BOSTON SCIENTIFIC CORP (BSX) Stock Fundamental Analysis
NYSE:BSX - New York Stock Exchange, Inc. - US1011371077 - Common Stock - Currency: USD
Overall BSX gets a fundamental rating of 6 out of 10. We evaluated BSX against 189 industry peers in the Health Care Equipment & Supplies industry. While BSX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BSX is growing strongly while it is still valued neutral. This is a good combination! These ratings would make BSX suitable for growth investing!
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.
BSX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.71%, BSX belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
The Return On Equity of BSX (8.66%) is better than 83.96% of its industry peers.
BSX's Return On Invested Capital of 7.19% is amongst the best of the industry. BSX outperforms 84.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.66% | ||
| ROIC | 7.19% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BSX has a better Profit Margin (11.27%) than 86.63% of its industry peers.
In the last couple of years the Profit Margin of BSX has declined.
BSX has a better Operating Margin (18.06%) than 90.37% of its industry peers.
In the last couple of years the Operating Margin of BSX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 69.09%, BSX is in the better half of 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 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.
There is no outstanding debt for BSX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BSX has an Altman-Z score of 5.96. This indicates that BSX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.96, BSX belongs to the top of the industry, outperforming 83.96% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 5.05, BSX is doing good in the industry, outperforming 79.14% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that BSX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.45, BSX perfoms like the industry average, outperforming 40.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.05 | ||
| Altman-Z | 5.96 |
ROIC/WACC0.82
WACC8.73%
2.3 Liquidity
BSX has a Current Ratio of 1.48. 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 1.48, BSX is doing worse than 77.54% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that BSX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, BSX is doing worse than 77.54% of the companies in the same industry.
| 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 22.44%, which is quite impressive.
The Earnings Per Share has been growing by 9.56% on average over the past years. This is quite good.
Looking at the last year, BSX shows a quite strong growth in Revenue. The Revenue has grown by 17.60% 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)22.44%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%27.27%
Revenue 1Y (TTM)17.6%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%22.44%
3.2 Future
BSX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.21% yearly.
BSX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.05% yearly.
EPS Next Y14.95%
EPS Next 2Y14.57%
EPS Next 3Y13.93%
EPS Next 5Y12.21%
Revenue Next Year15.37%
Revenue Next 2Y12.8%
Revenue Next 3Y11.82%
Revenue Next 5Y10.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 40.46, BSX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of BSX indicates a somewhat cheap valuation: BSX is cheaper than 70.59% of the companies listed in the same industry.
BSX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.43.
With a Price/Forward Earnings ratio of 35.20, BSX can be considered very expensive at the moment.
72.19% of the companies in the same industry are more expensive than BSX, based on the Price/Forward Earnings ratio.
BSX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.46 | ||
| Fwd PE | 35.2 |
4.2 Price Multiples
67.38% of the companies in the same industry are more expensive than BSX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BSX is valued a bit cheaper than 70.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.43 | ||
| EV/EBITDA | 38.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BSX does not grow enough to justify the current Price/Earnings ratio.
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 13.93% in the coming years.
PEG (NY)2.71
PEG (5Y)4.23
EPS Next 2Y14.57%
EPS Next 3Y13.93%
5. Dividend
5.1 Amount
No dividends for BSX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
101.56
+0.84 (+0.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.1%
Inst Owner Change-89.5%
Ins Owners0.18%
Ins Owner Change-0.9%
Market Cap149.68B
Analysts84.74
Price Target119.59 (17.75%)
Short Float %0.71%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.02
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)6.03%
Min EPS beat(2)5.79%
Max EPS beat(2)6.28%
EPS beat(4)4
Avg EPS beat(4)6.62%
Min EPS beat(4)5.79%
Max EPS beat(4)8.11%
EPS beat(8)8
Avg EPS beat(8)5.81%
EPS beat(12)11
Avg EPS beat(12)3.94%
EPS beat(16)14
Avg EPS beat(16)3.03%
Revenue beat(2)2
Avg Revenue beat(2)2.34%
Min Revenue beat(2)1.53%
Max Revenue beat(2)3.16%
Revenue beat(4)4
Avg Revenue beat(4)2.73%
Min Revenue beat(4)1.53%
Max Revenue beat(4)3.6%
Revenue beat(8)7
Avg Revenue beat(8)2.31%
Revenue beat(12)9
Avg Revenue beat(12)1.61%
Revenue beat(16)11
Avg Revenue beat(16)1.22%
PT rev (1m)16.58%
PT rev (3m)19.51%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)0.45%
EPS NY rev (1m)2.22%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)1.96%
Revenue NY rev (3m)2.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.46 | ||
| Fwd PE | 35.2 | ||
| P/S | 9.41 | ||
| P/FCF | 69.43 | ||
| P/OCF | 50.98 | ||
| P/B | 7.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 38.19 |
EPS(TTM)2.51
EY2.47%
EPS(NY)2.89
Fwd EY2.84%
FCF(TTM)1.46
FCFY1.44%
OCF(TTM)1.99
OCFY1.96%
SpS10.8
BVpS14.05
TBVpS-0.05
PEG (NY)2.71
PEG (5Y)4.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 8.66% | ||
| ROCE | 8.93% | ||
| ROIC | 7.19% | ||
| ROICexc | 7.8% | ||
| ROICexgc | 26.06% | ||
| OM | 18.06% | ||
| PM (TTM) | 11.27% | ||
| GM | 69.09% | ||
| FCFM | 13.55% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.05 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 63.21% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.49% | ||
| Profit Quality | 120.25% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 5.96 |
F-Score7
WACC8.73%
ROIC/WACC0.82
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.44%
EPS 3Y15.48%
EPS 5Y9.56%
EPS Q2Q%27.27%
EPS Next Y14.95%
EPS Next 2Y14.57%
EPS Next 3Y13.93%
EPS Next 5Y12.21%
Revenue 1Y (TTM)17.6%
Revenue growth 3Y12.1%
Revenue growth 5Y9.3%
Sales Q2Q%22.44%
Revenue Next Year15.37%
Revenue Next 2Y12.8%
Revenue Next 3Y11.82%
Revenue Next 5Y10.05%
EBIT growth 1Y20.21%
EBIT growth 3Y12.47%
EBIT growth 5Y10.54%
EBIT Next Year25.72%
EBIT Next 3Y14.4%
EBIT Next 5Y13.64%
FCF growth 1Y26.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.72%
OCF growth 3YN/A
OCF growth 5YN/A