Baxter International
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Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products. The last earnings update was 8 days ago. More info.
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BAX Share Price and Events
7 Day Returns
1 Year Returns
BAX Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Baxter International (BAX) | -0.1% | -2.2% | 3.4% | 7.5% | 76% | 1.9% |
| US Medical Equipment | -3.8% | -3.9% | -1.1% | 10% | 54.1% | 90.5% |
| US Market | -3.9% | -3.6% | 1.8% | 1.4% | 35.8% | 40.8% |
1 Year Return vs Industry and Market
- BAX underperformed the Medical Equipment industry which returned 10% over the past year.
- BAX outperformed the Market in United States of America which returned 1.4% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Baxter International
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Baxter International.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 15 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.6% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Medical Equipment Unlevered Beta | Simply Wall St/ S&P Global | 0.9 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.896 (1 + (1- 21%) (12.34%)) |
0.989 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.99 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.989 * 5.96%) |
8.62% |
Discounted Cash Flow Calculation for NYSE:BAX using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Baxter International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.62%) |
|
|---|---|---|---|
| 2019 | 1,586.00 | Analyst x3 | 1,460.09 |
| 2020 | 1,930.40 | Analyst x4 | 1,636.07 |
| 2021 | 2,164.00 | Analyst x3 | 1,688.45 |
| 2022 | 2,086.00 | Analyst x1 | 1,498.38 |
| 2023 | 2,209.00 | Analyst x1 | 1,460.77 |
| 2024 | 2,283.00 | Est @ 3.35% | 1,389.85 |
| 2025 | 2,355.23 | Est @ 3.16% | 1,320.00 |
| 2026 | 2,426.68 | Est @ 3.03% | 1,252.07 |
| 2027 | 2,498.09 | Est @ 2.94% | 1,186.60 |
| 2028 | 2,570.01 | Est @ 2.88% | 1,123.84 |
| Present value of next 10 years cash flows | $14,016.13 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $2,570.01 × (1 + 2.73%) ÷ (8.62% – 2.73%) |
$44,799.77 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $44,799.77 ÷ (1 + 8.62%)10 |
$19,590.59 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $14,016.13 + $19,590.59 |
$33,606.72 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $33,606.72 / 510.17 |
$65.87 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $65.87 |
| Current discount | Discount to share price of
$75.94
= -1 x ($75.94 - $65.87) / $65.87 |
-15.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Baxter International is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Baxter International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Baxter International's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $3.01 |
| NYSE:BAX Share Price ** | NYSE (2019-05-15) in USD | $75.94 |
| United States of America Medical Equipment Industry PE Ratio | Median Figure of 64 Publicly-Listed Medical Equipment Companies | 38.98x |
| United States of America Market PE Ratio | Median Figure of 3,087 Publicly-Listed Companies | 17.79x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Baxter International.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:BAX Share Price ÷ EPS (both in USD) = 75.94 ÷ 3.01 |
25.21x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Baxter International is good value based on earnings compared to the US Medical Equipment industry average.
- Baxter International is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Baxter International's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 25.21x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts |
8.3%per year |
| United States of America Medical Equipment Industry PEG Ratio | Median Figure of 55 Publicly-Listed Medical Equipment Companies | 2.21x |
| United States of America Market PEG Ratio | Median Figure of 2,113 Publicly-Listed Companies | 1.52x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 25.21x ÷ 8.3% |
3.03x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Baxter International is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Baxter International's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $14.99 |
| NYSE:BAX Share Price * | NYSE (2019-05-15) in USD | $75.94 |
| United States of America Medical Equipment Industry PB Ratio | Median Figure of 182 Publicly-Listed Medical Equipment Companies | 4.28x |
| United States of America Market PB Ratio | Median Figure of 5,195 Publicly-Listed Companies | 1.83x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:BAX Share Price ÷ Book Value per Share (both in USD) = 75.94 ÷ 14.99 |
5.07x |
* Primary Listing of Baxter International.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Baxter International is overvalued based on assets compared to the US Medical Equipment industry average.
Value checks
We assess Baxter International's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check) Baxter International has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Baxter International's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Baxter International's earnings growth is positive but not above the United States of America market average.
