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 187 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, BSX could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year BSX was profitable.
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
With an excellent Return On Assets value of 5.06%, BSX belongs to the best of the industry, outperforming 83.96% of the companies in the same industry.
BSX has a better Return On Equity (9.15%) than 83.96% of its industry peers.
BSX has a better Return On Invested Capital (7.57%) than 85.03% of its industry peers.
BSX had an Average Return On Invested Capital over the past 3 years of 6.54%. This is in line with the industry average of 7.89%.
The 3 year average ROIC (6.54%) for BSX is below the current ROIC(7.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 9.15% | ||
| ROIC | 7.57% |
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 has a better Profit Margin (11.58%) than 87.70% of its industry peers.
In the last couple of years the Profit Margin of BSX has declined.
BSX has a better Operating Margin (18.78%) than 91.44% of its industry peers.
BSX's Operating Margin has been stable in the last couple of years.
The Gross Margin of BSX (68.65%) is better than 76.47% of its industry peers.
BSX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.78% | ||
| PM (TTM) | 11.58% | ||
| GM | 68.65% |
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.
BSX has more shares outstanding than it did 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
BSX has an Altman-Z score of 6.04. This indicates that BSX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of BSX (6.04) is better than 80.21% of its industry peers.
The Debt to FCF ratio of BSX is 3.75, which is a good value as it means it would take BSX, 3.75 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.75, BSX belongs to the best of the industry, outperforming 86.63% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that BSX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, BSX is in line with its industry, outperforming 42.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 6.04 |
ROIC/WACC0.88
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.45 indicates that BSX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.45, BSX is not doing good in the industry: 77.01% of the companies in the same industry are doing better.
A Quick Ratio of 0.88 indicates that BSX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, BSX is doing worse than 82.35% of the companies in the same industry.
BSX does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.45 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.17% 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.
Looking at the last year, BSX shows a quite strong growth in Revenue. The Revenue has grown by 19.35% in the last year.
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)26.17%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%33.93%
Revenue 1Y (TTM)19.35%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%20.93%
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 12.43% on average per year.
The Revenue is expected to grow by 10.66% on average over the next years. This is quite good.
EPS Next Y17.41%
EPS Next 2Y15.19%
EPS Next 3Y14.34%
EPS Next 5Y12.43%
Revenue Next Year17.36%
Revenue Next 2Y14.01%
Revenue Next 3Y12.69%
Revenue Next 5Y10.66%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 38.22, the valuation of BSX can be described as expensive.
71.12% of the companies in the same industry are more expensive than BSX, based on the Price/Earnings ratio.
BSX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 30.99, BSX can be considered very expensive at the moment.
70.05% of the companies in the same industry are more expensive than BSX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, BSX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.22 | ||
| Fwd PE | 30.99 |
4.2 Price Multiples
BSX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BSX is cheaper than 68.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BSX is valued a bit cheaper than 75.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.66 | ||
| EV/EBITDA | 35.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BSX has an outstanding profitability rating, which may justify a higher PE ratio.
BSX's earnings are expected to grow with 14.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.2
PEG (5Y)4
EPS Next 2Y15.19%
EPS Next 3Y14.34%
5. Dividend
5.1 Amount
No dividends for BSX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
103.2
-0.66 (-0.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.03%
Inst Owner Change0.01%
Ins Owners0.15%
Ins Owner Change-0.94%
Market Cap152.68B
Analysts84.62
Price Target121.08 (17.33%)
Short Float %1.19%
Short Ratio2.33
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)8.08%
Min EPS beat(2)5.6%
Max EPS beat(2)10.56%
EPS beat(4)4
Avg EPS beat(4)7.06%
Min EPS beat(4)5.6%
Max EPS beat(4)10.56%
EPS beat(8)8
Avg EPS beat(8)6.71%
EPS beat(12)11
Avg EPS beat(12)5.15%
EPS beat(16)15
Avg EPS beat(16)4.51%
Revenue beat(2)2
Avg Revenue beat(2)1.51%
Min Revenue beat(2)0.97%
Max Revenue beat(2)2.04%
Revenue beat(4)4
Avg Revenue beat(4)1.92%
Min Revenue beat(4)0.97%
Max Revenue beat(4)3.16%
Revenue beat(8)8
Avg Revenue beat(8)2.02%
Revenue beat(12)10
Avg Revenue beat(12)1.79%
Revenue beat(16)12
Avg Revenue beat(16)1.49%
PT rev (1m)0.82%
PT rev (3m)1.14%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)2.53%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.99%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.22 | ||
| Fwd PE | 30.99 | ||
| P/S | 8.7 | ||
| P/FCF | 50.66 | ||
| P/OCF | 40.05 | ||
| P/B | 6.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.81 |
EPS(TTM)2.7
EY2.62%
EPS(NY)3.33
Fwd EY3.23%
FCF(TTM)2.04
FCFY1.97%
OCF(TTM)2.58
OCFY2.5%
SpS11.86
BVpS15.01
TBVpS-1.14
PEG (NY)2.2
PEG (5Y)4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 9.15% | ||
| ROCE | 9.4% | ||
| ROIC | 7.57% | ||
| ROICexc | 7.73% | ||
| ROICexgc | 25.4% | ||
| OM | 18.78% | ||
| PM (TTM) | 11.58% | ||
| GM | 68.65% | ||
| FCFM | 17.17% |
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-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.75 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 61.86% | ||
| Cap/Sales | 4.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.12% | ||
| Profit Quality | 148.25% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 6.04 |
F-Score5
WACC8.57%
ROIC/WACC0.88
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)26.17%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%33.93%
EPS Next Y17.41%
EPS Next 2Y15.19%
EPS Next 3Y14.34%
EPS Next 5Y12.43%
Revenue 1Y (TTM)19.35%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%20.93%
Revenue Next Year17.36%
Revenue Next 2Y14.01%
Revenue Next 3Y12.69%
Revenue Next 5Y10.66%
EBIT growth 1Y30.17%
EBIT growth 3Y12.47%
EBIT growth 5Y10.54%
EBIT Next Year32.67%
EBIT Next 3Y19.08%
EBIT Next 5Y13.71%
FCF growth 1Y151.8%
FCF growth 3Y26.15%
FCF growth 5Y16.61%
OCF growth 1Y114.76%
OCF growth 3Y22.44%
OCF growth 5Y13.34%