BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHC - CA0717341071 - Common Stock
7.63 USD
+0.23 (+3.11%)
7.68 USD
+0.05 (+0.66%)
Taking everything into account, BHC scores 4 out of 10 in our fundamental rating. BHC was compared to 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 cheap, but on the other hand it scores bad on growth.
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 (1.35%) is better than 80.10% of its industry peers.
BHC has a better Return On Invested Capital (7.44%) than 84.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
BHC's Profit Margin of 3.61% is amongst the best of the industry. BHC outperforms 80.10% of its industry peers.
Looking at the Operating Margin, with a value of 20.68%, BHC belongs to the top of the industry, outperforming 87.43% 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 70.67% is fine compared to the rest 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
BHC has a better debt/assets ratio than last year.
2.2 Solvency
BHC has an Altman-Z score of 0.26. 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 (0.26) which is in line with its industry peers.
BHC has a debt to FCF ratio of 19.41. This is a negative value and a sign of low solvency as BHC would need 19.41 years to pay back of 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 75.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.41 | ||
| Altman-Z | 0.26 |
ROIC/WACC1.06
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.30 indicates that BHC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.30, BHC is not doing good in the industry: 76.96% of the companies in the same industry are doing better.
A Quick Ratio of 0.97 indicates that BHC may have some problems paying 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.
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
The Earnings Per Share is expected to decrease by -3.58% on average over the next years.
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.
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
BHC is valuated cheaply with a Price/Earnings ratio of 2.00.
Based on the Price/Earnings ratio, BHC is valued cheaper than 98.43% of the companies in the same industry.
BHC is valuated cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 1.78, which indicates a rather cheap valuation of BHC.
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 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2 | ||
| Fwd PE | 1.78 |
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 cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.61 | ||
| EV/EBITDA | 6.81 |
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 2Y6.63%
EPS Next 3Y-1.71%
5. Dividend
5.1 Amount
No dividends for BHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
7.63
+0.23 (+3.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners45.78%
Inst Owner Change0%
Ins Owners10.79%
Ins Owner Change0.47%
Market Cap2.83B
Revenue(TTM)10.03B
Net Income(TTM)362.00M
Analysts48.89
Price Target7.39 (-3.15%)
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)1.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.56%
EPS NY rev (1m)0%
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 | 2 | ||
| Fwd PE | 1.78 | ||
| P/S | 0.28 | ||
| P/FCF | 2.61 | ||
| P/OCF | 1.88 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.81 |
EPS(TTM)3.82
EY50.07%
EPS(NY)4.29
Fwd EY56.18%
FCF(TTM)2.92
FCFY38.31%
OCF(TTM)4.06
OCFY53.22%
SpS27.04
BVpS-1.52
TBVpS-44.98
PEG (NY)0.38
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 | 0.26 |
F-Score7
WACC7.01%
ROIC/WACC1.06
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.