BAUSCH HEALTH COS INC (BHC.CA) Stock Fundamental Analysis
TSX:BHC - Toronto Stock Exchange - CA0717341071 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to BHC. BHC was compared to 34 industry peers in the Pharmaceuticals industry. BHC has a medium profitability rating, but doesn't score so well on its financial health evaluation. BHC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BHC was profitable.
BHC had a positive operating cash flow in the past year.
BHC had negative earnings in each of the past 5 years.
In multiple years BHC reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of -0.67%, BHC is doing good in the industry, outperforming 75.76% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.72%, BHC belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BHC is in line with the industry average of 6.28%.
The last Return On Invested Capital (5.72%) for BHC is above the 3 year average (4.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.67% | ||
| ROE | N/A | ||
| ROIC | 5.72% |
ROA(3y)-2.1%
ROA(5y)-2.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.77%
ROIC(5y)4.28%
1.3 Margins
The Operating Margin of BHC (18.46%) is better than 90.91% of its industry peers.
In the last couple of years the Operating Margin of BHC has grown nicely.
The Gross Margin of BHC (70.87%) is better than 90.91% of its industry peers.
In the last couple of years the Gross Margin of BHC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.46% | ||
| PM (TTM) | N/A | ||
| GM | 70.87% |
OM growth 3Y3.74%
OM growth 5Y25.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BHC is destroying value.
There is no outstanding debt for BHC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BHC has an Altman-Z score of 0.15. This is a bad value and indicates that BHC is not financially healthy and even has some risk of bankruptcy.
BHC has a better Altman-Z score (0.15) than 60.61% of its industry peers.
BHC has a debt to FCF ratio of 21.32. This is a negative value and a sign of low solvency as BHC would need 21.32 years to pay back of all of its debts.
The Debt to FCF ratio of BHC (21.32) is better than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 21.32 | ||
| Altman-Z | 0.15 |
ROIC/WACC0.93
WACC6.17%
2.3 Liquidity
BHC has a Current Ratio of 1.19. This is a normal value and indicates that BHC is financially healthy and should not expect problems in meeting its short term obligations.
BHC has a Current ratio of 1.19. This is in the lower half of the industry: BHC underperforms 69.70% of its industry peers.
A Quick Ratio of 0.82 indicates that BHC may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, BHC is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.12% over the past year.
BHC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.60% yearly.
EPS 1Y (TTM)9.12%
EPS 3Y-4.87%
EPS 5Y-2.6%
EPS Q2Q%5.22%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.27%
3.2 Future
The Earnings Per Share is expected to grow by 2.40% on average over the next years.
Based on estimates for the next years, BHC will show a decrease in Revenue. The Revenue will decrease by -0.25% on average per year.
EPS Next Y16.96%
EPS Next 2Y15.13%
EPS Next 3Y10.92%
EPS Next 5Y2.4%
Revenue Next Year3.29%
Revenue Next 2Y2.42%
Revenue Next 3Y3.17%
Revenue Next 5Y-0.25%
3.3 Evolution
The EPS 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
With a Price/Earnings ratio of 1.91, the valuation of BHC can be described as very cheap.
BHC's Price/Earnings ratio is rather cheap when compared to the industry. BHC is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of BHC to the average of the S&P500 Index (29.63), we can say BHC is valued rather cheaply.
BHC is valuated cheaply with a Price/Forward Earnings ratio of 1.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BHC indicates a rather cheap valuation: BHC is cheaper than 100.00% of the companies listed in the same industry.
BHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.91 | ||
| Fwd PE | 1.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHC is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BHC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.63 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y15.13%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
No dividends for BHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BHC (2/21/2025, 7:00:00 PM)
10.41
+0.23 (+2.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners63.24%
Inst Owner ChangeN/A
Ins Owners11.31%
Ins Owner ChangeN/A
Market Cap3.76B
Analysts48.89
Price Target9.95 (-4.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.55
Dividend Growth(5Y)25.36%
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.2%
Min EPS beat(2)0.45%
Max EPS beat(2)5.95%
EPS beat(4)3
Avg EPS beat(4)0.64%
Min EPS beat(4)-17.22%
Max EPS beat(4)13.36%
EPS beat(8)6
Avg EPS beat(8)0.77%
EPS beat(12)7
Avg EPS beat(12)-5.08%
EPS beat(16)10
Avg EPS beat(16)-1.83%
Revenue beat(2)2
Avg Revenue beat(2)2.18%
Min Revenue beat(2)1.69%
Max Revenue beat(2)2.66%
Revenue beat(4)3
Avg Revenue beat(4)1.74%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)3.7%
Revenue beat(8)6
Avg Revenue beat(8)1.67%
Revenue beat(12)6
Avg Revenue beat(12)-0.09%
Revenue beat(16)7
Avg Revenue beat(16)-0.47%
PT rev (1m)-4.88%
PT rev (3m)-4.88%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)0.03%
EPS NY rev (3m)3.03%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.91 | ||
| Fwd PE | 1.64 | ||
| P/S | 0.28 | ||
| P/FCF | 2.63 | ||
| P/OCF | 1.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.72 |
EPS(TTM)5.44
EY52.26%
EPS(NY)6.36
Fwd EY61.09%
FCF(TTM)3.96
FCFY38.05%
OCF(TTM)5.44
OCFY52.26%
SpS37.19
BVpS-4.61
TBVpS-70.65
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.67% | ||
| ROE | N/A | ||
| ROCE | 7.94% | ||
| ROIC | 5.72% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 28.03% | ||
| OM | 18.46% | ||
| PM (TTM) | N/A | ||
| GM | 70.87% | ||
| FCFM | 10.65% |
ROA(3y)-2.1%
ROA(5y)-2.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.77%
ROIC(5y)4.28%
ROICexc(3y)4.93%
ROICexc(5y)4.48%
ROICexgc(3y)26.72%
ROICexgc(5y)38.92%
ROCE(3y)6.63%
ROCE(5y)5.94%
ROICexcg growth 3Y4.59%
ROICexcg growth 5Y14.93%
ROICexc growth 3Y12.27%
ROICexc growth 5Y32.28%
OM growth 3Y3.74%
OM growth 5Y25.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y-0.33%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 21.32 | ||
| Debt/EBITDA | 6.93 | ||
| Cap/Depr | 29.25% | ||
| Cap/Sales | 3.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 0.15 |
F-Score6
WACC6.17%
ROIC/WACC0.93
Cap/Depr(3y)19.66%
Cap/Depr(5y)17.86%
Cap/Sales(3y)3.25%
Cap/Sales(5y)3.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.12%
EPS 3Y-4.87%
EPS 5Y-2.6%
EPS Q2Q%5.22%
EPS Next Y16.96%
EPS Next 2Y15.13%
EPS Next 3Y10.92%
EPS Next 5Y2.4%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.27%
Revenue Next Year3.29%
Revenue Next 2Y2.42%
Revenue Next 3Y3.17%
Revenue Next 5Y-0.25%
EBIT growth 1Y15.52%
EBIT growth 3Y6.79%
EBIT growth 5Y26.23%
EBIT Next Year18.34%
EBIT Next 3Y10.27%
EBIT Next 5Y1.75%
FCF growth 1Y170.36%
FCF growth 3Y-1.78%
FCF growth 5Y-9.7%
OCF growth 1Y217.56%
OCF growth 3Y-2.43%
OCF growth 5Y-7.22%