BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAX - US0718131099 - Common Stock
18.18 USD
-0.13 (-0.71%)
18.25 USD
+0.07 (+0.39%)
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. While BAX is still in line with the averages on profitability rating, there are concerns on its financial health. BAX is valued quite cheap, but it does not seem to be growing.
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 better Return On Assets (-1.62%) than 70.74% of its industry peers.
BAX has a Return On Equity of -4.71%. This is in the better half of the industry: BAX outperforms 71.28% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.04%, BAX is in the better half of the industry, outperforming 71.28% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BAX is significantly below the industry average of 8.71%.
| 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 71.81% of the companies in the same industry.
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: 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
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.
BAX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.21 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BAX has a Altman-Z score of 2.21. This is in the better half of the industry: BAX outperforms 63.30% 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.
BAX has a better Debt to FCF ratio (38.94) than 67.55% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that BAX has dependencies on debt financing.
The Debt to Equity ratio of BAX (1.21) is worse than 77.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.68
WACC4.44%
2.3 Liquidity
A Current Ratio of 1.84 indicates that BAX should not have too much problems paying its short term obligations.
BAX's Current ratio of 1.84 is on the low side compared to the rest of the industry. BAX is outperformed by 67.55% 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 69.68% 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.
Looking at the last year, BAX shows a very negative growth in Revenue. The Revenue has decreased by -21.20% in the last year.
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.
The Revenue is expected to grow by 2.77% on average over the next years.
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
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
Based on the Price/Earnings ratio of 7.54, the valuation of BAX can be described as very cheap.
96.28% of the companies in the same industry are more expensive than BAX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.65. BAX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.64, the valuation of BAX can be described as very cheap.
97.34% of the companies in the same industry are more expensive than BAX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.45. BAX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 7.64 |
4.2 Price Multiples
89.36% of the companies in the same industry are more expensive than BAX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BAX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.27 | ||
| EV/EBITDA | 10.18 |
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 0.23%, which is pretty low.
The stock price of BAX dropped by -26.37% 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.
BAX's Dividend Yield is rather good when compared to the industry average which is at 1.73. BAX pays more dividend than 90.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, BAX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
5.2 History
The dividend of BAX is nicely growing with an annual growth rate of 6.89%!
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
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%
18.18
-0.13 (-0.71%)
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 Change8.04%
Ins Owners0.33%
Ins Owner Change9.49%
Market Cap9.34B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price Target25.43 (39.88%)
Short Float %4.97%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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)-13.19%
PT rev (3m)-15.17%
EPS NQ rev (1m)-23.45%
EPS NQ rev (3m)-23.36%
EPS NY rev (1m)-2.55%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)-5.94%
Revenue NQ rev (3m)-5.91%
Revenue NY rev (1m)-1.57%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 7.64 | ||
| P/S | 0.85 | ||
| P/FCF | 38.27 | ||
| P/OCF | 12.47 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.18 |
EPS(TTM)2.41
EY13.26%
EPS(NY)2.38
Fwd EY13.08%
FCF(TTM)0.48
FCFY2.61%
OCF(TTM)1.46
OCFY8.02%
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 | 2.21 |
F-Score3
WACC4.44%
ROIC/WACC0.68
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 7.54 and the Price/Book (PB) ratio is 1.29.
What is the financial health of BAXTER INTERNATIONAL INC (BAX) stock?
The financial health rating of BAXTER INTERNATIONAL INC (BAX) is 3 / 10.