- Baxter International's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:BAX Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts | 8.3% |
| NYSE:BAX Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts | 4.7% |
| United States of America Medical Equipment Industry Earnings Growth Rate | Market Cap Weighted Average | 21.5% |
| United States of America Medical Equipment Industry Revenue Growth Rate | Market Cap Weighted Average | 8.1% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 13,606 | 2 | ||
| 2022-12-31 | 12,879 | 2 | ||
| 2021-12-31 | 12,356 | 2,859 | 1,932 | 9 |
| 2020-12-31 | 11,759 | 2,664 | 1,759 | 14 |
| 2019-12-31 | 11,225 | 2,333 | 1,581 | 15 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 11,082 | 1,791 | 1,588 |
| 2018-12-31 | 11,127 | 2,096 | 1,630 |
| 2018-09-30 | 11,060 | 1,855 | 1,215 |
| 2018-06-30 | 11,000 | 1,971 | 919 |
| 2018-03-31 | 10,763 | 2,095 | 840 |
| 2017-12-31 | 10,561 | 1,837 | 724 |
| 2017-09-30 | 10,432 | 2,036 | 1,025 |
| 2017-06-30 | 10,283 | 1,963 | 904 |
| 2017-03-31 | 10,263 | 2,176 | 1,852 |
| 2016-12-31 | 10,163 | 1,654 | 4,966 |
| 2016-09-30 | 10,121 | 1,665 | 4,909 |
| 2016-06-30 | 10,050 | 1,388 | 4,784 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
All data from Baxter International Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | ||||
| 2021-12-31 | 3.88 | 3.91 | 3.84 | 3.00 |
| 2020-12-31 | 3.46 | 3.48 | 3.45 | 3.00 |
| 2019-12-31 | 2.97 | 3.11 | 2.78 | 6.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 3.01 |
| 2018-12-31 | 3.05 |
| 2018-09-30 | 2.26 |
| 2018-06-30 | 1.70 |
| 2018-03-31 | 1.55 |
| 2017-12-31 | 1.33 |
| 2017-09-30 | 1.89 |
| 2017-06-30 | 1.66 |
| 2017-03-31 | 3.40 |
| 2016-12-31 | 9.10 |
| 2016-09-30 | 8.97 |
| 2016-06-30 | 8.75 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Baxter International's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Baxter International has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Baxter International performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Baxter International's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
- Baxter International's 1-year earnings growth exceeds its 5-year average (89% vs 4.6%)
- Baxter International's earnings growth has exceeded the US Medical Equipment industry average in the past year (89% vs 31.9%).
Earnings and Revenue History
All data from Baxter International Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 11,082.00 | 1,588.00 | 2,395.00 | 596.00 |
| 2018-12-31 | 11,127.00 | 1,630.00 | 2,399.00 | 619.00 |
| 2018-09-30 | 11,060.00 | 1,215.00 | 2,477.00 | 635.00 |
| 2018-06-30 | 11,000.00 | 919.00 | 2,521.00 | 631.00 |
| 2018-03-31 | 10,763.00 | 840.00 | 2,478.00 | 621.00 |
| 2017-12-31 | 10,561.00 | 724.00 | 2,457.00 | 613.00 |
| 2017-09-30 | 10,432.00 | 1,025.00 | 2,424.00 | 584.00 |
| 2017-06-30 | 10,283.00 | 904.00 | 2,382.00 | 564.00 |
| 2017-03-31 | 10,263.00 | 1,852.00 | 2,447.00 | 560.00 |
| 2016-12-31 | 10,163.00 | 4,966.00 | 2,520.00 | 566.00 |
| 2016-09-30 | 10,121.00 | 4,909.00 | 2,566.00 | 573.00 |
| 2016-06-30 | 10,050.00 | 4,784.00 | 2,625.00 | 584.00 |
| 2016-03-31 | 9,940.00 | 3,646.00 | 2,704.00 | 582.00 |
| 2015-12-31 | 9,968.00 | 393.00 | 2,832.00 | 589.00 |
| 2015-09-30 | 10,154.00 | 337.00 | 2,972.00 | 585.00 |
| 2015-06-30 | 10,376.00 | 510.00 | 3,087.00 | 593.00 |
| 2015-03-31 | 9,274.00 | 84.00 | 3,037.00 | 473.00 |
| 2014-12-31 | 10,719.00 | 457.00 | 3,182.00 | 608.00 |
| 2014-09-30 | 12,252.00 | 739.00 | 3,301.00 | 743.00 |
| 2014-06-30 | 13,253.00 | 1,092.00 | 3,334.00 | 847.00 |
| 2014-03-31 | 15,367.00 | 1,967.00 | 3,437.00 | 1,047.00 |
| 2013-12-31 | 9,413.00 | 315.00 | 2,859.00 | 534.00 |
| 2013-09-30 | 14,398.00 | 2,097.00 | 3,314.00 | 876.00 |
| 2013-06-30 | 14,165.00 | 2,152.00 | 3,239.00 | 914.00 |
| 2013-03-31 | 14,250.00 | 2,290.00 | 3,233.00 | 992.00 |
| 2012-12-31 | 13,936.00 | 2,283.00 | 3,044.00 | 940.00 |
| 2012-09-30 | 14,031.00 | 2,295.00 | 3,073.00 | 1,119.00 |
| 2012-06-30 | 14,033.00 | 2,288.00 | 3,117.00 | 1,068.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Baxter International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Baxter International used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.
