BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BSX - US1011371077 - Common Stock
96.43 USD
+0.82 (+0.86%)
96.43 USD
0 (0%)
BSX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 184 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 growing strongly while it is still valued neutral. This is a good combination!
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.
BSX had positive earnings in 4 of the past 5 years.
BSX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.54%, BSX belongs to the top of the industry, outperforming 86.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.93%, BSX belongs to the top of the industry, outperforming 88.04% of the companies in the same industry.
BSX has a better Return On Invested Capital (8.09%) than 84.24% 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 8.82%.
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 90.76% of its industry peers.
In the last couple of years the Profit Margin of BSX has declined.
With an excellent Operating Margin value of 19.40%, BSX belongs to the best of the industry, outperforming 92.39% of the companies in the same industry.
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 (68.57%) is better than 73.91% of its industry peers.
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
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.
BSX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BSX has a worse debt to assets ratio.
2.2 Solvency
BSX has an Altman-Z score of 5.38. This indicates that BSX is financially healthy and has little risk of bankruptcy at the moment.
BSX has a better Altman-Z score (5.38) than 78.26% 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.
The Debt to FCF ratio of BSX (3.03) is better than 83.15% of its industry peers.
BSX has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BSX (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 5.38 |
ROIC/WACC0.97
WACC8.36%
2.3 Liquidity
BSX has a Current Ratio of 1.51. 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 1.51, BSX is doing worse than 75.54% of the companies in the same industry.
BSX has a Quick Ratio of 1.51. 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 worse Quick ratio (0.96) than 79.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.00% 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 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 Y22.13%
EPS Next 2Y18.06%
EPS Next 3Y16.46%
EPS Next 5Y15.01%
Revenue Next Year20.9%
Revenue Next 2Y16.07%
Revenue Next 3Y14.17%
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
With a Price/Earnings ratio of 32.69, BSX can be considered very expensive at the moment.
72.28% of the companies in the same industry are more expensive than BSX, based on the Price/Earnings ratio.
BSX is valuated rather expensively when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
BSX is valuated quite expensively with a Price/Forward Earnings ratio of 27.56.
Based on the Price/Forward Earnings ratio, BSX is valued a bit cheaper than the industry average as 72.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, BSX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.69 | ||
| Fwd PE | 27.56 |
4.2 Price Multiples
71.74% of the companies in the same industry are more expensive than BSX, based on the Enterprise Value to EBITDA ratio.
BSX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BSX is cheaper than 76.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.39 | ||
| EV/EBITDA | 29.79 |
4.3 Compensation for Growth
BSX's 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 16.46% in the coming years.
PEG (NY)1.48
PEG (5Y)3.42
EPS Next 2Y18.06%
EPS Next 3Y16.46%
5. Dividend
5.1 Amount
BSX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
96.43
+0.82 (+0.86%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.98%
Inst Owner Change0.1%
Ins Owners0.15%
Ins Owner Change-0.38%
Market Cap142.95B
Revenue(TTM)19.35B
Net Income(TTM)2.79B
Analysts86
Price Target128.25 (33%)
Short Float %1.27%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.22%
PT rev (3m)1.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.69 | ||
| Fwd PE | 27.56 | ||
| P/S | 7.39 | ||
| P/FCF | 37.39 | ||
| P/OCF | 30.91 | ||
| P/B | 6.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.79 |
EPS(TTM)2.95
EY3.06%
EPS(NY)3.5
Fwd EY3.63%
FCF(TTM)2.58
FCFY2.67%
OCF(TTM)3.12
OCFY3.24%
SpS13.05
BVpS15.78
TBVpS-1.34
PEG (NY)1.48
PEG (5Y)3.42
Graham Number32.36
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 | 5.38 |
F-Score6
WACC8.36%
ROIC/WACC0.97
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 Y22.13%
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 2Y16.07%
Revenue Next 3Y14.17%
Revenue Next 5Y12.51%
EBIT growth 1Y30.66%
EBIT growth 3Y13.12%
EBIT growth 5Y10.92%
EBIT Next Year37.61%
EBIT Next 3Y20.84%
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 5 / 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 4 / 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 22.13% in the next year.