Baxter International Inc
Exchange: NYSESector: HealthcareIndustry: Medical Instruments & Supplies
Every day, Baxter and the Baxter Foundation strive to make a meaningful difference in the lives of people who depend on our products, and in the communities where our employees live and work. The Foundation helps advance Baxter's Mission to Save and Sustain Lives by partnering with organizations around the world to increase access to healthcare for the underserved, develop the next generation of innovators who will lead the way in advancing healthcare and create a positive, long-lasting impact in communities globally. For more information, please visit Baxter's Corporate Responsibility page. Baxter is a registered trademark of Baxter International Inc. or its subsidiaries. i Carey, Ben, et al., 2022, PLOS One ii Kline et al., 2020, Academic Emergency Medicine SOURCE Pet Partners
Did you know?
Free cash flow has been growing at -21.8% annually.
Current Price
$16.68
-0.60%GoodMoat Value
$50.11
200.4% undervaluedProfile
Valuation (TTM)
Market Cap$8.57B
P/E-8.96
EV$16.27B
P/B1.40
Shares Out514.06M
P/Sales0.76
Revenue$11.24B
EV/EBITDA24.82
Baxter International Inc (BAX) Stock Analysis
GoodMoat Analysis
Baxter International, a major medical products company, currently presents a complex picture for value investors. While its GoodMoat target price suggests significant upside, the company's current financials show deep unprofitability and a high debt load, which conflict with the framework's quality and moat gates.
Read full analysis
Baxter International is a global healthcare company that develops, manufactures, and markets a broad portfolio of medical products, including hospital supplies, renal care equipment, and medication delivery systems. Applying the GoodMoat framework, the initial analysis focuses on Moat Identification (Section 1). The company likely possesses some competitive advantages, such as regulatory barriers for its medical devices, potential switching costs in hospital settings, and a strong brand. However, the available data does not provide clear evidence to score it against most of the 14 specific moat criteria, making a definitive moat score of 5+ difficult to establish without deeper investigation. Crucially, the company currently fails the framework's initial 'Moat & Quality Gate' (Section 6, Step 1) based on its Quality Indicators. Key metrics like a negative P/E of -9.2, a -15.6% ROE, and a Debt/Equity ratio of 1.58 point to weak financial health, which would likely result in multiple 'Weak' ratings in Section 2. The GoodMoat target price of $50.11 implies a substantial margin of safety of over 190% from the current $17.12 price, which would be classified as 'Deeply Undervalued' in the Valuation Assessment. This stark disconnect between a favourable valuation signal and unfavourable quality metrics suggests the market is pricing in significant distress or turnaround risk. Therefore, while the valuation is compelling, a value investor must first resolve the fundamental questions about Baxter's profitability, balance sheet strength, and the durability of its competitive position before the stock can be considered for further analysis under this framework. Analysis based on data as of 2024-05-15.
Market Cap$8.57B
Current Price$16.68
P/E Ratio-8.96
Forward P/E—
PEG Ratio-0.07
EPS$-1.87
Book Value$11.92
P/B Ratio1.40
BAX Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -21.8% FCF growth (CAGR)
Cash vs Debt
Net Debt: 7.7B
Revenue
11.4B
FY19
11.7B
FY20
12.1B
FY21
10.1B
FY22
10.4B
FY23
10.6B
FY24
11.2B
FY25
Net Income
1.0B
FY19
1.1B
FY20
1.3B
FY21
—
FY22
2.7B
FY23
—
FY24
—
FY25
BAX 52-Week Range
$15.80
$31.47
50-Day MA: $19.05200-Day MA: $21.89
Did you know?
Free cash flow has been growing at -21.8% annually.
Baxter International Inc (BAX) Financial Summary
Baxter International Inc (BAX) is a Healthcare company in the Medical Instruments & Supplies industry, listed on NYSE. The stock currently trades at $16.68 with a market capitalization of $8.57B.
Key valuation metrics include a P/E ratio of -8.96, price-to-book ratio of 1.40, and EPS of $-1.87. The company reports a profit margin of -8.5% and return on equity of -15.6%.
BAX Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $8.57B |
| P/E Ratio | -8.96 |
| EPS | $-1.87 |
| P/B Ratio | 1.40 |
| P/S Ratio | 0.76 |
| EV/EBITDA | 24.82 |
| Dividend Yield | 4.06% |
| Profit Margin | -8.5% |
| Return on Equity | -15.6% |
| Debt/Equity | 1.58 |
BAX Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $11.36B | $1.00B |
| FY20 | $11.67B | $1.10B |
| FY21 | $12.15B | $1.28B |
| FY22 | $10.06B | $-2.43B |
| FY23 | $10.36B | $2.66B |
| FY24 | $10.64B | $-649.00M |
| FY25 | $11.24B | $-957.00M |
Baxter International Inc (BAX) Valuation
Based on GoodMoat's DCF model, Baxter International Inc has a fair value estimate of $50.11. At the current price of $16.68, the stock appears 66.7% undervalued relative to our intrinsic value estimate.
BAX Quality Indicators
Baxter International Inc maintains a profit margin of -8.5% and an operating margin of -2.7%. Return on equity stands at -15.6%. The current ratio is 2.31. Debt-to-equity ratio is 1.58.
About Baxter International Inc
Every day, Baxter and the Baxter Foundation strive to make a meaningful difference in the lives of people who depend on our products, and in the communities where our employees live and work. The Foundation helps advance Baxter's Mission to Save and Sustain Lives by partnering with organizations around the world to increase access to healthcare for the underserved, develop the next generation of innovators who will lead the way in advancing healthcare and create a positive, long-lasting impact in communities globally. For more information, please visit Baxter's Corporate Responsibility page. Baxter is a registered trademark of Baxter International Inc. or its subsidiaries. i Carey, Ben, et al., 2022, PLOS One ii Kline et al., 2020, Academic Emergency Medicine SOURCE Pet Partners
BAX Free Cash Flow
Baxter International Inc generated $323.00M in trailing twelve-month free cash flow, representing an FCF yield of 3.77%. This moderate FCF yield indicates reasonable cash generation.
BAX Shares Outstanding
Baxter International Inc has 0.51 billion shares outstanding at a share price of $16.68, giving it a market capitalization of $8.57B.