Baxter International Inc. (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. In the case of BAX, it is a company with great financial health as well as a an impressive history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, read the full report on Baxter International here.
Outstanding track record with excellent balance sheet
In the past couple of years, BAX has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 21% return to shareholders, which is an notable feat for the company. BAX is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. BAX appears to have made good use of debt, producing operating cash levels of 0.6x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Baxter International, there are three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for BAX’s future growth? Take a look at our free research report of analyst consensus for BAX’s outlook.
- Valuation: What is BAX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BAX is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BAX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.