BAXTER INTERNATIONAL INC (1BAX.MI) Stock Fundamental Analysis
BIT:1BAX - Euronext Milan - US0718131099 - Common Stock - Currency: EUR
Overall 1BAX gets a fundamental rating of 5 out of 10. We evaluated 1BAX against 60 industry peers in the Health Care Equipment & Supplies industry. 1BAX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1BAX may be a bit undervalued, certainly considering the very reasonable score on growth 1BAX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1BAX was profitable.
1BAX had a positive operating cash flow in the past year.
1BAX had positive earnings in 4 of the past 5 years.
In the past 5 years 1BAX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1BAX (9.41%) is better than 86.27% of its industry peers.
1BAX has a better Return On Equity (32.40%) than 94.12% of its industry peers.
With a Return On Invested Capital value of 4.61%, 1BAX perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
1BAX had an Average Return On Invested Capital over the past 3 years of 4.40%. This is below the industry average of 7.96%.
The last Return On Invested Capital (4.61%) for 1BAX is above the 3 year average (4.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.41% | ||
| ROE | 32.4% | ||
| ROIC | 4.61% |
ROA(3y)1.54%
ROA(5y)3.13%
ROE(3y)1.35%
ROE(5y)5.89%
ROIC(3y)4.4%
ROIC(5y)6.14%
1.3 Margins
1BAX has a Profit Margin of 16.51%. This is amongst the best in the industry. 1BAX outperforms 86.27% of its industry peers.
In the last couple of years the Profit Margin of 1BAX has grown nicely.
Looking at the Operating Margin, with a value of 8.27%, 1BAX is in line with its industry, outperforming 54.90% of the companies in the same industry.
1BAX's Operating Margin has declined in the last couple of years.
The Gross Margin of 1BAX (36.48%) is worse than 78.43% of its industry peers.
In the last couple of years the Gross Margin of 1BAX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.27% | ||
| PM (TTM) | 16.51% | ||
| GM | 36.48% |
OM growth 3Y-17.93%
OM growth 5Y-12.41%
PM growth 3Y23.84%
PM growth 5Y5.18%
GM growth 3Y-3.31%
GM growth 5Y-3.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1BAX is destroying value.
1BAX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1BAX has less shares outstanding
1BAX has a better debt/assets ratio than last year.
2.2 Solvency
1BAX has an Altman-Z score of 2.32. This is not the best score and indicates that 1BAX is in the grey zone with still only limited risk for bankruptcy at the moment.
1BAX has a Altman-Z score (2.32) which is in line with its industry peers.
The Debt to FCF ratio of 1BAX is 24.91, which is on the high side as it means it would take 1BAX, 24.91 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 24.91, 1BAX perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that 1BAX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.37, 1BAX is doing worse than 86.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 24.91 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.63
WACC7.29%
2.3 Liquidity
1BAX has a Current Ratio of 1.40. This is a normal value and indicates that 1BAX is financially healthy and should not expect problems in meeting its short term obligations.
1BAX's Current ratio of 1.40 is on the low side compared to the rest of the industry. 1BAX is outperformed by 64.71% of its industry peers.
A Quick Ratio of 0.91 indicates that 1BAX may have some problems paying its short term obligations.
1BAX has a Quick ratio of 0.91. This is in the lower half of the industry: 1BAX underperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
1BAX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.76%.
The Earnings Per Share has been decreasing by -2.41% on average over the past years.
The Revenue has been growing slightly by 1.91% in the past year.
1BAX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.94% yearly.
EPS 1Y (TTM)1.76%
EPS 3Y-4.4%
EPS 5Y-2.41%
EPS Q2Q%23.64%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y8.26%
Revenue growth 5Y5.94%
Sales Q2Q%2.83%
3.2 Future
The Earnings Per Share is expected to grow by 15.52% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.72% on average over the next years.
EPS Next Y10.99%
EPS Next 2Y9.33%
EPS Next 3Y9.22%
EPS Next 5Y15.52%
Revenue Next Year3.29%
Revenue Next 2Y3.34%
Revenue Next 3Y3.35%
Revenue Next 5Y4.72%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.70, the valuation of 1BAX can be described as correct.
Based on the Price/Earnings ratio, 1BAX is valued cheaply inside the industry as 92.16% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.35. 1BAX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.37 indicates a reasonable valuation of 1BAX.
Based on the Price/Forward Earnings ratio, 1BAX is valued cheaper than 90.20% of the companies in the same industry.
1BAX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
1BAX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1BAX is cheaper than 84.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1BAX indicates a somewhat cheap valuation: 1BAX is cheaper than 72.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.15 | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
1BAX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1BAX may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)N/A
EPS Next 2Y9.33%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
1BAX has a Yearly Dividend Yield of 3.00%.
