BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - NYSE:BAX - US0718131099 - Common Stock
17.42 USD
-0.27 (-1.53%)
17.5 USD
+0.08 (+0.46%)
Overall BAX gets a fundamental rating of 4 out of 10. We evaluated BAX against 188 industry peers in the Health Care Equipment & Supplies industry. BAX has a medium profitability rating, but doesn't score so well on its financial health evaluation. BAX has a bad growth rate and is valued cheaply.
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.
In the past 5 years BAX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BAX (-1.62%) is better than 70.74% of its industry peers.
With a decent Return On Equity value of -4.71%, BAX is doing good in the industry, outperforming 70.74% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.04%, BAX is doing good in the industry, outperforming 70.74% 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 8.98%.
| 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
Looking at the Operating Margin, with a value of 6.37%, BAX is in the better half of the industry, outperforming 71.28% of the companies in the same industry.
BAX's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 35.04%, BAX is not doing good in the industry: 71.81% 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
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
BAX has an Altman-Z score of 2.19. 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.
Looking at the Altman-Z score, with a value of 2.19, BAX is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
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.
The Debt to FCF ratio of BAX (38.94) is better than 67.02% of its industry peers.
BAX has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
BAX has a Debt to Equity ratio of 1.21. This is in the lower half of the industry: BAX underperforms 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.71
WACC4.25%
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.
The Current ratio of BAX (1.84) is worse than 68.09% 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 has a worse Quick ratio (1.18) than 69.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
BAX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.93%.
The Earnings Per Share has been decreasing by -4.21% on average over the past years.
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
BAX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.85% yearly.
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
A Price/Earnings ratio of 7.23 indicates a rather cheap valuation of BAX.
96.28% 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 (25.07), we can say BAX is valued rather cheaply.
The Price/Forward Earnings ratio is 7.32, which indicates a rather cheap valuation of BAX.
BAX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 96.81% of the companies in the same industry.
BAX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 7.32 |
4.2 Price Multiples
BAX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BAX is cheaper than 88.83% 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 76.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.67 | ||
| EV/EBITDA | 9.99 |
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 -29.01% 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 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 2.44.
| 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.
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-6.32%
EPS Next 3Y-1.72%
17.42
-0.27 (-1.53%)
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 Change8.45%
Ins Owners0.33%
Ins Owner Change15.33%
Market Cap8.95B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price Target28.85 (65.61%)
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)-1.52%
PT rev (3m)-5.6%
EPS NQ rev (1m)-23.45%
EPS NQ rev (3m)-23.36%
EPS NY rev (1m)-2.46%
EPS NY rev (3m)-5.57%
Revenue NQ rev (1m)-5.94%
Revenue NQ rev (3m)-5.91%
Revenue NY rev (1m)-1.56%
Revenue NY rev (3m)-2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 7.32 | ||
| P/S | 0.81 | ||
| P/FCF | 36.67 | ||
| P/OCF | 11.95 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.99 |
EPS(TTM)2.41
EY13.83%
EPS(NY)2.38
Fwd EY13.65%
FCF(TTM)0.48
FCFY2.73%
OCF(TTM)1.46
OCFY8.37%
SpS21.46
BVpS14.1
TBVpS-5.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number27.65
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 | 2.19 |
F-Score3
WACC4.25%
ROIC/WACC0.71
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 7 / 10 to BAXTER INTERNATIONAL INC (BAX). This can be considered as Undervalued.
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 7.23 and the Price/Book (PB) ratio is 1.24.
What is the financial health of BAXTER INTERNATIONAL INC (BAX) stock?
The financial health rating of BAXTER INTERNATIONAL INC (BAX) is 3 / 10.