DB:BSX

Stock Analysis Report

Boston Scientific

Executive Summary

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide.

Snowflake

Fundamentals

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

How has Boston Scientific's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.5%

BSX

-3.8%

DE Medical Equipment

2.8%

DE Market


1 Year Return

9.7%

BSX

13.7%

DE Medical Equipment

2.9%

DE Market

Return vs Industry: BSX underperformed the German Medical Equipment industry which returned 13.7% over the past year.

Return vs Market: BSX exceeded the German Market which returned 2.9% over the past year.


Share holder returns

BSXIndustryMarket
7 Day-5.5%-3.8%2.8%
30 Day-9.6%-0.7%-0.2%
90 Day-8.8%-2.6%0.9%
1 Year9.7%9.7%15.5%13.7%6.2%2.9%
3 Year65.8%65.8%98.8%93.7%18.2%8.0%
5 Year290.4%290.4%283.6%264.3%43.1%23.6%

Price Volatility Vs. Market

How volatile is Boston Scientific's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Boston Scientific undervalued based on future cash flows and its price relative to the stock market?

37.97x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: BSX (€34.46) is trading above our estimate of fair value (€33.36)

Significantly Undervalued: BSX is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: BSX is poor value based on its PE Ratio (38x) compared to the Medical Equipment industry average (34.9x).

PE vs Market: BSX is poor value based on its PE Ratio (38x) compared to the German market (19.7x).


Price Based on Expected Growth

Low PEG Ratio: BSX is poor value based on its PEG Ratio (2.1x)


Price Based on Value of Assets

PB vs Industry: BSX is good value based on its PB Ratio (5.6x) compared to the DE Medical Equipment industry average (6.1x).


Next Steps

Future Growth

How is Boston Scientific expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: BSX's forecast earnings growth (17.9% per year) is above the savings rate (0.2%).

Earnings vs Market: BSX's earnings (17.9% per year) are forecast to grow faster than the German market (12.8% per year).

High Growth Earnings: BSX's earnings are forecast to grow, but not significantly.

Revenue vs Market: BSX's revenue (8.2% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: BSX's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: BSX's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has Boston Scientific performed over the past 5 years?

59.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BSX's earnings have grown significantly by 59.5% per year over the past 5 years.

Accelerating Growth: BSX's earnings growth over the past year (167.9%) exceeds its 5-year average (59.5% per year).

Earnings vs Industry: BSX earnings growth over the past year (167.9%) exceeded the Medical Equipment industry 6.4%.


Return on Equity

High ROE: BSX's Return on Equity (14.8%) is considered low.


Return on Assets

ROA vs Industry: BSX's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: BSX has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Boston Scientific's financial position?


Financial Position Analysis

Short Term Liabilities: BSX's short term assets ($6.3B) exceeds its short term liabilities ($4.9B)

Long Term Liabilities: BSX's short term assets (6.3B) do not cover its long term liabilities (10.0B)


Debt to Equity History and Analysis

Debt Level: BSX's debt to equity ratio (101.2%) is considered high

Reducing Debt: BSX's debt to equity ratio has increased from 65% to 101.2% over the past 5 years.

Debt Coverage: BSX's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: BSX's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet

Inventory Level: BSX has a low level of unsold assets or inventory.

Debt Coverage by Assets: BSX's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Boston Scientific's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.9%industryaverage0.9%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate BSX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BSX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if BSX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BSX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BSX's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Boston Scientific's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Mike Mahoney (54yo)

6.9yrs

Tenure

US$13,970,901

Compensation

Mr. Michael F. Mahoney, also known as Mike, has been Chairman of Boston Scientific Corporation since May 3, 2016, its Chief Executive Officer since November 1, 2012 and has been its President since October ...


CEO Compensation Analysis

Compensation vs. Market: Mike's total compensation ($USD13.97M) is about average for companies of similar size in the German market ($USD4.48M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: BSX's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

62yo

Average Age

Experienced Board: BSX's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: BSX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$92,81319 Aug 19
Arthur Butcher
EntityIndividual
Shares2,455
Max PriceUS$37.81
SellUS$229,41314 Aug 19
John Sorenson
EntityIndividual
Shares6,000
Max PriceUS$38.24
SellUS$753,41530 May 19
Eric Francis Thépaut
EntityIndividual
Shares22,047
Max PriceUS$34.17
SellUS$268,25429 May 19
Jodi Eddy
EntityIndividual
Role
Chief Information Officer
Senior VP & Chief Information Officer
Shares7,803
Max PriceUS$34.38
SellUS$420,76228 Feb 19
Eric Francis Thépaut
EntityIndividual
Shares11,980
Max PriceUS$35.12
SellUS$493,90303 Dec 18
Eric Francis Thépaut
EntityIndividual
Shares15,298
Max PriceUS$32.29
SellUS$201,44903 Dec 18
Yoshiaki Fujimori
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,143
Max PriceUS$32.79
SellUS$135,79713 Nov 18
Arthur Butcher
EntityIndividual
Shares4,000
Max PriceUS$33.95
SellUS$48,28106 Nov 18
Wendy Carruthers
EntityIndividual
Shares1,500
Max PriceUS$32.19

Ownership Breakdown


Management Team

  • Joe Fitzgerald (55yo)

    Executive VP & President of Rhythm Management

    • Tenure: 9.7yrs
    • Compensation: US$4.04m
  • Dan Brennan (53yo)

    Executive VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$3.67m
  • Susie Lisa

    Vice President of Investor Relations

    • Tenure: 5.8yrs
  • Mike Mahoney (54yo)

    Chairman

    • Tenure: 6.9yrs
    • Compensation: US$13.97m
  • Dave Pierce (55yo)

    Executive VP & President of MedSurg

    • Tenure: 8.8yrs
    • Compensation: US$2.73m
  • Kevin Ballinger (46yo)

    Executive VP & President of Interventional Cardiology

    • Tenure: 6.8yrs
    • Compensation: US$2.84m
  • Ed Mackey (56yo)

    Executive Vice President of Operations

    • Tenure: 4.7yrs
    • Compensation: US$3.82m
  • Desiree Ralls-Morrison (52yo)

    Senior VP

    • Tenure: 1.9yrs
  • Jodi Eddy (46yo)

    Senior VP & Chief Information Officer

    • Tenure: 3.8yrs
  • Jonathan Monson

    VP, Global Controller & Chief Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Edward Ludwig (68yo)

    Lead Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$340.21k
  • Donna James (62yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$309.98k
  • Steve MacMillan (55yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$294.98k
  • Dave Roux (62yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$315.51k
  • Ellen Zane (67yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$294.98k
  • Yoshiaki Fujimori (68yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$294.98k
  • Charles Dockendorff (65yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$318.31k
  • Nelda Connors (53yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$297.48k
  • John Sununu (54yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$315.16k
  • Mike Mahoney (54yo)

    Chairman

    • Tenure: 6.9yrs
    • Compensation: US$13.97m

Company Information

Boston Scientific Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Boston Scientific Corporation
  • Ticker: BSX
  • Exchange: DB
  • Founded: 1979
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$53.253b
  • Listing Market Cap: US$48.194b
  • Shares outstanding: 1.39b
  • Website: https://www.bostonscientific.com

Number of Employees


Location

  • Boston Scientific Corporation
  • 300 Boston Scientific Way
  • Marlborough
  • Massachusetts
  • 1752
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSXNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1992
BSXDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1992
BSX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 1992
0HOYLSE (London Stock Exchange)YesCommon StockGBUSDMay 1992
BSXCWBAG (Wiener Boerse AG)YesCommon StockATEURMay 1992

Biography

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Ne ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:34
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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