Boston Scientific Corp

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BSX : NYSE : Health Care
$23.73 up 0.02 | 0.08%
Today's Range: 23.51 - 23.81
Avg. Daily Volume: 8,386,900
09/26/16 - 4:02 PM ET

Financial Analysis


BOSTON SCIENTIFIC CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. BOSTON SCIENTIFIC CORP has weak liquidity. Currently, the Quick Ratio is 0.57 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 5.47% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)2126.01843.0
EBITDA ($mil)560.0472.0
EBIT ($mil)363.0291.0
Net Income ($mil)-207.0102.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)438.0903.0
Total Assets ($mil)17838.017123.0
Total Debt ($mil)5427.05112.0
Equity ($mil)6220.06580.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin72.6773.85
EBITDA Margin26.3425.61
Operating Margin17.0715.79
Sales Turnover0.450.43
Return on Assets-1.93-0.9
Return on Equity-5.54-2.35
Debt Q2 FY16 Q2 FY15
Current Ratio1.051.95
Debt/Capital0.470.44
Interest Expense59.062.0
Interest Coverage6.154.69


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)1358.71342.21
Div / share0.00.0
EPS-0.150.08
Book value / share4.584.9
Institutional Own % n/a n/a
Avg Daily Volume8877111.01.1239808E7

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 5.18 indicates a significant premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 5.05. 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 NM Peers 44.20   BSX 25.17 Peers 28.91

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

BSX's P/E is negative making this valuation measure meaningless.

 

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.

BSX is trading at a 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
BSX 18.83 Peers 25.07   BSX NA Peers 0.84

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BSX 5.18 Peers 5.05   BSX -116.66 Peers 23.13

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.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BSX is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BSX 4.05 Peers 14.71   BSX 8.33 Peers 18.35

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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