BAUSCH HEALTH COS INC (BHC) Fundamental Analysis & Valuation
NYSE:BHC • CA0717341071
Current stock price
5.72 USD
+0.13 (+2.33%)
At close:
5.75 USD
+0.03 (+0.52%)
After Hours:
This BHC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. BHC Profitability Analysis
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 4 of the past 5 years.
- BHC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of BHC (0.60%) is better than 80.63% of its industry peers.
- BHC has a better Return On Invested Capital (7.78%) than 86.39% 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 13.07%.
- The last Return On Invested Capital (7.78%) for BHC is above the 3 year average (6.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | N/A | ||
| ROIC | 7.78% |
ROA(3y)-0.58%
ROA(5y)-1.17%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.89%
ROIC(5y)6.18%
1.3 Margins
- BHC has a Profit Margin of 1.53%. This is amongst the best in the industry. BHC outperforms 80.63% of its industry peers.
- BHC's Operating Margin of 21.28% is amongst the best of the industry. BHC outperforms 88.48% of its industry peers.
- In the last couple of years the Operating Margin of BHC has grown nicely.
- Looking at the Gross Margin, with a value of 70.65%, BHC is in the better half of the industry, outperforming 77.49% 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 | 21.28% | ||
| PM (TTM) | 1.53% | ||
| GM | 70.65% |
OM growth 3Y7.55%
OM growth 5Y5.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.12%
GM growth 5Y-0.37%
2. BHC Health Analysis
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.
- Compared to 1 year ago, BHC has more shares outstanding
- The number of shares outstanding for BHC has been increased compared to 5 years ago.
- The debt/assets ratio for BHC has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.29, we must say that BHC is in the distress zone and has some risk of bankruptcy.
- BHC has a Altman-Z score of 0.29. This is comparable to the rest of the industry: BHC outperforms 46.07% of its industry peers.
- BHC has a debt to FCF ratio of 21.00. This is a negative value and a sign of low solvency as BHC would need 21.00 years to pay back of all of its debts.
- BHC's Debt to FCF ratio of 21.00 is fine compared to the rest of the industry. BHC outperforms 75.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 21 | ||
| Altman-Z | 0.29 |
ROIC/WACC1.19
WACC6.56%
2.3 Liquidity
- A Current Ratio of 1.47 indicates that BHC should not have too much problems paying its short term obligations.
- BHC's Current ratio of 1.47 is on the low side compared to the rest of the industry. BHC is outperformed by 76.44% of its industry peers.
- BHC has a Quick Ratio of 1.08. 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 Quick ratio value of 1.08, BHC is not doing good in the industry: 79.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.08 |
3. BHC Growth Analysis
3.1 Past
- BHC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.77%.
- Measured over the past years, BHC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.13% on average per year.
- The Revenue has been growing slightly by 6.66% in the past year.
- BHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.04% yearly.
EPS 1Y (TTM)4.77%
EPS 3Y6.97%
EPS 5Y-1.13%
EPS Q2Q%30%
Revenue 1Y (TTM)6.66%
Revenue growth 3Y8.11%
Revenue growth 5Y5.04%
Sales Q2Q%11.73%
3.2 Future
- Based on estimates for the next years, BHC will show a decrease in Earnings Per Share. The EPS will decrease by -1.04% on average per year.
- BHC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.80% yearly.
EPS Next Y21.76%
EPS Next 2Y6.99%
EPS Next 3Y-5.25%
EPS Next 5Y-1.04%
Revenue Next Year4.48%
Revenue Next 2Y2.16%
Revenue Next 3Y-2.16%
Revenue Next 5Y-0.8%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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. BHC Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 1.45, the valuation of BHC can be described as very cheap.
- Based on the Price/Earnings ratio, BHC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- BHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.77.
- With a Price/Forward Earnings ratio of 1.33, 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 99.48% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of BHC to the average of the S&P500 Index (21.75), we can say BHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.45 | ||
| Fwd PE | 1.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BHC is valued cheaply inside the industry as 95.81% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BHC indicates a rather cheap valuation: BHC is cheaper than 99.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.15 | ||
| EV/EBITDA | 6.37 |
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.
