Boston Scientific (NYSE:BSX) - Share price, News & Analysis

BSX fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	4/6
Financial Health	3/6
Dividends	0/6

BSX Stock Overview

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

Rewards

Trading at 26.4% below our estimate of its fair value

Earnings are forecast to grow 38.14% per year

Earnings grew by 276.1% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Boston Scientific Competitors

Abbott Laboratories

NYSE:ABT

US$192.4b

Medtronic

NYSE:MDT

US$137.7b

Stryker

NYSE:SYK

US$88.2b

Becton Dickinson

NYSE:BDX

US$70.8b

Price History & Performance

Summary of all time highs, changes and price drops for Boston Scientific
Historical stock prices
Current Share Price	US$39.66
52 Week High	US$47.50
52 Week Low	US$37.96
Beta	0.81
1 Month Change	-10.37%
3 Month Change	-8.00%
1 Year Change	-4.55%
3 Year Change	6.27%
5 Year Change	50.17%
Change since IPO	826.37%

Recent News & Updates

Apr 23

An Intrinsic Calculation For Boston Scientific Corporation (NYSE:BSX) Suggests It's 20% Undervalued

Does the April share price for Boston Scientific Corporation ( NYSE:BSX ) reflect what it's really worth? Today, we...

Shareholder Returns

	BSX	US Medical Equipment	US Market
7D	-2.9%	-2.3%	-2.5%
1Y	-4.5%	-15.6%	-10.4%

Return vs Industry: BSX exceeded the US Medical Equipment industry which returned -15.6% over the past year.

Return vs Market: BSX exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is BSX's price volatile compared to industry and market?
BSX volatility
BSX Average Weekly Movement	4.7%
Medical Equipment Industry Average Movement	10.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

Stable Share Price: BSX is not significantly more volatile than the rest 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.

About the Company

Founded	Employees	CEO	Website
1979	41,000	Mike Mahoney	https://www.bostonscientific.com

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 Neuro, and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions; devices to treat various urological and pelvic conditions; implantable cardioverter and implantable cardiac resynchronization therapy defibrillators; pacemakers and implantable cardiac resynchronization therapy pacemakers; and remote patient management systems.

Boston Scientific Fundamentals Summary

How do Boston Scientific's earnings and revenue compare to its market cap?
BSX fundamental statistics
Market Cap	US$56.70b
Earnings (TTM)	US$756.00m
Revenue (TTM)	US$12.16b

75.0x

P/E Ratio

4.7x

P/S Ratio

Is BSX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BSX income statement (TTM)
Revenue	US$12.16b
Cost of Revenue	US$3.71b
Gross Profit	US$8.45b
Other Expenses	US$7.70b
Earnings	US$756.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.53
Gross Margin	69.51%
Net Profit Margin	6.22%
Debt/Equity Ratio	55.6%

How did BSX perform over the long term?

See historical performance and comparison

Valuation

Is Boston Scientific 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

26.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BSX ($39.66) is trading below our estimate of fair value ($53.92)

Significantly Below Fair Value: BSX is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: BSX is poor value based on its PE Ratio (75x) compared to the US Medical Equipment industry average (35x).

PE vs Market: BSX is poor value based on its PE Ratio (75x) compared to the US market (15.6x).

Price to Earnings Growth Ratio

PEG Ratio: BSX is poor value based on its PEG Ratio (2x)

Price to Book Ratio

PB vs Industry: BSX is overvalued based on its PB Ratio (3.4x) compared to the US Medical Equipment industry average (2.5x).

Future Growth

How is Boston Scientific forecast to perform in the next 1 to 3 years based on estimates from 25 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

38.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSX's forecast earnings growth (38.1% per year) is above the savings rate (1.9%).

Earnings vs Market: BSX's earnings (38.1% per year) are forecast to grow faster than the US market (12.6% per year).

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

Revenue vs Market: BSX's revenue (7.2% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: BSX's revenue (7.2% 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 (15.2%).

Past Performance

How has Boston Scientific performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BSX has a large one-off loss of $637.0M impacting its March 31 2022 financial results.

Growing Profit Margin: BSX's current net profit margins (6.2%) are higher than last year (2%).

Past Earnings Growth Analysis

Earnings Trend: BSX's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: BSX's earnings growth over the past year (276.1%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: BSX earnings growth over the past year (276.1%) exceeded the Medical Equipment industry 16.4%.

Return on Equity

High ROE: BSX's Return on Equity (4.8%) is considered low.

Financial Health

How is Boston Scientific's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BSX's short term assets ($5.1B) exceed its short term liabilities ($4.3B).

Long Term Liabilities: BSX's short term assets ($5.1B) do not cover its long term liabilities ($11.3B).

Debt to Equity History and Analysis

Debt Level: BSX's net debt to equity ratio (53.6%) is considered high.

Reducing Debt: BSX's debt to equity ratio has reduced from 78.2% to 55.6% over the past 5 years.

Debt Coverage: BSX's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: BSX's interest payments on its debt are well covered by EBIT (4x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BSX has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Healthcare industry.

Management

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

8.4yrs

Average management tenure

CEO

Mike Mahoney (56 yo)

10.58yrs

Tenure

US$16,064,039

Compensation

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

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD16.06M) is about average for companies of similar size in the US market ($USD13.26M).

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

Leadership Team

Experienced Management: BSX's management team is seasoned and experienced (8.4 years average tenure).

Board Members

Experienced Board: BSX's board of directors are considered experienced (7.6 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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/14 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31