BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAX - US0718131099 - Common Stock
20.045 USD
-0.1 (-0.52%)
Taking everything into account, BAX scores 4 out of 10 in our fundamental rating. BAX was compared to 185 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 on the other hand it scores bad on growth.
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.
In multiple years BAX reported negative net income over the last 5 years.
BAX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BAX (-1.62%) is better than 70.27% of its industry peers.
BAX has a Return On Equity of -4.71%. This is in the better half of the industry: BAX outperforms 70.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.04%, BAX is in the better half of the industry, outperforming 70.81% 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 8.84%.
| 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 has a Operating Margin of 6.37%. This is in the better half 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 has a worse Gross Margin (35.04%) than 72.43% 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.
BAX has more shares outstanding than it did 1 year ago.
BAX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BAX is higher compared to a year ago.
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.
With a decent Altman-Z score value of 2.25, BAX is doing good in the industry, outperforming 63.78% 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.
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.
A Debt/Equity ratio of 1.21 is on the high side and indicates that BAX has dependencies on debt financing.
With a Debt to Equity ratio value of 1.21, BAX is not doing good in the industry: 76.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 38.94 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.41
WACC7.46%
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.
Looking at the Current ratio, with a value of 1.84, BAX is doing worse than 65.95% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that BAX should not have too much problems paying its short term obligations.
BAX has a worse Quick ratio (1.18) than 68.11% 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.
BAX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.21% yearly.
BAX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.20%.
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
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-11.91%
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
BAX is valuated reasonably with a Price/Earnings ratio of 8.32.
BAX's Price/Earnings ratio is rather cheap when compared to the industry. BAX is cheaper than 95.68% 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 27.25.
With a Price/Forward Earnings ratio of 8.79, the valuation of BAX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BAX is valued cheaper than 96.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BAX to the average of the S&P500 Index (23.98), we can say BAX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAX is valued cheaply inside the industry as 90.27% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAX indicates a somewhat cheap valuation: BAX is cheaper than 75.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.23 | ||
| EV/EBITDA | 10.74 |
4.3 Compensation for Growth
A cheap valuation may be justified as BAX's earnings are expected to decrease with -3.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
5. Dividend
5.1 Amount
BAX has a yearly dividend return of 0.19%, which is pretty low.
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
The dividend of BAX is nicely growing with an annual growth rate of 6.89%!
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-119.65%
EPS Next 2Y-8.28%
EPS Next 3Y-3.04%
NYSE:BAX (1/13/2026, 9:40:09 AM)
20.045
-0.1 (-0.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.74%
Inst Owner Change0.91%
Ins Owners0.28%
Ins Owner Change10.02%
Market Cap10.30B
Revenue(TTM)11.02B
Net Income(TTM)-341.00M
Analysts55.2
Price Target24.55 (22.47%)
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 | 8.32 | ||
| Fwd PE | 8.79 | ||
| P/S | 0.93 | ||
| P/FCF | 42.23 | ||
| P/OCF | 13.76 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.74 |
EPS(TTM)2.41
EY12.02%
EPS(NY)2.28
Fwd EY11.37%
FCF(TTM)0.47
FCFY2.37%
OCF(TTM)1.46
OCFY7.27%
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 | 2.25 |
F-Score3
WACC7.46%
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%.