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.

Rewards

Trading at 34.8% below its fair value

Revenue is forecast to grow 7.73% per year

Earnings grew by 181.3% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -42.7% per year for the next 3 years

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Undervalued with solid track record.


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

Stable Share Price: BSX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.6%

BSX

2.6%

DE Medical Equipment

9.1%

DE Market


1 Year Return

-4.7%

BSX

10.7%

DE Medical Equipment

-13.1%

DE Market

Return vs Industry: BSX underperformed the German Medical Equipment industry which returned 9.4% over the past year.

Return vs Market: BSX exceeded the German Market which returned -14.3% over the past year.


Shareholder returns

BSXIndustryMarket
7 Day16.6%2.6%9.1%
30 Day7.3%8.7%-1.0%
90 Day-20.9%-10.6%-20.7%
1 Year-4.7%-4.7%12.2%10.7%-10.6%-13.1%
3 Year40.5%40.5%110.5%105.6%-10.7%-18.1%
5 Year93.4%93.4%238.2%223.7%-10.7%-22.8%

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 compared to its fair value and its price relative to the market?

34.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BSX (€32.4) is trading below our estimate of fair value (€49.71)

Significantly Below Fair Value: BSX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BSX is good value based on its PE Ratio (10.4x) compared to the Medical Equipment industry average (48.6x).

PE vs Market: BSX is good value based on its PE Ratio (10.4x) compared to the German market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: BSX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BSX is good value based on its PB Ratio (3.5x) compared to the DE Medical Equipment industry average (4.8x).


Next Steps

Future Growth

How is Boston Scientific forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

-42.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSX's earnings are forecast to decline over the next 3 years (-42.7% per year).

Earnings vs Market: BSX's earnings are forecast to decline over the next 3 years (-42.7% per year).

High Growth Earnings: BSX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BSX's revenue (7.7% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: BSX's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BSX's Return on Equity is forecast to be high in 3 years time (24.3%)


Next Steps

Past Performance

How has Boston Scientific performed over the past 5 years?

72.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSX has a large one-off loss of $642.0M impacting its December 31 2019 financial results.

Growing Profit Margin: BSX's current net profit margins (43.8%) are higher than last year (17%).


Past Earnings Growth Analysis

Earnings Trend: BSX has become profitable over the past 5 years, growing earnings by 72.2% per year.

Accelerating Growth: BSX's earnings growth over the past year (181.3%) exceeds its 5-year average (72.2% per year).

Earnings vs Industry: BSX earnings growth over the past year (181.3%) exceeded the Medical Equipment industry 17%.


Return on Equity

High ROE: BSX's Return on Equity (33.9%) is considered high.


Next Steps

Financial Health

How is Boston Scientific's financial position?


Financial Position Analysis

Short Term Liabilities: BSX's short term assets ($4.7B) do not cover its short term liabilities ($4.9B).

Long Term Liabilities: BSX's short term assets ($4.7B) do not cover its long term liabilities ($11.8B).


Debt to Equity History and Analysis

Debt Level: BSX's debt to equity ratio (72.1%) is considered high.

Reducing Debt: BSX's debt to equity ratio has increased from 65.7% to 72.1% over the past 5 years.

Debt Coverage: BSX's debt is not well covered by operating cash flow (18.4%).

Interest Coverage: BSX's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Mike Mahoney (54yo)

7.42s

Tenure

US$15,764,140

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 ($USD15.76M) is above average for companies of similar size in the German market ($USD5.19M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Mahoney
Chairman7.42yrsUS$15.76m0.16% $71.7m
Daniel Brennan
Executive VP & CFO6.25yrsUS$4.03m0.019% $8.5m
Edward Mackey
Executive VP of Operations5.17yrsUS$3.20m0.0047% $2.1m
Joseph Fitzgerald
Executive VP & President of Rhythm Management10.17yrsUS$4.03m0.021% $9.6m
Kevin Ballinger
Executive VP & President of Interventional Cardiology7.25yrsUS$3.37m0.0057% $2.6m
Jonathan Monson
VP, Global Controller & Chief Accounting Officer0.75yrno data0.0024% $1.1m
Jodi Eddy
Senior VP & Chief Information Officer4.33yrsno data0.0013% $565.0k
Susan Lisa
Vice President of Investor Relations6.33yrsno datano data
Desiree Ralls-Morrison
Senior VP2.42yrsno data0.00086% $388.7k
Catherine Jennings
Vice President of Global Marketing & New Business Development of Peripheral Interventionsno datano datano data

6.3yrs

Average Tenure

53yo

Average Age

Experienced Management: BSX's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Mahoney
Chairman7.42yrsUS$15.76m0.16% $71.7m
Edward Ludwig
Lead Independent Director3.92yrsUS$340.11k0.0026% $1.2m
Donna James
Independent Director4.75yrsUS$319.98k0.0016% $705.1k
Stephen MacMillan
Independent Director5yrsUS$299.98k0.000070% $31.6k
David Roux
Independent Director6.25yrsUS$320.20k0.0039% $1.8m
Ellen Zane
Independent Director4yrsUS$299.98k0.0019% $872.4k
Yoshiaki Fujimori
Independent Director3.75yrsUS$299.98kno data
Charles Dockendorff
Independent Director5yrsUS$324.98k0.0049% $2.2m
Nelda Connors
Independent Director10.33yrsUS$302.47k0.0036% $1.6m
John Sununu
Independent Director11yrsUS$319.98k0.0022% $1.0m

4.9yrs

Average Tenure

62yo

Average Age

Experienced Board: BSX's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$49.154b
  • Listing Market Cap: US$45.202b
  • Shares outstanding: 1.40b
  • Website: https://www.bostonscientific.com

Number of Employees


Location

  • Boston Scientific Corporation
  • 300 Boston Scientific Way
  • Marlborough
  • Massachusetts
  • 01752-1234
  • 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
BSXBRSE (Berne Stock Exchange)YesCommon StockCHCHFMay 1992
BSXETLX (Eurotlx)YesCommon StockITEURMay 1992
BSXCWBAG (Wiener Boerse AG)YesCommon StockATEURMay 1992
B1SX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

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 Neuro, and Cardiovascular. The company offers interventional cardiology products, including drug-eluting coronary stent systems used in the treatment of coronary artery disease; percutaneous coronary interventions therapy products to treat atherosclerosis; intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve devices, and systems for use in coronary arteries and heart chambers, as well as certain peripheral vessels; and structural heart therapies. It also provides stents, balloon catheters, wires, and atherectomy systems to treat arterial diseases; thrombectomy, acoustic pulse thrombolysis, wires, and stents to treat venous diseases; and peripheral embolization devices, radioactive microspheres, radiofrequency and cryotherapy ablation systems, microcatheters, and drainage catheters to treat various cancers. In addition, the company offers cardiac rhythm management devices, such as implantable cardioverter defibrillator systems to treat abnormalities; remote patient management system; implantable cardiac resynchronization therapy pacemaker systems; and medical technologies to diagnose and treat rate and rhythm disorders of the heart comprising ablation catheters, intracardiac ultrasound catheters, diagnostic catheters, delivery sheaths, mapping system, and other accessories. Further, it provides products to diagnose and treat diseases of the gastrointestinal and pulmonary conditions; products to treat various urological and pelvic conditions; deep brain stimulation systems for the treatment of parkinson's disease, tremor, and intractable primary and secondary dystonia; and spinal cord stimulator systems for the management of chronic pain. The company was founded in 1979 and is headquartered in Marlborough, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 20:34
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.