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Market Cap

US$44.1b

Last Updated

2021/04/16 22:16 UTC

Data Sources

Company Financials +

Executive Summary

Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


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 +/- 2% a week.

Volatility Over Time: BAX's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

BAX

3.4%

US Medical Equipment

1.3%

US Market


1 Year Return

-6.9%

BAX

37.4%

US Medical Equipment

53.9%

US Market

Return vs Industry: BAX underperformed the US Medical Equipment industry which returned 41.8% over the past year.

Return vs Market: BAX underperformed the US Market which returned 57.5% over the past year.


Shareholder returns

BAXIndustryMarket
7 Day1.9%3.4%1.3%
30 Day8.6%7.9%3.3%
90 Day8.1%5.9%8.9%
1 Year-5.8%-6.9%38.5%37.4%56.6%53.9%
3 Year33.4%29.1%83.5%79.0%64.4%53.6%
5 Year111.0%99.8%161.1%141.4%120.4%95.7%

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

Valuation

Is Baxter International undervalued compared to its fair value and its price relative to the market?

3.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BAX ($85.8) is trading below our estimate of fair value ($89.16)

Significantly Below Fair Value: BAX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BAX is good value based on its PE Ratio (39.6x) compared to the US Medical Equipment industry average (50.8x).

PE vs Market: BAX is poor value based on its PE Ratio (39.6x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: BAX is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: BAX is good value based on its PB Ratio (5x) compared to the US Medical Equipment industry average (5.1x).


Future Growth

How is Baxter International forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAX's forecast earnings growth (14.1% per year) is above the savings rate (2%).

Earnings vs Market: BAX's earnings (14.1% per year) are forecast to grow slower than the US market (18.4% per year).

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

Revenue vs Market: BAX's revenue (5.3% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: BAX's revenue (5.3% 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 high in 3 years time (21.6%)


Past Performance

How has Baxter International performed over the past 5 years?

-28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAX has a large one-off loss of $402.0M impacting its December 31 2020 financial results.

Growing Profit Margin: BAX's current net profit margins (9.4%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: BAX's earnings have declined by 28.7% per year over the past 5 years.

Accelerating Growth: BAX's earnings growth over the past year (10.1%) exceeds its 5-year average (-28.7% per year).

Earnings vs Industry: BAX earnings growth over the past year (10.1%) underperformed the Medical Equipment industry 10.1%.


Return on Equity

High ROE: BAX's Return on Equity (12.7%) is considered low.


Financial Health

How is Baxter International's financial position?


Financial Position Analysis

Short Term Liabilities: BAX's short term assets ($8.4B) exceed its short term liabilities ($3.3B).

Long Term Liabilities: BAX's short term assets ($8.4B) exceed its long term liabilities ($8.0B).


Debt to Equity History and Analysis

Debt Level: BAX's debt to equity ratio (70.2%) is considered high.

Reducing Debt: BAX's debt to equity ratio has reduced from 72.6% to 70.2% over the past 5 years.

Debt Coverage: BAX's debt is well covered by operating cash flow (30.5%).

Interest Coverage: BAX's interest payments on its debt are well covered by EBIT (14x coverage).


Balance Sheet


Dividend

What is Baxter International current dividend yield, its reliability and sustainability?

1.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAX's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: BAX's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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 reasonably low payout ratio (44.1%), BAX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAX's dividends in 3 years are forecast to be well covered by earnings (27.9% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Joe Almeida (58 yo)

5.25yrs

Tenure

US$15,865,396

Compensation

Mr. Jose E. Almeida, also known as Joe, has been the Chairman of the Board and Chief Executive Officer of Baxter International Inc. since January 1, 2016 and serves as its President since January 01, 2016....


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD15.87M) is above average for companies of similar size in the US market ($USD11.02M).

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


Leadership Team

Experienced Management: BAX's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: BAX's board of directors are considered experienced (5.4 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.


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$44.059b
  • Shares outstanding: 505.77m
  • Website: https://www.baxter.com

Number of Employees


Location

  • Baxter International Inc.
  • One Baxter Parkway
  • Deerfield
  • Illinois
  • 60015
  • United States

Listings


Biography

Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company offers peritoneal dialysis and hemodialysis, and additional dialysis the...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 22:16
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.