BOSTON SCIENTIFIC CORP (BSX)
US1011371077 - Common Stock
We assign a fundamental rating of 5 out of 10 to BSX. BSX was compared to 187 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 has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years BSX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BSX (4.71%) is better than 81.82% of its industry peers.
BSX's Return On Equity of 8.66% is amongst the best of the industry. BSX outperforms 82.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.31%, BSX belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BSX is below the industry average of 8.19%.
The last Return On Invested Capital (6.31%) for BSX is above the 3 year average (5.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.66% | ||
| ROIC | 6.31% |
ROA(3y)3.17%
ROA(5y)4.9%
ROE(3y)5.91%
ROE(5y)10.17%
ROIC(3y)5.38%
ROIC(5y)4.7%
1.3 Margins
Looking at the Profit Margin, with a value of 11.27%, BSX belongs to the top of the industry, outperforming 86.63% of the companies in the same industry.
In the last couple of years the Profit Margin of BSX has declined.
BSX has a Operating Margin of 18.06%. This is amongst the best in the industry. BSX outperforms 90.37% of its industry peers.
In the last couple of years the Operating Margin of BSX has remained more or less at the same level.
The Gross Margin of BSX (69.09%) is better than 79.14% of its industry peers.
BSX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.06% | ||
| PM (TTM) | 11.27% | ||
| GM | 69.09% |
OM growth 3Y23.29%
OM growth 5Y-0.75%
PM growth 3YN/A
PM growth 5Y-8.31%
GM growth 3Y2.2%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BSX is destroying value.
Compared to 1 year ago, BSX has more shares outstanding
BSX has more shares outstanding than it did 5 years ago.
BSX has a better debt/assets ratio than last year.
2.2 Solvency
BSX has an Altman-Z score of 5.47. This indicates that BSX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.47, BSX belongs to the best of the industry, outperforming 80.21% of the companies in the same industry.
The Debt to FCF ratio of BSX is 5.05, which is a neutral value as it means it would take BSX, 5.05 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.05, BSX belongs to the top of the industry, outperforming 80.21% of the companies in the same industry.
BSX has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
BSX has a Debt to Equity ratio (0.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.05 | ||
| Altman-Z | 5.47 |
ROIC/WACC0.72
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.48 indicates that BSX should not have too much problems paying its short term obligations.
BSX's Current ratio of 1.48 is on the low side compared to the rest of the industry. BSX is outperformed by 78.07% of its industry peers.
BSX has a Quick Ratio of 1.02. 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 Quick ratio, with a value of 1.02, BSX is doing worse than 78.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.59% over the past year.
The Earnings Per Share has been growing slightly by 6.73% on average over the past years.
The Revenue has grown by 15.65% in the past year. This is quite good.
Measured over the past years, BSX shows a small growth in Revenue. The Revenue has been growing by 7.71% on average per year.
EPS 1Y (TTM)18.59%
EPS 3Y28.77%
EPS 5Y6.73%
EPS Q2Q%26%
Revenue 1Y (TTM)15.65%
Revenue growth 3Y12.83%
Revenue growth 5Y7.71%
Sales Q2Q%19.34%
3.2 Future
The Earnings Per Share is expected to grow by 14.44% on average over the next years. This is quite good.
Based on estimates for the next years, BSX will show a quite strong growth in Revenue. The Revenue will grow by 11.81% on average per year.
EPS Next Y21.26%
EPS Next 2Y17.34%
EPS Next 3Y16.15%
EPS Next 5Y14.44%
Revenue Next Year17.58%
Revenue Next 2Y15.1%
Revenue Next 3Y13.45%
Revenue Next 5Y11.81%
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
The Price/Earnings ratio is 38.59, which means the current valuation is very expensive for BSX.
Based on the Price/Earnings ratio, BSX is valued a bit cheaper than 69.52% of the companies in the same industry.
BSX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.54.
BSX is valuated quite expensively with a Price/Forward Earnings ratio of 32.26.
73.26% of the companies in the same industry are more expensive than BSX, based on the Price/Forward Earnings ratio.
BSX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.59 | ||
| Fwd PE | 32.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BSX is valued a bit cheaper than the industry average as 67.91% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BSX is valued a bit cheaper than the industry average as 71.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.25 | ||
| EV/EBITDA | 34.72 |
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 16.15% in the coming years.
