BAXTER INTERNATIONAL INC (BAX)
US0718131099 - Common Stock
BAX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. BAX has an average financial health and profitability rating. BAX has a bad growth rate and is valued cheaply.
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.
BAX had positive earnings in 4 of the past 5 years.
In the past 5 years BAX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.40%, BAX is in the better half of the industry, outperforming 71.12% of the companies in the same industry.
BAX has a better Return On Equity (1.37%) than 72.73% of its industry peers.
BAX has a better Return On Invested Capital (4.83%) than 77.01% of its industry peers.
BAX had an Average Return On Invested Capital over the past 3 years of 4.64%. This is below the industry average of 8.19%.
The last Return On Invested Capital (4.83%) for BAX is above the 3 year average (4.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 1.37% | ||
| ROIC | 4.83% |
ROA(3y)1.54%
ROA(5y)3.13%
ROE(3y)1.35%
ROE(5y)5.89%
ROIC(3y)4.64%
ROIC(5y)6.46%
1.3 Margins
The Profit Margin of BAX (0.77%) is better than 71.12% of its industry peers.
In the last couple of years the Profit Margin of BAX has grown nicely.
BAX has a Operating Margin of 8.94%. This is in the better half of the industry: BAX outperforms 77.54% of its industry peers.
In the last couple of years the Operating Margin of BAX has declined.
With a Gross Margin value of 38.34%, BAX is not doing good in the industry: 68.98% 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 | 8.94% | ||
| PM (TTM) | 0.77% | ||
| GM | 38.34% |
OM growth 3Y-17.93%
OM growth 5Y-12.41%
PM growth 3Y23.84%
PM growth 5Y5.18%
GM growth 3Y-3.31%
GM growth 5Y-3.63%
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.
Compared to 5 years ago, BAX has less shares outstanding
The debt/assets ratio for BAX has been reduced compared to a year ago.
2.2 Solvency
BAX has an Altman-Z score of 2.09. 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.
Looking at the Altman-Z score, with a value of 2.09, BAX is in the better half of the industry, outperforming 61.50% of the companies in the same industry.
The Debt to FCF ratio of BAX is 23.18, which is on the high side as it means it would take BAX, 23.18 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BAX (23.18) is better than 69.52% of its industry peers.
BAX has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BAX (1.33) is worse than 80.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 23.18 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.64
WACC7.56%
2.3 Liquidity
A Current Ratio of 1.43 indicates that BAX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.43, BAX is not doing good in the industry: 79.14% of the companies in the same industry are doing better.
BAX has a Quick Ratio of 1.09. This is a normal value and indicates that BAX is financially healthy and should not expect problems in meeting its short term obligations.
BAX's Quick ratio of 1.09 is on the low side compared to the rest of the industry. BAX is outperformed by 75.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.48% over the past year.
Measured over the past years, BAX shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.41% on average per year.
Looking at the last year, BAX shows a decrease in Revenue. The Revenue has decreased by -4.67% in the last year.
BAX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.94% yearly.
EPS 1Y (TTM)11.48%
EPS 3Y-4.4%
EPS 5Y-2.41%
EPS Q2Q%17.65%
Revenue 1Y (TTM)-4.67%
Revenue growth 3Y8.26%
Revenue growth 5Y5.94%
Sales Q2Q%3.8%
3.2 Future
BAX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.34% yearly.
Based on estimates for the next years, BAX will show a decrease in Revenue. The Revenue will decrease by -2.50% on average per year.
EPS Next Y-31.58%
EPS Next 2Y-3.28%
EPS Next 3Y1.32%
EPS Next 5Y6.34%
Revenue Next Year-28.38%
Revenue Next 2Y-12.63%
Revenue Next 3Y-7.26%
Revenue Next 5Y-2.5%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.80 indicates a reasonable valuation of BAX.
BAX's Price/Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 97.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, BAX is valued rather cheaply.
A Price/Forward Earnings ratio of 11.68 indicates a reasonable valuation of BAX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 94.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, BAX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 11.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BAX is valued cheaper than 84.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.97 | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
BAX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.28%
EPS Next 3Y1.32%
5. Dividend
5.1 Amount
BAX has a Yearly Dividend Yield of 2.35%.
In the last 3 months the price of BAX has falen by -23.36%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.68, BAX pays a better dividend. On top of this BAX pays more dividend than 97.33% of the companies listed in the same industry.
BAX's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
On average, the dividend of BAX grows each year by 10.18%, which is quite nice.