- Baxter International has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Baxter International's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Baxter International has a total score of 6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Baxter International's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Baxter International's finances.
The net worth of a company is the difference between its assets and liabilities.
- Baxter International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Baxter International's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Baxter International Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 7,669.00 | 4,780.00 | 1,908.00 |
| 2018-12-31 | 7,816.00 | 3,477.00 | 1,832.00 |
| 2018-09-30 | 9,113.00 | 3,488.00 | 2,860.00 |
| 2018-06-30 | 8,869.00 | 3,498.00 | 2,857.00 |
| 2018-03-31 | 9,093.00 | 3,553.00 | 2,947.00 |
| 2017-12-31 | 9,116.00 | 3,512.00 | 3,394.00 |
| 2017-09-30 | 9,459.00 | 3,498.00 | 3,517.00 |
| 2017-06-30 | 9,165.00 | 3,457.00 | 3,817.00 |
| 2017-03-31 | 8,675.00 | 2,787.00 | 2,858.00 |
| 2016-12-31 | 8,280.00 | 2,782.00 | 2,801.00 |
| 2016-09-30 | 8,664.00 | 2,840.00 | 2,597.00 |
| 2016-06-30 | 8,510.00 | 3,168.00 | 2,630.00 |
| 2016-03-31 | 9,020.00 | 3,357.00 | 3,443.00 |
| 2015-12-31 | 8,865.00 | 6,507.00 | 7,361.00 |
| 2015-09-30 | 7,845.00 | 6,729.00 | 6,126.00 |
| 2015-06-30 | 8,021.00 | 14,230.00 | 6,680.00 |
| 2015-03-31 | 7,288.00 | 10,061.00 | 2,530.00 |
| 2014-12-31 | 8,156.00 | 9,029.00 | 2,925.00 |
| 2014-09-30 | 8,426.00 | 9,275.00 | 2,078.00 |
| 2014-06-30 | 8,687.00 | 8,839.00 | 1,866.00 |
| 2014-03-31 | 8,693.00 | 8,695.00 | 2,049.00 |
| 2013-12-31 | 8,486.00 | 9,290.00 | 2,733.00 |
| 2013-09-30 | 7,746.00 | 9,066.00 | 2,376.00 |
| 2013-06-30 | 7,315.00 | 9,035.00 | 5,989.00 |
| 2013-03-31 | 7,001.00 | 5,869.00 | 2,692.00 |
| 2012-12-31 | 6,978.00 | 5,930.00 | 3,270.00 |
| 2012-09-30 | 7,190.00 | 5,970.00 | 3,191.00 |
| 2012-06-30 | 6,612.00 | 5,334.00 | 2,353.00 |
- Baxter International's level of debt (62.3%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (100% vs 62.3% today).
- Debt is well covered by operating cash flow (37.5%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 35.5x coverage).
Financial health checks
We assess Baxter International's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Baxter International has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Baxter International's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Baxter International
shares you are expected to receive
$23
in your first year as a dividend.