PEG (NY)1.81
PEG (5Y)5.73
EPS Next 2Y17.34%
EPS Next 3Y16.15%
5. Dividend
5.1 Amount
BSX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BOSTON SCIENTIFIC CORP
NYSE:BSX (12/24/2024, 7:59:16 PM)
After market: 91.07 0 (0%)91.07
+1.21 (+1.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners92.66%
Inst Owner Change-0.04%
Ins Owners0.18%
Ins Owner Change-3.22%
Market Cap134.22B
Analysts84.32
Price Target99.99 (9.79%)
Short Float %0.83%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)6.03%
Min EPS beat(2)5.79%
Max EPS beat(2)6.28%
EPS beat(4)4
Avg EPS beat(4)6.62%
Min EPS beat(4)5.79%
Max EPS beat(4)8.11%
EPS beat(8)8
Avg EPS beat(8)5.81%
EPS beat(12)11
Avg EPS beat(12)3.94%
EPS beat(16)14
Avg EPS beat(16)3.03%
Revenue beat(2)2
Avg Revenue beat(2)2.34%
Min Revenue beat(2)1.53%
Max Revenue beat(2)3.16%
Revenue beat(4)4
Avg Revenue beat(4)2.73%
Min Revenue beat(4)1.53%
Max Revenue beat(4)3.6%
Revenue beat(8)7
Avg Revenue beat(8)2.31%
Revenue beat(12)9
Avg Revenue beat(12)1.61%
Revenue beat(16)11
Avg Revenue beat(16)1.22%
PT rev (1m)7.37%
PT rev (3m)11.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.11%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)5.36%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.59 | ||
| Fwd PE | 32.26 | ||
| P/S | 8.44 | ||
| P/FCF | 62.25 | ||
| P/OCF | 45.72 | ||
| P/B | 6.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.72 |
EPS(TTM)2.36
EY2.59%
EPS(NY)2.82
Fwd EY3.1%
FCF(TTM)1.46
FCFY1.61%
OCF(TTM)1.99
OCFY2.19%
SpS10.8
BVpS14.05
TBVpS-0.05
PEG (NY)1.81
PEG (5Y)5.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.66% | ||
| ROCE | 8.93% | ||
| ROIC | 6.31% | ||
| ROICexc | 6.85% | ||
| ROICexgc | 22.87% | ||
| OM | 18.06% | ||
| PM (TTM) | 11.27% | ||
| GM | 69.09% | ||
| FCFM | 13.55% |
ROA(3y)3.17%
ROA(5y)4.9%
ROE(3y)5.91%
ROE(5y)10.17%
ROIC(3y)5.38%
ROIC(5y)4.7%
ROICexc(3y)5.62%
ROICexc(5y)4.89%
ROICexgc(3y)18.15%
ROICexgc(5y)15.7%
ROCE(3y)7.61%
ROCE(5y)6.65%
ROICexcg growth 3Y41.88%
ROICexcg growth 5Y-27.21%
ROICexc growth 3Y32.52%
ROICexc growth 5Y-5.79%
OM growth 3Y23.29%
OM growth 5Y-0.75%
PM growth 3YN/A
PM growth 5Y-8.31%
GM growth 3Y2.2%
GM growth 5Y-0.42%
F-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.05 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 63.21% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.49% | ||
| Profit Quality | 120.25% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 5.47 |
F-Score7
WACC8.78%
ROIC/WACC0.72
Cap/Depr(3y)53.97%
Cap/Depr(5y)53.74%
Cap/Sales(3y)4.76%
Cap/Sales(5y)5.05%
Profit Quality(3y)131.32%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.59%
EPS 3Y28.77%
EPS 5Y6.73%
EPS Q2Q%26%
EPS Next Y21.26%
EPS Next 2Y17.34%
EPS Next 3Y16.15%
EPS Next 5Y14.44%
Revenue 1Y (TTM)15.65%
Revenue growth 3Y12.83%
Revenue growth 5Y7.71%
Sales Q2Q%19.34%
Revenue Next Year17.58%
Revenue Next 2Y15.1%
Revenue Next 3Y13.45%
Revenue Next 5Y11.81%
EBIT growth 1Y20.21%
EBIT growth 3Y39.11%
EBIT growth 5Y6.9%
EBIT Next Year30.98%
EBIT Next 3Y19.29%
EBIT Next 5Y14.61%
FCF growth 1Y255.78%
FCF growth 3Y22.04%
FCF growth 5YN/A
OCF growth 1Y145.28%
OCF growth 3Y18.4%
OCF growth 5Y51.95%