BOSTON SCIENTIFIC CORP's gross profit margin for the third quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. BOSTON SCIENTIFIC CORP has weak liquidity. Currently, the Quick Ratio is 0.81 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.10% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||1846.0||1735.0|
|Net Income ($mil)||43.0||-5.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||246.0||571.0|
|Total Assets ($mil)||16718.0||16917.0|
|Total Debt ($mil)||4252.0||4249.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||64.03||73.14|
|Return on Assets||1.72||-0.99|
|Return on Equity||4.29||-2.55|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||1326.0||1338.84|
|Div / share||0.0||0.0|
|Book value / share||5.05||4.9|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.1718661E7||1.2274014E7|
HOLD. BOSTON SCIENTIFIC CORP's P/E ratio indicates a significant premium compared to an average of 30.38 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 18.69. To use another comparison, its price-to-book ratio of 2.44 indicates valuation on par with the S&P 500 average of 2.58 and a significant discount versus the industry average of 4.29. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.
|BSX 58.67||Peers 30.38||BSX NA||Peers 22.31|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
BSX is trading at a significant premium to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|BSX 13.54||Peers 19.78||BSX NM||Peers 0.88|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
BSX is trading at a discount to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
BSX's negative PEG ratio makes this valuation measure meaningless.
|BSX 2.44||Peers 4.29||BSX 275.00||Peers 46.77|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
BSX is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
BSX is expected to have an earnings growth rate that significantly exceeds its peers.
|BSX 2.23||Peers 3.91||BSX 2.87||Peers 5.84|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
BSX is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
BSX significantly trails its peers on the basis of sales growth
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