ratio of 1.37. This is in the lower half of the industry: BSX underperforms 77.30% of its industry peers.
A Quick Ratio of 0.82 indicates that BSX may have some problems paying its short term obligations.
BSX has a worse Quick ratio (0.82) than 86.49% 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
Based on estimates for the next years, BSX will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.08% on average per year.
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 Year19.61%
Revenue Next 2Y15.21%
Revenue Next 3Y13.52%
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
With a Price/Earnings ratio of 37.59, BSX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of BSX indicates a somewhat cheap valuation: BSX is cheaper than 71.35% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. BSX is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 31.01, the valuation of BSX can be described as expensive.
Based on the Price/Forward Earnings ratio, BSX is valued a bit cheaper than 71.35% of the companies in the same industry.
BSX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.59 | ||
| Fwd PE | 31.01 |
4.2 Price Multiples
69.73% of the companies in the same industry are more expensive than BSX, based on the Enterprise Value to EBITDA ratio.
BSX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BSX is cheaper than 76.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.25 | ||
| EV/EBITDA | 35.35 |
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.
BSX has an outstanding profitability rating, which 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)1.88
PEG (5Y)3.93
EPS Next 2Y16.91%
EPS Next 3Y15.57%
5. Dividend
5.1 Amount
BSX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
106.39
+1.28 (+1.22%)
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 Change-0.04%
Ins Owners0.15%
Ins Owner Change-2.54%
Market Cap157.64B
Analysts85
Price Target125.86 (18.3%)
Short Float %1.1%
Short Ratio2.18
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)3.95%
PT rev (3m)4.81%
EPS NQ rev (1m)2.2%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)2.19%
EPS NY rev (3m)2.34%
Revenue NQ rev (1m)1.93%
Revenue NQ rev (3m)3.75%
Revenue NY rev (1m)1.94%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.59 | ||
| Fwd PE | 31.01 | ||
| P/S | 8.52 | ||
| P/FCF | 45.25 | ||
| P/OCF | 36.8 | ||
| P/B | 7.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.35 |
EPS(TTM)2.83
EY2.66%
EPS(NY)3.43
Fwd EY3.22%
FCF(TTM)2.35
FCFY2.21%
OCF(TTM)2.89
OCFY2.72%
SpS12.48
BVpS15.13
TBVpS-1.97
PEG (NY)1.88
PEG (5Y)3.93
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 | 5.86 |
F-Score5
WACC8.51%
ROIC/WACC0.9
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 Year19.61%
Revenue Next 2Y15.21%
Revenue Next 3Y13.52%
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%