BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
NYSE:BAX - New York Stock Exchange, Inc. - US0718131099 - Common Stock - Currency: USD
Taking everything into account, BAX scores 4 out of 10 in our fundamental rating. BAX was compared to 189 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
In the past year BAX was profitable.
In the past year BAX had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -2.52%, BAX is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
BAX has a better Return On Equity (-9.32%) than 66.67% of its industry peers.
BAX's Return On Invested Capital of 3.45% is fine compared to the rest of the industry. BAX outperforms 73.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BAX is below the industry average of 7.82%.
The last Return On Invested Capital (3.45%) for BAX is above the 3 year average (3.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.52% | ||
| ROE | -9.32% | ||
| ROIC | 3.45% |
ROA(3y)-0.58%
ROA(5y)1.52%
ROE(3y)-6.47%
ROE(5y)1.48%
ROIC(3y)3.2%
ROIC(5y)4.54%
1.3 Margins
BAX has a Operating Margin of 7.67%. This is in the better half of the industry: BAX outperforms 75.66% of its industry peers.
In the last couple of years the Operating Margin of BAX has declined.
BAX's Gross Margin of 38.01% is on the low side compared to the rest of the industry. BAX is outperformed by 70.90% of its industry peers.
In the last couple of years the Gross Margin of BAX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.67% | ||
| PM (TTM) | N/A | ||
| GM | 38.01% |
OM growth 3Y-25.59%
OM growth 5Y-17.42%
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.
BAX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.14 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BAX (2.14) is better than 62.43% of its industry peers.
BAX has a debt to FCF ratio of 22.91. This is a negative value and a sign of low solvency as BAX would need 22.91 years to pay back of all of its debts.
BAX has a better Debt to FCF ratio (22.91) than 69.84% of its industry peers.
A Debt/Equity ratio of 1.79 is on the high side and indicates that BAX has dependencies on debt financing.
BAX has a worse Debt to Equity ratio (1.79) than 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 22.91 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.5
WACC6.9%
2.3 Liquidity
BAX has a Current Ratio of 1.36. 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 Current ratio of 1.36. This is in the lower half of the industry: BAX underperforms 79.89% of its industry peers.
A Quick Ratio of 1.05 indicates that BAX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.05, BAX is doing worse than 75.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
BAX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.37%.
The Earnings Per Share has been decreasing by -4.21% on average over the past years.
The Revenue for BAX has decreased by -13.21% in the past year. This is quite bad
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)0.37%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-34.09%
Revenue 1Y (TTM)-13.21%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-29.14%
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 7.89% on average per year.
Based on estimates for the next years, BAX will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y-8.1%
EPS Next 2Y0.89%
EPS Next 3Y6.78%
EPS Next 5Y7.89%
Revenue Next Year5.86%
Revenue Next 2Y4.99%
Revenue Next 3Y4.66%
Revenue Next 5Y5.31%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.49, BAX is valued correctly.
92.06% 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 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.68, which indicates a correct valuation of BAX.
Based on the Price/Forward Earnings ratio, BAX is valued cheaper than 89.95% of the companies in the same industry.
BAX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 14.68 |
4.2 Price Multiples
BAX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BAX is cheaper than 85.19% of the companies in the same industry.
80.42% 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 | 32.65 | ||
| EV/EBITDA | 14.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.89%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.92%, BAX has a reasonable but not impressive dividend return.
BAX's Dividend Yield is rather good when compared to the industry average which is at 1.70. BAX pays more dividend than 96.83% of the companies in the same industry.
BAX's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
On average, the dividend of BAX grows each year by 6.89%, which is quite nice.
BAX has paid a dividend for at least 10 years, which is 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-90.91%
EPS Next 2Y0.89%
EPS Next 3Y6.78%
36.57
+1.13 (+3.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.07%
Inst Owner Change6.86%
Ins Owners0.24%
Ins Owner Change0.5%
Market Cap18.71B
Analysts68.18
Price Target39.9 (9.11%)
Short Float %3.51%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend1.16
Dividend Growth(5Y)6.89%
DP-90.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.32%
Min EPS beat(2)1.94%
Max EPS beat(2)10.69%
EPS beat(4)4
Avg EPS beat(4)5.06%
Min EPS beat(4)1.64%
Max EPS beat(4)10.69%
EPS beat(8)7
Avg EPS beat(8)3.73%
EPS beat(12)8
Avg EPS beat(12)2.99%
EPS beat(16)12
Avg EPS beat(16)4.13%
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)1.93%
Revenue beat(4)3
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)-0.1%
Revenue beat(12)5
Avg Revenue beat(12)-1.67%
Revenue beat(16)6
Avg Revenue beat(16)-2.31%
PT rev (1m)1.79%
PT rev (3m)3.98%
EPS NQ rev (1m)-6.28%
EPS NQ rev (3m)-8.43%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)-1.47%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 14.68 | ||
| P/S | 1.46 | ||
| P/FCF | 32.65 | ||
| P/OCF | 18.36 | ||
| P/B | 2.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.09 |
EPS(TTM)2.71
EY7.41%
EPS(NY)2.49
Fwd EY6.81%
FCF(TTM)1.12
FCFY3.06%
OCF(TTM)1.99
OCFY5.45%
SpS25.13
BVpS13.61
TBVpS-6.91
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.52% | ||
| ROE | -9.32% | ||
| ROCE | 5.12% | ||
| ROIC | 3.45% | ||
| ROICexc | 3.76% | ||
| ROICexgc | 8.07% | ||
| OM | 7.67% | ||
| PM (TTM) | N/A | ||
| GM | 38.01% | ||
| FCFM | 4.46% |
ROA(3y)-0.58%
ROA(5y)1.52%
ROE(3y)-6.47%
ROE(5y)1.48%
ROIC(3y)3.2%
ROIC(5y)4.54%
ROICexc(3y)3.57%
ROICexc(5y)5.33%
ROICexgc(3y)9.57%
ROICexgc(5y)12.38%
ROCE(3y)4.43%
ROCE(5y)6.16%
ROICexcg growth 3Y-30.34%
ROICexcg growth 5Y-21.96%
ROICexc growth 3Y-22.52%
ROICexc growth 5Y-26.32%
OM growth 3Y-25.59%
OM growth 5Y-17.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y-2.16%
F-Score3
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 22.91 | ||
| Debt/EBITDA | 6.3 | ||
| Cap/Depr | 44.73% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 4.42 | ||
| Cash Conversion | 51.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.14 |
F-Score3
WACC6.9%
ROIC/WACC0.5
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)0.37%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-34.09%
EPS Next Y-8.1%
EPS Next 2Y0.89%
EPS Next 3Y6.78%
EPS Next 5Y7.89%
Revenue 1Y (TTM)-13.21%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-29.14%
Revenue Next Year5.86%
Revenue Next 2Y4.99%
Revenue Next 3Y4.66%
Revenue Next 5Y5.31%
EBIT growth 1Y-21.12%
EBIT growth 3Y-30.01%
EBIT growth 5Y-18.5%
EBIT Next Year82.59%
EBIT Next 3Y31.86%
EBIT Next 5Y27.86%
FCF growth 1Y-44.58%
FCF growth 3Y-27.1%
FCF growth 5Y-16.46%
OCF growth 1Y-40.96%
OCF growth 3Y-22.88%
OCF growth 5Y-13.5%