| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 3/6 |
BAX Stock Overview
Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products worldwide.
Baxter International Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$74.34 |
| 52 Week High | US$89.70 |
| 52 Week Low | US$69.72 |
| Beta | 0.62 |
| 1 Month Change | -2.75% |
| 3 Month Change | -12.68% |
| 1 Year Change | -10.36% |
| 3 Year Change | -1.28% |
| 5 Year Change | 28.35% |
| Change since IPO | 483.06% |
Recent News & Updates
Baxter International (NYSE:BAX) Is Increasing Its Dividend To US$0.29
Baxter International Inc.'s ( NYSE:BAX ) dividend will be increasing on the 1st of July to US$0.29, with investors...
Baxter: Some Real 'Buy' Appeal
I've been on a crusade for the past 2 weeks to highlight investable dividend-paying quality business as we're experiencing a market drop. My work takes me now to revisit the company Baxter International, a quality business in the medical supply field. I wrote about the company several months ago. The company has dropped significantly since my last piece. I'm putting Baxter on the "buy more" list.
Are Investors Undervaluing Baxter International Inc. (NYSE:BAX) By 46%?
Today we will run through one way of estimating the intrinsic value of Baxter International Inc. ( NYSE:BAX ) by...
Shareholder Returns
| BAX | US Medical Equipment | US Market | |
|---|---|---|---|
| 7D | 2.6% | 5.7% | 2.7% |
| 1Y | -10.4% | -13.0% | -8.1% |
Return vs Industry: BAX exceeded the US Medical Equipment industry which returned -15.1% over the past year.
Return vs Market: BAX matched the US Market which returned -10.8% over the past year.
Price Volatility
| BAX volatility | |
|---|---|
| BAX Average Weekly Movement | 4.1% |
| Medical Equipment Industry Average Movement | 10.6% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 2.9% |
Stable Share Price: BAX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: BAX's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1931 | 60,000 | Joe Almeida | https://www.baxter.com |
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 therapies and services; intravenous therapies, infusion pumps, administration sets, and drug reconstitution devices; remixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services; parenteral nutrition therapies and related products; biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention; and continuous renal replacement therapies and other organ support therapies focused in the intensive care unit. It also provides connected care solutions, including devices, software, communications, and integration technologies; integrated patient monitoring and diagnostic technologies to help diagnose, treat, and manage a various illness and diseases, including respiratory therapy, cardiology, vision screening, and physical assessment; surgical video technologies, tables, lights, pendants, precision positioning devices and other accessories.
Baxter International Fundamentals Summary
| BAX fundamental statistics | |
|---|---|
| Market Cap | US$37.11b |
| Earnings (TTM) | US$1.06b |
| Revenue (TTM) | US$13.55b |
35.4x
P/E Ratio2.8x
P/S RatioIs BAX overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BAX income statement (TTM) | |
|---|---|
| Revenue | US$13.55b |
| Cost of Revenue | US$7.92b |
| Gross Profit | US$5.62b |
| Other Expenses | US$4.57b |
| Earnings | US$1.06b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.10 |
| Gross Margin | 41.52% |
| Net Profit Margin | 7.80% |
| Debt/Equity Ratio | 188.3% |
How did BAX perform over the long term?
See historical performance and comparisonDividends
1.6%
Current Dividend Yield53%
Payout RatioDoes BAX pay a reliable dividends?
See BAX dividend history and benchmarks| Baxter International dividend dates | |
|---|---|
| Ex Dividend Date | Jun 02 2022 |
| Dividend Pay Date | Jul 01 2022 |
| Days until Ex dividend | 15 days |
| Days until Dividend pay date | 44 days |
Does BAX pay a reliable dividends?
See BAX dividend history and benchmarksValuation
Is Baxter International undervalued compared to its fair value and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
38.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BAX ($74.34) is trading below our estimate of fair value ($120.42)
Significantly Below Fair Value: BAX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BAX is poor value based on its PE Ratio (35.4x) compared to the US Medical Equipment industry average (35.1x).
PE vs Market: BAX is poor value based on its PE Ratio (35.4x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: BAX is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: BAX is overvalued based on its PB Ratio (4.1x) compared to the US Medical Equipment industry average (2.5x).
Future Growth
How is Baxter International forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
15.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BAX's forecast earnings growth (15.8% per year) is above the savings rate (1.9%).
Earnings vs Market: BAX's earnings (15.8% per year) are forecast to grow faster than the US market (12.5% per year).
High Growth Earnings: BAX's earnings are forecast to grow, but not significantly.
Revenue vs Market: BAX's revenue (5.1% per year) is forecast to grow slower than the US market (7.9% 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 high in 3 years time (22.4%)
Past Performance
How has Baxter International performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-0.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BAX has a large one-off loss of $645.0M impacting its March 31 2022 financial results.
Growing Profit Margin: BAX's current net profit margins (7.8%) are lower than last year (9%).
Past Earnings Growth Analysis
Earnings Trend: BAX's earnings have declined by 0.3% 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 (-1%) over the past year, making it difficult to compare to the Medical Equipment industry average (16.7%).
Return on Equity
High ROE: BAX's Return on Equity (11.7%) is considered low.
Financial Health
How is Baxter International's financial position?
Financial Health Score
2/6Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: BAX's short term assets ($8.2B) exceed its short term liabilities ($3.9B).
Long Term Liabilities: BAX's short term assets ($8.2B) do not cover its long term liabilities ($19.7B).
Debt to Equity History and Analysis
Debt Level: BAX's net debt to equity ratio (163.2%) is considered high.
Reducing Debt: BAX's debt to equity ratio has increased from 32.2% to 188.3% over the past 5 years.
Debt Coverage: BAX's debt is not well covered by operating cash flow (12%).
Interest Coverage: BAX's interest payments on its debt are well covered by EBIT (8.7x coverage).
Balance Sheet
Dividend
What is Baxter International current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.56%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: BAX's dividend (1.56%) is higher than the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: BAX's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (4.06%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (53.1%), BAX's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (43.6%), BAX's dividend payments are well covered by cash flows.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Joe Almeida (59 yo)
6.33yrs
Tenure
US$15,634,734
Compensation
Mr. Jose E. Almeida, also known as Joe, has been the Chairman of the Board and Chief Executive Officer of Baxter International Inc. since January 1, 2016 and serves as its President since January 01, 2016....
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD15.63M) is about average for companies of similar size in the US market ($USD13.27M).
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 (4.7 years average tenure).
Board Members
Experienced Board: BAX's board of directors are considered experienced (5.8 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 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
- Implied Market Cap: US$37.105b
- Shares outstanding: 503.53m
- Website: https://www.baxter.com
Number of Employees
Location
- Baxter International Inc.
- One Baxter Parkway
- Deerfield
- Illinois
- 60015
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/17 00:00 |
| End of Day Share Price | 2022/05/17 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.