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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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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 -39.03%, its profits have fallen by -15.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -39.03% 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.

-31.22%

-0.99

43.17%

S&P 500

20.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.75%

EBIT Growth (5y)

-17.62%

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

1.80

EV to EBIT

26.99

EV to EBITDA

11.13

EV to Capital Employed

1.36

EV to Sales

1.65

PEG Ratio

Dividend Yield

1.67%

ROCE (Latest)

5.03%

ROE (Latest)

4.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

Mildly Bullish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 6.53 times

-24What is not working for the Company

NET PROFIT(Q)

At USD 89 MM has Fallen at -63.67%

ROCE(HY)

Lowest at -14.95%

INTEREST(Q)

At USD 76 MM has Grown at 13.43%

INTEREST COVERAGE RATIO(Q)

Lowest at 461.84

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 11.2% (YoY

DIVIDEND PER SHARE(HY)

Lowest at USD 6.53

OPERATING PROFIT(Q)

Lowest at USD 351 MM

PRE-TAX PROFIT(Q)

Lowest at USD 100 MM

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

Debtors Turnover Ratio

Highest at 6.53 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Net Profit

At USD 89 MM has Fallen at -63.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 76 MM has Grown at 13.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 461.84

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 100 MM has Fallen at -43.82%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Profit

Lowest at USD 351 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 100 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Dividend per share

Lowest at USD 6.53

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 11.2% (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