BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHC - CA0717341071 - Common Stock
7.77 USD
-0.13 (-1.65%)
7.83 USD
+0.06 (+0.77%)
Overall BHC gets a fundamental rating of 4 out of 10. We evaluated BHC against 191 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of BHC while its profitability can be described as average. 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.
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.
1.2 Ratios
BHC's Return On Assets of 1.35% is amongst the best of the industry. BHC outperforms 80.10% of its industry peers.
BHC's Return On Invested Capital of 7.44% is amongst the best of the industry. BHC outperforms 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.
With an excellent Operating Margin value of 20.68%, BHC belongs to the best 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 has a Gross Margin of 70.67%. This is in the better half of the industry: BHC outperforms 78.01% of its industry peers.
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%
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.
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 0.26, we must say that BHC is in the distress zone and has some risk of bankruptcy.
BHC has a Altman-Z score (0.26) which is comparable to the rest of the industry.
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
WACC7.03%
2.3 Liquidity
BHC has a Current Ratio of 1.30. This is a normal value and indicates that BHC is financially healthy and should not expect problems in meeting its short term obligations.
BHC has a Current ratio of 1.30. This is in the lower half of the industry: BHC underperforms 76.96% of its industry peers.
BHC has a Quick Ratio of 1.30. 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 0.97. 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
BHC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.33%.
BHC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.91% yearly.
Looking at the last year, BHC shows a small growth in Revenue. The Revenue has grown by 5.86% in the last 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.
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 2.03 indicates a rather cheap valuation of BHC.
BHC's Price/Earnings ratio is rather cheap when compared to the industry. BHC is cheaper than 98.95% 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 27.00.
The Price/Forward Earnings ratio is 1.81, which indicates a rather cheap valuation of BHC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BHC indicates a rather cheap valuation: BHC is cheaper than 100.00% of the companies listed in the same industry.
BHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.03 | ||
| Fwd PE | 1.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHC is valued cheaply inside the industry as 93.72% of the companies are valued more expensively.
BHC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BHC is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.66 | ||
| EV/EBITDA | 6.86 |
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.
The decent profitability rating of BHC 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% |
7.77
-0.13 (-1.65%)
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 Cap2.88B
Revenue(TTM)10.03B
Net Income(TTM)362.00M
Analysts48.89
Price Target7.39 (-4.89%)
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 | 2.03 | ||
| Fwd PE | 1.81 | ||
| P/S | 0.29 | ||
| P/FCF | 2.66 | ||
| P/OCF | 1.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.86 |
EPS(TTM)3.82
EY49.16%
EPS(NY)4.29
Fwd EY55.17%
FCF(TTM)2.92
FCFY37.62%
OCF(TTM)4.06
OCFY52.26%
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
WACC7.03%
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.