BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BSX - US1011371077 - Common Stock
96.88 USD
+0.28 (+0.29%)
96.84 USD
-0.04 (-0.04%)
We assign a fundamental rating of 6 out of 10 to BSX. BSX was compared to 188 industry peers in the Health Care Equipment & Supplies industry. While BSX has a great profitability rating, there are some minor concerns on its financial health. BSX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes BSX very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year BSX was profitable.
In the past year BSX had a positive cash flow from operations.
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
BSX has a better Return On Assets (6.54%) than 85.64% of its industry peers.
The Return On Equity of BSX (11.93%) is better than 87.77% of its industry peers.
BSX has a Return On Invested Capital of 8.09%. This is amongst the best in the industry. BSX outperforms 85.11% of its industry peers.
BSX had an Average Return On Invested Capital over the past 3 years of 6.59%. This is below the industry average of 8.98%.
The last Return On Invested Capital (8.09%) for BSX is above the 3 year average (6.59%), which is a sign of increasing profitability.
| 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
The Profit Margin of BSX (14.42%) is better than 90.43% of its industry peers.
In the last couple of years the Profit Margin of BSX has declined.
The Operating Margin of BSX (19.40%) is better than 92.02% of its industry peers.
BSX's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 68.57%, BSX is in the better half of the industry, outperforming 75.53% 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 | 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.
The number of shares outstanding for BSX has been increased compared to 1 year ago.
Compared to 5 years ago, BSX has more shares outstanding
Compared to 1 year ago, BSX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.43 indicates that BSX is not in any danger for bankruptcy at the moment.
The Altman-Z score of BSX (5.43) is better than 80.32% of its industry peers.
The Debt to FCF ratio of BSX is 3.03, which is a good value as it means it would take BSX, 3.03 years of fcf income to pay off all of its debts.
BSX has a Debt to FCF ratio of 3.03. This is amongst the best in the industry. BSX outperforms 84.57% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that BSX is not too dependend on debt financing.
BSX has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 5.43 |
ROIC/WACC0.98
WACC8.27%
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 in the lower half of the industry: BSX underperforms 76.06% of its industry peers.
A Quick Ratio of 0.96 indicates that BSX may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, BSX is not doing good in the industry: 79.79% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing by 9.56% on average over the past years. This is quite good.
BSX shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.62%.
Measured over the past years, BSX shows a quite strong growth in Revenue. The Revenue has been growing by 9.30% on average per year.
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 15.01% on average per year.
BSX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.51% yearly.
EPS Next Y22.11%
EPS Next 2Y18.06%
EPS Next 3Y16.46%
EPS Next 5Y15.01%
Revenue Next Year20.9%
Revenue Next 2Y16.08%
Revenue Next 3Y14.18%
Revenue Next 5Y12.51%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
BSX is valuated quite expensively with a Price/Earnings ratio of 32.84.
Based on the Price/Earnings ratio, BSX is valued a bit cheaper than the industry average as 71.28% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.45, BSX is valued a bit more expensive.
A Price/Forward Earnings ratio of 27.69 indicates a quite expensive valuation of BSX.
Based on the Price/Forward Earnings ratio, BSX is valued a bit cheaper than 72.34% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BSX to the average of the S&P500 Index (34.46), we can say BSX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.84 | ||
| Fwd PE | 27.69 |
4.2 Price Multiples
BSX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BSX is cheaper than 70.74% of the companies in the same industry.
75.00% of the companies in the same industry are more expensive than BSX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.55 | ||
| EV/EBITDA | 30.06 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BSX may justify a higher PE ratio.
