BAXTER INTERNATIONAL INC (1BAX.MI) Stock Fundamental Analysis
Europe - BIT:1BAX - US0718131099 - Common Stock
30.905 EUR
+0.18 (+0.57%)
We assign a fundamental rating of 3 out of 10 to 1BAX. 1BAX was compared to 59 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and financial health of 1BAX have multiple concerns. 1BAX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1BAX had positive earnings in the past year.
In the past year 1BAX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1BAX reported negative net income in multiple years.
Each year in the past 5 years 1BAX had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -2.52%, 1BAX perfoms like the industry average, outperforming 40.35% of the companies in the same industry.
1BAX has a Return On Equity of -9.32%. This is comparable to the rest of the industry: 1BAX outperforms 40.35% of its industry peers.
1BAX's Return On Invested Capital of 3.45% is in line compared to the rest of the industry. 1BAX outperforms 49.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1BAX is significantly below the industry average of 8.90%.
The 3 year average ROIC (3.20%) for 1BAX is below the current ROIC(3.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.52% | ||
| ROE | -9.32% | ||
| ROIC | 3.45% |
ROA(3y)-0.58%
ROA(5y)1.52%
ROE(3y)-6.47%
ROE(5y)1.48%
ROIC(3y)3.2%
ROIC(5y)4.54%
1.3 Margins
The Operating Margin of 1BAX (7.67%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of 1BAX has declined.
Looking at the Gross Margin, with a value of 38.01%, 1BAX is doing worse than 71.93% of the companies in the same industry.
In the last couple of years the Gross Margin of 1BAX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.67% | ||
| PM (TTM) | N/A | ||
| GM | 38.01% |
OM growth 3Y-25.59%
OM growth 5Y-17.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y-2.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1BAX is destroying value.
Compared to 1 year ago, 1BAX has more shares outstanding
Compared to 5 years ago, 1BAX has more shares outstanding
The debt/assets ratio for 1BAX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.10 indicates that 1BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
1BAX has a Altman-Z score (2.10) which is in line with its industry peers.
The Debt to FCF ratio of 1BAX is 22.91, which is on the high side as it means it would take 1BAX, 22.91 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 22.91, 1BAX perfoms like the industry average, outperforming 50.88% of the companies in the same industry.
A Debt/Equity ratio of 1.79 is on the high side and indicates that 1BAX has dependencies on debt financing.
1BAX has a worse Debt to Equity ratio (1.79) than 82.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 22.91 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.53
WACC6.49%
2.3 Liquidity
1BAX has a Current Ratio of 1.36. This is a normal value and indicates that 1BAX is financially healthy and should not expect problems in meeting its short term obligations.
1BAX has a Current ratio (1.36) which is comparable to the rest of the industry.
A Quick Ratio of 1.05 indicates that 1BAX should not have too much problems paying its short term obligations.
1BAX's Quick ratio of 1.05 is in line compared to the rest of the industry. 1BAX outperforms 50.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.37% over the past year.
Measured over the past years, 1BAX shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.21% on average per year.
Looking at the last year, 1BAX shows a very negative growth in Revenue. The Revenue has decreased by -13.21% in the last year.
The Revenue has been decreasing by -1.31% on average over the past years.
EPS 1Y (TTM)0.37%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-34.09%
Revenue 1Y (TTM)-13.21%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-29.14%
3.2 Future
The Earnings Per Share is expected to grow by 6.87% on average over the next years.
Based on estimates for the next years, 1BAX will show a small growth in Revenue. The Revenue will grow by 5.61% on average per year.
EPS Next Y-7.17%
EPS Next 2Y0.96%
EPS Next 3Y3.75%
EPS Next 5Y6.87%
Revenue Next Year6.13%
Revenue Next 2Y5.12%
Revenue Next 3Y4.71%
Revenue Next 5Y5.61%
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
1BAX is valuated correctly with a Price/Earnings ratio of 12.61.
Compared to the rest of the industry, the Price/Earnings ratio of 1BAX indicates a rather cheap valuation: 1BAX is cheaper than 89.47% of the companies listed in the same industry.
1BAX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 13.58, the valuation of 1BAX can be described as correct.
Based on the Price/Forward Earnings ratio, 1BAX is valued a bit cheaper than 75.44% of the companies in the same industry.
1BAX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 13.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1BAX is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
73.68% of the companies in the same industry are more expensive than 1BAX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.59 | ||
| EV/EBITDA | 13.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.96%
EPS Next 3Y3.75%
5. Dividend
5.1 Amount
1BAX has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
1BAX's Dividend Yield is rather good when compared to the industry average which is at 2.30. 1BAX pays more dividend than 80.70% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 1BAX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of 1BAX is nicely growing with an annual growth rate of 6.89%!
