Taking everything into account, BHC scores 4 out of 10 in our fundamental rating. BHC was compared to 190 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 has a bad growth rate and is valued cheaply.

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.
Of the past 5 years BHC 4 years had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 1.35%, BHC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
BHC has a Return On Invested Capital of 7.44%. This is amongst the best in the industry. BHC outperforms 84.74% 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 12.83%.
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 in the better half of the industry: BHC outperforms 80.00% of its industry peers.
Looking at the Operating Margin, with a value of 20.68%, BHC belongs to the top of the industry, outperforming 87.37% 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 77.89% 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.
The number of shares outstanding for BHC has been increased compared to 1 year ago.
BHC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BHC has been reduced compared to a year ago.

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.
BHC has a Debt to FCF ratio of 19.41. This is in the better half of the industry: BHC outperforms 76.32% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	19.41
Altman-Z	0.24

ROIC/WACC1.09

WACC6.81%

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 worse Current ratio (1.30) than 76.84% of its industry peers.
A Quick Ratio of 0.97 indicates that BHC may have some problems paying its short term obligations.
BHC's Quick ratio of 0.97 is on the low side compared to the rest of the industry. BHC is outperformed by 78.42% 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.
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.
The Revenue has been growing slightly by 2.28% on average over the past years.

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.
Based on estimates for the next years, BHC will show a decrease in Revenue. The Revenue will decrease by -0.40% on average per year.

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-0.4%

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

With a Price/Earnings ratio of 1.52, the valuation of BHC can be described as very cheap.
98.95% of the companies in the same industry are more expensive than BHC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BHC to the average of the S&P500 Index (27.25), we can say BHC is valued rather cheaply.
With a Price/Forward Earnings ratio of 1.35, the valuation of BHC can be described as very cheap.
Based on the Price/Forward Earnings ratio, BHC is valued cheaply inside the industry as 98.95% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BHC to the average of the S&P500 Index (25.98), we can say BHC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	1.52
Fwd PE	1.35

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BHC is valued cheaper than 93.68% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BHC indicates a rather cheap valuation: BHC is cheaper than 100.00% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	1.98
EV/EBITDA	6.65

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.
The decent profitability rating of BHC may justify a higher PE ratio.