Dividend Amount
- Baxter International's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
- Baxter International's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment
Purchase Baxter International before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
| United States of America Medical Equipment Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.3% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1997 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | 1.06 | 5.00 |
| 2020-12-31 | 0.93 | 6.00 |
| 2019-12-31 | 0.79 | 7.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-07 | 0.880 | 1.157 |
| 2019-02-19 | 0.760 | 0.987 |
| 2018-11-13 | 0.760 | 1.125 |
| 2018-07-17 | 0.760 | 1.058 |
| 2018-05-08 | 0.760 | 1.040 |
| 2018-02-20 | 0.640 | 0.955 |
| 2017-11-14 | 0.640 | 0.964 |
| 2017-07-18 | 0.640 | 1.023 |
| 2017-05-02 | 0.640 | 1.087 |
| 2017-02-21 | 0.520 | 0.996 |
| 2016-11-08 | 0.520 | 1.126 |
| 2016-07-19 | 0.520 | 1.097 |
| 2016-05-03 | 0.520 | 1.161 |
| 2016-02-16 | 0.460 | 1.123 |
| 2015-11-10 | 0.460 | 1.241 |
| 2015-07-29 | 0.460 | 1.254 |
| 2015-05-05 | 2.080 | 3.871 |
| 2015-02-17 | 2.080 | 3.014 |
| 2014-11-11 | 2.080 | 2.885 |
| 2014-07-22 | 2.080 | 2.858 |
| 2014-05-05 | 2.080 | 2.791 |
| 2014-02-18 | 1.960 | 2.778 |
| 2013-11-12 | 1.960 | 2.868 |
| 2013-07-23 | 1.960 | 2.841 |
| 2013-05-06 | 1.960 | 2.762 |
| 2013-02-19 | 1.800 | 2.579 |
| 2012-11-13 | 1.800 | 2.684 |
| 2012-07-25 | 1.800 | 2.978 |
| 2012-05-07 | 1.340 | 2.549 |
| 2012-02-21 | 1.340 | 2.330 |
| 2011-11-15 | 1.340 | 2.579 |
| 2011-07-26 | 1.240 | 2.269 |
| 2011-05-02 | 1.240 | 2.088 |
| 2011-02-15 | 1.240 | 2.320 |
| 2010-11-09 | 1.240 | 2.468 |
| 2010-07-27 | 1.160 | 2.483 |
| 2010-05-04 | 1.160 | 2.723 |
| 2010-02-16 | 1.160 | 2.058 |
| 2009-11-10 | 1.160 | 2.019 |
| 2009-07-28 | 1.040 | 1.854 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have fallen over the past 10 years.
Income/ dividend checks
We assess Baxter International's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Baxter International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Baxter International has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $15,645,125 |
| AGE | 56 |
| TENURE AS CEO | 3.3 years |
CEO Bio
Mr. José E. Almeida, also known as Joe, has been the Chairman and Chief Executive Officer of Baxter International Inc. since January 1, 2016 and serves as its President. Mr. Almeida has been Director at Baxter International Inc. since January 2016. He has more than 25 years of experience in health care, including medical devices, consumer health products, surgical instruments and biopharmaceuticals. He served as Senior Advisor with The Carlyle Group from May 2015 until October 2015. He served as an Operating Executive in the Global Healthcare group at The Carlyle Group LP from May 4, 2015 to October 2015. Mr. Almeida served as Chief Executive Officer at Baxter International Inc. from October 28, 2015 to November 20, 2015 and served as its Corporate Vice President since November 20, 2015. He was part of the U.S. buyout asset class. As an Operating Executive, Mr. Almeida provides strategic guidance and advice to Carlyle professionals and portfolio company executives on prospective investments, overall business strategy and value creation opportunities within the healthcare industry. He served as the Chief Executive Officer of Covidien PLC from July 1, 2011 to 2015 and served as its President since July 1, 2011. He served as the Chairman of the Board of Covidien PLC since March 13, 2012 till January 2015. Mr. Almeida was employed at Tyco International Ltd. and Tyco International plc. He joined Covidien in 1995 and held leadership positions in global manufacturing and corporate engineering. Mr. Almeida served as the President of Medical Devices at Covidien plc from October 2006 to June 2011. Mr. Almeida served as a Senior Vice President of Covidien plc since June 2007. Mr. Almeida served as the Vice President of Worldwide Manufacturing at Tyco Healthcare from 2000 to 2002, Vice President of Manufacturing at Tyco Healthcare Europe, Middle East and Africa from 1998 to 2002 and Director of Manufacturing and Corporate