BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
NYSE:BSX - New York Stock Exchange, Inc. - US1011371077 - Common Stock - Currency: USD
BSX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 189 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make BSX a good candidate 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 5.06%. This is amongst the best in the industry. BSX outperforms 84.13% of its industry peers.
BSX's Return On Equity of 9.15% is amongst the best of the industry. BSX outperforms 85.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.57%, BSX belongs to the top of the industry, outperforming 84.66% 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 7.87%.
The last Return On Invested Capital (7.57%) for BSX is above the 3 year average (6.54%), which is a sign of increasing profitability.
| 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
The Profit Margin of BSX (11.58%) is better than 87.83% of its industry peers.
In the last couple of years the Profit Margin of BSX has declined.
BSX's Operating Margin of 18.78% is amongst the best of the industry. BSX outperforms 91.01% 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 has a better Gross Margin (68.65%) than 76.19% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BSX is destroying value.
The number of shares outstanding for BSX has been increased compared to 1 year ago.
Compared to 5 years ago, BSX has more shares outstanding
Compared to 1 year ago, BSX has a worse debt to assets ratio.
2.2 Solvency
BSX has an Altman-Z score of 6.17. This indicates that BSX is financially healthy and has little risk of bankruptcy at the moment.
BSX has a Altman-Z score of 6.17. This is amongst the best in the industry. BSX outperforms 83.07% 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 better Debt to FCF ratio (3.75) than 85.71% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that BSX is not too dependend on debt financing.
BSX has a Debt to Equity ratio (0.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 6.17 |
ROIC/WACC0.87
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.45 indicates that BSX should not have too much problems paying its short term obligations.
The Current ratio of BSX (1.45) is worse than 77.25% 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 80.95% 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 | 1.45 | ||
| 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.
BSX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.35%.
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)26.17%
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
The Earnings Per Share is expected to grow by 12.15% 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 10.22% yearly.
EPS Next Y17.26%
EPS Next 2Y15.08%
EPS Next 3Y14.28%
EPS Next 5Y12.15%
Revenue Next Year17.42%
Revenue Next 2Y14.03%
Revenue Next 3Y12.64%
Revenue Next 5Y10.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 39.46, BSX can be considered very expensive at the moment.
71.96% of the companies in the same industry are more expensive than BSX, based on the Price/Earnings ratio.
BSX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 32.05, which means the current valuation is very expensive for BSX.
BSX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BSX is cheaper than 70.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BSX to the average of the S&P500 Index (22.43), we can say BSX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.46 | ||
| Fwd PE | 32.05 |
4.2 Price Multiples
BSX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BSX is cheaper than 68.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BSX is valued a bit cheaper than 73.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.28 | ||
| EV/EBITDA | 36.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BSX has an outstanding profitability rating, which may justify a higher PE ratio.
BSX's earnings are expected to grow with 14.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.29
PEG (5Y)4.13
EPS Next 2Y15.08%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
BSX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
106.54
-0.12 (-0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.1%
Inst Owner Change0.56%
Ins Owners0.18%
Ins Owner Change0.1%
Market Cap157.58B
Analysts83.68
Price Target120.09 (12.72%)
Short Float %1.07%
Short Ratio1.81
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)0.32%
PT rev (3m)13.76%
EPS NQ rev (1m)2.45%
EPS NQ rev (3m)2.63%
EPS NY rev (1m)1.87%
EPS NY rev (3m)2%
Revenue NQ rev (1m)2.47%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)1.69%
Revenue NY rev (3m)3.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.46 | ||
| Fwd PE | 32.05 | ||
| P/S | 8.98 | ||
| P/FCF | 52.28 | ||
| P/OCF | 41.34 | ||
| P/B | 7.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.71 |
EPS(TTM)2.7
EY2.53%
EPS(NY)3.32
Fwd EY3.12%
FCF(TTM)2.04
FCFY1.91%
OCF(TTM)2.58
OCFY2.42%
SpS11.87
BVpS15.02
TBVpS-1.14
PEG (NY)2.29
PEG (5Y)4.13
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 | 6.17 |
F-Score5
WACC8.68%
ROIC/WACC0.87
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 Y17.26%
EPS Next 2Y15.08%
EPS Next 3Y14.28%
EPS Next 5Y12.15%
Revenue 1Y (TTM)19.35%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%20.93%
Revenue Next Year17.42%
Revenue Next 2Y14.03%
Revenue Next 3Y12.64%
Revenue Next 5Y10.22%
EBIT growth 1Y30.17%
EBIT growth 3Y12.47%
EBIT growth 5Y10.54%
EBIT Next Year30.91%
EBIT Next 3Y18.53%
EBIT Next 5Y14.08%
FCF growth 1Y151.8%
FCF growth 3Y26.15%
FCF growth 5Y16.61%
OCF growth 1Y114.76%
OCF growth 3Y22.44%
OCF growth 5Y13.34%