NYSE:BSX

Stock Analysis Report

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Executive Summary

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. More Details


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Boston Scientific's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BSX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BSX's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.1%

BSX

-0.9%

US Medical Equipment

2.8%

US Market


1 Year Return

-22.4%

BSX

16.3%

US Medical Equipment

19.7%

US Market

Return vs Industry: BSX underperformed the US Medical Equipment industry which returned 18.1% over the past year.

Return vs Market: BSX underperformed the US Market which returned 20.4% over the past year.


Shareholder returns

BSXIndustryMarket
7 Day-2.1%-0.9%2.8%
30 Day-9.0%-0.5%8.0%
90 Day-17.7%2.9%6.8%
1 Year-22.4%-22.4%17.2%16.3%22.4%19.7%
3 Year29.3%29.3%67.9%63.6%47.3%37.5%
5 Year82.2%82.2%135.1%117.1%93.6%72.3%

Long-Term Price Volatility Vs. Market

How volatile is Boston Scientific's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Boston Scientific undervalued compared to its fair value and its price relative to the market?

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BSX ($33.55) is trading below our estimate of fair value ($36.05)

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


Price To Earnings Ratio

PE vs Industry: BSX is good value based on its PE Ratio (12.8x) compared to the US Medical Equipment industry average (49.2x).

PE vs Market: BSX is good value based on its PE Ratio (12.8x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: BSX is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: BSX is good value based on its PB Ratio (3.1x) compared to the US Medical Equipment industry average (4.5x).


Next Steps

Future Growth

How is Boston Scientific forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

33.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSX's forecast earnings growth (33.4% per year) is above the savings rate (2.2%).

Earnings vs Market: BSX's earnings (33.4% per year) are forecast to grow faster than the US market (22.1% per year).

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

Revenue vs Market: BSX's revenue (10.3% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: BSX's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BSX's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

How has Boston Scientific performed over the past 5 years?

66.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSX has a large one-off loss of $916.0M impacting its September 30 2020 financial results.

Growing Profit Margin: BSX's current net profit margins (36.5%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: BSX has become profitable over the past 5 years, growing earnings by 66.7% per year.

Accelerating Growth: BSX's earnings growth over the past year (226.3%) exceeds its 5-year average (66.7% per year).

Earnings vs Industry: BSX earnings growth over the past year (226.3%) exceeded the Medical Equipment industry 0.2%.


Return on Equity

High ROE: BSX's Return on Equity (23.8%) is considered high.


Next Steps

Financial Health

How is Boston Scientific's financial position?


Financial Position Analysis

Short Term Liabilities: BSX's short term assets ($6.2B) exceed its short term liabilities ($3.3B).

Long Term Liabilities: BSX's short term assets ($6.2B) do not cover its long term liabilities ($12.0B).


Debt to Equity History and Analysis

Debt Level: BSX's debt to equity ratio (59.5%) is considered high.

Reducing Debt: BSX's debt to equity ratio has reduced from 91.4% to 59.5% over the past 5 years.

Debt Coverage: BSX's debt is not well covered by operating cash flow (16.5%).

Interest Coverage: BSX's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Boston Scientific current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BSX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BSX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BSX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BSX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BSX'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?

6.9yrs

Average management tenure


CEO

Mike Mahoney (55 yo)

8yrs

Tenure

US$15,764,140

Compensation

Mr. Michael F. Mahoney, also known as Mike, has been Chairman of Boston Scientific Corporation since May 3, 2016, its Chief Executive Officer since November 1, 2012 and has been its President since October...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD15.76M) is above average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Mahoney
Chairman8yrsUS$15.76m0.14%
$ 65.8m
Daniel Brennan
Executive VP & CFO6.83yrsUS$4.03m0.018%
$ 8.8m
Edward Mackey
Executive VP of Global Operations5.75yrsUS$3.20m0.0046%
$ 2.2m
Joseph Fitzgerald
Executive VP & President of Interventional Cardiology10.75yrsUS$4.03m0.021%
$ 9.9m
Jonathan Monson
VP, Global Controller & Chief Accounting Officer1.33yrsno data0.0024%
$ 1.2m
Jodi Eddy
Senior VP and Chief Information & Digital Officer4.92yrsno data0.00072%
$ 345.9k
Susan Lisa
Vice President of Investor Relations6.92yrsno datano data
Desiree Ralls-Morrison
Senior VP3yrsno data0.00080%
$ 384.3k
Catherine Jennings
Vice President of Global Marketing & New Business Development of Peripheral Interventionsno datano datano data
Wendy Carruthers
Senior VP of Human Resources7.92yrsno data0.013%
$ 6.0m
Brenda Becker
Senior Vice President of Global Government Affairs13.83yrsno datano data
Maulik Nanavaty
Senior VP & President of Neuromodulation9.17yrsno data0.016%
$ 7.7m

6.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: BSX's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Mahoney
Chairman8yrsUS$15.76m0.14%
$ 65.8m
Edward Ludwig
Lead Independent Director4.5yrsUS$340.11k0.0026%
$ 1.2m
Donna James
Independent Director5.33yrsUS$319.98k0.0015%
$ 735.0k
Stephen MacMillan
Independent Director5.58yrsUS$299.98k0.00056%
$ 269.0k
David Roux
Independent Director6.83yrsUS$320.20k0.0042%
$ 2.0m
Ellen Zane
Independent Director4.58yrsUS$299.98k0.0022%
$ 1.1m
Yoshiaki Fujimori
Independent Director4.33yrsUS$299.98kno data
Charles Dockendorff
Independent Director5.58yrsUS$324.98k0.0051%
$ 2.5m
Nelda Connors
Independent Director10.92yrsUS$302.47k0.0039%
$ 1.9m
John Sununu
Independent Director11.58yrsUS$319.98k0.0025%
$ 1.2m

5.5yrs

Average Tenure

63yo

Average Age

Experienced Board: BSX's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BSX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


Top Shareholders

Company Information

Boston Scientific Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Boston Scientific Corporation
  • Ticker: BSX
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$48.041b
  • Shares outstanding: 1.43b
  • Website: https://www.bostonscientific.com

Number of Employees


Location

  • Boston Scientific Corporation
  • 300 Boston Scientific Way
  • Marlborough
  • Massachusetts
  • 01752-1234
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSXNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1992
BSXDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1992
BSX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 1992
0HOYLSE (London Stock Exchange)YesCommon StockGBUSDMay 1992
BSXETLX (Eurotlx)YesCommon StockITEURMay 1992
BSXCWBAG (Wiener Boerse AG)YesCommon StockATEURMay 1992
BSXBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDMay 1992
B1SX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019
BSX.PRANYSE (New York Stock Exchange)5.50% CNV PFD AUSUSDMay 2020

Biography

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Ne...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 00:47
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
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.