BOSTON SCIENTIFIC CORP (BSX.DE) Stock Fundamental Analysis
FRA:BSX - Deutsche Boerse Ag - US1011371077 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to BSX. BSX was compared to 55 industry peers in the Health Care Equipment & Supplies industry. While BSX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BSX is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
BSX had positive earnings in the past year.
In the past year BSX had a positive cash flow from operations.
Of the past 5 years BSX 4 years were profitable.
BSX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.71%, BSX is doing good in the industry, outperforming 72.73% of the companies in the same industry.
With a decent Return On Equity value of 8.52%, BSX is doing good in the industry, outperforming 69.09% of the companies in the same industry.
BSX has a better Return On Invested Capital (7.43%) than 78.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BSX is in line with the industry average of 8.28%.
The 3 year average ROIC (6.54%) for BSX is below the current ROIC(7.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.52% | ||
| ROIC | 7.43% |
ROA(3y)3.72%
ROA(5y)2.77%
ROE(3y)6.77%
ROE(5y)5.1%
ROIC(3y)6.54%
ROIC(5y)5.68%
1.3 Margins
With a decent Profit Margin value of 11.07%, BSX is doing good in the industry, outperforming 80.00% of the companies in the same industry.
BSX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.18%, BSX belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
BSX's Operating Margin has been stable in the last couple of years.
BSX has a better Gross Margin (68.64%) than 74.55% of its industry peers.
In the last couple of years the Gross Margin of BSX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.18% | ||
| PM (TTM) | 11.07% | ||
| GM | 68.64% |
OM growth 3Y0.33%
OM growth 5Y1.13%
PM growth 3Y10.12%
PM growth 5Y-24.05%
GM growth 3Y-0.3%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BSX is destroying value.
BSX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BSX has been increased compared to 5 years ago.
The debt/assets ratio for BSX is higher compared to a year ago.
2.2 Solvency
BSX has an Altman-Z score of 5.73. This indicates that BSX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.73, BSX belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Debt to FCF ratio of BSX is 4.06, which is a neutral value as it means it would take BSX, 4.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BSX (4.06) is better than 72.73% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that BSX is not too dependend on debt financing.
BSX has a Debt to Equity ratio of 0.41. This is comparable to the rest of the industry: BSX outperforms 50.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 5.73 |
ROIC/WACC0.87
WACC8.52%
2.3 Liquidity
BSX has a Current Ratio of 1.08. This is a normal value and indicates that BSX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.08, BSX is doing worse than 69.09% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that BSX may have some problems paying its short term obligations.
BSX's Quick ratio of 0.64 is on the low side compared to the rest of the industry. BSX is outperformed by 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.44% over the past year.
The Earnings Per Share has been growing by 9.56% on average over the past years. This is quite good.
BSX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.60%.
BSX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.30% yearly.
EPS 1Y (TTM)22.44%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%27.27%
Revenue 1Y (TTM)17.6%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%22.44%
3.2 Future
Based on estimates for the next years, BSX will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.21% on average per year.
BSX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.05% yearly.
EPS Next Y14.95%
EPS Next 2Y14.57%
EPS Next 3Y13.93%
EPS Next 5Y12.21%
Revenue Next Year15.37%
Revenue Next 2Y12.81%
Revenue Next 3Y11.82%
Revenue Next 5Y10.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
BSX is valuated quite expensively with a Price/Earnings ratio of 39.18.
Based on the Price/Earnings ratio, BSX is valued a bit cheaper than the industry average as 61.82% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BSX to the average of the S&P500 Index (29.35), we can say BSX is valued slightly more expensively.
BSX is valuated quite expensively with a Price/Forward Earnings ratio of 34.05.
BSX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, BSX is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.18 | ||
| Fwd PE | 34.05 |
4.2 Price Multiples
BSX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, BSX is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.84 | ||
| EV/EBITDA | 36.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BSX may justify a higher PE ratio.
A more expensive valuation may be justified as BSX's earnings are expected to grow with 13.93% in the coming years.
