BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHC - CA0717341071 - Common Stock
7.21 USD
+0.26 (+3.74%)
7.21 USD
0 (0%)
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.
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.
Of the past 5 years BHC 4 years had a positive operating cash flow.
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.
BHC has a better Return On Invested Capital (7.44%) than 84.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BHC is significantly below the industry average of 12.85%.
The last Return On Invested Capital (7.44%) for BHC is above the 3 year average (5.98%), which is a sign of increasing profitability.
| 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.
Looking at the Operating Margin, with a value of 20.68%, BHC belongs to the top 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BHC is still creating some value.
BHC has more shares outstanding than it did 1 year ago.
BHC has more shares outstanding than it did 5 years ago.
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.
Looking at the Altman-Z score, with a value of 0.25, BHC is in line with its industry, outperforming 47.12% of the companies in the same industry.
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.
The Debt to FCF ratio of BHC (19.41) is better than 75.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.41 | ||
| Altman-Z | 0.25 |
ROIC/WACC1.07
WACC6.96%
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 has a Current ratio of 1.30. This is in the lower half of the industry: BHC underperforms 76.96% 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.
BHC has a Quick ratio of 0.97. This is in the lower half of the industry: BHC underperforms 78.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.33% over the past year.
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.
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
BHC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.58% yearly.
The Revenue is expected to decrease by -0.40% on average over the next years.
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
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
The Price/Earnings ratio is 1.89, which indicates a rather cheap valuation of BHC.
Compared to the rest of the industry, the Price/Earnings ratio of BHC indicates a rather cheap valuation: BHC is cheaper than 98.95% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, BHC is valued rather cheaply.
With a Price/Forward Earnings ratio of 1.68, 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.
BHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.89 | ||
| Fwd PE | 1.68 |
4.2 Price Multiples
93.72% of the companies in the same industry are more expensive than BHC, based on the Enterprise Value to EBITDA ratio.
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 | 2.47 | ||
| EV/EBITDA | 6.76 |
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.
The decent profitability rating of BHC may justify a higher PE ratio.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y6.63%
EPS Next 3Y-1.71%
5. Dividend
5.1 Amount
No dividends for BHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
7.21
+0.26 (+3.74%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners45.78%
Inst Owner Change-8.03%
Ins Owners10.79%
Ins Owner Change0.47%
Market Cap2.67B
Revenue(TTM)10.03B
Net Income(TTM)362.00M
Analysts48.89
Price Target7.39 (2.5%)
Short Float %1.97%
Short Ratio2.34
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)1.82%
PT rev (3m)0.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.56%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.89 | ||
| Fwd PE | 1.68 | ||
| P/S | 0.27 | ||
| P/FCF | 2.47 | ||
| P/OCF | 1.78 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.76 |
EPS(TTM)3.82
EY52.98%
EPS(NY)4.29
Fwd EY59.45%
FCF(TTM)2.92
FCFY40.54%
OCF(TTM)4.06
OCFY56.32%
SpS27.04
BVpS-1.52
TBVpS-44.98
PEG (NY)0.35
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 | 0.25 |
F-Score7
WACC6.96%
ROIC/WACC1.07
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 Y5.32%
EPS Next 2Y6.63%
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-0.4%
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.