Boston Scientific Corp

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BSX : NYSE : Health Care
$27.86 -0.05 | -0.18%
Today's Range: 27.74 - 28.0
Avg. Daily Volume: 6859000.0
06/22/17 - 4:02 PM ET

Financial Analysis


BOSTON SCIENTIFIC CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged 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. BOSTON SCIENTIFIC CORP has very weak liquidity. Currently, the Quick Ratio is 0.49 which clearly 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.

During the same period, stockholders' equity ("net worth") has increased by 9.23% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)2160.01964.0
EBITDA ($mil)557.0558.0
EBIT ($mil)353.0358.0
Net Income ($mil)290.0202.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)283.0338.0
Total Assets ($mil)17943.017718.0
Total Debt ($mil)5514.05677.0
Equity ($mil)7053.06457.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin72.7374.59
EBITDA Margin25.7828.41
Operating Margin16.3418.23
Sales Turnover0.480.43
Return on Assets2.42-0.2
Return on Equity6.16-0.55
Debt Q1 FY17 Q1 FY16
Current Ratio0.871.21
Debt/Capital0.440.47
Interest Expense57.059.0
Interest Coverage6.196.07


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)1369.081354.57
Div / share0.00.0
EPS0.210.15
Book value / share5.154.77
Institutional Own % n/a n/a
Avg Daily Volume6585569.08249644.0

Valuation


BUY. BOSTON SCIENTIFIC CORP's P/E ratio indicates a significant premium compared to an average of 43.59 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.73. Conducting a second comparison, its price-to-book ratio of 5.39 indicates a significant premium versus the S&P 500 average of 3.08 and a premium versus the industry average of 4.97. 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, BOSTON SCIENTIFIC CORP proves to trade at a premium 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
BSX 86.72 Peers 43.59   BSX 39.02 Peers 27.54

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.

 

Premium. 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.

BSX is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BSX 19.68 Peers 24.69   BSX 0.22 Peers 0.97

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.

 

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.

BSX 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
BSX 5.39 Peers 4.97   BSX 1166.66 Peers 116.03

Average. 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 valuation on par with 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BSX 4.43 Peers 5.06   BSX 11.84 Peers 14.46

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 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 trails its peers on the basis of sales growth

 

 

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