Logo image of BHC

BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis

NYSE:BHC - New York Stock Exchange, Inc. - CA0717341071 - Common Stock - Currency: USD

6.295  -0.07 (-1.02%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to BHC. BHC was compared to 195 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on BHC.


Dividend Valuation Growth Profitability Health

Quickly go to:

5

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.
In the past 5 years BHC always reported negative net income.
Of the past 5 years BHC 4 years had a positive operating cash flow.
BHC Yearly Net Income VS EBIT VS OCF VS FCFBHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B -4B

1.2 Ratios

BHC has a better Return On Assets (-0.67%) than 81.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.27%, BHC belongs to the top of the industry, outperforming 84.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BHC is significantly below the industry average of 43.82%.
The last Return On Invested Capital (6.27%) for BHC is above the 3 year average (5.24%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -0.67%
ROE N/A
ROIC 6.27%
ROA(3y)-2.1%
ROA(5y)-2.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.24%
ROIC(5y)4.7%
BHC Yearly ROA, ROE, ROICBHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200 400 600 800

1.3 Margins

With an excellent Operating Margin value of 18.46%, BHC belongs to the best of the industry, outperforming 85.48% of the companies in the same industry.
In the last couple of years the Operating Margin of BHC has grown nicely.
BHC's Gross Margin of 70.87% is fine compared to the rest of the industry. BHC outperforms 76.88% 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 RankSector Rank
OM 18.46%
PM (TTM) N/A
GM 70.87%
OM growth 3Y3.74%
OM growth 5Y25.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y-0.33%
BHC Yearly Profit, Operating, Gross MarginsBHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60

More info and screens

2

2. Health

2.1 Basic Checks

BHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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 a worse debt to assets ratio.
BHC Yearly Shares OutstandingBHC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
BHC Yearly Total Debt VS Total AssetsBHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.2 Solvency

Based on the Altman-Z score of 0.14, we must say that BHC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.14, BHC perfoms like the industry average, outperforming 55.38% of the companies in the same industry.
The Debt to FCF ratio of BHC is 21.32, which is on the high side as it means it would take BHC, 21.32 years of fcf income to pay off all of its debts.
BHC's Debt to FCF ratio of 21.32 is amongst the best of the industry. BHC outperforms 80.11% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 21.32
Altman-Z 0.14
ROIC/WACC0.96
WACC6.5%
BHC Yearly LT Debt VS Equity VS FCFBHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B 20B 30B

2.3 Liquidity

A Current Ratio of 1.19 indicates that BHC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.19, BHC is not doing good in the industry: 82.80% of the companies in the same industry are doing better.
BHC has a Quick Ratio of 1.19. 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 0.82, BHC is doing worse than 84.95% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.82
BHC Yearly Current Assets VS Current LiabilitesBHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

More info and screens

5

3. Growth

3.1 Past

BHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.21%, which is quite good.
Measured over the past years, BHC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.43% on average per year.
BHC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.91%.
Measured over the past years, BHC shows a small growth in Revenue. The Revenue has been growing by 0.88% on average per year.
EPS 1Y (TTM)11.21%
EPS 3Y-4.18%
EPS 5Y-2.43%
EPS Q2Q%10.78%
Revenue 1Y (TTM)10.91%
Revenue growth 3Y2.94%
Revenue growth 5Y0.88%
Sales Q2Q%12.15%

3.2 Future

BHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.15% yearly.
BHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.98% yearly.
EPS Next Y9.43%
EPS Next 2Y13.09%
EPS Next 3Y14.63%
EPS Next 5Y1.15%
Revenue Next Year11.48%
Revenue Next 2Y7.5%
Revenue Next 3Y5.87%
Revenue Next 5Y1.98%

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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
BHC Yearly Revenue VS EstimatesBHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B 10B
BHC Yearly EPS VS EstimatesBHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

More info and screens

9

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 1.67 indicates a rather cheap valuation of BHC.
BHC's Price/Earnings ratio is rather cheap when compared to the industry. BHC is cheaper than 99.46% of the companies in the same industry.
BHC is valuated cheaply when we compare the Price/Earnings ratio to 28.99, which is the current average of the S&P500 Index.
BHC is valuated cheaply with a Price/Forward Earnings ratio of 1.40.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BHC indicates a rather cheap valuation: BHC is cheaper than 99.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 96.58, BHC is valued rather cheaply.
Industry RankSector Rank
PE 1.67
Fwd PE 1.4
BHC Price Earnings VS Forward Price EarningsBHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

BHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHC is cheaper than 90.86% 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 99.46% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 2.29
EV/EBITDA 7.61
BHC Per share dataBHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 -40

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 14.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y13.09%
EPS Next 3Y14.63%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for BHC!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

BAUSCH HEALTH COS INC

NYSE:BHC (2/13/2025, 11:57:45 AM)

6.295

-0.07 (-1.02%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)02-19 2025-02-19/amc
Inst Owners78.11%
Inst Owner Change-32.51%
Ins Owners11.32%
Ins Owner Change3.06%
Market Cap2.32B
Analysts48.89
Price Target7.28 (15.65%)
Short Float %2.57%
Short Ratio3.64
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend1.55
Dividend Growth(5Y)25.36%
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.2%
Min EPS beat(2)0.45%
Max EPS beat(2)5.95%
EPS beat(4)3
Avg EPS beat(4)0.64%
Min EPS beat(4)-17.22%
Max EPS beat(4)13.36%
EPS beat(8)6
Avg EPS beat(8)0.77%
EPS beat(12)7
Avg EPS beat(12)-5.08%
EPS beat(16)10
Avg EPS beat(16)-1.83%
Revenue beat(2)2
Avg Revenue beat(2)2.18%
Min Revenue beat(2)1.69%
Max Revenue beat(2)2.66%
Revenue beat(4)3
Avg Revenue beat(4)1.74%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)3.7%
Revenue beat(8)6
Avg Revenue beat(8)1.67%
Revenue beat(12)6
Avg Revenue beat(12)-0.09%
Revenue beat(16)7
Avg Revenue beat(16)-0.47%
PT rev (1m)-0.18%
PT rev (3m)9.42%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)7.07%
EPS NY rev (1m)0.07%
EPS NY rev (3m)3.06%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.99%
Valuation
Industry RankSector Rank
PE 1.67
Fwd PE 1.4
P/S 0.24
P/FCF 2.29
P/OCF 1.67
P/B N/A
P/tB N/A
EV/EBITDA 7.61
EPS(TTM)3.77
EY59.89%
EPS(NY)4.49
Fwd EY71.32%
FCF(TTM)2.74
FCFY43.58%
OCF(TTM)3.77
OCFY59.86%
SpS25.76
BVpS-3.19
TBVpS-48.93
PEG (NY)0.18
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.67%
ROE N/A
ROCE 7.94%
ROIC 6.27%
ROICexc 6.48%
ROICexgc 30.76%
OM 18.46%
PM (TTM) N/A
GM 70.87%
FCFM 10.65%
ROA(3y)-2.1%
ROA(5y)-2.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.24%
ROIC(5y)4.7%
ROICexc(3y)5.41%
ROICexc(5y)4.92%
ROICexgc(3y)29.32%
ROICexgc(5y)42.71%
ROCE(3y)6.63%
ROCE(5y)5.94%
ROICexcg growth 3Y4.59%
ROICexcg growth 5Y14.93%
ROICexc growth 3Y12.27%
ROICexc growth 5Y32.28%
OM growth 3Y3.74%
OM growth 5Y25.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y-0.33%
F-Score6
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 21.32
Debt/EBITDA 6.93
Cap/Depr 29.25%
Cap/Sales 3.98%
Interest Coverage 250
Cash Conversion 45.62%
Profit Quality N/A
Current Ratio 1.19
Quick Ratio 0.82
Altman-Z 0.14
F-Score6
WACC6.5%
ROIC/WACC0.96
Cap/Depr(3y)19.66%
Cap/Depr(5y)17.86%
Cap/Sales(3y)3.25%
Cap/Sales(5y)3.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.21%
EPS 3Y-4.18%
EPS 5Y-2.43%
EPS Q2Q%10.78%
EPS Next Y9.43%
EPS Next 2Y13.09%
EPS Next 3Y14.63%
EPS Next 5Y1.15%
Revenue 1Y (TTM)10.91%
Revenue growth 3Y2.94%
Revenue growth 5Y0.88%
Sales Q2Q%12.15%
Revenue Next Year11.48%
Revenue Next 2Y7.5%
Revenue Next 3Y5.87%
Revenue Next 5Y1.98%
EBIT growth 1Y15.52%
EBIT growth 3Y6.79%
EBIT growth 5Y26.23%
EBIT Next Year18.34%
EBIT Next 3Y10.27%
EBIT Next 5Y1.75%
FCF growth 1Y170.36%
FCF growth 3Y-1.78%
FCF growth 5Y-9.7%
OCF growth 1Y217.56%
OCF growth 3Y-2.43%
OCF growth 5Y-7.22%