BAXTER INTERNATIONAL INC (1BAX.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1BAX • US0718131099
30.905 EUR
+0.18 (+0.57%)
Last: Mar 26, 2025, 07:00 PM
1BAX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 68 industry peers in the Health Care Equipment & Supplies industry. 1BAX may be in some trouble as it scores bad on both profitability and health. 1BAX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year 1BAX was profitable.
- 1BAX had a positive operating cash flow in the past year.
- 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
- 1BAX has a Return On Assets (-2.52%) which is in line with its industry peers.
- 1BAX has a Return On Equity (-9.32%) which is in line with 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.
- Measured over the past 3 years, the Average Return On Invested Capital for 1BAX is significantly below the industry average of 9.62%.
- 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
- 1BAX's Operating Margin of 7.67% is in line compared to the rest of the industry. 1BAX outperforms 56.14% of its industry peers.
- In the last couple of years the Operating Margin of 1BAX has declined.
- 1BAX has a Gross Margin of 38.01%. This is in the lower half of the industry: 1BAX underperforms 71.93% of its industry peers.
- 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
- 1BAX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- 1BAX has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1BAX has been increased compared to 5 years ago.
- The debt/assets ratio for 1BAX is higher compared to a year ago.
2.2 Solvency
- 1BAX has an Altman-Z score of 2.10. 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.
- The Altman-Z score of 1BAX (2.10) is comparable to the rest of the industry.
- 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.
- 1BAX has a Debt to FCF ratio of 22.91. This is comparable to the rest of the industry: 1BAX outperforms 50.88% of its industry peers.
- A Debt/Equity ratio of 1.79 is on the high side and indicates that 1BAX has dependencies on debt financing.
- 1BAX's Debt to Equity ratio of 1.79 is on the low side compared to the rest of the industry. 1BAX is outperformed by 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 in line with its industry peers.
- A Quick Ratio of 1.05 indicates that 1BAX should not have too much problems paying its short term obligations.
- 1BAX has a Quick ratio (1.05) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- 1BAX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.37%.
- The Earnings Per Share has been decreasing by -4.21% on average over the past years.
- 1BAX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.21%.
- 1BAX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.31% yearly.
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
- 1BAX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.87% yearly.
- The Revenue is expected to grow by 5.61% on average over the next years.
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.
- 1BAX's Price/Earnings ratio is rather cheap when compared to the industry. 1BAX is cheaper than 89.47% of the companies in the same industry.
- 1BAX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
- Based on the Price/Forward Earnings ratio of 13.58, the valuation of 1BAX can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1BAX indicates a somewhat cheap valuation: 1BAX is cheaper than 75.44% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, 1BAX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 13.58 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1BAX indicates a somewhat cheap valuation: 1BAX is cheaper than 78.95% of the companies listed in the same industry.
- 1BAX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1BAX is cheaper than 73.68% of the companies in the same industry.
| 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.
- Compared to an average industry Dividend Yield of 1.03, 1BAX pays a better dividend. On top of this 1BAX pays more dividend than 80.70% of the companies listed in the same industry.
- 1BAX's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
- On average, the dividend of 1BAX grows each year by 6.89%, which is quite nice.
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.
- 1BAX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-90.91%
EPS Next 2Y0.96%
EPS Next 3Y3.75%
BAXTER INTERNATIONAL INC / 1BAX.MI FAQ
What is the ChartMill fundamental rating of BAXTER INTERNATIONAL INC (1BAX.MI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1BAX.MI.
Can you provide the valuation status for BAXTER INTERNATIONAL INC?
ChartMill assigns a valuation rating of 5 / 10 to BAXTER INTERNATIONAL INC (1BAX.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for BAXTER INTERNATIONAL INC?
BAXTER INTERNATIONAL INC (1BAX.MI) has a profitability rating of 3 / 10.
What is the valuation of BAXTER INTERNATIONAL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BAXTER INTERNATIONAL INC (1BAX.MI) is 12.61 and the Price/Book (PB) ratio is 2.52.
Can you provide the dividend sustainability for 1BAX stock?
The dividend rating of BAXTER INTERNATIONAL INC (1BAX.MI) is 4 / 10 and the dividend payout ratio is -90.91%.