BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAX - US0718131099 - Common Stock
18.98 USD
+0.02 (+0.11%)
18.98 USD
0 (0%)
Taking everything into account, BAX scores 4 out of 10 in our fundamental rating. BAX was compared to 184 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 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.
In multiple years BAX reported negative net income over the last 5 years.
BAX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BAX's Return On Assets of -1.62% is fine compared to the rest of the industry. BAX outperforms 70.11% of its industry peers.
BAX has a Return On Equity of -4.71%. This is in the better half of the industry: BAX outperforms 70.65% of its industry peers.
BAX has a Return On Invested Capital of 3.04%. This is in the better half of the industry: BAX outperforms 70.65% 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 8.82%.
| 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 worse Gross Margin (35.04%) than 73.37% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
BAX has a worse debt/assets ratio than last year.
2.2 Solvency
BAX has an Altman-Z score of 2.22. This is not the best score and indicates that BAX is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.22, BAX is doing good in the industry, outperforming 61.96% of the companies in the same industry.
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.
Looking at the Debt to Equity ratio, with a value of 1.21, BAX is doing worse than 77.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.69
WACC4.42%
2.3 Liquidity
A Current Ratio of 1.84 indicates that BAX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.84, BAX is not doing good in the industry: 67.39% of the companies in the same industry are doing better.
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.
The Quick ratio of BAX (1.18) is worse than 70.11% of its industry peers.
| 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.
Measured over the past years, BAX shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.21% on average per year.
Looking at the last year, BAX shows a very negative growth in Revenue. The Revenue has decreased by -21.20% in the last year.
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.
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
The Price/Earnings ratio is 7.88, which indicates a rather cheap valuation of BAX.
Based on the Price/Earnings ratio, BAX is valued cheaply inside the industry as 96.20% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BAX to the average of the S&P500 Index (26.61), we can say BAX is valued rather cheaply.
A Price/Forward Earnings ratio of 8.30 indicates a reasonable 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 97.28% 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 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.88 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaply inside the industry as 89.67% of the companies are valued more expensively.
BAX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BAX is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.99 | ||
| EV/EBITDA | 10.38 |
4.3 Compensation for Growth
BAX's earnings are expected to decrease with -2.93% in the coming years. This may justify a cheaper valuation.
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.
BAX's Dividend Yield is rather good when compared to the industry average which is at 0.20. BAX pays more dividend than 90.22% of the companies 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.
The dividend of BAX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-119.65%
EPS Next 2Y-8.13%
EPS Next 3Y-2.93%
18.98
+0.02 (+0.11%)
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 Cap9.76B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price Target25.16 (32.56%)
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 | 7.88 | ||
| Fwd PE | 8.3 | ||
| P/S | 0.89 | ||
| P/FCF | 39.99 | ||
| P/OCF | 13.03 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.38 |
EPS(TTM)2.41
EY12.7%
EPS(NY)2.29
Fwd EY12.05%
FCF(TTM)0.47
FCFY2.5%
OCF(TTM)1.46
OCFY7.68%
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
WACC4.42%
ROIC/WACC0.69
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 7.88 and the Price/Book (PB) ratio is 1.35.
What is the financial health of BAXTER INTERNATIONAL INC (BAX) stock?
The financial health rating of BAXTER INTERNATIONAL INC (BAX) is 3 / 10.