Baxter International
Market Cap
US$47.6b
Last Updated
2020/02/18 23:59 UTC
Data Sources
Company Financials +
Executive Summary
Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products.
Rewards
PE ratio (30.6x) is below the Medical Equipment industry average (48.3x)
Risk Analysis
Earnings are forecast to decline by an average of -57.9% per year for the next 3 years
Snowflake Analysis
Outstanding track record with excellent balance sheet.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.4%
BAX
0.5%
US Medical Equipment
0.06%
US Market
1 Year Return
25.5%
BAX
20.6%
US Medical Equipment
19.4%
US Market
Return vs Industry: BAX exceeded the US Medical Equipment industry which returned 22.1% over the past year.
Return vs Market: BAX exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| BAX | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.4% | 0.5% | 0.06% |
| 30 Day | 2.8% | 0.1% | 1.1% |
| 90 Day | 12.5% | 7.5% | 8.9% |
| 1 Year | 26.9%25.5% | 21.6%20.6% | 21.9%19.4% |
| 3 Year | 90.5%84.6% | 81.5%76.4% | 48.9%39.3% |
| 5 Year | 162.2%33.5% | 114.9%92.3% | 71.9%53.1% |
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
4 days ago | Simply Wall St
Baxter International Inc. (NYSE:BAX) Earns A Nice Return On Capital Employed3 months ago | Simply Wall St
Did Baxter International's (NYSE:BAX) Share Price Deserve to Gain 75%?3 months ago | Simply Wall St
Should We Be Delighted With Baxter International Inc.'s (NYSE:BAX) ROE Of 20%?Valuation
Is Baxter International undervalued compared to its fair value and its price relative to the market?
30.26x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BAX ($93.14) is trading above our estimate of fair value ($88.87)
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 (30.6x) compared to the Medical Equipment industry average (48.3x).
PE vs Market: BAX is poor value based on its PE Ratio (30.6x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: BAX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: BAX is overvalued based on its PB Ratio (6.1x) compared to the US Medical Equipment industry average (4.1x).
Next Steps
Future Growth
How is Baxter International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
-57.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BAX's earnings are forecast to decline over the next 3 years (-57.9% per year).
Earnings vs Market: BAX's earnings are forecast to decline over the next 3 years (-57.9% per year).
High Growth Earnings: BAX's earnings are forecast to decline over the next 3 years.
Revenue vs Market: BAX's revenue (4.7% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: BAX's revenue (4.7% 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 (17.1%).
Next Steps
Past Performance
How has Baxter International performed over the past 5 years?
5.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BAX has high quality earnings.
Growing Profit Margin: BAX's current net profit margins (14.3%) are higher than last year (8.4%).
Past Earnings Growth Analysis
Earnings Trend: BAX's earnings have grown by 5.6% per year over the past 5 years.
Accelerating Growth: BAX's earnings growth over the past year (72.8%) exceeds its 5-year average (5.6% per year).
Earnings vs Industry: BAX earnings growth over the past year (72.8%) exceeded the Medical Equipment industry 7.1%.
Return on Equity
High ROE: BAX's Return on Equity (20.3%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Baxter International's financial position?
Financial Position Analysis
Short Term Liabilities: BAX's short term assets ($7.2B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: BAX's short term assets ($7.2B) exceed its long term liabilities ($7.1B).
Debt to Equity History and Analysis
Debt Level: BAX's debt to equity ratio (65.6%) is considered high.
Reducing Debt: BAX's debt to equity ratio has reduced from 101.8% to 65.6% over the past 5 years.
Debt Coverage: BAX's debt is well covered by operating cash flow (36.1%).
Interest Coverage: BAX's interest payments on its debt are well covered by EBIT (30.6x coverage).
Balance Sheet
Inventory Level: BAX has a high level of physical assets or inventory.
Debt Coverage by Assets: BAX's debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is Baxter International's current dividend yield, its reliability and sustainability?
0.95%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: BAX's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: BAX's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 (25.9%), 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 (25.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Joe Almeida (57yo)
4.1yrs
Tenure
US$15,645,125
Compensation
Mr. José E. Almeida, also known as Joe, has been the Chairman and Chief Executive Officer of Baxter International Inc. since January 1, 2016 and serves as its President. Mr. Almeida has been Director at Ba ...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD15.65M) is above average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.1yrs | US$15.65m | 0.028% $13.5m | |
| Executive VP & CFO | 4.7yrs | US$4.65m | 0.012% $5.9m | |
| Senior VP & General Counsel | 3yrs | US$3.05m | no data | |
| Senior VP & President of Americas | 2.8yrs | US$3.77m | 0.011% $5.3m | |
| Senior VP | 1.3yrs | no data | 0.0032% $1.5m | |
| President of Pharmaceuticals and Senior Vice President | 3.1yrs | no data | no data | |
| Chief Information Officer & Senior VP | 9.1yrs | no data | no data | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Senior Vice President of Human Resources | 2.8yrs | US$4.14m | 0.021% $10.1m | |
| Senior VP & President of APAC | 2.6yrs | no data | 0.00079% $375.7k |
3.0yrs
Average Tenure
54yo
Average Age
Experienced Management: BAX's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.1yrs | US$15.65m | 0.028% $13.5m | |
| Chairman Emeritus | 4.1yrs | US$17.88m | no data | |
| Independent Director | 7.3yrs | US$297.94k | 0.0034% $1.6m | |
| Independent Director | 15.4yrs | US$318.37k | 0.0060% $2.8m | |
| Independent Director | 17yrs | US$314.43k | 0.0072% $3.4m | |
| Lead Independent Director | 5.8yrs | US$367.51k | 0.0058% $2.8m | |
| Independent Director | 14.9yrs | US$312.26k | 0.0049% $2.3m | |
| Independent Director | 3yrs | US$320.10k | 0.0017% $822.7k | |
| Independent Director | 16.4yrs | US$302.51k | 0.0062% $2.9m | |
| Independent Director | 4.3yrs | US$301.02k | 0.0040% $1.9m |
6.5yrs
Average Tenure
69yo
Average Age
Experienced Board: BAX's board of directors are considered experienced (6.5 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$47.553b
- Shares outstanding: 510.56m
- 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-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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/18 23:59 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.