BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAX - US0718131099 - Common Stock
19.11 USD
-0.19 (-0.98%)
19.34 USD
+0.23 (+1.2%)
We assign a fundamental rating of 4 out of 10 to BAX. BAX was compared to 186 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BAX had positive earnings in the past year.
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.
Each year in the past 5 years BAX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BAX (-1.62%) is better than 70.43% of its industry peers.
Looking at the Return On Equity, with a value of -4.71%, BAX is in the better half of the industry, outperforming 70.97% 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.
Measured over the past 3 years, the Average Return On Invested Capital for BAX is significantly below the industry average of 8.84%.
| 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.
BAX has a worse Gross Margin (35.04%) than 72.58% 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
BAX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BAX has more shares outstanding than it did 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
An Altman-Z score of 2.23 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BAX has a better Altman-Z score (2.23) than 65.05% 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.
Looking at the Debt to FCF ratio, with a value of 38.94, BAX is in the better half of the industry, outperforming 68.28% of the companies in the same industry.
A Debt/Equity ratio of 1.21 is on the high side and indicates that BAX has dependencies on debt financing.
BAX has a worse Debt to Equity ratio (1.21) than 76.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.69
WACC4.42%
2.3 Liquidity
BAX has a Current Ratio of 1.84. 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 worse Current ratio (1.84) 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.
Looking at the Quick ratio, with a value of 1.18, BAX is doing worse than 67.74% of the companies in the same industry.
| 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.
BAX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.20%.
The Revenue has been decreasing by -1.31% on average over the past years.
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.
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-11.91%
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
EPS Next 5Y1.85%
Revenue Next Year4.93%
Revenue Next 2Y3.46%
Revenue Next 3Y3.26%
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 7.93.
96.24% of the companies in the same industry are more expensive than BAX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BAX to the average of the S&P500 Index (26.51), we can say BAX is valued rather cheaply.
A Price/Forward Earnings ratio of 8.38 indicates a reasonable valuation of BAX.
BAX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 96.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. BAX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaper than 89.78% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAX indicates a somewhat cheap valuation: BAX is cheaper than 75.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.26 | ||
| EV/EBITDA | 10.42 |
4.3 Compensation for Growth
BAX's earnings are expected to decrease with -3.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.21%, BAX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.20, BAX pays a better dividend. On top of this BAX pays more dividend than 90.32% 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 2.00.
| 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
The earnings of BAX are negative and hence is the payout ratio. BAX will probably not be able to sustain this dividend level.
BAX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-119.65%
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
19.11
-0.19 (-0.98%)
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 Cap9.82B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price Target24.55 (28.47%)
Short Float %6.55%
Short Ratio4
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-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)-3.48%
PT rev (3m)-18.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.36%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)-3.17%
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 | 7.93 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.89 | ||
| P/FCF | 40.26 | ||
| P/OCF | 13.12 | ||
| P/B | 1.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.42 |
EPS(TTM)2.41
EY12.61%
EPS(NY)2.28
Fwd EY11.93%
FCF(TTM)0.47
FCFY2.48%
OCF(TTM)1.46
OCFY7.62%
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 | 2.23 |
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-11.91%
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
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 2Y3.46%
Revenue Next 3Y3.26%
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 3Y17.38%
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 -11.91% 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%.