Boston Scientific Corporation
Boston Scientific Corporation Fundamental Analysis
Boston Scientific Corporation (BSX-PA) shows moderate financial fundamentals with a PE ratio of 38.29, profit margin of 14.40%, and ROE of 12.53%. The company generates $19.4B in annual revenue with strong year-over-year growth of 17.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BSX-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakBSX-PA struggles to generate sufficient returns from assets.
Valuation Score
WeakBSX-PA trades at a premium to fair value.
Growth Score
ExcellentBSX-PA delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBSX-PA maintains a strong and stable balance sheet.
Profitability Score
WeakBSX-PA struggles to sustain strong margins.
Key Financial Metrics
Is BSX-PA Expensive or Cheap?
P/E Ratio
BSX-PA trades at 38.29 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BSX-PA's PEG of 10.34 indicates potential overvaluation.
Price to Book
The market values Boston Scientific Corporation at 4.57 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.44 times EBITDA. This signals the market has high growth expectations.
How Well Does BSX-PA Make Money?
Net Profit Margin
For every $100 in sales, Boston Scientific Corporation keeps $14.40 as profit after all expenses.
Operating Margin
Core operations generate 19.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.53 in profit for every $100 of shareholder equity.
ROA
Boston Scientific Corporation generates $6.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Boston Scientific Corporation produces operating cash flow of $4.39B, showing steady but balanced cash generation.
Free Cash Flow
Boston Scientific Corporation generates strong free cash flow of $3.51B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.44 in free cash annually.
FCF Yield
BSX-PA converts 3.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How BSX-PA Stacks Against Its Sector Peers
| Metric | BSX-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.29 | 29.43 | Worse (Expensive) |
| ROE | 12.53% | 800.00% | Weak |
| Net Margin | 14.40% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.51 | 0.30 | Weak (High Leverage) |
| Current Ratio | 1.62 | 4.64 | Neutral |
| ROA | 6.62% | -17936.00% (disorted) | Weak |
BSX-PA outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Boston Scientific Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
47.52%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-62.72%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
76.92%
Industry Style: Defensive, Growth, Innovation
High Growth