BAXTER INTERNATIONAL INC (BAX)
US0718131099 - Common Stock
Overall BAX gets a fundamental rating of 5 out of 10. We evaluated BAX against 188 industry peers in the Health Care Equipment & Supplies industry. BAX has an average financial health and profitability rating. BAX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
BAX had positive earnings in the past year.
BAX had a positive operating cash flow in the past year.
Of the past 5 years BAX 4 years were profitable.
BAX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.40%, BAX is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
BAX has a Return On Equity of 1.37%. This is in the better half of the industry: BAX outperforms 72.19% of its industry peers.
BAX has a better Return On Invested Capital (4.83%) than 77.54% of its industry peers.
BAX had an Average Return On Invested Capital over the past 3 years of 4.64%. This is below the industry average of 8.23%.
The 3 year average ROIC (4.64%) for BAX is below the current ROIC(4.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 1.37% | ||
| ROIC | 4.83% |
ROA(3y)1.54%
ROA(5y)3.13%
ROE(3y)1.35%
ROE(5y)5.89%
ROIC(3y)4.64%
ROIC(5y)6.46%
1.3 Margins
The Profit Margin of BAX (0.77%) is better than 70.59% of its industry peers.
In the last couple of years the Profit Margin of BAX has grown nicely.
Looking at the Operating Margin, with a value of 8.94%, BAX is in the better half of the industry, outperforming 77.54% of the companies in the same industry.
In the last couple of years the Operating Margin of BAX has declined.
The Gross Margin of BAX (38.34%) is worse than 68.98% of its industry peers.
BAX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.94% | ||
| PM (TTM) | 0.77% | ||
| GM | 38.34% |
OM growth 3Y-17.93%
OM growth 5Y-12.41%
PM growth 3Y23.84%
PM growth 5Y5.18%
GM growth 3Y-3.31%
GM growth 5Y-3.63%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BAX is destroying value.
BAX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BAX has been reduced compared to 5 years ago.
BAX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.15 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BAX has a Altman-Z score of 2.15. This is in the better half of the industry: BAX outperforms 60.43% of its industry peers.
The Debt to FCF ratio of BAX is 23.18, which is on the high side as it means it would take BAX, 23.18 years of fcf income to pay off all of its debts.
BAX's Debt to FCF ratio of 23.18 is fine compared to the rest of the industry. BAX outperforms 70.05% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that BAX has dependencies on debt financing.
The Debt to Equity ratio of BAX (1.33) is worse than 81.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 23.18 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.64
WACC7.52%
2.3 Liquidity
A Current Ratio of 1.43 indicates that BAX should not have too much problems paying its short term obligations.
BAX has a Current ratio of 1.43. This is amonst the worse of the industry: BAX underperforms 80.21% of its industry peers.
A Quick Ratio of 1.09 indicates that BAX should not have too much problems paying its short term obligations.
BAX's Quick ratio of 1.09 is on the low side compared to the rest of the industry. BAX is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.48% over the past year.
Measured over the past years, BAX shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.41% on average per year.
The Revenue has decreased by -4.67% in the past year.
The Revenue has been growing slightly by 5.94% on average over the past years.
EPS 1Y (TTM)11.48%
EPS 3Y-4.4%
EPS 5Y-2.41%
EPS Q2Q%17.65%
Revenue 1Y (TTM)-4.67%
Revenue growth 3Y8.26%
Revenue growth 5Y5.94%
Sales Q2Q%-27.21%
3.2 Future
The Earnings Per Share is expected to grow by 15.52% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.72% on average over the next years.
EPS Next Y10.32%
EPS Next 2Y8.69%
EPS Next 3Y8.76%
EPS Next 5Y15.52%
Revenue Next Year3.28%
Revenue Next 2Y3.37%
Revenue Next 3Y3.45%
Revenue Next 5Y4.72%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.96, the valuation of BAX can be described as very reasonable.
96.26% of the companies in the same industry are more expensive than BAX, based on the Price/Earnings ratio.
BAX is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.34, the valuation of BAX can be described as very reasonable.
97.33% of the companies in the same industry are more expensive than BAX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.82. BAX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
BAX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BAX is cheaper than 90.37% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BAX is valued cheaper than 84.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.16 | ||
| EV/EBITDA | 12.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BAX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.06
PEG (5Y)N/A
EPS Next 2Y8.69%
EPS Next 3Y8.76%
5. Dividend
5.1 Amount
BAX has a Yearly Dividend Yield of 2.15%. Purely for dividend investing, there may be better candidates out there.
BAX's Dividend Yield is rather good when compared to the industry average which is at 1.68. BAX pays more dividend than 97.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, BAX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
On average, the dividend of BAX grows each year by 10.18%, which is quite nice.
BAX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
546.30% of the earnings are spent on dividend by BAX. This is not a sustainable payout ratio.
The dividend of BAX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP546.3%
EPS Next 2Y8.69%
EPS Next 3Y8.76%
BAXTER INTERNATIONAL INC
NYSE:BAX (11/21/2024, 8:14:09 PM)
After market: 32.99 0 (0%)32.99
+0.36 (+1.1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 10.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 1.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.94% | ||
| PM (TTM) | 0.77% | ||
| GM | 38.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.48%
EPS 3Y-4.4%
EPS 5Y
EPS Q2Q%
EPS Next Y10.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.67%
Revenue growth 3Y8.26%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y