BHC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 191 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

BHC had positive earnings in the past year.
BHC had a positive operating cash flow in the past year.
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

BHC has a Return On Assets of 1.35%. This is amongst the best in the industry. BHC outperforms 80.10% of its industry peers.
The Return On Invested Capital of BHC (7.44%) is better than 84.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHC is significantly below the industry average of 12.84%.
The 3 year average ROIC (5.98%) for BHC is below the current ROIC(7.44%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	1.35%
ROE	N/A
ROIC	7.44%

ROA(3y)-1.07%

ROA(5y)-1.65%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)5.98%

ROIC(5y)5.41%

1.3 Margins

Looking at the Profit Margin, with a value of 3.61%, BHC belongs to the top of the industry, outperforming 80.10% of the companies in the same industry.
With an excellent Operating Margin value of 20.68%, BHC belongs to the best of the industry, outperforming 87.43% of the companies in the same industry.
BHC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 70.67%, BHC is doing good in the industry, outperforming 78.01% of the companies in the same industry.
BHC's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	20.68%
PM (TTM)	3.61%
GM	70.67%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BHC is creating some value.
BHC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BHC has more shares outstanding
Compared to 1 year ago, BHC has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.25, we must say that BHC is in the distress zone and has some risk of bankruptcy.
BHC's Altman-Z score of 0.25 is in line compared to the rest of the industry. BHC outperforms 46.07% of its industry peers.
The Debt to FCF ratio of BHC is 19.41, which is on the high side as it means it would take BHC, 19.41 years of fcf income to pay off all of its debts.
BHC's Debt to FCF ratio of 19.41 is fine compared to the rest of the industry. BHC outperforms 76.44% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	19.41
Altman-Z	0.25

ROIC/WACC1.08

WACC6.91%

2.3 Liquidity

BHC has a Current Ratio of 1.30. This is a normal value and indicates that BHC is financially healthy and should not expect problems in meeting its short term obligations.
BHC's Current ratio of 1.30 is on the low side compared to the rest of the industry. BHC is outperformed by 76.96% of its industry peers.
A Quick Ratio of 0.97 indicates that BHC may have some problems paying its short term obligations.
BHC has a worse Quick ratio (0.97) than 78.53% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.3
Quick Ratio	0.97

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.33% over the past year.
The Earnings Per Share has been decreasing by -2.91% on average over the past years.
The Revenue has been growing slightly by 5.86% in the past 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)1.33%

EPS 3Y-5.37%

EPS 5Y-2.91%

EPS Q2Q%2.65%

Revenue 1Y (TTM)5.86%

Revenue growth 3Y4.5%

Revenue growth 5Y2.28%

Sales Q2Q%6.81%

3.2 Future

The Earnings Per Share is expected to decrease by -3.58% on average over the next years.
BHC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.40% yearly.

EPS Next Y5.32%

EPS Next 2Y6.63%

EPS Next 3Y-1.71%

EPS Next 5Y-3.58%

Revenue Next Year6.13%

Revenue Next 2Y5.11%

Revenue Next 3Y3.03%

Revenue Next 5Y-0.4%

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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 1.72 indicates a rather cheap valuation of BHC.
Based on the Price/Earnings ratio, BHC is valued cheaper than 98.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of BHC to the average of the S&P500 Index (27.32), we can say BHC is valued rather cheaply.
The Price/Forward Earnings ratio is 1.53, which indicates a rather cheap valuation of BHC.
BHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. BHC is cheaper than 99.48% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.32. BHC is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	1.72
Fwd PE	1.53

4.2 Price Multiples

BHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHC is cheaper than 93.72% of the companies 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	2.25
EV/EBITDA	6.72

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 has a very decent profitability rating, which may justify a higher PE ratio.