NYSE:BHC

Stock Analysis Report

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Market Cap

US$11.4b

Last Updated

2021/06/14 02:30 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

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


Market Performance


7 Day Return

1.6%

BHC

3.0%

US Pharmaceuticals

0.8%

US Market


1 Year Return

85.9%

BHC

20.0%

US Pharmaceuticals

44.4%

US Market

Return vs Industry: BHC exceeded the US Pharmaceuticals industry which returned 20% over the past year.

Return vs Market: BHC exceeded the US Market which returned 44.3% over the past year.


Shareholder returns

BHCIndustryMarket
7 Day1.6%3.0%0.8%
30 Day9.5%2.1%3.0%
90 Day-5.9%6.0%4.4%
1 Year85.9%85.9%24.8%20.0%46.7%44.4%
3 Year18.5%18.5%35.6%24.6%60.3%50.4%
5 Year44.4%44.4%50.6%31.3%128.3%102.8%

Long-Term 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 ($31.82) is trading below our estimate of fair value ($144.56)

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 US 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 has negative assets, so we can't compare its PB Ratio to the US Pharmaceuticals industry average.


Future Growth

How is Bausch Health Companies forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

64.2%

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%).

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 (3.4% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: BHC's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BHC's Return on Equity is forecast to be high in 3 years time


Past Performance

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

-6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHC is currently unprofitable.

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 6.6% 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 (0.3%).


Return on Equity

High ROE: BHC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Bausch Health Companies's financial position?


Financial Position Analysis

Short Term Liabilities: BHC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: BHC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: BHC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: BHC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


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 13.9% per year.


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BHC'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 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

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

4.5yrs

Average management tenure


CEO

Joe Papa (64 yo)

5.08yrs

Tenure

US$14,119,361

Compensation

Mr. Joseph C. Papa, also known as Joe, serves as an Independent Director of Prometheus Biosciences, Inc since August 2020. He has been the Chairman of the Board and Chief Executive Officer of Bausch Health...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD14.12M) is about average for companies of similar size in the US market ($USD11.17M).

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


Leadership Team

Experienced Management: BHC's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: BHC's board of directors are considered experienced (5.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BHC insiders have only sold shares 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

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: NaN
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$11.404b
  • Shares outstanding: 358.40m
  • Website: https://www.bauschhealth.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/14 02:30
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.