company background image
BAX

Baxter International NYSE:BAX Stock Report

Last Price

US$74.34

Market Cap

US$37.1b

7D

2.6%

1Y

-10.4%

Updated

17 May, 2022

Data

Company Financials +
BAX fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends3/6

BAX Stock Overview

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

Baxter International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Baxter International
Historical stock prices
Current Share PriceUS$74.34
52 Week HighUS$89.70
52 Week LowUS$69.72
Beta0.62
1 Month Change-2.75%
3 Month Change-12.68%
1 Year Change-10.36%
3 Year Change-1.28%
5 Year Change28.35%
Change since IPO483.06%

Recent News & Updates

May 06
Baxter International (NYSE:BAX) Is Increasing Its Dividend To US$0.29

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...

May 03

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.

Apr 30
Are Investors Undervaluing Baxter International Inc. (NYSE:BAX) By 46%?

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

BAXUS Medical EquipmentUS Market
7D2.6%3.0%0.7%
1Y-10.4%-15.1%-10.8%

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

Is BAX's price volatile compared to industry and market?
BAX volatility
BAX Average Weekly Movement4.1%
Medical Equipment Industry Average Movement10.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

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

FoundedEmployeesCEOWebsite
193160,000Joe Almeidahttps://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

How do Baxter International's earnings and revenue compare to its market cap?
BAX fundamental statistics
Market CapUS$37.11b
Earnings (TTM)US$1.06b
Revenue (TTM)US$13.55b

35.4x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAX income statement (TTM)
RevenueUS$13.55b
Cost of RevenueUS$7.92b
Gross ProfitUS$5.62b
Other ExpensesUS$4.57b
EarningsUS$1.06b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.10
Gross Margin41.52%
Net Profit Margin7.80%
Debt/Equity Ratio188.3%

How did BAX perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

53%

Payout Ratio

Does BAX pay a reliable dividends?

See BAX dividend history and benchmarks
When do you need to buy BAX by to receive an upcoming dividend?
Baxter International dividend dates
Ex Dividend DateJun 02 2022
Dividend Pay DateJul 01 2022
Days until Ex dividend15 days
Days until Dividend pay date44 days

Does BAX pay a reliable dividends?

See BAX dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation 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

3/6

Future 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

0/6

Past 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

2/6

Financial 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

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.56%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 17 2022Ex Dividend DateJun 02 2022Dividend Pay DateJul 01 202229 days from Ex DividendBuy in the next 15 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.