BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis
USA - NYSE:BHC - CA0717341071 - Common Stock
7.18 USD
-0.08 (-1.1%)
7.05 USD
-0.13 (-1.81%)
Overall BHC gets a fundamental rating of 4 out of 10. We evaluated BHC against 196 industry peers in the Pharmaceuticals industry. BHC has a medium profitability rating, but doesn't score so well on its financial health evaluation. BHC has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year BHC was profitable.
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
The Return On Assets of BHC (0.36%) is better than 80.10% of its industry peers.
BHC's Return On Invested Capital of 6.68% is amongst the best of the industry. BHC outperforms 83.67% 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 15.28%.
The last Return On Invested Capital (6.68%) for BHC is above the 3 year average (5.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.36% | ||
| ROE | N/A | ||
| ROIC | 6.68% |
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
The Profit Margin of BHC (0.99%) is better than 80.10% of its industry peers.
BHC has a Operating Margin of 19.13%. This is amongst the best in the industry. BHC outperforms 87.76% of its industry peers.
In the last couple of years the Operating Margin of BHC has grown nicely.
With a decent Gross Margin value of 70.70%, BHC is doing good in the industry, outperforming 78.06% of the companies in the same industry.
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 | 19.13% | ||
| PM (TTM) | 0.99% | ||
| GM | 70.7% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BHC is destroying value.
Compared to 1 year ago, BHC has more shares outstanding
Compared to 5 years ago, BHC has more shares outstanding
BHC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that BHC is in the distress zone and has some risk of bankruptcy.
BHC's Altman-Z score of 0.21 is in line compared to the rest of the industry. BHC outperforms 54.59% of its industry peers.
The Debt to FCF ratio of BHC is 19.69, which is on the high side as it means it would take BHC, 19.69 years of fcf income to pay off all of its debts.
BHC has a better Debt to FCF ratio (19.69) than 76.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.69 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.96
WACC6.99%
2.3 Liquidity
BHC has a Current Ratio of 1.31. This is a normal value and indicates that BHC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.31, BHC is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
BHC has a Quick Ratio of 1.31. 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 0.98. This is in the lower half of the industry: BHC underperforms 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.55% 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.
Looking at the last year, BHC shows a small growth in Revenue. The Revenue has grown by 7.13% in the last year.
The Revenue has been growing slightly by 2.28% on average over the past years.
EPS 1Y (TTM)3.55%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%2.25%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%5.29%
3.2 Future
The Earnings Per Share is expected to decrease by -0.15% on average over the next years.
The Revenue is expected to decrease by -0.19% on average over the next years.
EPS Next Y5.02%
EPS Next 2Y7.99%
EPS Next 3Y11.04%
EPS Next 5Y-0.15%
Revenue Next Year5.61%
Revenue Next 2Y4.68%
Revenue Next 3Y3.21%
Revenue Next 5Y-0.19%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 1.89 indicates a rather cheap valuation of BHC.
BHC's Price/Earnings ratio is rather cheap when compared to the industry. BHC is cheaper than 98.47% of the companies in the same industry.
BHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.27.
With a Price/Forward Earnings ratio of 1.63, 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 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, BHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.89 | ||
| Fwd PE | 1.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BHC indicates a rather cheap valuation: BHC is cheaper than 93.37% of the companies listed 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 | 2.41 | ||
| EV/EBITDA | 7.25 |
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.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y7.99%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
No dividends for BHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.18
-0.08 (-1.1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners58.71%
Inst Owner Change7.38%
Ins Owners11.02%
Ins Owner Change5.74%
Market Cap2.66B
Analysts48.89
Price Target7.37 (2.65%)
Short Float %2.56%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0
Avg EPS beat(2)-16.1%
Min EPS beat(2)-25.13%
Max EPS beat(2)-7.07%
EPS beat(4)1
Avg EPS beat(4)-7.65%
Min EPS beat(4)-25.13%
Max EPS beat(4)5.95%
EPS beat(8)4
Avg EPS beat(8)-2.65%
EPS beat(12)6
Avg EPS beat(12)-3.66%
EPS beat(16)8
Avg EPS beat(16)-5.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)0.36%
Revenue beat(4)3
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)2.66%
Revenue beat(8)6
Avg Revenue beat(8)1.15%
Revenue beat(12)8
Avg Revenue beat(12)0.91%
Revenue beat(16)8
Avg Revenue beat(16)-0.3%
PT rev (1m)-1.43%
PT rev (3m)-0.85%
EPS NQ rev (1m)-4.29%
EPS NQ rev (3m)-12.86%
EPS NY rev (1m)-12.77%
EPS NY rev (3m)-12.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.89 | ||
| Fwd PE | 1.63 | ||
| P/S | 0.27 | ||
| P/FCF | 2.41 | ||
| P/OCF | 1.76 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.25 |
EPS(TTM)3.79
EY52.79%
EPS(NY)4.4
Fwd EY61.24%
FCF(TTM)2.99
FCFY41.58%
OCF(TTM)4.07
OCFY56.72%
SpS26.66
BVpS-2.07
TBVpS-46.27
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.36% | ||
| ROE | N/A | ||
| ROCE | 8.46% | ||
| ROIC | 6.68% | ||
| ROICexc | 7.25% | ||
| ROICexgc | 35.32% | ||
| OM | 19.13% | ||
| PM (TTM) | 0.99% | ||
| GM | 70.7% | ||
| FCFM | 11.2% |
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%
ROICexcg growth 3Y34.27%
ROICexcg 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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.69 | ||
| Debt/EBITDA | 6.67 | ||
| Cap/Depr | 32.39% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.16% | ||
| Profit Quality | 1126.53% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 0.21 |
F-Score7
WACC6.99%
ROIC/WACC0.96
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)3.55%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%2.25%
EPS Next Y5.02%
EPS Next 2Y7.99%
EPS Next 3Y11.04%
EPS Next 5Y-0.15%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%5.29%
Revenue Next Year5.61%
Revenue Next 2Y4.68%
Revenue Next 3Y3.21%
Revenue Next 5Y-0.19%
EBIT growth 1Y10.04%
EBIT growth 3Y5.56%
EBIT growth 5Y6.8%
EBIT Next Year13.62%
EBIT Next 3Y9.06%
EBIT Next 5Y-0.22%
FCF growth 1Y266.02%
FCF growth 3Y3.22%
FCF growth 5Y0.55%
OCF growth 1Y451.87%
OCF growth 3Y3.85%
OCF growth 5Y1.25%