We assign a fundamental rating of 4 out of 10 to BHC. BHC was compared to 190 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 has a bad growth rate and is valued cheaply.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
BHC had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

BHC has a Return On Assets of 1.35%. This is in the better half of the industry: BHC outperforms 80.00% of its industry peers.
BHC's Return On Invested Capital of 7.44% is amongst the best of the industry. BHC outperforms 84.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHC is significantly below the industry average of 12.83%.
The 3 year average ROIC (5.98%) for BHC is below the current ROIC(7.44%), indicating increased profibility in the last year.

		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

The Profit Margin of BHC (3.61%) is better than 80.00% of its industry peers.
BHC has a better Operating Margin (20.68%) than 87.37% of its industry peers.
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 77.89% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for BHC has been increased compared to 5 years ago.
BHC has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.24, we must say that BHC is in the distress zone and has some risk of bankruptcy.
BHC's Altman-Z score of 0.24 is in line compared to the rest of the industry. BHC outperforms 46.84% of 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.
Looking at the Debt to FCF ratio, with a value of 19.41, BHC is in the better half of the industry, outperforming 76.32% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	19.41
Altman-Z	0.24

ROIC/WACC1.1

WACC6.78%

2.3 Liquidity

A Current Ratio of 1.30 indicates that BHC should not have too much problems paying its short term obligations.
The Current ratio of BHC (1.30) is worse than 76.84% of its industry peers.
A Quick Ratio of 0.97 indicates that BHC may have some problems paying its short term obligations.
BHC has a worse Quick ratio (0.97) than 78.42% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.3
Quick Ratio	0.97

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

BHC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.33%.
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.
BHC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.86%.
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

Based on estimates for the next years, BHC will show a decrease in Earnings Per Share. The EPS will decrease by -3.58% on average per year.
The Revenue is expected to decrease by -0.40% on average over the next years.

EPS Next Y5.12%

EPS Next 2Y6.66%

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 1.46 indicates a rather cheap valuation of BHC.
98.95% of the companies in the same industry are more expensive than BHC, based on the Price/Earnings ratio.
BHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
A Price/Forward Earnings ratio of 1.30 indicates a rather cheap valuation of BHC.
98.95% of the companies in the same industry are more expensive than BHC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, BHC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	1.46
Fwd PE	1.3

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 93.68% of the companies listed in the same industry.
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	1.91
EV/EBITDA	6.61

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.