BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAX - US0718131099 - Common Stock
20.365 USD
+0.52 (+2.65%)
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. There are concerns on the financial health of BAX while its profitability can be described as average. BAX has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- In the past 5 years BAX always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of -1.62%, BAX is doing good in the industry, outperforming 70.27% of the companies in the same industry.
- BAX has a Return On Equity of -4.71%. This is in the better half of the industry: BAX outperforms 70.81% of its industry peers.
- BAX has a better Return On Invested Capital (3.04%) than 70.81% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BAX is significantly below the industry average of 8.84%.
| 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
- Looking at the Operating Margin, with a value of 6.37%, BAX is in the better half of the industry, outperforming 71.89% of the companies in the same industry.
- In the last couple of years the Operating Margin of BAX has declined.
- BAX's Gross Margin of 35.04% is on the low side compared to the rest of the industry. BAX is outperformed by 72.43% of its industry peers.
- In the last couple of years the Gross Margin of BAX has declined.
| 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
- BAX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- BAX has more shares outstanding than it did 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 2.24 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- BAX's Altman-Z score of 2.24 is fine compared to the rest of the industry. BAX outperforms 64.86% of its industry peers.
- BAX has a debt to FCF ratio of 38.94. This is a negative value and a sign of low solvency as BAX would need 38.94 years to pay back of all of its debts.
- BAX has a Debt to FCF ratio of 38.94. This is in the better half of the industry: BAX outperforms 68.11% of its industry peers.
- BAX has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.21, BAX is not doing good in the industry: 76.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.41
WACC7.43%
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 worse Current ratio (1.84) than 65.95% 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.
- Looking at the Quick ratio, with a value of 1.18, BAX is doing worse than 68.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- The earnings per share for BAX have decreased strongly by -19.93% in the last year.
- 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
- The Revenue has been decreasing by -1.31% on average over the past years.
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-11.91%
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
EPS Next 5Y1.85%
Revenue Next Year4.93%
Revenue Next 2Y3.46%
Revenue Next 3Y3.26%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 8.45 indicates a reasonable valuation of BAX.
- Compared to the rest of the industry, the Price/Earnings ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 95.68% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, BAX is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.93, which indicates a very decent valuation of BAX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 96.22% of the companies listed in the same industry.
- BAX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaper than 89.73% of the companies in the same industry.
- 75.14% of the companies in the same industry are more expensive than BAX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.91 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
- A cheap valuation may be justified as BAX's earnings are expected to decrease with -3.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
5. Dividend
5.1 Amount
- BAX has a yearly dividend return of 0.19%, which is pretty low.
- BAX's Dividend Yield is rather good when compared to the industry average which is at 0.19. BAX pays more dividend than 90.27% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, BAX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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
- The earnings of BAX are negative and hence is the payout ratio. BAX will probably not be able to sustain this dividend level.
- BAX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-119.65%
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
NYSE:BAX (1/15/2026, 9:58:07 AM)
20.365
+0.52 (+2.65%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-18 2026-02-18/amc
Inst Owners102.74%
Inst Owner Change0.91%
Ins Owners0.28%
Ins Owner Change10.02%
Market Cap10.47B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price Target24.55 (20.55%)
Short Float %6.55%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend1.16
Dividend Growth(5Y)6.89%
DP-119.65%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-2.43%
PT rev (3m)-16.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.36%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-3.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 8.93 | ||
| P/S | 0.95 | ||
| P/FCF | 42.91 | ||
| P/OCF | 13.98 | ||
| P/B | 1.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.65 |
EPS(TTM)2.41
EY11.83%
EPS(NY)2.28
Fwd EY11.19%
FCF(TTM)0.47
FCFY2.33%
OCF(TTM)1.46
OCFY7.15%
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 | 2.24 |
F-Score3
WACC7.43%
ROIC/WACC0.41
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-11.91%
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
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 2Y3.46%
Revenue Next 3Y3.26%
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 3Y17.38%
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.
Can you provide the valuation status for BAXTER INTERNATIONAL INC?
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 expected EPS growth for BAX stock?
The Earnings per Share (EPS) of BAXTER INTERNATIONAL INC (BAX) is expected to decline by -11.91% in the next year.
How sustainable is the dividend of BAXTER INTERNATIONAL INC (BAX) stock?
The dividend rating of BAXTER INTERNATIONAL INC (BAX) is 3 / 10 and the dividend payout ratio is -119.65%.