Engineering from 1998 to 2000. He served as the President of Tyco Healthcare's International Business from April 2004 to October 2006. He served as an Executive Vice President and Chief Operating Officer of Integer Holdings Corporation from January 2003 to April 01, 2004. Mr. Almeida served with Acufex Medical, Johnson & Johnson Professional, Inc. and Andersen Consulting (Accenture). He has been an Independent Director of Walgreens Boots Alliance, Inc. since April 19, 2017. He served as a Director of Analog Devices, Inc., from January 20, 2015 to November 06, 2015. He served as a Director of TransMedics, Inc. since October 2007. Mr. Almeida serves on the board of directors of Advanced Medical Technology Association (AdvaMed) and Partners in Health. He serves as a Director of Ortho-Clinical Diagnostics, Inc. He served as Independent Director of State Street Corporation from October 2013 to October 2015. He served as a Director of Dell EMC (alternate name, EMC Corporation) from January 12, 2015 to October 31, 2015. He served as a Director of Covidien PLC from July 1, 2011 to January 2015. He served as the Chairman of the Advanced Medical Technology Association. He has experience in medical technology, in vitro diagnostics, life science tools and pharmaceutical products and services. He received a Bachelor of Science in Mechanical Engineering from Escola de Engenharia Maua in São Paulo, Brazil (Instituto Mauá de Tecnologia in São Paulo).
CEO Compensation
- Joe's compensation has been consistent with company performance over the past year.
- Joe's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Baxter International management team in years:
- The tenure for the Baxter International management team is about average.
Management Team
Joe Almeida
Chairman
$16M
56
3.3 yrs
Jay Saccaro
Executive VP & CFO
$5M
45
3.9 yrs
Sean Martin
Senior VP & General Counsel
$3M
55
2.3 yrs
Giuseppe Accogli
Senior VP & President of Americas
$4M
47
2 yrs
Scott Pleau
Senior Vice President of Operations
52
Brian Stevens
Senior VP
43
0.5 yrs
Paul Martin
Chief Information Officer & Senior VP
60
8.3 yrs
Clare Trachtman
Vice President of Investor Relations
Jeanne Mason
Senior Vice President of Human Resources
$4M
62
2 yrs
Robert Felicelli
?President of Pharmaceuticals
59
0.3 yrs
Board of Directors Tenure
Average tenure and age of the Baxter International board of directors in years:
- The tenure for the Baxter International board of directors is about average.
Board of Directors
Joe Almeida
Chairman
$16M
56
3.3 yrs
Bob Parkinson
Chairman Emeritus
$18M
67
3.3 yrs
James R. Gavin
Independent Director
$314K
72
16.3 yrs
John Forsyth
Independent Director
$303K
70
15.7 yrs
Al Stroucken
Independent Director
$318K
70
14.7 yrs
Steve Oesterle
Independent Director
$320K
66
2.3 yrs
Tom Stallkamp
Lead Independent Director
$368K
71
5 yrs
Peter Hellman
Independent Director
$312K
68
14.2 yrs
Thomas Chen
Independent Director
$298K
68
6.5 yrs
Mike Mahoney
Independent Director
$301K
53
3.6 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 04. Dec 18 | Sell | Third Point LLC | Company | 03. Dec 18 | 03. Dec 18 | -8,000,000 | $68.62 | $-548,960,000 | ||
| 23. May 18 | Sell | Carole J. Shapazian | Individual | 22. May 18 | 22. May 18 | -2,664 | $71.79 | $-191,249 | ||
Management checks
We assess Baxter International's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Baxter International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Baxter International Inc. (NYSE:BAX) Has Got What It Takes To Be An Attractive Dividend Stock
Of the free cash flow it generated last year, Baxter International paid out 28% as dividends, suggesting the dividend is affordable. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Baxter International has grown its earnings per share at 39% per annum over the past five years. Earnings per share have rocketed in recent times, and we like that the company is retaining more than half of its earnings to reinvest. However, always remember that very few companies can grow at double digit rates forever. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Earnings growth generally bodes well for the future value of company dividend payments.
