BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BAX • US0718131099
21.73 USD
-0.04 (-0.18%)
At close: Feb 6, 2026
21.7 USD
-0.03 (-0.14%)
Pre-Market: 2/9/2026, 5:50:15 AM
Taking everything into account, BAX scores 4 out of 10 in our fundamental rating. BAX was compared to 186 industry peers in the Health Care Equipment & Supplies industry. While BAX is still in line with the averages on profitability rating, there are concerns on its financial health. 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
- BAX had positive earnings in the past year.
- BAX had a positive operating cash flow in the past year.
- In multiple years BAX reported negative net income over the last 5 years.
- In the past 5 years BAX always reported a positive cash flow from operatings.
1.2 Ratios
- BAX has a Return On Assets of -1.62%. This is in the better half of the industry: BAX outperforms 70.97% of its industry peers.
- With a decent Return On Equity value of -4.71%, BAX is doing good in the industry, outperforming 71.51% 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 70.97% of the companies in the same industry.
- BAX had an Average Return On Invested Capital over the past 3 years of 3.50%. This is significantly below the industry average of 8.80%.
| 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 better Operating Margin (6.37%) than 72.04% of its industry peers.
- In the last couple of years the Operating Margin of BAX has declined.
- With a Gross Margin value of 35.04%, BAX is not doing good in the industry: 73.12% of the companies in the same industry are doing better.
- 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.
- Compared to 1 year ago, BAX has more shares outstanding
- Compared to 5 years ago, BAX has more shares outstanding
- Compared to 1 year ago, BAX has a worse debt to assets ratio.
2.2 Solvency
- BAX has an Altman-Z score of 2.28. 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.
- BAX has a better Altman-Z score (2.28) than 66.67% 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.
- With a decent Debt to FCF ratio value of 38.94, BAX is doing good in the industry, outperforming 67.74% 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's Debt to Equity ratio of 1.21 is on the low side compared to the rest of the industry. BAX is outperformed by 76.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.41
WACC7.39%
2.3 Liquidity
- A Current Ratio of 1.84 indicates that BAX should not have too much problems paying its short term obligations.
- The Current ratio of BAX (1.84) is worse than 65.05% of its industry peers.
- A Quick Ratio of 1.18 indicates that BAX should not have too much problems paying its short term obligations.
- BAX's Quick ratio of 1.18 is on the low side compared to the rest of the industry. BAX is outperformed by 67.74% 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.
- 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%.
- 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
- 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-11.87%
EPS Next 2Y-8.48%
EPS Next 3Y-3.29%
EPS Next 5Y1.85%
Revenue Next Year4.95%
Revenue Next 2Y3.46%
Revenue Next 3Y3.3%
Revenue Next 5Y2.77%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- BAX is valuated reasonably with a Price/Earnings ratio of 9.02.
- Based on the Price/Earnings ratio, BAX is valued cheaper than 95.70% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.93, BAX is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.57 indicates a reasonable valuation of BAX.
- 95.70% of the companies in the same industry are more expensive than BAX, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of BAX to the average of the S&P500 Index (27.77), we can say BAX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
- BAX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BAX is cheaper than 88.71% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BAX is valued a bit cheaper than the industry average as 73.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.78 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
- BAX's earnings are expected to decrease with -3.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.48%
EPS Next 3Y-3.29%
5. Dividend
5.1 Amount
- BAX has a yearly dividend return of 0.18%, 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 90.32% of the companies in the same industry.
- With a Dividend Yield of 0.18, BAX pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
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
- The earnings of BAX are negative and hence is the payout ratio. BAX will probably not be able to sustain this dividend level.
- 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-8.48%
EPS Next 3Y-3.29%
21.73
-0.04 (-0.18%)
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)02-12 2026-02-12/bmo
Inst Owners102.74%
Inst Owner Change3.42%
Ins Owners0.28%
Ins Owner Change10.02%
Market Cap11.17B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price Target23.61 (8.65%)
Short Float %6.6%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
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)-3.84%
PT rev (3m)-18.18%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.57 | ||
| P/S | 1.01 | ||
| P/FCF | 45.78 | ||
| P/OCF | 14.91 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.22 |
EPS(TTM)2.41
EY11.09%
EPS(NY)2.27
Fwd EY10.44%
FCF(TTM)0.47
FCFY2.18%
OCF(TTM)1.46
OCFY6.71%
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 | 2.28 |
F-Score3
WACC7.39%
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-11.87%
EPS Next 2Y-8.48%
EPS Next 3Y-3.29%
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 Year4.95%
Revenue Next 2Y3.46%
Revenue Next 3Y3.3%
Revenue Next 5Y2.77%
EBIT growth 1Y-43.88%
EBIT growth 3Y-23.92%
EBIT growth 5Y-14.31%
EBIT Next Year53.79%
EBIT Next 3Y17.7%
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 -11.87% 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%.