BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BAX • US0718131099
19.995 USD
-0.07 (-0.37%)
Last: Feb 2, 2026, 11:12 AM
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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- 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 70.97% 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 71.51% of the companies in the same industry.
- The Return On Invested Capital of BAX (3.04%) is better than 70.97% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BAX is significantly below the industry average of 8.81%.
| 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 72.04% of the companies in the same industry.
- BAX's Operating Margin has declined in the last couple of years.
- The Gross Margin of BAX (35.04%) is worse than 73.12% of its industry peers.
- In the last couple of years the Gross Margin of BAX has declined.
| 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
- An Altman-Z score of 2.25 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.25, BAX is in the better half of the industry, outperforming 64.52% 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 67.74% 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.
- BAX's Debt to Equity ratio of 1.21 is on the low side compared to the rest of the industry. BAX is outperformed by 76.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.4
WACC7.57%
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 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 67.20% 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.
- The Earnings Per Share has been decreasing by -4.21% on average over the past years.
- 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
- The Earnings Per Share is expected to grow by 1.85% 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 2.77% on average per year.
EPS Next Y-11.87%
EPS Next 2Y-8.48%
EPS Next 3Y-3.29%
EPS Next 5Y1.85%
Revenue Next Year4.95%
Revenue Next 2Y3.46%
Revenue Next 3Y3.3%
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
- BAX is valuated reasonably with a Price/Earnings ratio of 8.30.
- Based on the Price/Earnings ratio, BAX is valued cheaper than 95.70% 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 28.32.
- Based on the Price/Forward Earnings ratio of 8.81, the valuation of BAX can be described as reasonable.
- 96.24% of the companies in the same industry are more expensive than BAX, based on the Price/Forward Earnings ratio.
- BAX is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 8.81 |
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.
- Based on the Price/Free Cash Flow ratio, BAX is valued a bit cheaper than the industry average as 74.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.13 | ||
| EV/EBITDA | 10.72 |
4.3 Compensation for Growth
- A cheap valuation may be justified as BAX's earnings are expected to decrease with -3.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.48%
EPS Next 3Y-3.29%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.20%, BAX is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.21, 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 0.20, BAX pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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-8.48%
EPS Next 3Y-3.29%
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 -11.87% 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%.