Bausch Health Companies Inc. Fundamental Analysis (NYSE: BHC)
Bausch Health Companies Inc. Fundamental Analysis (NYSE: BHC)
Bausch Health Companies Inc. (NYSE: BHC) shows moderate financial fundamentals with a PE ratio of -3.69, profit margin of -7.57%, and ROE of 58.90%. The company generates $11.1B in annual revenue with moderate year-over-year growth of 6.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 212.1/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze BHC's fundamental strength across five key dimensions:
Efficiency Score
WeakBHC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBHC trades at attractive valuation levels.
Growth Score
ModerateBHC shows steady but slowing expansion.
Financial Health Score
ExcellentBHC maintains a strong and stable balance sheet.
Profitability Score
ModerateBHC maintains healthy but balanced margins.
Key Financial Metrics
Is BHC Expensive or Cheap?
P/E Ratio
BHC trades at -3.69 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BHC's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Bausch Health Companies Inc. at -2.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.31 times EBITDA. This is generally considered low.
How Well Does BHC Make Money?
Net Profit Margin
For every $100 in sales, Bausch Health Companies Inc. keeps $-7.57 as profit after all expenses.
Operating Margin
Core operations generate 27.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $58.90 in profit for every $100 of shareholder equity.
ROA
Bausch Health Companies Inc. generates $-3.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bausch Health Companies Inc. produces operating cash flow of $2.20B, showing steady but balanced cash generation.
Free Cash Flow
Bausch Health Companies Inc. generates strong free cash flow of $1.82B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.86 in free cash annually.
FCF Yield
BHC converts 58.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-3.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.007
vs 25 benchmark
P/B Ratio
Price to book value ratio
-2.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-15.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.59
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How BHC Stacks Against Its Sector Peers
| Metric | BHC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -3.69 | 31.66 | Better (Cheaper) |
| ROE | 58.90% | 501.00% | Weak |
| Net Margin | -7.57% | -3647.00% (disorted) | Weak |
| Debt/Equity | -15.60 | -0.30 (disorted) | Distorted |
| Current Ratio | 1.56 | 5.78 | Neutral |
| ROA | -3.30% | -262.00% (disorted) | Weak |
BHC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bausch Health Companies Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.41%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
126.88%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
20.61%
Industry Style: Defensive, Growth, Innovation
High Growth