BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis
NYSE:BHC - New York Stock Exchange, Inc. - CA0717341071 - Common Stock - Currency: USD
BHC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 195 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 valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BHC had positive earnings in the past year.
In the past year BHC had a positive cash flow from operations.
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 has a Return On Assets of -0.15%. This is amongst the best in the industry. BHC outperforms 81.54% of its industry peers.
BHC has a Return On Invested Capital of 6.60%. This is amongst the best in the industry. BHC outperforms 84.62% 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 14.87%.
The 3 year average ROIC (5.98%) for BHC is below the current ROIC(6.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | N/A | ||
| ROIC | 6.6% |
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 Operating Margin of 19.03% is amongst the best of the industry. BHC outperforms 86.67% of its industry peers.
BHC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 70.78%, BHC is doing good in the industry, outperforming 78.97% of the companies in the same industry.
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 | 19.03% | ||
| PM (TTM) | N/A | ||
| GM | 70.78% |
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 below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BHC has been increased compared to 1 year ago.
Compared to 5 years ago, BHC has more shares outstanding
Compared to 1 year ago, BHC has an improved debt to assets ratio.
2.2 Solvency
BHC has an Altman-Z score of 0.20. 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 (0.20) which is in line with its industry peers.
The Debt to FCF ratio of BHC is 17.69, which is on the high side as it means it would take BHC, 17.69 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 17.69, BHC is doing good in the industry, outperforming 78.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.69 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.96
WACC6.87%
2.3 Liquidity
A Current Ratio of 1.35 indicates that BHC should not have too much problems paying its short term obligations.
BHC has a worse Current ratio (1.35) than 74.36% of its industry peers.
BHC has a Quick Ratio of 1.35. 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 worse Quick ratio (0.97) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.01% over the past year.
The Earnings Per Share has been decreasing by -2.91% on average over the past years.
BHC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.53%.
BHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.28% yearly.
EPS 1Y (TTM)5.01%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%0%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%4.92%
3.2 Future
BHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.24% yearly.
Based on estimates for the next years, BHC will show a decrease in Revenue. The Revenue will decrease by -0.38% on average per year.
EPS Next Y20.4%
EPS Next 2Y11.09%
EPS Next 3Y15.37%
EPS Next 5Y1.24%
Revenue Next Year3.06%
Revenue Next 2Y4.04%
Revenue Next 3Y3.02%
Revenue Next 5Y-0.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 1.87, the valuation of BHC can be described as very cheap.
Based on the Price/Earnings ratio, BHC is valued cheaper than 98.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. BHC is valued rather cheaply when compared to this.
BHC is valuated cheaply with a Price/Forward Earnings ratio of 1.52.
Based on the Price/Forward Earnings ratio, BHC is valued cheaply inside the industry as 98.97% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. BHC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.87 | ||
| Fwd PE | 1.52 |
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 89.74% 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 | 2.15 | ||
| EV/EBITDA | 7.41 |
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's earnings are expected to grow with 15.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y11.09%
EPS Next 3Y15.37%
5. Dividend
5.1 Amount
BHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.06
-0.06 (-0.84%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners58.71%
Inst Owner Change-3.72%
Ins Owners11.02%
Ins Owner Change15.56%
Market Cap2.61B
Analysts48.89
Price Target7.45 (5.52%)
Short Float %2.68%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0
Avg EPS beat(2)-14.74%
Min EPS beat(2)-25.13%
Max EPS beat(2)-4.34%
EPS beat(4)2
Avg EPS beat(4)-5.77%
Min EPS beat(4)-25.13%
Max EPS beat(4)5.95%
EPS beat(8)5
Avg EPS beat(8)-0.95%
EPS beat(12)6
Avg EPS beat(12)-6.23%
EPS beat(16)8
Avg EPS beat(16)-5.16%
Revenue beat(2)1
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)0.39%
Revenue beat(4)3
Avg Revenue beat(4)0.79%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)2.66%
Revenue beat(8)6
Avg Revenue beat(8)1.53%
Revenue beat(12)7
Avg Revenue beat(12)0.53%
Revenue beat(16)7
Avg Revenue beat(16)-0.44%
PT rev (1m)1.06%
PT rev (3m)12.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.87 | ||
| Fwd PE | 1.52 | ||
| P/S | 0.27 | ||
| P/FCF | 2.15 | ||
| P/OCF | 1.63 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.41 |
EPS(TTM)3.77
EY53.4%
EPS(NY)4.65
Fwd EY65.9%
FCF(TTM)3.29
FCFY46.61%
OCF(TTM)4.32
OCFY61.21%
SpS26.33
BVpS-3.2
TBVpS-47.71
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | N/A | ||
| ROCE | 8.36% | ||
| ROIC | 6.6% | ||
| ROICexc | 6.96% | ||
| ROICexgc | 31.94% | ||
| OM | 19.03% | ||
| PM (TTM) | N/A | ||
| GM | 70.78% | ||
| FCFM | 12.5% |
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%
ROICexcg growth 3Y34.27%
ROICexcg 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-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.69 | ||
| Debt/EBITDA | 6.84 | ||
| Cap/Depr | 30.43% | ||
| Cap/Sales | 3.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.2 |
F-Score5
WACC6.87%
ROIC/WACC0.96
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)5.01%
EPS 3Y-5.37%
EPS 5Y-2.91%
EPS Q2Q%0%
EPS Next Y20.4%
EPS Next 2Y11.09%
EPS Next 3Y15.37%
EPS Next 5Y1.24%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y4.5%
Revenue growth 5Y2.28%
Sales Q2Q%4.92%
Revenue Next Year3.06%
Revenue Next 2Y4.04%
Revenue Next 3Y3.02%
Revenue Next 5Y-0.38%
EBIT growth 1Y10.77%
EBIT growth 3Y5.56%
EBIT growth 5Y6.8%
EBIT Next Year13.62%
EBIT Next 3Y9.06%
EBIT Next 5Y-0.57%
FCF growth 1Y257.31%
FCF growth 3Y3.22%
FCF growth 5Y0.55%
OCF growth 1Y412.52%
OCF growth 3Y3.85%
OCF growth 5Y1.25%