BSX's earnings are expected to grow with 16.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)3.43
EPS Next 2Y18.06%
EPS Next 3Y16.46%
5. Dividend
5.1 Amount
No dividends for BSX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
96.88
+0.28 (+0.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.27%
Inst Owner Change0.1%
Ins Owners0.15%
Ins Owner Change-3.61%
Market Cap143.55B
Revenue(TTM)19.35B
Net Income(TTM)2.79B
Analysts86.34
Price Target128.25 (32.38%)
Short Float %1.32%
Short Ratio2
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)3.27%
Min EPS beat(2)2.49%
Max EPS beat(2)4.06%
EPS beat(4)4
Avg EPS beat(4)5.68%
Min EPS beat(4)2.49%
Max EPS beat(4)10.56%
EPS beat(8)8
Avg EPS beat(8)6.15%
EPS beat(12)12
Avg EPS beat(12)5.77%
EPS beat(16)15
Avg EPS beat(16)4.37%
Revenue beat(2)2
Avg Revenue beat(2)1.69%
Min Revenue beat(2)0.96%
Max Revenue beat(2)2.43%
Revenue beat(4)4
Avg Revenue beat(4)1.6%
Min Revenue beat(4)0.96%
Max Revenue beat(4)2.43%
Revenue beat(8)8
Avg Revenue beat(8)2.16%
Revenue beat(12)11
Avg Revenue beat(12)2.08%
Revenue beat(16)13
Avg Revenue beat(16)1.61%
PT rev (1m)1.36%
PT rev (3m)1.75%
EPS NQ rev (1m)2.29%
EPS NQ rev (3m)2.28%
EPS NY rev (1m)1.77%
EPS NY rev (3m)3.98%
Revenue NQ rev (1m)1.93%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.84 | ||
| Fwd PE | 27.69 | ||
| P/S | 7.42 | ||
| P/FCF | 37.55 | ||
| P/OCF | 31.04 | ||
| P/B | 6.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.06 |
EPS(TTM)2.95
EY3.05%
EPS(NY)3.5
Fwd EY3.61%
FCF(TTM)2.58
FCFY2.66%
OCF(TTM)3.12
OCFY3.22%
SpS13.06
BVpS15.79
TBVpS-1.34
PEG (NY)1.49
PEG (5Y)3.43
Graham Number32.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 11.93% | ||
| ROCE | 10.04% | ||
| ROIC | 8.09% | ||
| ROICexc | 8.38% | ||
| ROICexgc | 28.19% | ||
| OM | 19.4% | ||
| PM (TTM) | 14.42% | ||
| GM | 68.57% | ||
| FCFM | 19.76% |
ROA(3y)3.72%
ROA(5y)2.77%
ROE(3y)6.77%
ROE(5y)5.1%
ROIC(3y)6.59%
ROIC(5y)5.7%
ROICexc(3y)6.75%
ROICexc(5y)5.93%
ROICexgc(3y)22.84%
ROICexgc(5y)19.53%
ROCE(3y)8.18%
ROCE(5y)7.08%
ROICexgc growth 3Y9.18%
ROICexgc growth 5Y7.17%
ROICexc growth 3Y4.96%
ROICexc growth 5Y5.6%
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%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.03 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 59.36% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.6% | ||
| Profit Quality | 136.98% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 5.43 |
F-Score6
WACC8.27%
ROIC/WACC0.98
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)25%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%19.05%
EPS Next Y22.11%
EPS Next 2Y18.06%
EPS Next 3Y16.46%
EPS Next 5Y15.01%
Revenue 1Y (TTM)21.62%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%20.34%
Revenue Next Year20.9%
Revenue Next 2Y16.08%
Revenue Next 3Y14.18%
Revenue Next 5Y12.51%
EBIT growth 1Y30.66%
EBIT growth 3Y13.12%
EBIT growth 5Y10.92%
EBIT Next Year35.51%
EBIT Next 3Y19.85%
EBIT Next 5Y17.37%
FCF growth 1Y125.15%
FCF growth 3Y26.15%
FCF growth 5Y16.61%
OCF growth 1Y96.47%
OCF growth 3Y22.44%
OCF growth 5Y13.34%
BOSTON SCIENTIFIC CORP / BSX FAQ
What is the ChartMill fundamental rating of BOSTON SCIENTIFIC CORP (BSX) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BSX.
What is the valuation status of BOSTON SCIENTIFIC CORP (BSX) stock?
ChartMill assigns a valuation rating of 4 / 10 to BOSTON SCIENTIFIC CORP (BSX). This can be considered as Fairly Valued.
How profitable is BOSTON SCIENTIFIC CORP (BSX) stock?
BOSTON SCIENTIFIC CORP (BSX) has a profitability rating of 7 / 10.
Can you provide the financial health for BSX stock?
The financial health rating of BOSTON SCIENTIFIC CORP (BSX) is 5 / 10.
What is the expected EPS growth for BOSTON SCIENTIFIC CORP (BSX) stock?
The Earnings per Share (EPS) of BOSTON SCIENTIFIC CORP (BSX) is expected to grow by 22.11% in the next year.