BAX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BAX pays out 546.30% of its income as dividend. This is not a sustainable payout ratio.
BAX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP546.3%
EPS Next 2Y-3.28%
EPS Next 3Y1.32%
BAXTER INTERNATIONAL INC
NYSE:BAX (12/20/2024, 8:04:00 PM)
After market: 29.5 0 (0%)29.5
+0.6 (+2.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners91.91%
Inst Owner Change-0.65%
Ins Owners0.36%
Ins Owner Change-0.57%
Market Cap15.05B
Analysts55.45
Price Target38.38 (30.1%)
Short Float %2.43%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Dividend Growth(5Y)10.18%
DP546.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.79%
Min EPS beat(2)1.64%
Max EPS beat(2)1.94%
EPS beat(4)4
Avg EPS beat(4)2.59%
Min EPS beat(4)0.82%
Max EPS beat(4)5.98%
EPS beat(8)6
Avg EPS beat(8)1.5%
EPS beat(12)8
Avg EPS beat(12)2.11%
EPS beat(16)12
Avg EPS beat(16)3.75%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)0.5%
Revenue beat(4)3
Avg Revenue beat(4)0.23%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)1.28%
Revenue beat(8)4
Avg Revenue beat(8)-0.54%
Revenue beat(12)4
Avg Revenue beat(12)-3.09%
Revenue beat(16)6
Avg Revenue beat(16)-2.21%
PT rev (1m)-7.87%
PT rev (3m)-7.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.13%
EPS NY rev (1m)-37.98%
EPS NY rev (3m)-38.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-32.87%
Revenue NY rev (1m)-30.66%
Revenue NY rev (3m)-30.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 11.68 | ||
| P/S | 1.08 | ||
| P/FCF | 26.97 | ||
| P/OCF | 14.17 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.42 |
EPS(TTM)3.01
EY10.2%
EPS(NY)2.53
Fwd EY8.56%
FCF(TTM)1.09
FCFY3.71%
OCF(TTM)2.08
OCFY7.06%
SpS27.42
BVpS15.43
TBVpS-6.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 1.37% | ||
| ROCE | 6.11% | ||
| ROIC | 4.83% | ||
| ROICexc | 5.19% | ||
| ROICexgc | 12.63% | ||
| OM | 8.94% | ||
| PM (TTM) | 0.77% | ||
| GM | 38.34% | ||
| FCFM | 3.99% |
ROA(3y)1.54%
ROA(5y)3.13%
ROE(3y)1.35%
ROE(5y)5.89%
ROIC(3y)4.64%
ROIC(5y)6.46%
ROICexc(3y)5.2%
ROICexc(5y)7.85%
ROICexgc(3y)15.14%
ROICexgc(5y)16.69%
ROCE(3y)5.92%
ROCE(5y)8.25%
ROICexcg growth 3Y-1.85%
ROICexcg growth 5Y-5.21%
ROICexc growth 3Y-21.21%
ROICexc growth 5Y-16.34%
OM growth 3Y-17.93%
OM growth 5Y-12.41%
PM growth 3Y23.84%
PM growth 5Y5.18%
GM growth 3Y-3.31%
GM growth 5Y-3.63%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 23.18 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 46.84% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.64% | ||
| Profit Quality | 516.67% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 2.09 |
F-Score6
WACC7.56%
ROIC/WACC0.64
Cap/Depr(3y)62.22%
Cap/Depr(5y)72.21%
Cap/Sales(3y)4.99%
Cap/Sales(5y)5.44%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.48%
EPS 3Y-4.4%
EPS 5Y-2.41%
EPS Q2Q%17.65%
EPS Next Y-31.58%
EPS Next 2Y-3.28%
EPS Next 3Y1.32%
EPS Next 5Y6.34%
Revenue 1Y (TTM)-4.67%
Revenue growth 3Y8.26%
Revenue growth 5Y5.94%
Sales Q2Q%3.8%
Revenue Next Year-28.38%
Revenue Next 2Y-12.63%
Revenue Next 3Y-7.26%
Revenue Next 5Y-2.5%
EBIT growth 1Y2.88%
EBIT growth 3Y-11.15%
EBIT growth 5Y-7.21%
EBIT Next Year-1.95%
EBIT Next 3Y10.01%
EBIT Next 5Y12.67%
FCF growth 1Y-25.7%
FCF growth 3Y-3.73%
FCF growth 5Y-5.31%
OCF growth 1Y-27.51%
OCF growth 3Y-2.6%
OCF growth 5Y-3.07%