NYSE:BHC

Stock Analysis Report

Executive Summary

Bausch Health Companies Inc. develops, manufactures, and markets a range of pharmaceutical, medical device, and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology, and dermatology.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Bausch Health Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BHC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.3%

BHC

1.6%

US Pharmaceuticals

0.5%

US Market


1 Year Return

20.0%

BHC

-2.9%

US Pharmaceuticals

16.1%

US Market

Return vs Industry: BHC exceeded the US Pharmaceuticals industry which returned -2.9% over the past year.

Return vs Market: BHC exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

BHCIndustryMarket
7 Day1.3%1.6%0.5%
30 Day21.3%3.9%3.9%
90 Day25.5%4.0%6.6%
1 Year20.0%20.0%-0.4%-2.9%18.7%16.1%
3 Year63.7%63.7%26.4%17.6%47.2%37.7%
5 Year-80.8%-80.8%19.2%6.8%61.5%43.7%

Price Volatility Vs. Market

How volatile is Bausch Health Companies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bausch Health Companies undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BHC ($27.73) is trading below our estimate of fair value ($95.98)

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


Price To Earnings Ratio

PE vs Industry: BHC is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: BHC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BHC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BHC is overvalued based on its PB Ratio (3.9x) compared to the US Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

How is Bausch Health Companies forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

76.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: BHC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BHC's is expected to become profitable in the next 3 years.

Revenue vs Market: BHC's revenue (2.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BHC's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BHC's Return on Equity is forecast to be very high in 3 years time (103.8%).


Next Steps

Past Performance

How has Bausch Health Companies performed over the past 5 years?

-34.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHC has large one-off items impacting its financial results.

Growing Profit Margin: BHC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BHC is unprofitable, and losses have increased over the past 5 years at a rate of -34.5% per year.

Accelerating Growth: Unable to compare BHC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BHC is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (21.3%).


Return on Equity

High ROE: BHC has a negative Return on Equity (-23.75%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bausch Health Companies's financial position?


Financial Position Analysis

Short Term Liabilities: BHC's short term assets ($4.3B) exceeds its short term liabilities ($3.7B)

Long Term Liabilities: BHC's short term assets ($4.3B) do not cover its long term liabilities (25.4B)


Debt to Equity History and Analysis

Debt Level: BHC's debt to equity ratio (920.5%) is considered high.

Reducing Debt: BHC's debt to equity ratio has increased from 310.6% to 920.5% over the past 5 years.


Balance Sheet

Inventory Level: BHC has a low level of unsold assets or inventory.

Debt Coverage by Assets: BHC's debt is not covered by short term assets (assets are 0.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BHC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BHC is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -29.9% per year.


Next Steps

Dividend

What is Bausch Health Companies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Bausch Health Companies's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Joseph Papa (64yo)

3.5yrs

Tenure

US$14,741,050

Compensation

Mr. Joseph C. Papa, also known as Joe, has been the Chairman of the Board and Chief Executive Officer of Valeant Pharmaceuticals International, Inc. since May 2, 2016. He also serves as Director at Valeant ...


CEO Compensation Analysis

Compensation vs Market: Joseph's total compensation ($USD14.74M) is above average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Joseph's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: BHC's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

68yo

Average Age

Experienced Board: BHC's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$699,30014 Sep 19
Joseph Papa
EntityIndividual
Role
Chief Executive Officer
CEO & Chairman of the Board
Shares30,000
Max PriceUS$23.31
SellUS$235,22121 Aug 19
Mark McKenna
EntityIndividual
Shares10,773
Max PriceUS$21.83
BuyUS$650,14220 Aug 19
William Humphries
EntityIndividual
Shares30,703
Max PriceUS$21.18
BuyUS$710,10028 Feb 19
Joseph Papa
EntityIndividual
Role
Chief Executive Officer
CEO & Chairman of the Board
Shares30,000
Max PriceUS$23.67
BuyUS$584,01818 Dec 18
Thomas Appio
EntityIndividual
Role
Unit President
President & Co-Head Bausch + Lomb/International
Shares25,440
Max PriceUS$22.96

Ownership Breakdown

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


Management Team

  • Paul Herendeen (63yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$6.40m
  • Joseph Papa (64yo)

    CEO & Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: US$14.74m
  • Art Shannon

    Senior VP and Head of Investor Relations & Communications

    • Tenure: 2.4yrs
  • Robert Butz

    Vice President of Medical & Scientific Affairs

    • Tenure: 11.4yrs
  • Tom Appio (57yo)

    President & Co-Head Bausch + Lomb/International

    • Tenure: 0yrs
    • Compensation: US$4.39m
  • Christina Ackermann (54yo)

    Executive VP & General Counsel

    • Tenure: 3.3yrs
    • Compensation: US$3.39m
  • Sam Eldessouky (47yo)

    Senior VP

    • Tenure: 3.5yrs
  • Michael McMyne

    Vice President of Sales

    • Tenure: 2.5yrs
  • Joe Gordon (55yo)

    President & Co-Head Bausch + Lomb/International

    • Tenure: 2.6yrs
    • Compensation: US$1.96m
  • Stacey Williams

    Vice President of Marketing

    • Tenure: 2.5yrs

Board Members

  • Jerry Karabelas (67yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$385.62k
  • Joseph Papa (64yo)

    CEO & Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: US$14.74m
  • Tom Ross (68yo)

    Lead Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$454.76k
  • Robert Power (62yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$382.15k
  • Chris Fibiger (76yo)

    Chairman of External Advisory Board

    • Tenure: 0yrs
    • Compensation: US$2.00m
  • Bob Lenox

    Member of the External Advisory Board

    • Tenure: 10.7yrs
  • Karoly Nikolich (71yo)

    Member of the External Advisory Board

    • Tenure: 10.7yrs
  • Russ Robertson (71yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$403.34k
  • Andy von Eschenbach (77yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$148.96k
  • Rob Hale (34yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$380.00k

Company Information

Bausch Health Companies Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bausch Health Companies Inc.
  • Ticker: BHC
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$9.773b
  • Shares outstanding: 352.43m
  • Website: https://www.bauschhealth.com

Number of Employees


Location

  • Bausch Health Companies Inc.
  • 2150 St. Elzéar Boulevard West
  • Laval
  • Quebec
  • H7L 4A8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHCTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 1994
BHCNYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 1994
BVFDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1994
VRXSWX (SIX Swiss Exchange)YesCommon SharesCHCHFMar 1994
BHC NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNMar 1994
0QYWLSE (London Stock Exchange)YesCommon SharesGBCADMar 1994

Biography

Bausch Health Companies Inc. develops, manufactures, and markets a range of pharmaceutical, medical device, and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenter ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:32
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
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.