BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BSX - US1011371077 - Common Stock
97.64 USD
-0.74 (-0.75%)
97.64 USD
0 (0%)
Taking everything into account, BSX scores 5 out of 10 in our fundamental rating. BSX was compared to 185 industry peers in the Health Care Equipment & Supplies industry. BSX has an excellent profitability rating, but there are some minor concerns on its financial health. BSX is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year BSX was profitable.
BSX had a positive operating cash flow in the past year.
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
BSX's Return On Assets of 6.54% is amongst the best of the industry. BSX outperforms 86.49% of its industry peers.
Looking at the Return On Equity, with a value of 11.93%, BSX belongs to the top of the industry, outperforming 88.11% of the companies in the same industry.
BSX has a better Return On Invested Capital (8.09%) than 84.32% of its industry peers.
BSX had an Average Return On Invested Capital over the past 3 years of 6.59%. This is below the industry average of 8.84%.
The 3 year average ROIC (6.59%) for BSX is below the current ROIC(8.09%), indicating increased profibility in the last year.
| 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
BSX has a Profit Margin of 14.42%. This is amongst the best in the industry. BSX outperforms 90.81% of its industry peers.
In the last couple of years the Profit Margin of BSX has declined.
BSX's Operating Margin of 19.40% is amongst the best of the industry. BSX outperforms 92.43% of its industry peers.
In the last couple of years the Operating Margin of BSX has remained more or less at the same level.
With a decent Gross Margin value of 68.57%, BSX is doing good in the industry, outperforming 74.59% of the companies in the same industry.
BSX's Gross Margin has been stable in the last couple of years.
| 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
The number of shares outstanding for BSX has been increased compared to 5 years ago.
BSX has a worse debt/assets ratio than last year.
2.2 Solvency
BSX has an Altman-Z score of 5.51. This indicates that BSX is financially healthy and has little risk of bankruptcy at the moment.
BSX's Altman-Z score of 5.51 is fine compared to the rest of the industry. BSX outperforms 78.38% 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 83.24% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that BSX is not too dependend on debt financing.
The Debt to Equity ratio of BSX (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 5.51 |
ROIC/WACC0.84
WACC9.61%
2.3 Liquidity
BSX has a Current Ratio of 1.51. This is a normal value and indicates that BSX is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.51, BSX is not doing good in the industry: 72.97% of the companies in the same industry are doing better.
BSX has a Quick Ratio of 1.51. 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 (0.96) is worse than 77.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.00% over the past year.
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
BSX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.01% yearly.
The Revenue is expected to grow by 12.51% on average over the next years. This is quite good.
EPS Next Y22.13%
EPS Next 2Y18.12%
EPS Next 3Y16.5%
EPS Next 5Y15.01%
Revenue Next Year20.9%
Revenue Next 2Y16.08%
Revenue Next 3Y14.18%
Revenue Next 5Y12.51%
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.
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
A Price/Earnings ratio of 33.10 indicates a quite expensive valuation of BSX.
BSX's Price/Earnings ratio is a bit cheaper when compared to the industry. BSX is cheaper than 73.51% of the companies in the same industry.
When comparing the Price/Earnings ratio of BSX to the average of the S&P500 Index (27.19), we can say BSX is valued slightly more expensively.
BSX is valuated quite expensively with a Price/Forward Earnings ratio of 27.88.
Based on the Price/Forward Earnings ratio, BSX is valued a bit cheaper than 74.05% of the companies in the same industry.
BSX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.1 | ||
| Fwd PE | 27.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BSX is valued a bit cheaper than the industry average as 71.35% of the companies are valued more expensively.
76.76% of the companies in the same industry are more expensive than BSX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.86 | ||
| EV/EBITDA | 30.59 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BSX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BSX's earnings are expected to grow with 16.50% in the coming years.
