BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
NYSE:BSX - New York Stock Exchange, Inc. - US1011371077 - Common Stock - Currency: USD
BSX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 190 industry peers in the Health Care Equipment & Supplies industry. BSX scores excellent on profitability, but there are some minor concerns on its financial health. BSX is not overvalued while it is showing excellent growth. This is an interesting combination. This makes BSX very considerable 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.
BSX had positive earnings in 4 of the past 5 years.
In the past 5 years BSX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BSX (4.71%) is better than 83.16% of its industry peers.
The Return On Equity of BSX (8.52%) is better than 83.68% of its industry peers.
BSX has a Return On Invested Capital of 7.43%. This is amongst the best in the industry. BSX outperforms 84.21% 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 7.68%.
The last Return On Invested Capital (7.43%) for BSX is above the 3 year average (6.54%), which is a sign of increasing profitability.
| 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
BSX's Profit Margin of 11.07% is amongst the best of the industry. BSX outperforms 87.37% of its industry peers.
In the last couple of years the Profit Margin of BSX has declined.
BSX has a Operating Margin of 18.18%. This is amongst the best in the industry. BSX outperforms 90.53% of its industry peers.
In the last couple of years the Operating Margin of BSX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 68.64%, BSX is in the better half of the industry, outperforming 75.79% of the companies in the same industry.
BSX's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BSX is destroying value.
The number of shares outstanding for BSX has been increased compared to 1 year ago.
The number of shares outstanding for BSX has been increased compared to 5 years ago.
Compared to 1 year ago, BSX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.58 indicates that BSX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.58, BSX belongs to the top of the industry, outperforming 83.68% of the companies in the same industry.
BSX has a debt to FCF ratio of 4.06. This is a neutral value as BSX would need 4.06 years to pay back of all of its debts.
BSX has a Debt to FCF ratio of 4.06. This is amongst the best in the industry. BSX outperforms 83.68% of its industry peers.
BSX has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
BSX has a Debt to Equity ratio (0.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 5.58 |
ROIC/WACC0.85
WACC8.7%
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 84.21% of the companies in the same industry.
BSX has a Quick Ratio of 1.08. This is a bad value and indicates that BSX is not financially healthy enough and could expect problems in meeting its short term obligations.
BSX has a Quick ratio of 0.64. This is amonst the worse of the industry: BSX underperforms 87.89% of its industry peers.
The current and quick ratio evaluation for BSX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| 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.
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.
BSX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.60%.
The Revenue has been growing by 9.30% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 12.15% on average over the next years. This is quite good.
BSX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.22% yearly.
EPS Next Y15.12%
EPS Next 2Y14.59%
EPS Next 3Y13.98%
EPS Next 5Y12.15%
Revenue Next Year15.46%
Revenue Next 2Y12.84%
Revenue Next 3Y11.85%
Revenue Next 5Y10.22%
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.
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
With a Price/Earnings ratio of 37.90, BSX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, BSX is valued a bit cheaper than 70.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of BSX to the average of the S&P500 Index (28.29), we can say BSX is valued slightly more expensively.
The Price/Forward Earnings ratio is 32.92, which means the current valuation is very expensive for BSX.
Based on the Price/Forward Earnings ratio, BSX is valued a bit cheaper than 72.63% of the companies in the same industry.
BSX is valuated expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.9 | ||
| Fwd PE | 32.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BSX is valued a bit cheaper than 68.42% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BSX indicates a somewhat cheap valuation: BSX is cheaper than 72.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.21 | ||
| EV/EBITDA | 35.01 |
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 excellent profitability rating of BSX may justify a higher PE ratio.
BSX's earnings are expected to grow with 13.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.51
PEG (5Y)3.96
EPS Next 2Y14.59%
EPS Next 3Y13.98%
5. Dividend
5.1 Amount
No dividends for BSX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
95.12
-0.13 (-0.14%)
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 Change0.01%
Ins Owners0.18%
Ins Owner Change-0.18%
Market Cap140.69B
Analysts83.78
Price Target119.71 (25.85%)
Short Float %0.88%
Short Ratio1.82
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)-0.06%
PT rev (3m)16.7%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)4.79%
EPS NY rev (1m)0.14%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)4.13%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.9 | ||
| Fwd PE | 32.92 | ||
| P/S | 8.4 | ||
| P/FCF | 53.21 | ||
| P/OCF | 40.97 | ||
| P/B | 6.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.01 |
EPS(TTM)2.51
EY2.64%
EPS(NY)2.89
Fwd EY3.04%
FCF(TTM)1.79
FCFY1.88%
OCF(TTM)2.32
OCFY2.44%
SpS11.32
BVpS14.72
TBVpS-1.35
PEG (NY)2.51
PEG (5Y)3.96
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 | 5.58 |
F-Score6
WACC8.7%
ROIC/WACC0.85
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 Y15.12%
EPS Next 2Y14.59%
EPS Next 3Y13.98%
EPS Next 5Y12.15%
Revenue 1Y (TTM)17.6%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%22.44%
Revenue Next Year15.46%
Revenue Next 2Y12.84%
Revenue Next 3Y11.85%
Revenue Next 5Y10.22%
EBIT growth 1Y25.41%
EBIT growth 3Y12.47%
EBIT growth 5Y10.54%
EBIT Next Year30.91%
EBIT Next 3Y18.53%
EBIT Next 5Y14.08%
FCF growth 1Y47.54%
FCF growth 3Y26.15%
FCF growth 5Y16.61%
OCF growth 1Y37.2%
OCF growth 3Y22.44%
OCF growth 5Y13.34%