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

-2.2%

NYSE:BAX

-1.6%

US Medical Equipment

-1.6%

US Market


1 Year Return

17.5%

NYSE:BAX

10.2%

US Medical Equipment

-3.0%

US Market

BAX outperformed the Medical Equipment industry which returned 10.2% over the past year.

BAX outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

BAXIndustryMarket
7 Day-2.2%-1.6%-1.6%
30 Day-0.2%-2.6%-5.7%
90 Day13.2%7.4%0.2%
1 Year18.8%17.5%11.1%10.2%-0.8%-3.0%
3 Year86.0%80.2%65.1%60.0%38.1%29.1%
5 Year124.6%13.4%127.0%101.0%50.8%34.1%

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?

27.9x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Baxter International's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Baxter International's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Baxter International is good value based on earnings compared to the US Medical Equipment industry average.

Baxter International is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Baxter International is poor value based on expected growth next year.


Price Based on Value of Assets

Baxter International is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Baxter International expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Baxter International's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Baxter International's earnings are expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).

Baxter International's revenue growth is positive but not above the United States of America market average.

Baxter International's earnings growth is positive but not above the United States of America market average.

Baxter International's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Baxter International is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Baxter International's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Baxter International's 1-year earnings growth exceeds its 5-year average (72.8% vs 5.6%)

Baxter International's earnings growth has exceeded the US Medical Equipment industry average in the past year (72.8% vs 28.9%).


Return on Equity

Baxter International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Baxter International used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Baxter International has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Baxter International's financial position?


Financial Position Analysis

Baxter International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Baxter International's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Baxter International's level of debt (65.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (101.8% vs 65.6% today).

Debt is well covered by operating cash flow (36.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 30.6x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.10%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Baxter International before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Baxter International's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Baxter International's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.4x coverage).


Next Steps

Management

What is the CEO of Baxter International's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Joe Almeida (57yo)

3.6yrs

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

Joe's remuneration is higher than average for companies of similar size in United States of America.

Joe's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

56yo

Average Age

The tenure for the Baxter International management team is about average.


Board Age and Tenure

6.0yrs

Average Tenure

69yo

Average Age

The tenure for the Baxter International board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 3.6yrs
    • Compensation: US$15.65m
  • Paul Martin (61yo)

    Chief Information Officer & Senior VP

    • Tenure: 8.6yrs
  • Jeanne Mason (63yo)

    Senior Vice President of Human Resources

    • Tenure: 2.3yrs
    • Compensation: US$4.14m
  • Jay Saccaro (46yo)

    Executive VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$4.65m
  • Andrew Frye (54yo)

    Senior VP & President of APAC

    • Tenure: 2.1yrs
  • Giuseppe Accogli (48yo)

    Senior VP & President of Americas

    • Tenure: 2.3yrs
    • Compensation: US$3.77m
  • Stephen Thompson

    President

    • Tenure: 3.2yrs
  • Ellen McIntosh

    Senior VP

    • Tenure: 2.3yrs
  • Sean B. Martin (56yo)

    Senior VP & General Counsel

    • Tenure: 2.5yrs
    • Compensation: US$3.05m
  • Clare Trachtman

    Vice President of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Bob Parkinson (68yo)

    Chairman Emeritus

    • Tenure: 3.6yrs
    • Compensation: US$17.88m
  • Thomas Chen (69yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$297.94k
  • Al Stroucken (71yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$318.37k
  • James R. Gavin (73yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$314.43k
  • Tom Stallkamp (72yo)

    Lead Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$367.51k
  • Peter Hellman (69yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: US$312.26k
  • Steve Oesterle (67yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$320.10k
  • Joe Almeida (57yo)

    Chairman

    • Tenure: 3.6yrs
    • Compensation: US$15.65m
  • John Forsyth (71yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$302.51k
  • Mike Mahoney (54yo)

    Independent Director

    • Tenure: 3.8yrs
    • 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$43.413b
  • 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 Analysis2019/08/24 23:32
End of Day Share Price2019/08/23 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.