BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BSX - US1011371077 - Common Stock
92.58 USD
+0.83 (+0.9%)
92.25 USD
-0.33 (-0.36%)
Overall BSX gets a fundamental rating of 5 out of 10. We evaluated BSX against 187 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!
1. Profitability
1.1 Basic Checks
In the past year BSX was profitable.
BSX had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 6.54%, BSX belongs to the top of the industry, outperforming 86.10% of the companies in the same industry.
The Return On Equity of BSX (11.93%) is better than 88.24% of its industry peers.
BSX has a Return On Invested Capital of 8.09%. This is amongst the best in the industry. BSX outperforms 84.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BSX is below the industry average of 8.80%.
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 better Profit Margin (14.42%) than 90.91% of its industry peers.
In the last couple of years the Profit Margin of BSX has declined.
With an excellent Operating Margin value of 19.40%, BSX belongs to the best of the industry, outperforming 92.51% of the companies in the same industry.
BSX's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 68.57%, BSX is doing good in the industry, outperforming 74.33% 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
BSX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BSX has more shares outstanding
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
An Altman-Z score of 5.21 indicates that BSX is not in any danger for bankruptcy at the moment.
BSX has a Altman-Z score of 5.21. This is in the better half of the industry: BSX outperforms 79.14% 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.
BSX has a Debt to FCF ratio of 3.03. This is amongst the best in the industry. BSX outperforms 83.96% of its industry peers.
BSX has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
BSX's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. BSX outperforms 44.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 5.21 |
ROIC/WACC0.97
WACC8.32%
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: 74.33% 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.
Looking at the Quick ratio, with a value of 0.96, BSX is doing worse than 78.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
BSX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.00%, which is quite impressive.
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 a strong growth in Revenue. In the last year, the Revenue has grown by 21.62%.
The Revenue has been growing by 9.30% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 15.01% on average over the next years. This is quite good.
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 2Y18.06%
EPS Next 3Y16.46%
EPS Next 5Y15.01%
Revenue Next Year20.9%
Revenue Next 2Y16.07%
Revenue Next 3Y14.17%
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.
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 31.38.
Compared to the rest of the industry, the Price/Earnings ratio of BSX indicates a somewhat cheap valuation: BSX is cheaper than 73.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, BSX is valued at the same level.
A Price/Forward Earnings ratio of 26.46 indicates a quite expensive valuation of BSX.
BSX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BSX is cheaper than 74.87% of the companies in the same industry.
BSX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.38 | ||
| Fwd PE | 26.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BSX is valued a bit cheaper than 71.66% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BSX is valued a bit cheaper than the industry average as 78.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.9 | ||
| EV/EBITDA | 28.67 |
4.3 Compensation for Growth
BSX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BSX may justify a higher PE ratio.
BSX's earnings are expected to grow with 16.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)3.28
EPS Next 2Y18.06%
EPS Next 3Y16.46%
5. Dividend
5.1 Amount
BSX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.58
+0.83 (+0.9%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.98%
Inst Owner Change0.1%
Ins Owners0.15%
Ins Owner Change-0.38%
Market Cap137.24B
Revenue(TTM)19.35B
Net Income(TTM)2.79B
Analysts86
Price Target128.25 (38.53%)
Short Float %1.43%
Short Ratio2.28
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)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)0.22%
PT rev (3m)1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.28%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.38 | ||
| Fwd PE | 26.46 | ||
| P/S | 7.09 | ||
| P/FCF | 35.9 | ||
| P/OCF | 29.67 | ||
| P/B | 5.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.67 |
EPS(TTM)2.95
EY3.19%
EPS(NY)3.5
Fwd EY3.78%
FCF(TTM)2.58
FCFY2.79%
OCF(TTM)3.12
OCFY3.37%
SpS13.05
BVpS15.78
TBVpS-1.34
PEG (NY)1.42
PEG (5Y)3.28
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 | 5.21 |
F-Score6
WACC8.32%
ROIC/WACC0.97
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 2Y18.06%
EPS Next 3Y16.46%
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 2Y16.07%
Revenue Next 3Y14.17%
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 of BOSTON SCIENTIFIC CORP (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.
Can you provide the financial health for BSX stock?
The financial health rating of BOSTON SCIENTIFIC CORP (BSX) is 4 / 10.
What is the expected EPS growth for BOSTON SCIENTIFIC CORP (BSX) stock?
The Earnings per Share (EPS) of BOSTON SCIENTIFIC CORP (BSX) is expected to grow by 22.13% in the next year.