BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHC - CA0717341071 - Common Stock
6.99 USD
+0.11 (+1.6%)
6.86 USD
-0.13 (-1.86%)
Taking everything into account, BHC scores 4 out of 10 in our fundamental rating. BHC was compared to 192 industry peers in the Pharmaceuticals industry. BHC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
The Return On Assets of BHC (1.35%) is better than 80.21% of its industry peers.
BHC has a better Return On Invested Capital (7.44%) than 85.42% 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 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
With an excellent Profit Margin value of 3.61%, BHC belongs to the best of the industry, outperforming 80.21% of the companies in the same industry.
Looking at the Operating Margin, with a value of 20.68%, BHC belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of BHC has grown nicely.
With a decent Gross Margin value of 70.67%, BHC is doing good in the industry, outperforming 77.60% 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%
2. Health
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.
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 0.25, we must say that BHC is in the distress zone and has some risk of bankruptcy.
BHC has a Altman-Z score (0.25) 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 better Debt to FCF ratio (19.41) than 76.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.41 | ||
| Altman-Z | 0.25 |
ROIC/WACC1.07
WACC6.94%
2.3 Liquidity
A Current Ratio of 1.30 indicates that BHC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, BHC is doing worse than 76.56% of the companies in the same industry.
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 78.13% 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.
The Earnings Per Share has been decreasing by -2.91% on average over the past years.
BHC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.86%.
The Revenue has been growing slightly by 2.28% on average over the past years.
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.
BHC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.40% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 1.83, the valuation of BHC can be described as very cheap.
BHC's Price/Earnings ratio is rather cheap when compared to the industry. BHC is cheaper than 98.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.61. BHC is valued rather cheaply when compared to this.
BHC is valuated cheaply with a Price/Forward Earnings ratio of 1.63.
100.00% of the companies in the same industry are more expensive than BHC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BHC to the average of the S&P500 Index (24.01), we can say BHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.83 | ||
| Fwd PE | 1.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHC is valued cheaply inside the industry as 95.31% 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 | 2.39 | ||
| EV/EBITDA | 6.77 |
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.
BHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.34
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% |
6.99
+0.11 (+1.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners45.78%
Inst Owner Change-8.03%
Ins Owners10.79%
Ins Owner Change0.47%
Market Cap2.59B
Revenue(TTM)10.03B
Net Income(TTM)362.00M
Analysts48.89
Price Target7.29 (4.29%)
Short Float %1.74%
Short Ratio2.22
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)0.33%
PT rev (3m)-0.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.56%
EPS NY rev (1m)-0.35%
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 | 1.83 | ||
| Fwd PE | 1.63 | ||
| P/S | 0.26 | ||
| P/FCF | 2.39 | ||
| P/OCF | 1.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.77 |
EPS(TTM)3.82
EY54.65%
EPS(NY)4.29
Fwd EY61.33%
FCF(TTM)2.92
FCFY41.82%
OCF(TTM)4.06
OCFY58.1%
SpS27.04
BVpS-1.52
TBVpS-44.98
PEG (NY)0.34
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 | 0.25 |
F-Score7
WACC6.94%
ROIC/WACC1.07
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.
What is the valuation status for BHC stock?
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.