Baxter International Inc

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BAX : NYSE : Health Care
$48.22 -0.10 | -0.21%
Today's Range: 47.96 - 48.49
Avg. Daily Volume: 9,265,100
07/28/16 - 4:01 PM ET

Financial Analysis


BAXTER INTERNATIONAL INC's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)2585.02475.0
EBITDA ($mil)0.0324.0
EBIT ($mil)276.0134.0
Net Income ($mil)1212.0332.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)0.06680.0
Total Assets ($mil)0.030015.0
Total Debt ($mil)0.014218.0
Equity ($mil)0.07988.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin42.1349.05
EBITDA Margin0.013.09
Operating Margin10.685.41
Sales Turnover0.00.35
Return on Assets0.07.27
Return on Equity0.06.38
Debt Q2 FY16 Q2 FY15
Current Ratio0.02.3
Debt/Capital0.00.64
Interest Expense0.036.0
Interest Coverage0.03.72


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)551.22545.2
Div / share0.130.52
EPS2.190.13
Book value / share0.014.65
Institutional Own % n/a n/a
Avg Daily Volume9322090.05652263.0

Valuation


BUY. BAXTER INTERNATIONAL INC's P/E ratio indicates a significant discount compared to an average of 58.95 for the Health Care Equipment & Supplies industry and a significant discount compared to the S&P 500 average of 25.10. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing 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 5.55 Peers 58.95   BAX NA Peers 34.05

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.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BAX 24.81 Peers 29.87   BAX 0.04 Peers 1.04

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

BAX is trading at a valuation on par with its peers.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BAX NA Peers 4.73   BAX 840.21 Peers 22.03

Neutral. 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.

Ratio not available.

 

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 2.63 Peers 4.70   BAX -3.15 Peers 20.09

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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