Simply Wall St - – Full articleIs It Too Late To Consider Buying Baxter International Inc. (NYSE:BAX)?
Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Baxter International's current trading price of $75.51 reflective of the actual value of the? … Let’s take a look at Baxter International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleHere's How P/E Ratios Can Help Us Understand Baxter International Inc. (NYSE:BAX)
Looking at earnings over the last twelve months, Baxter International has a P/E ratio of 24.35. … How Do I Calculate Baxter International's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleHow Baxter International Inc. (NYSE:BAX) Could Add Value To Your Portfolio
(NYSE:BAX) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … Below, I've touched on some key aspects you should know on a high level
Simply Wall St - – Full articleWhat Kind Of Shareholder Appears On The Baxter International Inc.'s (NYSE:BAX) Shareholder Register?
A look at the shareholders of Baxter International Inc. … With a market capitalization of US$42b, Baxter International is rather large. … See our latest analysis for Baxter International
Simply Wall St - – Full articleBaxter International Inc. (NYSE:BAX): Earnings Expected To Remain Subdued
On 31 December 2018, Baxter International Inc. … (NYSE:BAX) released its most recent earnings update. … with earnings expected to decline by -2.5% in the upcoming year
Simply Wall St - – Full articleDid You Miss Baxter International's 90% Share Price Gain?
(NYSE:BAX) shareholders have seen the share price rise 90% over three years, well in excess of the market return (41%, not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During three years of share price growth, Baxter International achieved compound earnings per share growth of 62% per year.
Simply Wall St - – Full articleDid Baxter International Inc. (NYSE:BAX) Insiders Sell Shares?
(NYSE:BAX), you may well want to know whether insiders have been buying or selling. … Baxter International Insider Transactions Over The Last Year. … That means that an insider was selling shares at slightly below the current price (US$74.68).
Simply Wall St - – Full articleWhat Should Investors Know About The Future Of Baxter International Inc.'s (NYSE:BAX)?
Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … Baxter International Inc.'s (NYSE:BAX) most recent earnings update in December 2018a
Simply Wall St - – Full articleIs Baxter International Inc. (NYSE:BAX) A High Quality Stock To Own?
This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.18 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleCompany Info
Description
Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products. The company operates through North and South America; Europe, Middle East and Africa; and Asia-Pacific segments. The company offers peritoneal dialysis and hemodialysis, and additional dialysis therapies and services; renal replacement therapies and other organ support therapies focused in the intensive care unit; sterile intravenous (IV) solutions, IV therapies, infusion pumps, administration sets, and drug reconstitution devices; and parenteral nutrition therapies. It also provides biological products and medical devices, and surgical hemostat and sealant products used in surgical procedures for hemostasis, tissue sealing, and adhesion prevention; premixed and oncology drug platforms, inhaled anesthesia and critical care products, and pharmacy compounding services; and generic injectable pharmaceuticals. Its products are used in hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices, and by patients at home under physician supervision. The company sells its products through direct sales force, as well as through independent distributors, drug wholesalers, and specialty pharmacy or other alternate site providers in approximately 100 countries. It has an agreement with Celerity Pharmaceutical, LLC to develop acute care generic injectable premix and oncolytic molecules. Baxter International Inc. was founded in 1931 and is headquartered in Deerfield, Illinois.
Details
| Name: | Baxter International Inc. |
| BAX | |
| Exchange: | NYSE |
| Founded: | 1931 |
| $38,742,193,383 | |
| 510,168,467 | |
| Website: | http://www.baxter.com |
| Address: |
Baxter International Inc. One Baxter Parkway, Deerfield, Illinois, 60015, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | BAX | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | BTL | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| SWX | BAX | Common Stock | SIX Swiss Exchange | CH | CHF | 02. Jan 1968 | |
| WBAG | BAX | Common Stock | Wiener Boerse AG | AT | EUR | 02. Jan 1968 | |
| BMV | BAX * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. Jan 1968 |
Number of employees
Current staff
Industry
| Health Care Equipment | |
| Healthcare |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/16 01:19 |
| End of day share price update: | 2019/05/15 00:00 |
| Last estimates confirmation: | 2019/05/13 |
| Last earnings filing: | 2019/05/08 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
