NYSE:BAX

Stock Analysis Report

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

-1.4%

US Medical Equipment

0.6%

US Market


1 Year Return

23.6%

BAX

11.6%

US Medical Equipment

6.2%

US Market

Return vs Industry: BAX exceeded the US Medical Equipment industry which returned 11.6% over the past year.

Return vs Market: BAX exceeded the US Market which returned 6.2% over the past year.


Share holder returns

BAXIndustryMarket
7 Day1.6%-1.4%0.6%
30 Day0.2%-3.2%-1.8%
90 Day7.8%-0.9%-2.0%
1 Year24.9%23.6%12.5%11.6%8.6%6.2%
3 Year91.5%85.5%69.5%64.4%45.7%36.3%
5 Year158.2%30.9%134.5%108.2%68.5%50.0%

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

Valuation

Is Baxter International undervalued based on future cash flows and its price relative to the stock market?

28.88x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: BAX ($88.03) is trading above our estimate of fair value ($79.41)

Significantly Undervalued: BAX is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: BAX is good value based on its PE Ratio (28.9x) compared to the Medical Equipment industry average (40.1x).

PE vs Market: BAX is poor value based on its PE Ratio (28.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: BAX is poor value based on its PEG Ratio (2.5x)


Price Based on Value of Assets

PB vs Industry: BAX is overvalued based on its PB Ratio (5.7x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

How is Baxter International expected 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 Estimates


Future Annual Growth Analysis

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 (14.5% 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 Estimates


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?

1.06%

Expected Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.5%markettop25%3.8%industryaverage0.8%forecastin3Years1.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: BAX's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: BAX's dividend (1%) 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

SellUS$381,850,00017 May 19
Third Point LLC
EntityCompany
Shares5,000,000
Max PriceUS$76.37
SellUS$548,960,00004 Dec 18
Third Point LLC
EntityCompany
Shares8,000,000
Max PriceUS$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$44.944b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BAXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
BAXSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
BTLDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
BAX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
BAXWBAG (Wiener Boerse AG)YesCommon StockATEURJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 23:52
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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