Baxter International Inc

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BAX : NYSE : Health Care
$51.83 up 0.04 | 0.077%
Today's Range: 51.39 - 51.89
Avg. Daily Volume: 2797700.0
03/23/17 - 10:48 AM ET

Financial Analysis


BAXTER INTERNATIONAL INC's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. BAXTER INTERNATIONAL INC has strong liquidity. Currently, the Quick Ratio is 1.64 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 6.28% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)2645.02603.0
EBITDA ($mil)569.0407.0
EBIT ($mil)368.0241.0
Net Income ($mil)243.0205.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2801.07361.0
Total Assets ($mil)15546.020975.0
Total Debt ($mil)2782.06520.0
Equity ($mil)8290.08846.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin50.6647.52
EBITDA Margin21.5115.63
Operating Margin13.919.26
Sales Turnover0.650.48
Return on Assets31.934.61
Return on Equity59.94.44
Debt Q4 FY16 Q4 FY15
Current Ratio2.42.05
Debt/Capital0.250.42
Interest Expense13.037.0
Interest Coverage28.316.51


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)539.61547.66
Div / share0.130.12
EPS0.440.33
Book value / share15.3616.15
Institutional Own % n/a n/a
Avg Daily Volume2806327.04243672.0

Valuation


BUY. BAXTER INTERNATIONAL INC's P/E ratio indicates a significant discount compared to an average of 51.83 for the Health Care Equipment & Supplies industry and a significant discount compared to the S&P 500 average of 26.73. To use another comparison, its price-to-book ratio of 3.35 indicates a premium versus the S&P 500 average of 2.98 and a discount versus the industry average of 4.66. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, BAXTER INTERNATIONAL INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BAX 5.72 Peers 51.83   BAX 16.78 Peers 25.63

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

BAX is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BAX is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BAX 21.03 Peers 41.13   BAX NM Peers 1.13

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

BAX is trading at a significant 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.

BAX's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BAX 3.35 Peers 4.66   BAX 1184.28 Peers 96.34

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.

BAX 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.

BAX is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BAX 2.73 Peers 5.36   BAX 1.95 Peers 14.70

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.

BAX 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.

BAX significantly trails its peers on the basis of sales growth

 

 

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