PEG (NY)1.5
PEG (5Y)3.46
EPS Next 2Y18.12%
EPS Next 3Y16.5%
5. Dividend
5.1 Amount
BSX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
97.64
-0.74 (-0.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.07%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner Change-0.4%
Market Cap144.75B
Revenue(TTM)19.35B
Net Income(TTM)2.79B
Analysts86
Price Target127.2 (30.27%)
Short Float %1.3%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)3.27%
Min EPS beat(2)2.49%
Max EPS beat(2)4.06%
EPS beat(4)4
Avg EPS beat(4)5.68%
Min EPS beat(4)2.49%
Max EPS beat(4)10.56%
EPS beat(8)8
Avg EPS beat(8)6.15%
EPS beat(12)12
Avg EPS beat(12)5.77%
EPS beat(16)15
Avg EPS beat(16)4.37%
Revenue beat(2)2
Avg Revenue beat(2)1.69%
Min Revenue beat(2)0.96%
Max Revenue beat(2)2.43%
Revenue beat(4)4
Avg Revenue beat(4)1.6%
Min Revenue beat(4)0.96%
Max Revenue beat(4)2.43%
Revenue beat(8)8
Avg Revenue beat(8)2.16%
Revenue beat(12)11
Avg Revenue beat(12)2.08%
Revenue beat(16)13
Avg Revenue beat(16)1.61%
PT rev (1m)-0.82%
PT rev (3m)0.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.36%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.1 | ||
| Fwd PE | 27.88 | ||
| P/S | 7.48 | ||
| P/FCF | 37.86 | ||
| P/OCF | 31.3 | ||
| P/B | 6.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.59 |
EPS(TTM)2.95
EY3.02%
EPS(NY)3.5
Fwd EY3.59%
FCF(TTM)2.58
FCFY2.64%
OCF(TTM)3.12
OCFY3.2%
SpS13.05
BVpS15.78
TBVpS-1.34
PEG (NY)1.5
PEG (5Y)3.46
Graham Number32.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 11.93% | ||
| ROCE | 10.04% | ||
| ROIC | 8.09% | ||
| ROICexc | 8.38% | ||
| ROICexgc | 28.19% | ||
| OM | 19.4% | ||
| PM (TTM) | 14.42% | ||
| GM | 68.57% | ||
| FCFM | 19.76% |
ROA(3y)3.72%
ROA(5y)2.77%
ROE(3y)6.77%
ROE(5y)5.1%
ROIC(3y)6.59%
ROIC(5y)5.7%
ROICexc(3y)6.75%
ROICexc(5y)5.93%
ROICexgc(3y)22.84%
ROICexgc(5y)19.53%
ROCE(3y)8.18%
ROCE(5y)7.08%
ROICexgc growth 3Y9.18%
ROICexgc growth 5Y7.17%
ROICexc growth 3Y4.96%
ROICexc growth 5Y5.6%
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%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.03 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 59.36% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.6% | ||
| Profit Quality | 136.98% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 5.51 |
F-Score6
WACC9.61%
ROIC/WACC0.84
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)25%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%19.05%
EPS Next Y22.13%
EPS Next 2Y18.12%
EPS Next 3Y16.5%
EPS Next 5Y15.01%
Revenue 1Y (TTM)21.62%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%20.34%
Revenue Next Year20.9%
Revenue Next 2Y16.08%
Revenue Next 3Y14.18%
Revenue Next 5Y12.51%
EBIT growth 1Y30.66%
EBIT growth 3Y13.12%
EBIT growth 5Y10.92%
EBIT Next Year37.61%
EBIT Next 3Y20.84%
EBIT Next 5Y17.37%
FCF growth 1Y125.15%
FCF growth 3Y26.15%
FCF growth 5Y16.61%
OCF growth 1Y96.47%
OCF growth 3Y22.44%
OCF growth 5Y13.34%
BOSTON SCIENTIFIC CORP / BSX FAQ
What is the ChartMill fundamental rating of BOSTON SCIENTIFIC CORP (BSX) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BSX.
What is the valuation status for BSX stock?
ChartMill assigns a valuation rating of 4 / 10 to BOSTON SCIENTIFIC CORP (BSX). This can be considered as Fairly Valued.
How profitable is BOSTON SCIENTIFIC CORP (BSX) stock?
BOSTON SCIENTIFIC CORP (BSX) 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) is 33.1 and the Price/Book (PB) ratio is 6.19.
Can you provide the expected EPS growth for BSX stock?
The Earnings per Share (EPS) of BOSTON SCIENTIFIC CORP (BSX) is expected to grow by 22.13% in the next year.