NYSE:BAX

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

Stable Share Price: BAX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

BAX

-1.5%

US Medical Equipment

-3.8%

US Market


1 Year Return

0.9%

BAX

-7.7%

US Medical Equipment

-15.9%

US Market

Return vs Industry: BAX exceeded the US Medical Equipment industry which returned -7.7% over the past year.

Return vs Market: BAX exceeded the US Market which returned -15.9% over the past year.


Shareholder returns

BAXIndustryMarket
7 Day2.0%-1.5%-3.8%
30 Day-4.6%-12.1%-17.4%
90 Day-4.5%-19.1%-24.1%
1 Year2.0%0.9%-7.0%-7.7%-14.1%-15.9%
3 Year59.1%54.2%41.5%37.6%10.0%2.8%
5 Year125.4%15.4%62.0%45.9%27.6%13.5%

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 compared to its fair value and its price relative to the market?

3.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BAX ($81.42) is trading below our estimate of fair value ($84.66)

Significantly Below Fair Value: BAX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BAX is poor value based on its PE Ratio (41.4x) compared to the Medical Equipment industry average (37.5x).

PE vs Market: BAX is poor value based on its PE Ratio (41.4x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: BAX is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: BAX is overvalued based on its PB Ratio (5.2x) compared to the US Medical Equipment industry average (2.9x).


Next Steps

Future Growth

How is Baxter International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAX's forecast earnings growth (21.6% per year) is above the savings rate (1.7%).

Earnings vs Market: BAX's earnings (21.6% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BAX's revenue (4.3% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: BAX's revenue (4.3% 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 low in 3 years time (16.9%).


Next Steps

Past Performance

How has Baxter International performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAX has a large one-off loss of $919.0M impacting its December 31 2019 financial results.

Growing Profit Margin: BAX's current net profit margins (8.8%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: BAX's earnings have declined by -3.3% 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 (-35.5%) over the past year, making it difficult to compare to the Medical Equipment industry average (1%).


Return on Equity

High ROE: BAX's Return on Equity (12.8%) is considered low.


Next Steps

Financial Health

How is Baxter International's financial position?


Financial Position Analysis

Short Term Liabilities: BAX's short term assets ($7.5B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: BAX's short term assets ($7.5B) exceed its long term liabilities ($7.1B).


Debt to Equity History and Analysis

Debt Level: BAX's debt to equity ratio (67.6%) is considered high.

Reducing Debt: BAX's debt to equity ratio has reduced from 111% to 67.6% over the past 5 years.

Debt Coverage: BAX's debt is well covered by operating cash flow (39.3%).

Interest Coverage: BAX's interest payments on its debt are well covered by EBIT (28x 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 1.4x debt).


Next Steps

Dividend

What is Baxter International's current dividend yield, its reliability and sustainability?

1.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAX's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: BAX's dividend (1.08%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

Stable Dividend: BAX is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: BAX is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BAX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BAX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Joe Almeida (57yo)

4.25s

Tenure

US$13,913,821

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 ($USD13.91M) is about average for companies of similar size in the US market ($USD12.09M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
José Almeida
Chairman4.25yrsUS$13.91m0.027% $11.2m
James Saccaro
Executive VP & CFO4.83yrsUS$4.17m0.015% $6.3m
Sean B. Martin
Senior VP & General Counsel3.17yrsUS$3.21m0.0047% $1.9m
Giuseppe Accogli
Senior VP & President of Americas2.92yrsUS$4.04m0.013% $5.5m
Cristiano Franzi
Senior VP & President for EMEA2.58yrsUS$3.17m0.0028% $1.1m
Brian Stevens
Senior VP1.42yrsno data0.00096% $396.4k
Sumant Ramachandra
President of Pharmaceuticals and Senior Vice President3.25yrsno datano data
Paul Martin
Chief Information Officer & Senior VP9.25yrsno datano data
Clare Trachtman
Vice President of Investor Relationsno datano datano data
Jeanne Mason
Senior Vice President of Human Resources2.92yrsUS$4.14m0.023% $9.5m

3.2yrs

Average Tenure

56yo

Average Age

Experienced Management: BAX's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
José Almeida
Chairman4.25yrsUS$13.91m0.027% $11.2m
Robert Parkinson
Chairman Emeritus4.25yrsUS$17.88mno data
Thomas Chen
Independent Director7.42yrsUS$298.59k0.0016% $652.5k
Albert P. Stroucken
Independent Director15.58yrsUS$338.98k0.0060% $2.5m
James R. Gavin
Independent Director17.17yrsUS$336.65k0.0046% $1.9m
Thomas Stallkamp
Lead Independent Director5.92yrsUS$386.98k0.0059% $2.4m
Peter Hellman
Independent Director15.08yrsUS$336.69k0.0049% $2.0m
Stephen Oesterle
Independent Director3.17yrsUS$324.76k0.0018% $726.8k
John Forsyth
Independent Director16.58yrsUS$320.94k0.0062% $2.6m
Michael Mahoney
Independent Director4.5yrsUS$314.94k0.0040% $1.7m

6.7yrs

Average Tenure

69yo

Average Age

Experienced Board: BAX's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BAX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$41.297b
  • Shares outstanding: 507.21m
  • 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
BTLXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
BTLDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
BAX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
BAXWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
BTLETLX (Eurotlx)YesCommon StockITEURJan 1968
B1AX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

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-Pacific segments. The company offers peritoneal dialysis and hemodialysis, and additional dialysis therapies and services; renal replacement therapies and other organ support therapies focused in the intensive care unit; sterile intravenous (IV) solutions, IV therapies, infusion pumps, administration sets, and drug reconstitution devices; and parenteral nutrition therapies. It also provides biological products and medical devices, and surgical hemostat and sealant products used in surgical procedures for hemostasis, tissue sealing, and adhesion prevention; premixed and oncology drug platforms, inhaled anesthesia and critical care products, and pharmacy compounding services; and generic injectable pharmaceuticals. Its products are used in hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices, and by patients at home under physician supervision. The company sells its products through direct sales force, as well as through independent distributors, drug wholesalers, and specialty pharmacy or other alternate site providers in approximately 100 countries. It has an agreement with Celerity Pharmaceutical, LLC to develop acute care generic injectable premix and oncolytic molecules. Baxter International Inc. was founded in 1931 and is headquartered in Deerfield, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 23:44
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.