BOSTON SCIENTIFIC CORP (BSX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BSX - US1011371077 - Common Stock
78.4 EUR
-0.2 (-0.25%)
We assign a fundamental rating of 6 out of 10 to BSX. BSX was compared to 63 industry peers in the Health Care Equipment & Supplies industry. BSX has an excellent profitability rating, but there are some minor concerns on its financial health. BSX shows excellent growth, but is valued quite expensive already. With these ratings, BSX could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- BSX had positive earnings in the past year.
- BSX had a positive operating cash flow in the past year.
- 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
- BSX has a Return On Assets of 6.54%. This is in the better half of the industry: BSX outperforms 73.02% of its industry peers.
- With a decent Return On Equity value of 11.93%, BSX is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- The Return On Invested Capital of BSX (8.09%) is better than 68.25% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BSX is below the industry average of 9.95%.
- The 3 year average ROIC (6.59%) for BSX is below the current ROIC(8.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 11.93% | ||
| ROIC | 8.09% |
ROA(3y)3.72%
ROA(5y)2.77%
ROE(3y)6.77%
ROE(5y)5.1%
ROIC(3y)6.59%
ROIC(5y)5.7%
1.3 Margins
- BSX has a Profit Margin of 14.42%. This is amongst the best in the industry. BSX outperforms 82.54% of its industry peers.
- BSX's Profit Margin has declined in the last couple of years.
- BSX's Operating Margin of 19.40% is amongst the best of the industry. BSX outperforms 80.95% of its industry peers.
- BSX's Operating Margin has been stable in the last couple of years.
- BSX's Gross Margin of 68.57% is fine compared to the rest of the industry. BSX outperforms 76.19% 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 | 19.4% | ||
| PM (TTM) | 14.42% | ||
| GM | 68.57% |
OM growth 3Y0.91%
OM growth 5Y1.48%
PM growth 3Y10.12%
PM growth 5Y-24.05%
GM growth 3Y-0.15%
GM growth 5Y-0.56%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BSX is destroying value.
- Compared to 1 year ago, BSX has more shares outstanding
- The number of shares outstanding for BSX has been increased compared to 5 years ago.
- BSX has a worse debt/assets ratio than last year.
2.2 Solvency
- BSX has an Altman-Z score of 5.22. This indicates that BSX is financially healthy and has little risk of bankruptcy at the moment.
- BSX has a better Altman-Z score (5.22) than 88.89% of its industry peers.
- BSX has a debt to FCF ratio of 3.03. This is a good value and a sign of high solvency as BSX would need 3.03 years to pay back of all of its debts.
- BSX has a better Debt to FCF ratio (3.03) than 71.43% of its industry peers.
- A Debt/Equity ratio of 0.48 indicates that BSX is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.48, BSX is in line with its industry, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 5.22 |
ROIC/WACC0.83
WACC9.76%
2.3 Liquidity
- A Current Ratio of 1.51 indicates that BSX should not have too much problems paying its short term obligations.
- BSX has a Current ratio of 1.51. This is comparable to the rest of the industry: BSX outperforms 46.03% of its industry peers.
- A Quick Ratio of 0.96 indicates that BSX may have some problems paying its short term obligations.
- BSX has a Quick ratio (0.96) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- BSX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.00%, which is quite impressive.
- Measured over the past years, BSX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.56% on average per year.
- The Revenue has grown by 21.62% in the past year. This is a very strong growth!
- The Revenue has been growing by 9.30% on average over the past years. This is quite good.
EPS 1Y (TTM)25%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%19.05%
Revenue 1Y (TTM)21.62%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%20.34%
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 15.06% on average per year.
- The Revenue is expected to grow by 12.60% on average over the next years. This is quite good.
EPS Next Y22.12%
EPS Next 2Y18.13%
EPS Next 3Y16.37%
EPS Next 5Y15.06%
Revenue Next Year20.92%
Revenue Next 2Y16.08%
Revenue Next 3Y14.31%
Revenue Next 5Y12.6%
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 accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 31.24 indicates a quite expensive valuation of BSX.
- BSX's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of BSX to the average of the S&P500 Index (27.25), we can say BSX is valued inline with the index average.
- The Price/Forward Earnings ratio is 26.28, which means the current valuation is very expensive for BSX.
- The rest of the industry has a similar Price/Forward Earnings ratio as BSX.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. BSX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.24 | ||
| Fwd PE | 26.28 |
4.2 Price Multiples
- BSX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BSX is more expensive than 63.49% of the companies in the same industry.
- BSX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.7 | ||
| EV/EBITDA | 28.76 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- BSX has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as BSX's earnings are expected to grow with 16.37% in the coming years.
PEG (NY)1.41
PEG (5Y)3.27
EPS Next 2Y18.13%
EPS Next 3Y16.37%
5. Dividend
5.1 Amount
- BSX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BOSTON SCIENTIFIC CORP / BSX.DE FAQ
What is the ChartMill fundamental rating of BOSTON SCIENTIFIC CORP (BSX.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BSX.DE.
What is the valuation status for BSX stock?
ChartMill assigns a valuation rating of 3 / 10 to BOSTON SCIENTIFIC CORP (BSX.DE). This can be considered as Overvalued.
How profitable is BOSTON SCIENTIFIC CORP (BSX.DE) stock?
BOSTON SCIENTIFIC CORP (BSX.DE) has a profitability rating of 7 / 10.
What is the valuation of BOSTON SCIENTIFIC CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BOSTON SCIENTIFIC CORP (BSX.DE) is 31.24 and the Price/Book (PB) ratio is 5.83.
Can you provide the expected EPS growth for BSX stock?
The Earnings per Share (EPS) of BOSTON SCIENTIFIC CORP (BSX.DE) is expected to grow by 22.12% in the next year.