BAUSCH HEALTH COS INC (BHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHC - CA0717341071 - Common Stock
5.72 USD
0 (0%)
Taking everything into account, BHC scores 4 out of 10 in our fundamental rating. BHC was compared to 190 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 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.
- With an excellent Return On Invested Capital value of 7.44%, BHC belongs to the best of the industry, outperforming 84.74% of the companies in the same industry.
- BHC had an Average Return On Invested Capital over the past 3 years of 5.98%. This is significantly below the industry average of 12.83%.
- 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 a decent Profit Margin value of 3.61%, BHC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- BHC's Operating Margin of 20.68% is amongst the best of the industry. BHC outperforms 87.37% of its industry peers.
- BHC's Operating Margin has improved in the last couple of years.
- BHC has a better Gross Margin (70.67%) than 77.89% 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.
- The number of shares outstanding for BHC has been increased compared to 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 45.79% of its industry peers.
- The Debt to FCF ratio of BHC is 19.41, which is on the high side as it means it would take BHC, 19.41 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 19.41, BHC is doing good in 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/WACC1.09
WACC6.8%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that BHC should not have too much problems paying its short term obligations.
- BHC has a Current ratio of 1.30. This is in the lower half of the industry: BHC underperforms 76.84% 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.
- The Quick ratio of BHC (0.97) is worse than 78.42% 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%.
- 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%.
- 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
- The Earnings Per Share is expected to decrease by -3.58% on average over the next years.
- Based on estimates for the next years, BHC will show a decrease in Revenue. The Revenue will decrease by -0.40% on average per year.
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
- 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
- With a Price/Earnings ratio of 1.50, the valuation of BHC can be described as very cheap.
- 98.95% of the companies in the same industry are more expensive than BHC, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.82. BHC is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 1.33, which 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 25.95, BHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.5 | ||
| Fwd PE | 1.33 |
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 cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.96 | ||
| EV/EBITDA | 6.62 |
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)0.29
PEG (5Y)N/A
EPS Next 2Y6.66%
EPS Next 3Y-1.71%
5. Dividend
5.1 Amount
- BHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.