BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAX - US0718131099 - Common Stock
19.65 USD
-0.5 (-2.48%)
19.74 USD
+0.09 (+0.46%)
Overall BAX gets a fundamental rating of 4 out of 10. We evaluated BAX against 185 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year BAX was profitable.
- BAX had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: BAX reported negative net income in multiple 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 70.27% of its industry peers.
- The Return On Equity of BAX (-4.71%) is better than 70.81% of its industry peers.
- BAX's Return On Invested Capital of 3.04% is fine compared to the rest of the industry. BAX outperforms 70.81% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BAX is significantly below the industry average of 8.84%.
| 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
- BAX's Operating Margin of 6.37% is fine compared to the rest of the industry. BAX outperforms 71.89% 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 72.43% 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
- 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.
- BAX has more shares outstanding than it did 5 years ago.
- BAX has a worse debt/assets ratio than last year.
2.2 Solvency
- BAX has an Altman-Z score of 2.24. 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 has a better Altman-Z score (2.24) than 63.78% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 38.94, BAX is in the better half of the industry, outperforming 68.11% of the companies in the same industry.
- BAX has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
- BAX has a worse Debt to Equity ratio (1.21) than 76.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.41
WACC7.44%
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.
- With a Current ratio value of 1.84, BAX is not doing good in the industry: 65.95% of the companies in the same industry are doing better.
- 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.
- With a Quick ratio value of 1.18, BAX is not doing good in the industry: 68.11% of the companies in the same industry are doing better.
| 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%.
- 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 -21.20% in the past year. This is quite bad
- BAX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.31% yearly.
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-11.91%
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
EPS Next 5Y1.85%
Revenue Next Year4.93%
Revenue Next 2Y3.46%
Revenue Next 3Y3.26%
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
- A Price/Earnings ratio of 8.15 indicates a reasonable valuation of BAX.
- Based on the Price/Earnings ratio, BAX is valued cheaper than 95.68% of the companies in the same industry.
- When comparing the Price/Earnings ratio of BAX to the average of the S&P500 Index (27.30), we can say BAX is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.62, which indicates a very decent valuation of BAX.
- Based on the Price/Forward Earnings ratio, BAX is valued cheaply inside the industry as 96.22% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.04. BAX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 8.62 |
4.2 Price Multiples
- 89.73% 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 75.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.4 | ||
| EV/EBITDA | 10.59 |
4.3 Compensation for Growth
- BAX's earnings are expected to decrease with -3.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.19%, BAX is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.19, BAX pays a better dividend. On top of this BAX pays more dividend than 90.27% of the companies listed in the same industry.
- With a Dividend Yield of 0.19, BAX pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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-119.65%
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
19.65
-0.5 (-2.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-18 2026-02-18/amc
Inst Owners102.74%
Inst Owner Change0.91%
Ins Owners0.28%
Ins Owner Change10.02%
Market Cap10.10B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price Target24.55 (24.94%)
Short Float %6.55%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend1.16
Dividend Growth(5Y)6.89%
DP-119.65%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-2.43%
PT rev (3m)-16.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.36%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-3.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 8.62 | ||
| P/S | 0.92 | ||
| P/FCF | 41.4 | ||
| P/OCF | 13.49 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.59 |
EPS(TTM)2.41
EY12.26%
EPS(NY)2.28
Fwd EY11.6%
FCF(TTM)0.47
FCFY2.42%
OCF(TTM)1.46
OCFY7.41%
SpS21.44
BVpS14.09
TBVpS-5.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number27.64
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 | 2.24 |
F-Score3
WACC7.44%
ROIC/WACC0.41
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-11.91%
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
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 Year4.93%
Revenue Next 2Y3.46%
Revenue Next 3Y3.26%
Revenue Next 5Y2.77%
EBIT growth 1Y-43.88%
EBIT growth 3Y-23.92%
EBIT growth 5Y-14.31%
EBIT Next Year53.58%
EBIT Next 3Y17.38%
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.
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 -11.91% 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%.