BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - NYSE:BAX - US0718131099 - Common Stock
23.2 USD
-0.67 (-2.81%)
23.32 USD
+0.12 (+0.52%)
Taking everything into account, BAX scores 4 out of 10 in our fundamental rating. BAX was compared to 191 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of BAX get a neutral evaluation. Nothing too spectacular is happening here. BAX has a valuation in line with the averages, 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.
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
BAX has a Return On Assets of -0.74%. This is in the better half of the industry: BAX outperforms 70.68% of its industry peers.
BAX has a better Return On Equity (-2.12%) than 70.16% of its industry peers.
The Return On Invested Capital of BAX (2.60%) is better than 70.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BAX is below the industry average of 8.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.74% | ||
| ROE | -2.12% | ||
| ROIC | 2.6% |
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
The Operating Margin of BAX (5.78%) is better than 71.20% of its industry peers.
In the last couple of years the Operating Margin of BAX has declined.
BAX has a Gross Margin of 36.01%. This is in the lower half of the industry: BAX underperforms 70.68% of its industry peers.
BAX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.78% | ||
| PM (TTM) | N/A | ||
| GM | 36.01% |
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.
The number of shares outstanding for BAX has been increased compared to 1 year ago.
BAX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BAX is higher compared to a year ago.
2.2 Solvency
BAX has an Altman-Z score of 2.36. 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's Altman-Z score of 2.36 is fine compared to the rest of the industry. BAX outperforms 65.97% of its industry peers.
BAX has a debt to FCF ratio of 27.22. This is a negative value and a sign of low solvency as BAX would need 27.22 years to pay back of all of its debts.
BAX's Debt to FCF ratio of 27.22 is fine compared to the rest of the industry. BAX outperforms 69.63% of its industry peers.
BAX has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.30, BAX is not doing good in the industry: 81.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 27.22 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.52
WACC4.97%
2.3 Liquidity
A Current Ratio of 2.30 indicates that BAX has no problem at all paying its short term obligations.
BAX has a Current ratio (2.30) which is in line with its industry peers.
BAX has a Quick Ratio of 1.49. This is a normal value and indicates that BAX is financially healthy and should not expect problems in meeting its short term obligations.
BAX's Quick ratio of 1.49 is in line compared to the rest of the industry. BAX outperforms 40.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
BAX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.80%.
BAX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.21% yearly.
The Revenue for BAX has decreased by -27.41% 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)-12.8%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-13.24%
Revenue 1Y (TTM)-27.41%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.29%
3.2 Future
The Earnings Per Share is expected to grow by 3.91% on average over the next years.
Based on estimates for the next years, BAX will show a small growth in Revenue. The Revenue will grow by 3.83% on average per year.
EPS Next Y-9.02%
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
EPS Next 5Y3.91%
Revenue Next Year7.11%
Revenue Next 2Y5.43%
Revenue Next 3Y4.72%
Revenue Next 5Y3.83%
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
With a Price/Earnings ratio of 9.21, the valuation of BAX can be described as very reasonable.
BAX's Price/Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 93.72% of the companies in the same industry.
BAX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 8.87, which indicates a very decent valuation of BAX.
Based on the Price/Forward Earnings ratio, BAX is valued cheaply inside the industry as 94.24% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.70. BAX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
82.20% of the companies in the same industry are more expensive than BAX, based on the Enterprise Value to EBITDA ratio.
BAX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BAX is cheaper than 79.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.14 | ||
| EV/EBITDA | 13.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
5. Dividend
5.1 Amount
BAX has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
The stock price of BAX dropped by -22.64% 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 1.69, BAX pays a better dividend. On top of this BAX pays more dividend than 97.91% of the companies listed in the same industry.
BAX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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
BAX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of BAX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-302.58%
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
23.2
-0.67 (-2.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change-3.72%
Ins Owners0.25%
Ins Owner Change10.96%
Market Cap11.92B
Analysts65.45
Price Target29.98 (29.22%)
Short Float %4.54%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend1.16
Dividend Growth(5Y)6.89%
DP-302.58%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.25%
Min EPS beat(2)-4.25%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)5.28%
Min EPS beat(4)-4.25%
Max EPS beat(4)12.74%
EPS beat(8)7
Avg EPS beat(8)3.8%
EPS beat(12)8
Avg EPS beat(12)2.57%
EPS beat(16)11
Avg EPS beat(16)3.26%
Revenue beat(2)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)0.46%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)0.16%
Revenue beat(12)6
Avg Revenue beat(12)-0.72%
Revenue beat(16)6
Avg Revenue beat(16)-2.32%
PT rev (1m)-1.91%
PT rev (3m)-21.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.59%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-3.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 8.87 | ||
| P/S | 1.09 | ||
| P/FCF | 34.14 | ||
| P/OCF | 15.58 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.32 |
EPS(TTM)2.52
EY10.86%
EPS(NY)2.61
Fwd EY11.27%
FCF(TTM)0.68
FCFY2.93%
OCF(TTM)1.49
OCFY6.42%
SpS21.2
BVpS14.25
TBVpS-5.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.74% | ||
| ROE | -2.12% | ||
| ROCE | 3.47% | ||
| ROIC | 2.6% | ||
| ROICexc | 2.86% | ||
| ROICexgc | 7.74% | ||
| OM | 5.78% | ||
| PM (TTM) | N/A | ||
| GM | 36.01% | ||
| FCFM | 3.21% |
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%
ROICexcg growth 3Y-24.28%
ROICexcg 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 | 1.3 | ||
| Debt/FCF | 27.22 | ||
| Debt/EBITDA | 6.3 | ||
| Cap/Depr | 47.38% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 2.36 |
F-Score3
WACC4.97%
ROIC/WACC0.52
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)-12.8%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-13.24%
EPS Next Y-9.02%
EPS Next 2Y-1.78%
EPS Next 3Y1.07%
EPS Next 5Y3.91%
Revenue 1Y (TTM)-27.41%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.29%
Revenue Next Year7.11%
Revenue Next 2Y5.43%
Revenue Next 3Y4.72%
Revenue Next 5Y3.83%
EBIT growth 1Y-49.27%
EBIT growth 3Y-23.92%
EBIT growth 5Y-14.31%
EBIT Next Year71.06%
EBIT Next 3Y23.12%
EBIT Next 5Y18.89%
FCF growth 1Y-59.56%
FCF growth 3Y-27.1%
FCF growth 5Y-16.46%
OCF growth 1Y-50.93%
OCF growth 3Y-22.88%
OCF growth 5Y-13.5%