Baxter International
Market Cap
US$44.5b
Last Updated
2019/10/14 23:32 UTC
Data Sources
Company Financials +
Executive Summary
Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products.
Snowflake
Fundamentals
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
Market Performance
7 Day Return
1.6%
BAX
-0.003%
US Medical Equipment
1.3%
US Market
1 Year Return
23.0%
BAX
11.9%
US Medical Equipment
5.9%
US Market
Return vs Industry: BAX exceeded the US Medical Equipment industry which returned 11.9% over the past year.
Return vs Market: BAX exceeded the US Market which returned 5.9% over the past year.
Shareholder returns
| BAX | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.6% | -0.003% | 1.3% |
| 30 Day | 0.3% | -3.0% | -1.9% |
| 90 Day | 6.3% | -0.6% | -1.8% |
| 1 Year | 24.4%23.0% | 12.8%11.9% | 8.3%5.9% |
| 3 Year | 90.0%84.1% | 69.6%64.5% | 45.6%36.2% |
| 5 Year | 153.1%28.3% | 129.6%104.0% | 66.1%47.9% |
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
3 days ago | Simply Wall St
These 4 Measures Indicate That Baxter International (NYSE:BAX) Is Using Debt Safely1 week ago | Simply Wall St
A Look At The Fair Value Of Baxter International Inc. (NYSE:BAX)3 weeks ago | Simply Wall St
When Should You Buy Baxter International Inc. (NYSE:BAX)?Valuation
Is Baxter International undervalued compared to its fair value and its price relative to the market?
28.61x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Undervalued: BAX ($87.2) is trading above our estimate of fair value ($79.36)
Significantly Undervalued: 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 (28.6x) compared to the Medical Equipment industry average (40.1x).
PE vs Market: BAX is poor value based on its PE Ratio (28.6x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
Low PEG Ratio: BAX is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: BAX is overvalued based on its PB Ratio (5.7x) compared to the US Medical Equipment industry average (3.6x).
Next Steps
Future Growth
How is Baxter International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
11.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BAX's forecast earnings growth (11.5% per year) is above the savings rate (2.7%).
Earnings vs Market: BAX's earnings (11.5% per year) are forecast to grow slower than the US market (14.4% per year).
High Growth Earnings: BAX's earnings are forecast to grow, but not significantly.
Revenue vs Market: BAX's revenue (4.6% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: BAX's revenue (4.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: BAX's Return on Equity is forecast to be low in 3 years time (19.8%).
Next Steps
Past Performance
How has Baxter International performed over the past 5 years?
5.6%
Historical annual earnings growth
Earnings and Revenue History
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 28.2%.
Return on Equity
High ROE: BAX's Return on Equity (20.3%) is considered high.
Return on Assets
ROA vs Industry: BAX has a higher Return on Assets than the Medical Equipment industry average last year.
Return on Capital Employed
ROCE Improving: BAX has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Baxter International's financial position?
Financial Position Analysis
Short Term Liabilities: BAX's short term assets ($7.2B) exceeds its short term liabilities ($2.6B)
Long Term Liabilities: BAX's short term assets (7.2B) exceeds 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 1.404550x debt).
Next Steps
Dividend
What is Baxter International's current dividend yield, its reliability and sustainability?
1.01%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: BAX's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: BAX's dividend (1.01%) is low compared to the top 25% of dividend payers in the US market (3.77%).
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 (22.9% payout ratio).
Next Steps
Management
What is the CEO of Baxter International's salary, the management and board of directors tenure and is there insider trading?
2.7yrs
Average management tenure
CEO
Joe Almeida (57yo)
3.8yrs
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 about average for companies of similar size in the US market ($USD11.20M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.7yrs
Average Tenure
56yo
Average Age
Experienced Management: BAX's management team is considered experienced (2.7 years average tenure).
Board Age and Tenure
6.2yrs
Average Tenure
69yo
Average Age
Experienced Board: BAX's board of directors are considered experienced (6.2 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 5,000,000 |
| Max Price | US$76.37 |
| Entity | Company |
| Shares | 8,000,000 |
| Max Price | US$68.62 |
Ownership Breakdown
Management Team
Joe Almeida (57yo)
Chairman
- Tenure: 3.8yrs
- Compensation: US$15.65m
Paul Martin (61yo)
Chief Information Officer & Senior VP
- Tenure: 8.8yrs
Sumant Ramachandra (50yo)
President of Pharmaceuticals and Senior Vice President
- Tenure: 2.8yrs
Jeanne Mason (63yo)
Senior Vice President of Human Resources
- Tenure: 2.4yrs
- Compensation: US$4.14m
Jay Saccaro (46yo)
Executive VP & CFO
- Tenure: 4.3yrs
- Compensation: US$4.65m
Andrew Frye (54yo)
Senior VP & President of APAC
- Tenure: 2.3yrs
Giuseppe Accogli (48yo)
Senior VP & President of Americas
- Tenure: 2.4yrs
- Compensation: US$3.77m
Sean B. Martin (56yo)
Senior VP & General Counsel
- Tenure: 2.7yrs
- Compensation: US$3.05m
Cristiano Franzi (56yo)
Senior VP & President for EMEA
- Tenure: 2.1yrs
Clare Trachtman
Vice President of Investor Relations
- Tenure: 0yrs
Board Members
Bob Parkinson (68yo)
Chairman Emeritus
- Tenure: 3.8yrs
- Compensation: US$17.88m
Thomas Chen (69yo)
Independent Director
- Tenure: 6.9yrs
- Compensation: US$297.94k
Al Stroucken (71yo)
Independent Director
- Tenure: 15.1yrs
- Compensation: US$318.37k
James R. Gavin (73yo)
Independent Director
- Tenure: 16.7yrs
- Compensation: US$314.43k
Tom Stallkamp (72yo)
Lead Independent Director
- Tenure: 5.4yrs
- Compensation: US$367.51k
Peter Hellman (69yo)
Independent Director
- Tenure: 14.6yrs
- Compensation: US$312.26k
Steve Oesterle (67yo)
Independent Director
- Tenure: 2.7yrs
- Compensation: US$320.10k
Joe Almeida (57yo)
Chairman
- Tenure: 3.8yrs
- Compensation: US$15.65m
John Forsyth (71yo)
Independent Director
- Tenure: 16.1yrs
- Compensation: US$302.51k
Mike Mahoney (54yo)
Independent Director
- Tenure: 4yrs
- Compensation: US$301.02k
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$44.520b
- 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 | 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 |
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 | 2019/10/14 23:32 |
| End of Day Share Price | 2019/10/14 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.