BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
USA - NYSE:BSX - US1011371077 - Common Stock
104.13 USD
+1.63 (+1.59%)
103.9 USD
-0.23 (-0.22%)
BSX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 189 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year BSX was profitable.
BSX had a positive operating cash flow in the past year.
Of the past 5 years BSX 4 years were profitable.
Each year in the past 5 years BSX had a positive operating cash flow.
1.2 Ratios
BSX's Return On Assets of 6.03% is amongst the best of the industry. BSX outperforms 83.07% of its industry peers.
BSX has a better Return On Equity (11.17%) than 86.24% of its industry peers.
The Return On Invested Capital of BSX (7.66%) is better than 83.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BSX is below the industry average of 8.99%.
The 3 year average ROIC (6.54%) for BSX is below the current ROIC(7.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 11.17% | ||
| ROIC | 7.66% |
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
Looking at the Profit Margin, with a value of 13.54%, BSX belongs to the top of the industry, outperforming 89.42% of the companies in the same industry.
In the last couple of years the Profit Margin of BSX has declined.
With an excellent Operating Margin value of 18.69%, BSX belongs to the best of the industry, outperforming 90.48% 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.
BSX's Gross Margin of 68.30% is fine compared to the rest of the industry. BSX outperforms 75.13% 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 | 18.69% | ||
| PM (TTM) | 13.54% | ||
| GM | 68.3% |
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
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
Compared to 5 years ago, BSX has more shares outstanding
BSX has a worse debt/assets ratio than last year.
2.2 Solvency
BSX has an Altman-Z score of 5.75. This indicates that BSX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.75, BSX is doing good in the industry, outperforming 79.37% of the companies in the same industry.
The Debt to FCF ratio of BSX is 3.33, which is a good value as it means it would take BSX, 3.33 years of fcf income to pay off all of its debts.
BSX has a better Debt to FCF ratio (3.33) than 83.60% of its industry peers.
BSX has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.50, BSX is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 5.75 |
ROIC/WACC0.92
WACC8.36%
2.3 Liquidity
BSX has a Current Ratio of 1.37. This is a normal value and indicates that BSX is financially healthy and should not expect problems in meeting its short term obligations.
BSX's Current ratio of 1.37 is on the low side compared to the rest of the industry. BSX is outperformed by 78.84% of its industry peers.
BSX has a Quick Ratio of 1.37. 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's Quick ratio of 0.82 is on the low side compared to the rest of the industry. BSX is outperformed by 84.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.00% over the past year.
BSX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.56% yearly.
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
The Earnings Per Share is expected to grow by 15.01% 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 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
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 35.30 indicates a quite expensive valuation of BSX.
Based on the Price/Earnings ratio, BSX is valued a bit cheaper than 70.37% 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 26.34.
The Price/Forward Earnings ratio is 29.77, which means the current valuation is very expensive for BSX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BSX indicates a somewhat cheap valuation: BSX is cheaper than 72.49% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. BSX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.3 | ||
| Fwd PE | 29.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BSX is valued a bit cheaper than the industry average as 69.84% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BSX is valued a bit cheaper than 74.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.29 | ||
| EV/EBITDA | 34.65 |
4.3 Compensation for Growth
BSX's 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)1.6
PEG (5Y)3.69
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 | N/A |
104.13
+1.63 (+1.59%)
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 Change0.4%
Ins Owners0.15%
Ins Owner Change-1.14%
Market Cap154.29B
Revenue(TTM)19.35B
Net Income(TTM)2.50B
Analysts86.34
Price Target127.97 (22.89%)
Short Float %1.33%
Short Ratio2.11
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)6.53%
Min EPS beat(2)2.49%
Max EPS beat(2)10.56%
EPS beat(4)4
Avg EPS beat(4)6.23%
Min EPS beat(4)2.49%
Max EPS beat(4)10.56%
EPS beat(8)8
Avg EPS beat(8)6.12%
EPS beat(12)11
Avg EPS beat(12)5.14%
EPS beat(16)15
Avg EPS beat(16)4.28%
Revenue beat(2)2
Avg Revenue beat(2)1.7%
Min Revenue beat(2)0.97%
Max Revenue beat(2)2.43%
Revenue beat(4)4
Avg Revenue beat(4)2.15%
Min Revenue beat(4)0.97%
Max Revenue beat(4)3.16%
Revenue beat(8)8
Avg Revenue beat(8)2.1%
Revenue beat(12)11
Avg Revenue beat(12)2.01%
Revenue beat(16)12
Avg Revenue beat(16)1.41%
PT rev (1m)1.36%
PT rev (3m)1.75%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)1.77%
EPS NY rev (3m)3.98%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.3 | ||
| Fwd PE | 29.77 | ||
| P/S | 8.34 | ||
| P/FCF | 44.29 | ||
| P/OCF | 36.02 | ||
| P/B | 6.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.65 |
EPS(TTM)2.95
EY2.83%
EPS(NY)3.5
Fwd EY3.36%
FCF(TTM)2.35
FCFY2.26%
OCF(TTM)2.89
OCFY2.78%
SpS12.48
BVpS15.13
TBVpS-1.97
PEG (NY)1.6
PEG (5Y)3.69
Graham Number31.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 11.17% | ||
| ROCE | 9.51% | ||
| ROIC | 7.66% | ||
| ROICexc | 7.77% | ||
| ROICexgc | 26.52% | ||
| OM | 18.69% | ||
| PM (TTM) | 13.54% | ||
| GM | 68.3% | ||
| FCFM | 18.84% |
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%
ROICexgc growth 3Y8.56%
ROICexgc 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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.33 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 60.84% | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.77% | ||
| Profit Quality | 139.08% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 5.75 |
F-Score5
WACC8.36%
ROIC/WACC0.92
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 1Y26.44%
EBIT growth 3Y12.47%
EBIT growth 5Y10.54%
EBIT Next Year35.51%
EBIT Next 3Y19.85%
EBIT Next 5Y17.37%
FCF growth 1Y131.03%
FCF growth 3Y26.15%
FCF growth 5Y16.61%
OCF growth 1Y101.7%
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 22.11% in the next year.