BOSTON SCIENTIFIC CORP (BSX)
US1011371077 - Common Stock
We assign a fundamental rating of 5 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 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years BSX always reported a positive cash flow from operatings.
1.2 Ratios
BSX's Return On Assets of 4.71% is amongst the best of the industry. BSX outperforms 82.35% of its industry peers.
BSX has a better Return On Equity (8.66%) than 82.89% of its industry peers.
BSX has a better Return On Invested Capital (6.31%) than 81.82% of its industry peers.
BSX had an Average Return On Invested Capital over the past 3 years of 5.38%. This is below the industry average of 8.23%.
The 3 year average ROIC (5.38%) for BSX is below the current ROIC(6.31%), indicating increased profibility in the last year.
| 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
BSX's Profit Margin of 11.27% is amongst the best of the industry. BSX outperforms 86.63% of its industry peers.
BSX's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 18.06%, BSX belongs to the best of the industry, outperforming 90.91% 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.
With a decent Gross Margin value of 69.09%, BSX is doing good in the industry, outperforming 79.14% 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 | 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
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.
The number of shares outstanding for BSX has been increased compared to 5 years ago.
Compared to 1 year ago, BSX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.42 indicates that BSX is not in any danger for bankruptcy at the moment.
The Altman-Z score of BSX (5.42) is better than 79.68% of its industry peers.
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.
BSX has a better Debt to FCF ratio (5.05) than 79.68% of its industry peers.
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 | 5.42 |
ROIC/WACC0.73
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.48 indicates that BSX should not have too much problems paying its short term obligations.
The Current ratio of BSX (1.48) is worse than 78.61% 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.
BSX's Quick ratio of 1.02 is on the low side compared to the rest of the industry. BSX is outperformed by 78.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
BSX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.59%, which is quite good.
The Earnings Per Share has been growing slightly by 6.73% on average over the past years.
Looking at the last year, BSX shows a quite strong growth in Revenue. The Revenue has grown by 15.65% in the last year.
BSX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.71% yearly.
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
Based on estimates for the next years, BSX will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.88% on average per year.
The Revenue is expected to grow by 9.85% on average over the next years. This is quite good.
EPS Next Y21.36%
EPS Next 2Y17.26%
EPS Next 3Y15.98%
EPS Next 5Y12.88%
Revenue Next Year17.51%
Revenue Next 2Y14.89%
Revenue Next 3Y13.28%
Revenue Next 5Y9.85%
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
The Price/Earnings ratio is 38.14, which means the current valuation is very expensive for BSX.
70.05% of the companies in the same industry are more expensive than BSX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BSX to the average of the S&P500 Index (29.20), we can say BSX is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 31.93, the valuation of BSX can be described as expensive.
BSX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BSX is cheaper than 73.80% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, BSX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.14 | ||
| Fwd PE | 31.93 |
4.2 Price Multiples
68.98% 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 73.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.52 | ||
| EV/EBITDA | 34.34 |
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.
A more expensive valuation may be justified as BSX's earnings are expected to grow with 15.98% in the coming years.
PEG (NY)1.79
PEG (5Y)5.66
EPS Next 2Y17.26%
EPS Next 3Y15.98%
5. Dividend
5.1 Amount
BSX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BOSTON SCIENTIFIC CORP
NYSE:BSX (11/22/2024, 8:27:14 PM)
After market: 90 0 (0%)90
-1.5 (-1.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap132.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.14 | ||
| Fwd PE | 31.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.79
PEG (5Y)5.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.06% | ||
| PM (TTM) | 11.27% | ||
| GM | 69.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.59%
EPS 3Y28.77%
EPS 5Y
EPS Q2Q%
EPS Next Y21.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.65%
Revenue growth 3Y12.83%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y