Baxter International, Inc. (BAX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Zimmer Biomet Holdings, Inc.

Mettler-Toledo International, Inc.

Baxter International, Inc.

Why is Baxter International, Inc. ?

Weak Long Term Fundamental Strength with a -17.50% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.86 times

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 765 MM
NET SALES(Q) At USD 2,810 MM has Fallen at -26.29%
PRE-TAX PROFIT(Q) At USD 156 MM has Fallen at -45.07%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -42.98%, its profits have fallen by -15.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -42.98% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Baxter International, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Baxter International, Inc.

-44.03%

-0.99

43.07%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.93%

EBIT Growth (5y)

-17.50%

EBIT to Interest (avg)

5.83

Debt to EBITDA (avg)

3.86

Net Debt to Equity (avg)

1.10

Sales to Capital Employed (avg)

0.67

Tax Ratio

5.34%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

9.07%

ROE (avg)

13.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.94

EV to EBIT

32.83

EV to EBITDA

16.08

EV to Capital Employed

1.93

EV to Sales

2.41

PEG Ratio

Dividend Yield

1.95%

ROCE (Latest)

5.87%

ROE (Latest)

9.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 645.71

DIVIDEND PAYOUT RATIO(Y)

Highest at 78.02%

DEBT-EQUITY RATIO (HY)

Lowest at 109.82 %

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 765 MM

NET SALES(Q)

At USD 2,810 MM has Fallen at -26.29%

PRE-TAX PROFIT(Q)

At USD 156 MM has Fallen at -45.07%

RAW MATERIAL COST(Y)

Grown by 6.04% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.62 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.82 times

DIVIDEND PER SHARE(HY)

Lowest at USD 4.82

NET PROFIT(Q)

Fallen at -36.96%

Here's what is working for Baxter International, Inc.

Interest Coverage Ratio

Highest at 645.71

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 109.82 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 78.02%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Baxter International, Inc.

Operating Cash Flow

Lowest at USD 765 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

At USD 2,810 MM has Fallen at -26.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 156 MM has Fallen at -45.07%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

Fallen at -36.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 2.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at USD 4.82

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Raw Material Cost

Grown by 6.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales