BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAX - US0718131099 - Common Stock
19.08 USD
+0.34 (+1.81%)
19.12 USD
+0.04 (+0.21%)
We assign a fundamental rating of 4 out of 10 to BAX. BAX was compared to 188 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BAX was profitable.
In the past year BAX had a positive cash flow from operations.
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
BAX's Return On Assets of -1.62% is fine compared to the rest of the industry. BAX outperforms 70.74% of its industry peers.
With a decent Return On Equity value of -4.71%, BAX is doing good in the industry, outperforming 71.28% of the companies in the same industry.
BAX's Return On Invested Capital of 3.04% is fine compared to the rest of the industry. BAX outperforms 71.28% 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 8.72%.
| 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
BAX has a Operating Margin of 6.37%. This is in the better half of the industry: BAX outperforms 71.81% of its industry peers.
BAX's Operating Margin has declined in the last couple of years.
The Gross Margin of BAX (35.04%) is worse than 72.87% 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
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.
The number of shares outstanding for BAX has been increased compared to 5 years ago.
Compared to 1 year ago, BAX has a worse debt to assets ratio.
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's Altman-Z score of 2.22 is fine compared to the rest of the industry. BAX outperforms 62.77% 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.
With a decent Debt to FCF ratio value of 38.94, BAX is doing good in the industry, outperforming 67.55% of the companies in the same industry.
BAX has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
BAX has a worse Debt to Equity ratio (1.21) than 76.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.67
WACC4.5%
2.3 Liquidity
A Current Ratio of 1.84 indicates that BAX should not have too much problems paying its short term obligations.
BAX has a Current ratio of 1.84. This is in the lower half of the industry: BAX underperforms 67.55% 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.
With a Quick ratio value of 1.18, BAX is not doing good in the industry: 69.15% of the companies in the same industry are doing better.
| 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.
BAX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.21% yearly.
BAX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.20%.
BAX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.31% yearly.
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
The Earnings Per Share is expected to grow by 1.85% on average over the next years.
BAX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.77% yearly.
EPS Next Y-11.26%
EPS Next 2Y-6.32%
EPS Next 3Y-1.72%
EPS Next 5Y1.85%
Revenue Next Year5.45%
Revenue Next 2Y3.97%
Revenue Next 3Y3.61%
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
BAX is valuated cheaply with a Price/Earnings ratio of 7.92.
Based on the Price/Earnings ratio, BAX is valued cheaper than 96.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of BAX to the average of the S&P500 Index (26.11), we can say BAX is valued rather cheaply.
BAX is valuated reasonably with a Price/Forward Earnings ratio of 8.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 97.34% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BAX to the average of the S&P500 Index (36.21), we can say BAX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.92 | ||
| Fwd PE | 8.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 89.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BAX is valued a bit cheaper than the industry average as 76.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.2 | ||
| EV/EBITDA | 10.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.32%
EPS Next 3Y-1.72%
5. Dividend
5.1 Amount
BAX has a yearly dividend return of 0.21%, which is pretty low.
The stock price of BAX dropped by -21.87% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.71, BAX pays a better dividend. On top of this BAX pays more dividend than 90.96% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
5.2 History
The dividend of BAX is nicely growing with an annual growth rate of 6.89%!
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-6.32%
EPS Next 3Y-1.72%
19.08
+0.34 (+1.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.22%
Inst Owner Change8.04%
Ins Owners0.33%
Ins Owner Change9.49%
Market Cap9.81B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price Target25.43 (33.28%)
Short Float %4.97%
Short Ratio3.53
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)-13.19%
PT rev (3m)-15.17%
EPS NQ rev (1m)-23.55%
EPS NQ rev (3m)-23.36%
EPS NY rev (1m)-2.55%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)-6.03%
Revenue NQ rev (3m)-5.91%
Revenue NY rev (1m)-1.57%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.92 | ||
| Fwd PE | 8.02 | ||
| P/S | 0.89 | ||
| P/FCF | 40.2 | ||
| P/OCF | 13.1 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.31 |
EPS(TTM)2.41
EY12.63%
EPS(NY)2.38
Fwd EY12.46%
FCF(TTM)0.47
FCFY2.49%
OCF(TTM)1.46
OCFY7.64%
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
WACC4.5%
ROIC/WACC0.67
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-11.26%
EPS Next 2Y-6.32%
EPS Next 3Y-1.72%
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 Year5.45%
Revenue Next 2Y3.97%
Revenue Next 3Y3.61%
Revenue Next 5Y2.77%
EBIT growth 1Y-43.88%
EBIT growth 3Y-23.92%
EBIT growth 5Y-14.31%
EBIT Next Year68.12%
EBIT Next 3Y22.59%
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 7.92 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.