Dividend Growth(5Y)6.89%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
The earnings of 1BAX are negative and hence is the payout ratio. 1BAX will probably not be able to sustain this dividend level.
The dividend of 1BAX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-90.91%
EPS Next 2Y0.96%
EPS Next 3Y3.75%
BIT:1BAX (3/26/2025, 7:00:00 PM)
30.905
+0.18 (+0.57%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.07%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap15.85B
Analysts68.18
Price Target35.44 (14.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend1.05
Dividend Growth(5Y)6.89%
DP-90.91%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.32%
Min EPS beat(2)1.94%
Max EPS beat(2)10.69%
EPS beat(4)4
Avg EPS beat(4)5.06%
Min EPS beat(4)1.64%
Max EPS beat(4)10.69%
EPS beat(8)7
Avg EPS beat(8)3.73%
EPS beat(12)8
Avg EPS beat(12)2.99%
EPS beat(16)12
Avg EPS beat(16)4.13%
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)1.93%
Revenue beat(4)3
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)1.93%
Revenue beat(8)4
Avg Revenue beat(8)-0.57%
Revenue beat(12)4
Avg Revenue beat(12)-1.99%
Revenue beat(16)5
Avg Revenue beat(16)-2.54%
PT rev (1m)-3.81%
PT rev (3m)-3.81%
EPS NQ rev (1m)-31.48%
EPS NQ rev (3m)-31.48%
EPS NY rev (1m)-22.05%
EPS NY rev (3m)-22.05%
Revenue NQ rev (1m)-30.35%
Revenue NQ rev (3m)-30.35%
Revenue NY rev (1m)-28.82%
Revenue NY rev (3m)-28.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 13.58 | ||
| P/S | 1.36 | ||
| P/FCF | 30.59 | ||
| P/OCF | 17.2 | ||
| P/B | 2.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.5 |
EPS(TTM)2.45
EY7.93%
EPS(NY)2.28
Fwd EY7.36%
FCF(TTM)1.01
FCFY3.27%
OCF(TTM)1.8
OCFY5.81%
SpS22.67
BVpS12.28
TBVpS-6.23
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.52% | ||
| ROE | -9.32% | ||
| ROCE | 5.12% | ||
| ROIC | 3.45% | ||
| ROICexc | 3.76% | ||
| ROICexgc | 8.07% | ||
| OM | 7.67% | ||
| PM (TTM) | N/A | ||
| GM | 38.01% | ||
| FCFM | 4.46% |
ROA(3y)-0.58%
ROA(5y)1.52%
ROE(3y)-6.47%
ROE(5y)1.48%
ROIC(3y)3.2%
ROIC(5y)4.54%
ROICexc(3y)3.57%
ROICexc(5y)5.33%
ROICexgc(3y)9.57%
ROICexgc(5y)12.38%
ROCE(3y)4.43%
ROCE(5y)6.16%
ROICexcg growth 3Y-30.34%
ROICexcg growth 5Y-21.96%
ROICexc growth 3Y-22.52%
ROICexc growth 5Y-26.32%
OM growth 3Y-25.59%
OM growth 5Y-17.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y-2.16%
F-Score3
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 22.91 | ||
| Debt/EBITDA | 6.3 | ||
| Cap/Depr | 44.73% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 4.42 | ||
| Cash Conversion | 51.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.1 |
F-Score3
WACC6.49%
ROIC/WACC0.53
Cap/Depr(3y)49.31%
Cap/Depr(5y)63.51%
Cap/Sales(3y)5.12%
Cap/Sales(5y)5.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.37%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-34.09%
EPS Next Y-7.17%
EPS Next 2Y0.96%
EPS Next 3Y3.75%
EPS Next 5Y6.87%
Revenue 1Y (TTM)-13.21%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-29.14%
Revenue Next Year6.13%
Revenue Next 2Y5.12%
Revenue Next 3Y4.71%
Revenue Next 5Y5.61%
EBIT growth 1Y-21.12%
EBIT growth 3Y-30.01%
EBIT growth 5Y-18.5%
EBIT Next Year69.69%
EBIT Next 3Y22.35%
EBIT Next 5Y25.92%
FCF growth 1Y-44.58%
FCF growth 3Y-27.1%
FCF growth 5Y-16.46%
OCF growth 1Y-40.96%
OCF growth 3Y-22.88%
OCF growth 5Y-13.5%