BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
NYSE:BSX - New York Stock Exchange, Inc. - US1011371077 - Common Stock - Currency: USD
Overall BSX gets a fundamental rating of 6 out of 10. We evaluated BSX against 187 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! 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.
BSX had a positive operating cash flow in the past year.
BSX had positive earnings in 4 of the past 5 years.
BSX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.06%, BSX belongs to the best of the industry, outperforming 82.89% of the companies in the same industry.
With an excellent Return On Equity value of 9.15%, BSX belongs to the best of the industry, outperforming 82.89% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.60%, BSX belongs to the top of the industry, outperforming 84.49% 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 8.14%.
The 3 year average ROIC (6.54%) for BSX is below the current ROIC(7.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 9.15% | ||
| ROIC | 7.6% |
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 87.17% of its industry peers.
In the last couple of years the Profit Margin of BSX has declined.
With an excellent Operating Margin value of 18.85%, BSX belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
BSX's Operating Margin has been stable in the last couple of years.
BSX's Gross Margin of 68.73% is fine compared to the rest of the industry. BSX outperforms 75.94% 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 | 18.85% | ||
| PM (TTM) | 11.58% | ||
| GM | 68.73% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BSX 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.
BSX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.11 indicates that BSX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.11, BSX belongs to the top of the industry, outperforming 83.96% of the companies in the same industry.
The Debt to FCF ratio of BSX is 3.75, which is a good value as it means it would take BSX, 3.75 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.75, BSX belongs to the best of the industry, outperforming 86.10% of the companies in the same industry.
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 (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 | 6.11 |
ROIC/WACC0.9
WACC8.46%
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.
Looking at the Current ratio, with a value of 1.45, BSX is doing worse than 77.54% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.88, BSX is doing worse than 82.89% of the companies in the same industry.
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 26.91% 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 very strong growth in Revenue. The Revenue has grown by 21.45%.
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)26.91%
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
BSX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.43% yearly.
Based on estimates for the next years, BSX will show a quite strong growth in Revenue. The Revenue will grow by 10.66% on average per year.
EPS Next Y17.44%
EPS Next 2Y15.26%
EPS Next 3Y14.33%
EPS Next 5Y12.43%
Revenue Next Year19.33%
Revenue Next 2Y15.03%
Revenue Next 3Y13.34%
Revenue Next 5Y10.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 37.25, the valuation of BSX can be described as expensive.
BSX's Price/Earnings ratio is a bit cheaper when compared to the industry. BSX is cheaper than 70.59% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. BSX is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 31.61 indicates a quite expensive valuation of BSX.
Based on the Price/Forward Earnings ratio, BSX is valued a bit cheaper than 71.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. BSX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.25 | ||
| Fwd PE | 31.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BSX is valued a bit cheaper than 67.91% of the companies in the same industry.
BSX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BSX is cheaper than 73.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.74 | ||
| EV/EBITDA | 36.22 |
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 14.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.14
PEG (5Y)3.9
EPS Next 2Y15.26%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
BSX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
105.41
+0.49 (+0.47%)
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 Change0.54%
Ins Owners0.15%
Ins Owner Change-1.03%
Market Cap155.95B
Analysts84.62
Price Target121.08 (14.87%)
Short Float %1.33%
Short Ratio2.51
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%
PT rev (3m)2.03%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)0.02%
EPS NY rev (3m)2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)1.68%
Revenue NY rev (3m)3.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.25 | ||
| Fwd PE | 31.61 | ||
| P/S | 8.88 | ||
| P/FCF | 51.74 | ||
| P/OCF | 40.91 | ||
| P/B | 7.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.22 |
EPS(TTM)2.83
EY2.68%
EPS(NY)3.33
Fwd EY3.16%
FCF(TTM)2.04
FCFY1.93%
OCF(TTM)2.58
OCFY2.44%
SpS11.86
BVpS15.01
TBVpS-1.14
PEG (NY)2.14
PEG (5Y)3.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 9.15% | ||
| ROCE | 9.43% | ||
| ROIC | 7.6% | ||
| ROICexc | 7.76% | ||
| ROICexgc | 25.5% | ||
| OM | 18.85% | ||
| PM (TTM) | 11.58% | ||
| GM | 68.73% | ||
| 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 | 2.29 | ||
| Cap/Depr | 61.86% | ||
| Cap/Sales | 4.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.91% | ||
| Profit Quality | 148.33% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 6.11 |
F-Score5
WACC8.46%
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 Y17.44%
EPS Next 2Y15.26%
EPS Next 3Y14.33%
EPS Next 5Y12.43%
Revenue 1Y (TTM)21.45%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%22.84%
Revenue Next Year19.33%
Revenue Next 2Y15.03%
Revenue Next 3Y13.34%
Revenue Next 5Y10.66%
EBIT growth 1Y30.65%
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%