BAXTER INTERNATIONAL INC (BAX) Stock Fundamental Analysis
NYSE:BAX - New York Stock Exchange, Inc. - US0718131099 - Common Stock - Currency: USD
Overall BAX gets a fundamental rating of 5 out of 10. We evaluated BAX against 191 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
In the past year BAX was profitable.
In the past year BAX had a positive cash flow from operations.
BAX had positive earnings in 4 of the past 5 years.
BAX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BAX's Return On Assets of 0.40% is fine compared to the rest of the industry. BAX outperforms 71.05% of its industry peers.
With a decent Return On Equity value of 1.37%, BAX is doing good in the industry, outperforming 72.63% of the companies in the same industry.
BAX has a better Return On Invested Capital (4.83%) than 77.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BAX is below the industry average of 8.15%.
The 3 year average ROIC (4.64%) for BAX is below the current ROIC(4.83%), indicating increased profibility in the last year.
| 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
BAX has a better Profit Margin (0.77%) than 71.05% of its industry peers.
In the last couple of years the Profit Margin of BAX has grown nicely.
The Operating Margin of BAX (8.94%) is better than 77.89% of its industry peers.
BAX's Operating Margin has declined in the last couple of years.
BAX has a worse Gross Margin (38.34%) than 68.42% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BAX is destroying value.
The number of shares outstanding for BAX has been increased compared to 1 year ago.
BAX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BAX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.13 indicates that BAX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BAX (2.13) is better than 62.11% of its industry peers.
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.
With a decent Debt to FCF ratio value of 23.18, BAX is doing good in the industry, outperforming 69.47% of the companies in the same industry.
BAX has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
BAX has a worse Debt to Equity ratio (1.33) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 23.18 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.66
WACC7.29%
2.3 Liquidity
A Current Ratio of 1.43 indicates that BAX should not have too much problems paying its short term obligations.
BAX has a Current ratio of 1.43. This is in the lower half of the industry: BAX underperforms 77.37% of its industry peers.
A Quick Ratio of 1.09 indicates that BAX should not have too much problems paying its short term obligations.
The Quick ratio of BAX (1.09) is worse than 72.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
BAX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.48%, which is quite good.
The Earnings Per Share has been decreasing by -2.41% on average over the past years.
BAX shows a decrease in Revenue. In the last year, the revenue decreased by -4.67%.
Measured over the past years, BAX shows a small growth in Revenue. The Revenue has been growing by 5.94% on average per year.
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.
The Revenue is expected to decrease by -2.50% on average over the next years.
EPS Next Y-31.57%
EPS Next 2Y-3.57%
EPS Next 3Y1.12%
EPS Next 5Y6.34%
Revenue Next Year-28.38%
Revenue Next 2Y-12.65%
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
BAX is valuated reasonably with a Price/Earnings ratio of 10.46.
Based on the Price/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/Earnings ratio of 28.58, BAX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.53, the valuation of BAX can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 94.74% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BAX to the average of the S&P500 Index (95.03), we can say BAX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
90.53% of the companies in the same industry are more expensive than BAX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAX indicates a rather cheap valuation: BAX is cheaper than 84.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.77 | ||
| EV/EBITDA | 11.85 |
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-3.57%
EPS Next 3Y1.12%
5. Dividend
5.1 Amount
BAX has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.58, BAX pays a better dividend. On top of this BAX pays more dividend than 97.37% of the companies listed in the same industry.
BAX's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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
546.30% of the earnings are spent on dividend by BAX. 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-3.57%
EPS Next 3Y1.12%
BAXTER INTERNATIONAL INC
NYSE:BAX (2/5/2025, 8:04:00 PM)
After market: 31.5 +0.03 (+0.1%)31.47
+0.05 (+0.16%)
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-0.02%
Ins Owners0.36%
Ins Owner Change-0.57%
Market Cap16.06B
Analysts55.65
Price Target39.2 (24.56%)
Short Float %3.3%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend1.16
Dividend Growth(5Y)10.18%
DP546.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-1.81%
PT rev (3m)-5.89%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-40.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-37.98%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-32.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-30.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 12.53 | ||
| P/S | 1.15 | ||
| P/FCF | 28.77 | ||
| P/OCF | 15.12 | ||
| P/B | 2.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.85 |
EPS(TTM)3.01
EY9.56%
EPS(NY)2.51
Fwd EY7.98%
FCF(TTM)1.09
FCFY3.48%
OCF(TTM)2.08
OCFY6.61%
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 | 2.13 |
F-Score6
WACC7.29%
ROIC/WACC0.66
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-31.57%
EPS Next 2Y-3.57%
EPS Next 3Y1.12%
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-12.65%
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 Year1.72%
EBIT Next 3Y9.6%
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%