BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - NYSE:BAX - US0718131099 - Common Stock
18.15 USD
+0.38 (+2.14%)
18.23 USD
+0.08 (+0.44%)
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. There are concerns on the financial health of BAX while its profitability can be described as average. 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.
The reported net income has been mixed in the past 5 years: BAX reported negative net income in multiple years.
BAX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BAX's Return On Assets of -1.62% is fine compared to the rest of the industry. BAX outperforms 70.21% of its industry peers.
BAX's Return On Equity of -4.71% is fine compared to the rest of the industry. BAX outperforms 70.21% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for BAX 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
The Operating Margin of BAX (6.37%) is better than 71.28% of its industry peers.
In the last couple of years the Operating Margin of BAX has declined.
BAX's Gross Margin of 35.04% is on the low side compared to the rest of the industry. BAX is outperformed by 71.81% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for BAX is higher compared to a year ago.
2.2 Solvency
BAX has an Altman-Z score of 2.20. 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.
With a decent Altman-Z score value of 2.20, BAX is doing good in the industry, outperforming 63.83% of the companies in the same industry.
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 Debt to FCF ratio of 38.94. This is in the better half of the industry: BAX outperforms 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.
With a Debt to Equity ratio value of 1.21, BAX is not doing good in the industry: 78.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.7
WACC4.32%
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 67.55% of its industry peers.
BAX has a Quick Ratio of 1.18. 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 Quick ratio of 1.18. This is in the lower half of the industry: BAX underperforms 69.15% 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.
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.
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
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-11.26%
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
With a Price/Earnings ratio of 7.53, the valuation of BAX can be described as very cheap.
Based on the Price/Earnings ratio, BAX is valued cheaper than 96.28% of the companies in the same industry.
BAX is valuated cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.63, the valuation of BAX can be described as very cheap.
Based on the Price/Forward Earnings ratio, BAX is valued cheaper than 96.81% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, BAX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 7.63 |
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.
75.53% 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 | 38.21 | ||
| EV/EBITDA | 10.13 |
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
With a yearly dividend of 0.21%, BAX is not a good candidate for dividend investing.
In the last 3 months the price of BAX has falen by -26.04%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
BAX's Dividend Yield is rather good when compared to the industry average which is at 1.70. BAX pays more dividend than 90.96% of the companies 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
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
BAX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
BAX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-119.65%
EPS Next 2Y-6.32%
EPS Next 3Y-1.72%
18.15
+0.38 (+2.14%)
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 Cap9.32B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price Target28.85 (58.95%)
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 | 7.53 | ||
| Fwd PE | 7.63 | ||
| P/S | 0.85 | ||
| P/FCF | 38.21 | ||
| P/OCF | 12.45 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.13 |
EPS(TTM)2.41
EY13.28%
EPS(NY)2.38
Fwd EY13.1%
FCF(TTM)0.48
FCFY2.62%
OCF(TTM)1.46
OCFY8.03%
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 | 2.2 |
F-Score3
WACC4.32%
ROIC/WACC0.7
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 7.53 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.