BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis
NYSE:BHC • CA0717341071
6.08 USD
+0.09 (+1.5%)
Last: Feb 18, 2026, 01:55 PM
BHC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 191 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
- BHC had positive earnings in the past year.
- 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
- BHC's Return On Assets of 1.35% is amongst the best of the industry. BHC outperforms 80.63% of its industry peers.
- The Return On Invested Capital of BHC (7.44%) is better than 85.34% of its industry peers.
- BHC had an Average Return On Invested Capital over the past 3 years of 5.98%. This is significantly below the industry average of 12.64%.
- 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
- BHC has a Profit Margin of 3.61%. This is amongst the best in the industry. BHC outperforms 80.63% of its industry peers.
- BHC's Operating Margin of 20.68% is amongst the best of the industry. BHC outperforms 87.96% of its industry peers.
- In the last couple of years the Operating Margin of BHC has grown nicely.
- BHC has a Gross Margin of 70.67%. This is in the better half of the industry: BHC outperforms 78.01% 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 | 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%
2. Health
2.1 Basic Checks
- BHC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
- BHC has an Altman-Z score of 0.24. This is a bad value and indicates that BHC is not financially healthy and even has some risk of bankruptcy.
- BHC has a Altman-Z score (0.24) which is in line with 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.
- With a decent Debt to FCF ratio value of 19.41, BHC is doing good in the industry, outperforming 75.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.41 | ||
| Altman-Z | 0.24 |
ROIC/WACC1.09
WACC6.84%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that BHC should not have too much problems paying its short term obligations.
- BHC has a Current ratio of 1.30. This is in the lower half of the industry: BHC underperforms 76.44% of its industry peers.
- BHC has a Quick Ratio of 1.30. This is a bad value and indicates that BHC is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.97, BHC is doing worse than 78.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| 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 1.33%.
- BHC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.91% yearly.
- Looking at the last year, BHC shows a small growth in Revenue. The Revenue has grown by 5.86% in the last year.
- Measured over the past years, BHC shows a small growth in Revenue. The Revenue has been growing by 2.28% on average per year.
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
- Based on estimates for the next years, BHC will show a decrease in Earnings Per Share. The EPS will decrease by -3.58% on average per year.
- The Revenue is expected to decrease by -0.45% on average over the next years.
EPS Next Y5.12%
EPS Next 2Y6.66%
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-0.45%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- Based on the Price/Earnings ratio of 1.59, the valuation of BHC can be described as very cheap.
- Based on the Price/Earnings ratio, BHC is valued cheaper than 99.48% of the companies in the same industry.
- When comparing the Price/Earnings ratio of BHC to the average of the S&P500 Index (27.16), we can say BHC is valued rather cheaply.
- BHC is valuated cheaply with a Price/Forward Earnings ratio of 1.42.
- BHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. BHC is cheaper than 98.95% of the companies in the same industry.
- BHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.59 | ||
| Fwd PE | 1.42 |
4.2 Price Multiples
- BHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHC is cheaper than 94.76% of the companies in the same industry.
- 99.48% of the companies in the same industry are more expensive than BHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.08 | ||
| EV/EBITDA | 6.66 |
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.
- BHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y6.66%
EPS Next 3Y-1.71%
5. Dividend
5.1 Amount
- No dividends for BHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:BHC (2/18/2026, 1:55:05 PM)
6.08
+0.09 (+1.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners45.78%
Inst Owner Change-1.43%
Ins Owners10.79%
Ins Owner Change11.53%
Market Cap2.25B
Revenue(TTM)10.03B
Net Income(TTM)362.00M
Analysts48.89
Price Target7.45 (22.53%)
Short Float %1.66%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)-2.24%
Min EPS beat(2)-7.07%
Max EPS beat(2)2.59%
EPS beat(4)1
Avg EPS beat(4)-8.49%
Min EPS beat(4)-25.13%
Max EPS beat(4)2.59%
EPS beat(8)4
Avg EPS beat(8)-3.92%
EPS beat(12)7
Avg EPS beat(12)-2.32%
EPS beat(16)8
Avg EPS beat(16)-5.93%
Revenue beat(2)2
Avg Revenue beat(2)0.5%
Min Revenue beat(2)0.36%
Max Revenue beat(2)0.64%
Revenue beat(4)3
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)0.64%
Revenue beat(8)6
Avg Revenue beat(8)0.85%
Revenue beat(12)9
Avg Revenue beat(12)1.1%
Revenue beat(16)9
Avg Revenue beat(16)-0.08%
PT rev (1m)0.7%
PT rev (3m)2.43%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.59 | ||
| Fwd PE | 1.42 | ||
| P/S | 0.22 | ||
| P/FCF | 2.08 | ||
| P/OCF | 1.5 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.66 |
EPS(TTM)3.82
EY62.83%
EPS(NY)4.29
Fwd EY70.55%
FCF(TTM)2.92
FCFY48.08%
OCF(TTM)4.06
OCFY66.79%
SpS27.04
BVpS-1.52
TBVpS-44.98
PEG (NY)0.31
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | N/A | ||
| ROCE | 9.41% | ||
| ROIC | 7.44% | ||
| ROICexc | 7.91% | ||
| ROICexgc | 35.57% | ||
| OM | 20.68% | ||
| PM (TTM) | 3.61% | ||
| GM | 70.67% | ||
| FCFM | 10.81% |
ROA(3y)-1.07%
ROA(5y)-1.65%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.98%
ROIC(5y)5.41%
ROICexc(3y)6.26%
ROICexc(5y)5.63%
ROICexgc(3y)44%
ROICexgc(5y)37.54%
ROCE(3y)7.57%
ROCE(5y)6.85%
ROICexgc growth 3Y34.27%
ROICexgc 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-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.41 | ||
| Debt/EBITDA | 6.2 | ||
| Cap/Depr | 34.45% | ||
| Cap/Sales | 4.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.65% | ||
| Profit Quality | 299.45% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.24 |
F-Score7
WACC6.84%
ROIC/WACC1.09
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)1.33%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%2.65%
EPS Next Y5.12%
EPS Next 2Y6.66%
EPS Next 3Y-1.71%
EPS Next 5Y-3.58%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%6.81%
Revenue Next Year6.13%
Revenue Next 2Y5.11%
Revenue Next 3Y3.03%
Revenue Next 5Y-0.45%
EBIT growth 1Y18.58%
EBIT growth 3Y5.56%
EBIT growth 5Y6.8%
EBIT Next Year16.54%
EBIT Next 3Y4.34%
EBIT Next 5Y-1.3%
FCF growth 1Y21.39%
FCF growth 3Y3.22%
FCF growth 5Y0.55%
OCF growth 1Y34.83%
OCF growth 3Y3.85%
OCF growth 5Y1.25%
BAUSCH HEALTH COS INC / BHC FAQ
What is the ChartMill fundamental rating of BAUSCH HEALTH COS INC (BHC) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BHC.
Can you provide the valuation status for BAUSCH HEALTH COS INC?
ChartMill assigns a valuation rating of 9 / 10 to BAUSCH HEALTH COS INC (BHC). This can be considered as Undervalued.
Can you provide the profitability details for BAUSCH HEALTH COS INC?
BAUSCH HEALTH COS INC (BHC) has a profitability rating of 6 / 10.
Can you provide the financial health for BHC stock?
The financial health rating of BAUSCH HEALTH COS INC (BHC) is 2 / 10.