Baxter International
Market Cap
US$40.3b
Last Updated
2021/01/19 23:43 UTC
Data Sources
Company Financials +
Executive Summary
Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products. More Details
Snowflake Analysis
Excellent balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Baxter International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BAX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: BAX's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-2.1%
BAX
0.6%
US Medical Equipment
0.3%
US Market
1 Year Return
-13.4%
BAX
20.0%
US Medical Equipment
21.1%
US Market
Return vs Industry: BAX underperformed the US Medical Equipment industry which returned 20% over the past year.
Return vs Market: BAX underperformed the US Market which returned 19.5% over the past year.
Shareholder returns
| BAX | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | 0.6% | 0.3% |
| 30 Day | -2.5% | 3.3% | 3.3% |
| 90 Day | -3.6% | 9.9% | 14.2% |
| 1 Year | -12.5%-13.4% | 21.0%20.0% | 23.8%21.1% |
| 3 Year | 17.0%13.3% | 70.7%66.4% | 45.0%35.4% |
| 5 Year | 127.7%115.7% | 169.2%149.1% | 127.7%102.3% |
Long-Term Price Volatility Vs. Market
How volatile is Baxter International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
These 4 Measures Indicate That Baxter International (NYSE:BAX) Is Using Debt Reasonably Well2 weeks ago | Simply Wall St
Is Baxter International's (NYSE:BAX) 112% Share Price Increase Well Justified?Valuation
Is Baxter International undervalued compared to its fair value and its price relative to the market?
43.98x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BAX ($78.83) is trading above our estimate of fair value ($74.55)
Significantly Below Fair Value: BAX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: BAX is good value based on its PE Ratio (44x) compared to the US Medical Equipment industry average (54.1x).
PE vs Market: BAX is poor value based on its PE Ratio (44x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: BAX is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: BAX is good value based on its PB Ratio (4.7x) compared to the US Medical Equipment industry average (5.1x).
Next Steps
Future Growth
How is Baxter International forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
26.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BAX's forecast earnings growth (26.3% per year) is above the savings rate (2%).
Earnings vs Market: BAX's earnings (26.3% per year) are forecast to grow faster than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: BAX's revenue (5.1% per year) is forecast to grow slower than the US market (10.3% per year).
High Growth Revenue: BAX's revenue (5.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BAX's Return on Equity is forecast to be low in 3 years time (19.5%).
Next Steps
Past Performance
How has Baxter International performed over the past 5 years?
-22.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BAX has a large one-off loss of $930.0M impacting its September 30 2020 financial results.
Growing Profit Margin: BAX's current net profit margins (7.9%) are lower than last year (11.9%).
Past Earnings Growth Analysis
Earnings Trend: BAX's earnings have declined by 22.9% per year over the past 5 years.
Accelerating Growth: BAX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BAX had negative earnings growth (-31.6%) over the past year, making it difficult to compare to the Medical Equipment industry average (-0.3%).
Return on Equity
High ROE: BAX's Return on Equity (10.7%) is considered low.
Next Steps
Financial Health
How is Baxter International's financial position?
Financial Position Analysis
Short Term Liabilities: BAX's short term assets ($9.0B) exceed its short term liabilities ($3.4B).
Long Term Liabilities: BAX's short term assets ($9.0B) exceed its long term liabilities ($8.1B).
Debt to Equity History and Analysis
Debt Level: BAX's debt to equity ratio (76.3%) is considered high.
Reducing Debt: BAX's debt to equity ratio has reduced from 85.5% to 76.3% over the past 5 years.
Debt Coverage: BAX's debt is well covered by operating cash flow (30.2%).
Interest Coverage: BAX's interest payments on its debt are well covered by EBIT (16.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Baxter International current dividend yield, its reliability and sustainability?
1.24%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BAX's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: BAX's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: BAX's dividend payments have been volatile in the past 10 years.
Growing Dividend: BAX's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (51.9%), BAX's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BAX's dividends in 3 years are forecast to be well covered by earnings (26.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.7yrs
Average management tenure
CEO
Joe Almeida (58 yo)
5yrs
Tenure
US$13,913,821
Compensation
Mr. José E. Almeida, also known as Joe, has been the Chairman and Chief Executive Officer of Baxter International Inc. since January 1, 2016 and serves as its President. Mr. Almeida has been Director at Ba...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD13.91M) is above average for companies of similar size in the US market ($USD10.55M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5yrs | US$13.91m | 0.027% $ 10.8m | |
| Executive VP & CFO | 5.58yrs | US$4.17m | 0.015% $ 6.1m | |
| Senior VP & General Counsel | 3.92yrs | US$3.21m | 0.0078% $ 3.1m | |
| Senior VP & President of Americas and Global Business Units | 3.67yrs | US$4.04m | 0.013% $ 5.2m | |
| Senior VP & President for EMEA | 3.33yrs | US$3.17m | 0.0049% $ 2.0m | |
| Senior VP | 2.17yrs | no data | 0.00083% $ 334.2k | |
| President of Pharmaceuticals and Senior Vice President | 4yrs | no data | no data | |
| Senior VP & Chief Information Officer | 0.25yr | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior Vice President of Human Resources | 3.67yrs | US$4.14m | 0.023% $ 9.2m | |
| Head of Global Technical Services | 0.083yr | no data | no data | |
| Senior VP & President of APAC | 3.5yrs | no data | 0.000070% $ 28.2k |
3.7yrs
Average Tenure
56yo
Average Age
Experienced Management: BAX's management team is considered experienced (3.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5yrs | US$13.91m | 0.027% $ 10.8m | |
| Chairman Emeritus | 5yrs | US$17.88m | no data | |
| Independent Director | 8.17yrs | US$298.59k | 0.0038% $ 1.5m | |
| Independent Director | 16.33yrs | US$338.98k | 0.0064% $ 2.6m | |
| Independent Director | 17.92yrs | US$336.65k | 0.0077% $ 3.1m | |
| Lead Independent Director | 6.67yrs | US$386.98k | 0.0063% $ 2.5m | |
| Independent Director | 15.83yrs | US$336.69k | 0.0051% $ 2.0m | |
| Independent Director | 3.92yrs | US$324.76k | 0.0022% $ 877.8k | |
| Independent Director | 1.92yrs | US$336.08k | 0.00099% $ 398.7k | |
| Independent Director | 17.33yrs | US$320.94k | 0.0066% $ 2.7m | |
| Independent Director | 4yrs | US$312.94k | 0.0012% $ 487.2k | |
| Independent Director | 5.25yrs | US$314.94k | 0.0042% $ 1.7m |
6.0yrs
Average Tenure
69.5yo
Average Age
Experienced Board: BAX's board of directors are considered experienced (6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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
Baxter International Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Baxter International Inc.
- Ticker: BAX
- Exchange: NYSE
- Founded: 1931
- Industry: Health Care Equipment
- Sector: Healthcare
- Market Cap: US$40.268b
- Shares outstanding: 510.82m
- Website: https://www.baxter.com
Number of Employees
Location
- Baxter International Inc.
- One Baxter Parkway
- Deerfield
- Illinois
- 60015
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BAX | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| BAX | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1968 |
| BTL | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| BTL | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| BAX * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| BAX | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| BTL | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1968 |
| B1AX34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 23:43 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.