PEG (NY)2.62
PEG (5Y)4.1
EPS Next 2Y14.57%
EPS Next 3Y13.93%
5. Dividend
5.1 Amount
BSX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:BSX (3/7/2025, 7:00:00 PM)
90.5
-5 (-5.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.1%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap133.56B
Analysts83.78
Price Target113.68 (25.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.94%
Min EPS beat(2)5.6%
Max EPS beat(2)6.28%
EPS beat(4)4
Avg EPS beat(4)6.44%
Min EPS beat(4)5.6%
Max EPS beat(4)8.11%
EPS beat(8)8
Avg EPS beat(8)6.21%
EPS beat(12)11
Avg EPS beat(12)4.28%
EPS beat(16)15
Avg EPS beat(16)5.09%
Revenue beat(2)2
Avg Revenue beat(2)2.6%
Min Revenue beat(2)2.04%
Max Revenue beat(2)3.16%
Revenue beat(4)4
Avg Revenue beat(4)2.58%
Min Revenue beat(4)1.53%
Max Revenue beat(4)3.6%
Revenue beat(8)8
Avg Revenue beat(8)2.69%
Revenue beat(12)10
Avg Revenue beat(12)1.82%
Revenue beat(16)12
Avg Revenue beat(16)1.68%
PT rev (1m)14.12%
PT rev (3m)19.15%
EPS NQ rev (1m)4.04%
EPS NQ rev (3m)4.67%
EPS NY rev (1m)1.8%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)2.49%
Revenue NQ rev (3m)4.08%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.18 | ||
| Fwd PE | 34.05 | ||
| P/S | 8.66 | ||
| P/FCF | 54.84 | ||
| P/OCF | 42.23 | ||
| P/B | 6.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.01 |
EPS(TTM)2.31
EY2.55%
EPS(NY)2.66
Fwd EY2.94%
FCF(TTM)1.65
FCFY1.82%
OCF(TTM)2.14
OCFY2.37%
SpS10.45
BVpS13.59
TBVpS-1.25
PEG (NY)2.62
PEG (5Y)4.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.52% | ||
| ROCE | 9.23% | ||
| ROIC | 7.43% | ||
| ROICexc | 7.53% | ||
| ROICexgc | 27.84% | ||
| OM | 18.18% | ||
| PM (TTM) | 11.07% | ||
| GM | 68.64% | ||
| FCFM | 15.79% |
ROA(3y)3.72%
ROA(5y)2.77%
ROE(3y)6.77%
ROE(5y)5.1%
ROIC(3y)6.54%
ROIC(5y)5.68%
ROICexc(3y)6.7%
ROICexc(5y)5.9%
ROICexgc(3y)22.68%
ROICexgc(5y)19.43%
ROCE(3y)8.12%
ROCE(5y)7.05%
ROICexcg growth 3Y8.56%
ROICexcg growth 5Y6.81%
ROICexc growth 3Y4.36%
ROICexc growth 5Y5.23%
OM growth 3Y0.33%
OM growth 5Y1.13%
PM growth 3Y10.12%
PM growth 5Y-24.05%
GM growth 3Y-0.3%
GM growth 5Y-0.65%
F-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.06 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 62.25% | ||
| Cap/Sales | 4.72% | ||
| Interest Coverage | 12.18 | ||
| Cash Conversion | 79.6% | ||
| Profit Quality | 142.61% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 5.73 |
F-Score6
WACC8.52%
ROIC/WACC0.87
Cap/Depr(3y)57.82%
Cap/Depr(5y)54.13%
Cap/Sales(3y)4.78%
Cap/Sales(5y)4.85%
Profit Quality(3y)134.31%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.44%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%27.27%
EPS Next Y14.95%
EPS Next 2Y14.57%
EPS Next 3Y13.93%
EPS Next 5Y12.21%
Revenue 1Y (TTM)17.6%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%22.44%
Revenue Next Year15.37%
Revenue Next 2Y12.81%
Revenue Next 3Y11.82%
Revenue Next 5Y10.05%
EBIT growth 1Y25.41%
EBIT growth 3Y12.47%
EBIT growth 5Y10.54%
EBIT Next Year25.72%
EBIT Next 3Y14.4%
EBIT Next 5Y13.64%
FCF growth 1Y47.54%
FCF growth 3Y26.15%
FCF growth 5Y16.61%
OCF growth 1Y37.2%
OCF growth 3Y22.44%
OCF growth 5Y13.34%