Boston Scientific Corp

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BSX : NYSE : Health Care
$25.39 | %
Today's Range: 25.16 - 25.4
Avg. Daily Volume: 8284100.0
02/17/17 - 4:02 PM ET

Financial Analysis


BOSTON SCIENTIFIC CORP's gross profit margin for the fourth quarter of its fiscal year 2016 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 very weak liquidity. Currently, the Quick Ratio is 0.47 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 6.53% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)2191.01978.0
EBITDA ($mil)0.0503.0
EBIT ($mil)382.0293.0
Net Income ($mil)124.0-142.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)196.0319.0
Total Assets ($mil)18096.018133.0
Total Debt ($mil)5484.05677.0
Equity ($mil)6733.06320.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin65.475.83
EBITDA Margin0.025.42
Operating Margin17.4314.81
Sales Turnover0.460.41
Return on Assets1.91-1.31
Return on Equity5.15-3.78
Debt Q4 FY16 Q4 FY15
Current Ratio0.91.43
Debt/Capital0.450.47
Interest Expense58.059.0
Interest Coverage6.594.97


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)1362.111346.65
Div / share0.00.0
EPS0.09-0.11
Book value / share4.944.69
Institutional Own % n/a n/a
Avg Daily Volume8221244.08560977.0

Valuation


BUY. BOSTON SCIENTIFIC CORP's P/E ratio indicates a significant premium compared to an average of 51.36 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 26.35. Conducting a second comparison, its price-to-book ratio of 5.13 indicates a significant premium versus the S&P 500 average of 2.94 and a premium versus the industry average of 5.03. 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 97.54 Peers 51.36   BSX NA Peers 24.07

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BSX 17.86 Peers 23.64   BSX 0.24 Peers 0.83

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 5.13 Peers 5.03   BSX 244.44 Peers 96.88

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 4.12 Peers 5.98   BSX 12.15 Peers 16.85

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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