- A cheap valuation may be justified as BHC's earnings are expected to decrease with -5.25% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y6.99%
EPS Next 3Y-5.25%
5. BHC Dividend Analysis
5.1 Amount
- No dividends for BHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BHC Fundamentals: All Metrics, Ratios and Statistics
5.72
+0.13 (+2.33%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Industry Strength30.71
Industry Growth47.76
Earnings (Last)04-29 2026-04-29/amc
Earnings (Next)07-28 2026-07-28
Inst Owners44.98%
Inst Owner Change0.1%
Ins Owners11.09%
Ins Owner Change10.2%
Market Cap2.14B
Revenue(TTM)10.27B
Net Income(TTM)157.00M
Analysts48.89
Price Target7.51 (31.29%)
Short Float %1.92%
Short Ratio3.37
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)-5.64%
Min EPS beat(2)-13.87%
Max EPS beat(2)2.59%
EPS beat(4)1
Avg EPS beat(4)-10.87%
Min EPS beat(4)-25.13%
Max EPS beat(4)2.59%
EPS beat(8)3
Avg EPS beat(8)-7.33%
EPS beat(12)6
Avg EPS beat(12)-4.52%
EPS beat(16)7
Avg EPS beat(16)-7.67%
Revenue beat(2)2
Avg Revenue beat(2)1.43%
Min Revenue beat(2)0.64%
Max Revenue beat(2)2.23%
Revenue beat(4)3
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)2.23%
Revenue beat(8)6
Avg Revenue beat(8)0.66%
Revenue beat(12)9
Avg Revenue beat(12)1.15%
Revenue beat(16)10
Avg Revenue beat(16)0.16%
PT rev (1m)-0.47%
PT rev (3m)0.57%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-7.05%
EPS NY rev (1m)5.29%
EPS NY rev (3m)7.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.45 | ||
| Fwd PE | 1.33 | ||
| P/S | 0.21 | ||
| P/FCF | 2.15 | ||
| P/OCF | 1.53 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.37 |
EPS(TTM)3.95
EY69.06%
EPS(NY)4.32
Fwd EY75.44%
FCF(TTM)2.66
FCFY46.48%
OCF(TTM)3.75
OCFY65.54%
SpS27.49
BVpS-1.48
TBVpS-44.1
PEG (NY)0.07
PEG (5Y)N/A
Graham Number0 (-100%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | N/A | ||
| ROCE | 9.85% | ||
| ROIC | 7.78% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 34.78% | ||
| OM | 21.28% | ||
| PM (TTM) | 1.53% | ||
| GM | 70.65% | ||
| FCFM | 9.67% |
ROA(3y)-0.58%
ROA(5y)-1.17%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.89%
ROIC(5y)6.18%
ROICexc(3y)7.29%
ROICexc(5y)6.47%
ROICexgc(3y)46.04%
ROICexgc(5y)39.55%
ROCE(3y)8.72%
ROCE(5y)7.82%
ROICexgc growth 3Y6.69%
ROICexgc growth 5Y7.05%
ROICexc growth 3Y16.83%
ROICexc growth 5Y15.41%
OM growth 3Y7.55%
OM growth 5Y5.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.12%
GM growth 5Y-0.37%
F-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 21 | ||
| Debt/EBITDA | 6.08 | ||
| Cap/Depr | 33.69% | ||
| Cap/Sales | 3.96% | ||
| Interest Coverage | 1.42 | ||
| Cash Conversion | 41.26% | ||
| Profit Quality | 632.48% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 0.29 |
F-Score6
WACC6.56%
ROIC/WACC1.19
Cap/Depr(3y)27.35%
Cap/Depr(5y)23.9%
Cap/Sales(3y)3.53%
Cap/Sales(5y)3.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.77%
EPS 3Y6.97%
EPS 5Y-1.13%
EPS Q2Q%30%
EPS Next Y21.76%
EPS Next 2Y6.99%
EPS Next 3Y-5.25%
EPS Next 5Y-1.04%
Revenue 1Y (TTM)6.66%
Revenue growth 3Y8.11%
Revenue growth 5Y5.04%
Sales Q2Q%11.73%
Revenue Next Year4.48%
Revenue Next 2Y2.16%
Revenue Next 3Y-2.16%
Revenue Next 5Y-0.8%
EBIT growth 1Y17.85%
EBIT growth 3Y16.27%
EBIT growth 5Y10.72%
EBIT Next Year34.28%
EBIT Next 3Y-2.01%
EBIT Next 5Y1.3%
FCF growth 1Y-21%
FCF growth 3YN/A
FCF growth 5Y4.37%
OCF growth 1Y-12.34%
OCF growth 3YN/A
OCF growth 5Y4.73%
BAUSCH HEALTH COS INC / BHC Fundamental Analysis FAQ
What is the ChartMill fundamental rating of BAUSCH HEALTH COS INC (BHC) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BHC.
What is the valuation status of BAUSCH HEALTH COS INC (BHC) stock?
ChartMill assigns a valuation rating of 9 / 10 to BAUSCH HEALTH COS INC (BHC). This can be considered as Undervalued.
What is the profitability of BHC stock?
BAUSCH HEALTH COS INC (BHC) has a profitability rating of 6 / 10.
How financially healthy is BAUSCH HEALTH COS INC?
The financial health rating of BAUSCH HEALTH COS INC (BHC) is 3 / 10.
What is the earnings growth outlook for BAUSCH HEALTH COS INC?
The Earnings per Share (EPS) of BAUSCH HEALTH COS INC (BHC) is expected to grow by 21.76% in the next year.