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. While BHC is still in line with the averages on profitability rating, there are concerns on its financial health. BHC is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BHC was profitable.
In the past year BHC had a positive cash flow from operations.
BHC had negative earnings in each of the past 5 years.
BHC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.15%, BHC is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.02%, BHC belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
BHC had an Average Return On Invested Capital over the past 3 years of 5.45%. This is below the industry average of 8.08%.
The 3 year average ROIC (5.45%) for BHC is below the current ROIC(6.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | N/A | ||
| ROIC | 6.02% |
ROA(3y)-1.07%
ROA(5y)-1.65%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.45%
ROIC(5y)4.93%
1.3 Margins
BHC has a better Operating Margin (19.03%) than 91.18% of its industry peers.
In the last couple of years the Operating Margin of BHC has grown nicely.
BHC's Gross Margin of 70.78% is amongst the best of the industry. BHC outperforms 91.18% of its industry peers.
BHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.03% | ||
| PM (TTM) | N/A | ||
| GM | 70.78% |
OM growth 3Y1.02%
OM growth 5Y4.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.24%
GM growth 5Y-0.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BHC is destroying value.
BHC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BHC has more shares outstanding
The debt/assets ratio for BHC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.20, we must say that BHC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.20, BHC is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
The Debt to FCF ratio of BHC is 17.69, which is on the high side as it means it would take BHC, 17.69 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.69, BHC is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.69 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.89
WACC6.75%
2.3 Liquidity
A Current Ratio of 1.35 indicates that BHC should not have too much problems paying its short term obligations.
BHC has a Current ratio of 1.35. This is comparable to the rest of the industry: BHC outperforms 47.06% of its industry peers.
BHC has a Quick Ratio of 1.35. This is a bad value and indicates that BHC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BHC (0.97) is worse than 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
BHC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.01%.
Measured over the past years, BHC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.91% on average per year.
Looking at the last year, BHC shows a quite strong growth in Revenue. The Revenue has grown by 8.53% in the last year.
BHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.28% yearly.
EPS 1Y (TTM)5.01%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%0%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%4.92%
3.2 Future
Based on estimates for the next years, BHC will show a small growth in Earnings Per Share. The EPS will grow by 1.24% on average per year.
The Revenue is expected to decrease by -0.38% on average over the next years.
EPS Next Y20.4%
EPS Next 2Y11.09%
EPS Next 3Y15.37%
EPS Next 5Y1.24%
Revenue Next Year3.06%
Revenue Next 2Y4.04%
Revenue Next 3Y3.02%
Revenue Next 5Y-0.38%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 1.83 indicates a rather cheap valuation of BHC.
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 (27.45), we can say BHC is valued rather cheaply.
With a Price/Forward Earnings ratio of 1.49, the valuation of BHC can be described as very cheap.
BHC's Price/Forward 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/Forward Earnings ratio of BHC to the average of the S&P500 Index (21.90), we can say BHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.83 | ||
| Fwd PE | 1.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BHC indicates a rather cheap valuation: BHC is cheaper than 82.35% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BHC is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.1 | ||
| EV/EBITDA | 7.39 |
4.3 Compensation for Growth
BHC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BHC's earnings are expected to grow with 15.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y11.09%
EPS Next 3Y15.37%
5. Dividend
5.1 Amount
No dividends for BHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:BHC (7/4/2025, 7:00:00 PM)
9.39
-0.05 (-0.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners58.71%
Inst Owner ChangeN/A
Ins Owners11.02%
Ins Owner ChangeN/A
Market Cap3.47B
Analysts48.89
Price Target10.2 (8.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.74%
Min EPS beat(2)-25.13%
Max EPS beat(2)-4.34%
EPS beat(4)2
Avg EPS beat(4)-5.77%
Min EPS beat(4)-25.13%
Max EPS beat(4)5.95%
EPS beat(8)5
Avg EPS beat(8)-0.95%
EPS beat(12)6
Avg EPS beat(12)-6.23%
EPS beat(16)8
Avg EPS beat(16)-5.16%
Revenue beat(2)1
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)0.39%
Revenue beat(4)3
Avg Revenue beat(4)0.79%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)2.66%
Revenue beat(8)6
Avg Revenue beat(8)1.53%
Revenue beat(12)7
Avg Revenue beat(12)0.53%
Revenue beat(16)7
Avg Revenue beat(16)-0.44%
PT rev (1m)0%
PT rev (3m)8.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.83 | ||
| Fwd PE | 1.49 | ||
| P/S | 0.26 | ||
| P/FCF | 2.1 | ||
| P/OCF | 1.6 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.39 |
EPS(TTM)5.12
EY54.53%
EPS(NY)6.32
Fwd EY67.33%
FCF(TTM)4.47
FCFY47.62%
OCF(TTM)5.87
OCFY62.54%
SpS35.78
BVpS-4.35
TBVpS-64.84
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | N/A | ||
| ROCE | 8.36% | ||
| ROIC | 6.02% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 29.11% | ||
| OM | 19.03% | ||
| PM (TTM) | N/A | ||
| GM | 70.78% | ||
| FCFM | 12.5% |
ROA(3y)-1.07%
ROA(5y)-1.65%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.45%
ROIC(5y)4.93%
ROICexc(3y)5.7%
ROICexc(5y)5.13%
ROICexgc(3y)40.1%
ROICexgc(5y)34.22%
ROCE(3y)7.57%
ROCE(5y)6.85%
ROICexcg growth 3Y34.27%
ROICexcg growth 5Y-5.74%
ROICexc growth 3Y14.02%
ROICexc growth 5Y12.75%
OM growth 3Y1.02%
OM growth 5Y4.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.24%
GM growth 5Y-0.44%
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.69 | ||
| Debt/EBITDA | 6.84 | ||
| Cap/Depr | 30.43% | ||
| Cap/Sales | 3.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.2 |
F-Score5
WACC6.75%
ROIC/WACC0.89
Cap/Depr(3y)22.53%
Cap/Depr(5y)20.55%
Cap/Sales(3y)3.31%
Cap/Sales(5y)3.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.01%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%0%
EPS Next Y20.4%
EPS Next 2Y11.09%
EPS Next 3Y15.37%
EPS Next 5Y1.24%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%4.92%
Revenue Next Year3.06%
Revenue Next 2Y4.04%
Revenue Next 3Y3.02%
Revenue Next 5Y-0.38%
EBIT growth 1Y10.77%
EBIT growth 3Y5.56%
EBIT growth 5Y6.8%
EBIT Next Year13.62%
EBIT Next 3Y9.06%
EBIT Next 5Y-0.57%
FCF growth 1Y257.31%
FCF growth 3Y3.22%
FCF growth 5Y0.55%
OCF growth 1Y412.52%
OCF growth 3Y3.85%
OCF growth 5Y1.25%