BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - NYSE:BAX - US0718131099 - Common Stock
23.02 USD
+0.03 (+0.13%)
23.02 USD
0 (0%)
Taking everything into account, BAX scores 4 out of 10 in our fundamental rating. BAX was compared to 189 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 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.
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.
Each year in the past 5 years BAX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BAX (-0.74%) is better than 71.05% of its industry peers.
BAX has a better Return On Equity (-2.12%) than 70.53% of its industry peers.
With a decent Return On Invested Capital value of 2.60%, BAX is doing good in the industry, outperforming 70.53% 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 9.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.74% | ||
| ROE | -2.12% | ||
| ROIC | 2.6% |
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 has a Operating Margin of 5.78%. This is in the better half of the industry: BAX outperforms 71.05% of its industry peers.
BAX's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 36.01%, BAX is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BAX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.78% | ||
| PM (TTM) | N/A | ||
| GM | 36.01% |
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.
Compared to 1 year ago, BAX has more shares outstanding
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 2.35 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 2.35. This is in the better half of the industry: BAX outperforms 63.68% of its industry peers.
BAX has a debt to FCF ratio of 27.22. This is a negative value and a sign of low solvency as BAX would need 27.22 years to pay back of all of its debts.
BAX has a Debt to FCF ratio of 27.22. This is in the better half of the industry: BAX outperforms 69.47% of its industry peers.
A Debt/Equity ratio of 1.30 is on the high side and indicates that BAX has dependencies on debt financing.
BAX has a Debt to Equity ratio of 1.30. This is amonst the worse of the industry: BAX underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 27.22 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.53
WACC4.93%
2.3 Liquidity
BAX has a Current Ratio of 2.30. This indicates that BAX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.30, BAX is in line with its industry, outperforming 44.21% of the companies in the same industry.
A Quick Ratio of 1.49 indicates that BAX should not have too much problems paying its short term obligations.
BAX's Quick ratio of 1.49 is on the low side compared to the rest of the industry. BAX is outperformed by 61.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The earnings per share for BAX have decreased strongly by -12.80% 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.
The Revenue for BAX has decreased by -27.41% in the past year. This is quite bad
The Revenue has been decreasing by -1.31% on average over the past years.
EPS 1Y (TTM)-12.8%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-13.24%
Revenue 1Y (TTM)-27.41%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.29%
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 3.91% on average per year.
The Revenue is expected to grow by 3.83% on average over the next years.
EPS Next Y-8.94%
EPS Next 2Y-1.76%
EPS Next 3Y1.09%
EPS Next 5Y3.91%
Revenue Next Year7.13%
Revenue Next 2Y5.44%
Revenue Next 3Y4.73%
Revenue Next 5Y3.83%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.13 indicates a reasonable valuation of BAX.
95.26% of the companies in the same industry are more expensive than BAX, based on the Price/Earnings ratio.
BAX is valuated cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.80, the valuation of BAX can be described as reasonable.
Based on the Price/Forward Earnings ratio, BAX is valued cheaply inside the industry as 96.84% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, BAX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 8.8 |
4.2 Price Multiples
BAX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BAX is cheaper than 83.16% of the companies in the same industry.
BAX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BAX is cheaper than 79.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.88 | ||
| EV/EBITDA | 13.03 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.76%
EPS Next 3Y1.09%
5. Dividend
5.1 Amount
BAX has a Yearly Dividend Yield of 2.96%. Purely for dividend investing, there may be better candidates out there.
The stock price of BAX dropped by -21.22% 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 1.79. BAX pays more dividend than 97.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, BAX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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
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-302.58%
EPS Next 2Y-1.76%
EPS Next 3Y1.09%
23.02
+0.03 (+0.13%)
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 Change-0.1%
Ins Owners0.33%
Ins Owner Change10.96%
Market Cap11.82B
Revenue(TTM)10.89B
Net Income(TTM)-155000000
Analysts65.45
Price Target29.3 (27.28%)
Short Float %5.33%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend1.16
Dividend Growth(5Y)6.89%
DP-302.58%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.25%
Min EPS beat(2)-4.25%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)5.28%
Min EPS beat(4)-4.25%
Max EPS beat(4)12.74%
EPS beat(8)7
Avg EPS beat(8)3.8%
EPS beat(12)8
Avg EPS beat(12)2.57%
EPS beat(16)11
Avg EPS beat(16)3.26%
Revenue beat(2)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)0.46%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)0.16%
Revenue beat(12)6
Avg Revenue beat(12)-0.72%
Revenue beat(16)6
Avg Revenue beat(16)-2.32%
PT rev (1m)-2.27%
PT rev (3m)-22.59%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-7.4%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 8.8 | ||
| P/S | 1.09 | ||
| P/FCF | 33.88 | ||
| P/OCF | 15.46 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.03 |
EPS(TTM)2.52
EY10.95%
EPS(NY)2.62
Fwd EY11.36%
FCF(TTM)0.68
FCFY2.95%
OCF(TTM)1.49
OCFY6.47%
SpS21.2
BVpS14.25
TBVpS-5.89
PEG (NY)N/A
PEG (5Y)N/A
Graham Number28.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.74% | ||
| ROE | -2.12% | ||
| ROCE | 3.47% | ||
| ROIC | 2.6% | ||
| ROICexc | 2.86% | ||
| ROICexgc | 7.74% | ||
| OM | 5.78% | ||
| PM (TTM) | N/A | ||
| GM | 36.01% | ||
| FCFM | 3.21% |
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 | 1.3 | ||
| Debt/FCF | 27.22 | ||
| Debt/EBITDA | 6.3 | ||
| Cap/Depr | 47.38% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 2.35 |
F-Score3
WACC4.93%
ROIC/WACC0.53
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)-12.8%
EPS 3Y-9.2%
EPS 5Y-4.21%
EPS Q2Q%-13.24%
EPS Next Y-8.94%
EPS Next 2Y-1.76%
EPS Next 3Y1.09%
EPS Next 5Y3.91%
Revenue 1Y (TTM)-27.41%
Revenue growth 3Y-5.95%
Revenue growth 5Y-1.31%
Sales Q2Q%-26.29%
Revenue Next Year7.13%
Revenue Next 2Y5.44%
Revenue Next 3Y4.73%
Revenue Next 5Y3.83%
EBIT growth 1Y-49.27%
EBIT growth 3Y-23.92%
EBIT growth 5Y-14.31%
EBIT Next Year68.12%
EBIT Next 3Y22.59%
EBIT Next 5Y18.89%
FCF growth 1Y-59.56%
FCF growth 3Y-27.1%
FCF growth 5Y-16.46%
OCF growth 1Y-50.93%
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 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 PE and PB ratios for BAX stock?
The Price/Earnings (PE) ratio for BAXTER INTERNATIONAL INC (BAX) is 9.13 and the Price/Book (PB) ratio is 1.62.
What is the financial health of BAXTER INTERNATIONAL INC (BAX) stock?
The financial health rating of BAXTER INTERNATIONAL INC (BAX) is 3 / 10.