1BAX's Dividend Yield is rather good when compared to the industry average which is at 2.26. 1BAX pays more dividend than 90.20% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 1BAX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
On average, the dividend of 1BAX grows each year by 10.18%, which is quite nice.
Dividend Growth(5Y)10.18%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1BAX pays out 23.79% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1BAX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.79%
EPS Next 2Y9.33%
EPS Next 3Y9.22%
BIT:1BAX (3/7/2025, 7:00:00 PM)
32.895
+0.85 (+2.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap16.78B
Analysts66.32
Price Target36.84 (11.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend1.16
Dividend Growth(5Y)10.18%
DP23.79%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.81%
Min EPS beat(2)1.64%
Max EPS beat(2)5.98%
EPS beat(4)4
Avg EPS beat(4)2.32%
Min EPS beat(4)0.82%
Max EPS beat(4)5.98%
EPS beat(8)5
Avg EPS beat(8)1.21%
EPS beat(12)8
Avg EPS beat(12)2.58%
EPS beat(16)12
Avg EPS beat(16)4.43%
Revenue beat(2)2
Avg Revenue beat(2)0.29%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.5%
Revenue beat(4)3
Avg Revenue beat(4)0.31%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)1.28%
Revenue beat(8)4
Avg Revenue beat(8)-1.08%
Revenue beat(12)5
Avg Revenue beat(12)-1.53%
Revenue beat(16)8
Avg Revenue beat(16)-0.73%
PT rev (1m)-10.05%
PT rev (3m)N/A
EPS NQ rev (1m)4.21%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.79%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)1.39%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 11.37 | ||
| P/S | 1.25 | ||
| P/FCF | 36.15 | ||
| P/OCF | 15.95 | ||
| P/B | 2.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.43 |
EPS(TTM)2.59
EY7.87%
EPS(NY)2.89
Fwd EY8.79%
FCF(TTM)0.91
FCFY2.77%
OCF(TTM)2.06
OCFY6.27%
SpS26.34
BVpS13.43
TBVpS-7.2
PEG (NY)1.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.41% | ||
| ROE | 32.4% | ||
| ROCE | 6.14% | ||
| ROIC | 4.61% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 14.66% | ||
| OM | 8.27% | ||
| PM (TTM) | 16.51% | ||
| GM | 36.48% | ||
| FCFM | 3.45% |
ROA(3y)1.54%
ROA(5y)3.13%
ROE(3y)1.35%
ROE(5y)5.89%
ROIC(3y)4.4%
ROIC(5y)6.14%
ROICexc(3y)4.94%
ROICexc(5y)7.45%
ROICexgc(3y)14.37%
ROICexgc(5y)15.84%
ROCE(3y)5.92%
ROCE(5y)8.25%
ROICexcg growth 3Y-1.85%
ROICexcg growth 5Y-5.21%
ROICexc growth 3Y-21.21%
ROICexc growth 5Y-16.34%
OM growth 3Y-17.93%
OM growth 5Y-12.41%
PM growth 3Y23.84%
PM growth 5Y5.18%
GM growth 3Y-3.31%
GM growth 5Y-3.63%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 24.91 | ||
| Debt/EBITDA | 4.18 | ||
| Cap/Depr | 52.15% | ||
| Cap/Sales | 4.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47% | ||
| Profit Quality | 20.92% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.32 |
F-Score6
WACC7.29%
ROIC/WACC0.63
Cap/Depr(3y)62.22%
Cap/Depr(5y)72.21%
Cap/Sales(3y)4.99%
Cap/Sales(5y)5.44%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.76%
EPS 3Y-4.4%
EPS 5Y-2.41%
EPS Q2Q%23.64%
EPS Next Y10.99%
EPS Next 2Y9.33%
EPS Next 3Y9.22%
EPS Next 5Y15.52%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y8.26%
Revenue growth 5Y5.94%
Sales Q2Q%2.83%
Revenue Next Year3.29%
Revenue Next 2Y3.34%
Revenue Next 3Y3.35%
Revenue Next 5Y4.72%
EBIT growth 1Y15.13%
EBIT growth 3Y-11.15%
EBIT growth 5Y-7.21%
EBIT Next Year52.2%
EBIT Next 3Y19.7%
EBIT Next 5Y14.78%
FCF growth 1Y-53.96%
FCF growth 3Y-3.73%
FCF growth 5Y-5.31%
OCF growth 1Y-36.54%
OCF growth 3Y-2.6%
OCF growth 5Y-3.07%