BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAX - US0718131099 - Common Stock
19.11 USD
+0.18 (+0.95%)
19.11 USD
0 (0%)
BAX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 185 industry peers in the Health Care Equipment & Supplies industry. BAX has a medium profitability rating, but doesn't score so well on its financial health evaluation. BAX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BAX was profitable.
BAX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BAX reported negative net income in multiple years.
Each year in the past 5 years BAX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of -1.62%, BAX is doing good in the industry, outperforming 70.11% of the companies in the same industry.
With a decent Return On Equity value of -4.71%, BAX is doing good in the industry, outperforming 70.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.04%, BAX is in the better half of the industry, outperforming 70.65% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BAX is significantly below the industry average of 8.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.62% | ||
| ROE | -4.71% | ||
| ROIC | 3.04% |
ROA(3y)-0.58%
ROA(5y)1.52%
ROE(3y)-6.47%
ROE(5y)1.48%
ROIC(3y)3.5%
ROIC(5y)4.71%
1.3 Margins
With a decent Operating Margin value of 6.37%, BAX is doing good in the industry, outperforming 71.74% of the companies in the same industry.
BAX's Operating Margin has declined in the last couple of years.
BAX has a Gross Margin of 35.04%. This is in the lower half of the industry: BAX underperforms 73.37% of its industry peers.
BAX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.37% | ||
| PM (TTM) | N/A | ||
| GM | 35.04% |
OM growth 3Y-19.11%
OM growth 5Y-13.17%
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 BAX is destroying value.
The number of shares outstanding for BAX has been increased compared to 1 year ago.
Compared to 5 years ago, BAX has more shares outstanding
The debt/assets ratio for BAX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.22 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BAX has a better Altman-Z score (2.22) than 61.96% of its industry peers.
The Debt to FCF ratio of BAX is 38.94, which is on the high side as it means it would take BAX, 38.94 years of fcf income to pay off all of its debts.
BAX has a better Debt to FCF ratio (38.94) than 67.93% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that BAX has dependencies on debt financing.
With a Debt to Equity ratio value of 1.21, BAX is not doing good in the industry: 77.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.68
WACC4.44%
2.3 Liquidity
BAX has a Current Ratio of 1.84. This is a normal value and indicates that BAX is financially healthy and should not expect problems in meeting its short term obligations.
BAX has a Current ratio of 1.84. This is in the lower half of the industry: BAX underperforms 67.39% of its industry peers.
BAX has a Quick Ratio of 1.18. This is a normal value and indicates that BAX is financially healthy and should not expect problems in meeting its short term obligations.
BAX has a worse Quick ratio (1.18) than 70.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
BAX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.93%.
The Earnings Per Share has been decreasing by -4.21% on average over the past years.
The Revenue for BAX has decreased by -21.20% in the past year. This is quite bad
Measured over the past years, BAX shows a decrease in Revenue. The Revenue has been decreasing by -1.31% on average per year.
EPS 1Y (TTM)-19.93%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-13.75%
Revenue 1Y (TTM)-21.2%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.34%
3.2 Future
Based on estimates for the next years, BAX will show a small growth in Earnings Per Share. The EPS will grow by 1.85% on average per year.
Based on estimates for the next years, BAX will show a small growth in Revenue. The Revenue will grow by 2.77% on average per year.
EPS Next Y-11.97%
EPS Next 2Y-8.13%
EPS Next 3Y-2.93%
EPS Next 5Y1.85%
Revenue Next Year4.93%
Revenue Next 2Y3.47%
Revenue Next 3Y3.25%
Revenue Next 5Y2.77%
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
A Price/Earnings ratio of 7.93 indicates a rather cheap valuation of BAX.
BAX's Price/Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 96.20% of the companies in the same industry.
BAX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.59.
A Price/Forward Earnings ratio of 8.35 indicates a reasonable valuation of BAX.
Based on the Price/Forward Earnings ratio, BAX is valued cheaply inside the industry as 97.28% of the companies are valued more expensively.
BAX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
BAX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BAX is cheaper than 90.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BAX is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.26 | ||
| EV/EBITDA | 10.37 |
4.3 Compensation for Growth
A cheap valuation may be justified as BAX's earnings are expected to decrease with -2.93% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.13%
EPS Next 3Y-2.93%
5. Dividend
5.1 Amount
BAX has a yearly dividend return of 0.21%, which is pretty low.
Compared to an average industry Dividend Yield of 0.20, BAX pays a better dividend. On top of this BAX pays more dividend than 90.22% of the companies listed in the same industry.
With a Dividend Yield of 0.21, BAX pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
5.2 History
On average, the dividend of BAX grows each year by 6.89%, which is quite nice.
BAX has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BAX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
BAX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-119.65%
EPS Next 2Y-8.13%
EPS Next 3Y-2.93%
19.11
+0.18 (+0.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.64%
Inst Owner Change8.05%
Ins Owners0.27%
Ins Owner Change10.02%
Market Cap9.82B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price TargetN/A
Short Float %6.48%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
Yearly Dividend1.16
Dividend Growth(5Y)6.89%
DP-119.65%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.96%
Min EPS beat(2)-4.25%
Max EPS beat(2)14.16%
EPS beat(4)3
Avg EPS beat(4)8.34%
Min EPS beat(4)-4.25%
Max EPS beat(4)14.16%
EPS beat(8)7
Avg EPS beat(8)5.47%
EPS beat(12)9
Avg EPS beat(12)3.78%
EPS beat(16)11
Avg EPS beat(16)3.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-1.44%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)-0.06%
Revenue beat(12)6
Avg Revenue beat(12)-0.48%
Revenue beat(16)6
Avg Revenue beat(16)-2.41%
PT rev (1m)-12.79%
PT rev (3m)-16.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.36%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.91%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 8.35 | ||
| P/S | 0.89 | ||
| P/FCF | 40.26 | ||
| P/OCF | 13.12 | ||
| P/B | 1.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.37 |
EPS(TTM)2.41
EY12.61%
EPS(NY)2.29
Fwd EY11.97%
FCF(TTM)0.47
FCFY2.48%
OCF(TTM)1.46
OCFY7.62%
SpS21.44
BVpS14.09
TBVpS-5.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number27.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.62% | ||
| ROE | -4.71% | ||
| ROCE | 4.06% | ||
| ROIC | 3.04% | ||
| ROICexc | 3.37% | ||
| ROICexgc | 9.79% | ||
| OM | 6.37% | ||
| PM (TTM) | N/A | ||
| GM | 35.04% | ||
| FCFM | 2.21% |
ROA(3y)-0.58%
ROA(5y)1.52%
ROE(3y)-6.47%
ROE(5y)1.48%
ROIC(3y)3.5%
ROIC(5y)4.71%
ROICexc(3y)3.9%
ROICexc(5y)5.53%
ROICexgc(3y)10.35%
ROICexgc(5y)12.85%
ROCE(3y)4.85%
ROCE(5y)6.42%
ROICexgc growth 3Y-24.28%
ROICexgc growth 5Y-17.95%
ROICexc growth 3Y-15.78%
ROICexc growth 5Y-22.54%
OM growth 3Y-19.11%
OM growth 5Y-13.17%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y-2.16%
F-Score3
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Debt/EBITDA | 5.18 | ||
| Cap/Depr | 51.22% | ||
| Cap/Sales | 4.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.22 |
F-Score3
WACC4.44%
ROIC/WACC0.68
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)-19.93%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-13.75%
EPS Next Y-11.97%
EPS Next 2Y-8.13%
EPS Next 3Y-2.93%
EPS Next 5Y1.85%
Revenue 1Y (TTM)-21.2%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.34%
Revenue Next Year4.93%
Revenue Next 2Y3.47%
Revenue Next 3Y3.25%
Revenue Next 5Y2.77%
EBIT growth 1Y-43.88%
EBIT growth 3Y-23.92%
EBIT growth 5Y-14.31%
EBIT Next Year53.58%
EBIT Next 3Y17.41%
EBIT Next 5Y17.33%
FCF growth 1Y-73.82%
FCF growth 3Y-27.1%
FCF growth 5Y-16.46%
OCF growth 1Y-54.16%
OCF growth 3Y-22.88%
OCF growth 5Y-13.5%
BAXTER INTERNATIONAL INC / BAX FAQ
What is the fundamental rating for BAX stock?
ChartMill assigns a fundamental rating of 4 / 10 to BAX.
What is the valuation status of BAXTER INTERNATIONAL INC (BAX) stock?
ChartMill assigns a valuation rating of 6 / 10 to BAXTER INTERNATIONAL INC (BAX). This can be considered as Fairly Valued.
What is the profitability of BAX stock?
BAXTER INTERNATIONAL INC (BAX) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for BAX stock?
The Price/Earnings (PE) ratio for BAXTER INTERNATIONAL INC (BAX) is 7.93 and the Price/Book (PB) ratio is 1.36.
What is the financial health of BAXTER INTERNATIONAL INC (BAX) stock?
The financial health rating of BAXTER INTERNATIONAL INC (BAX) is 3 / 10.