(BAX) Baxter International - Overview
Sector: Healthcare | Industry: Medical Instruments & Supplies | Exchange: NYSE (USA) | Market Cap: 9.906m USD | Total Return: -36.4% in 12m
Avg Turnover: 128M
EPS Trend: -88.2%
Qual. Beats: 0
Rev. Trend: -84.1%
Qual. Beats: 0
Warnings
High Debt/EBITDA (10.6) with thin interest coverage (-0.8)
Interest Coverage Ratio -0.8 is critical
Tailwinds
No distinct edge detected
Baxter International Inc. (BAX) is a global healthcare equipment and pharmaceutical company headquartered in Deerfield, Illinois. It operates through three primary segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals. The company’s diverse portfolio includes IV solutions, infusion systems, parenteral nutrition, inhaled anesthetics, and surgical equipment such as smart bed systems and patient monitoring technologies.
The Health Care Equipment sector is characterized by high barriers to entry due to stringent regulatory oversight and significant research and development requirements. Baxter utilizes a multi-channel distribution model, selling directly to providers and through independent wholesalers to reach hospitals, dialysis centers, and home-care settings across more than 100 countries. For a deeper look into these operational segments, explore the data sets available on ValueRay.
- Vantive spinoff execution determines long-term capital allocation and debt reduction success
- Global demand for IV solutions and infusion systems drives core revenue growth
- High debt leverage following Hillrom acquisition impacts net income and valuation
- Surgical procedure volumes directly influence demand for advanced equipment and sealants
- Supply chain disruptions and raw material inflation pressure medical product margins
| Net Income: -1.10b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 2.70 > 1.0 |
| NWC/Revenue: 27.86% < 20% (prev 33.00%; Δ -5.13% < -1%) |
| CFO/TA 0.06 > 3% & CFO 1.25b > Net Income -1.10b |
| Net Debt (7.89b) to EBITDA (744.0m): 10.61 < 3 |
| Current Ratio: 1.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (515.0m) vs 12m ago 0.19% < -2% |
| Gross Margin: 30.11% > 18% (prev 0.36%; Δ 2.98k% > 0.5%) |
| Asset Turnover: 55.02% > 50% (prev 50.56%; Δ 4.46% > 0%) |
| Interest Coverage Ratio: -0.83 > 6 (EBITDA TTM 744.0m / Interest Expense TTM 275.0m) |
| A: 0.16 (Total Current Assets 6.85b - Total Current Liabilities 3.69b) / Total Assets 19.8b |
| B: 0.69 (Retained Earnings 13.7b / Total Assets 19.8b) |
| C: -0.01 (EBIT TTM -227.0m / Avg Total Assets 20.6b) |
| D: 0.76 (Book Value of Equity 10.6b / Total Liabilities 13.8b) |
| Altman-Z'' = 4.02 = AA |
| DSRI: 0.98 (Receivables 1.70b/1.65b, Revenue 11.3b/10.8b) |
| GMI: 1.20 (GM 30.11% / 36.06%) |
| AQI: 0.94 (AQ_t 0.49 / AQ_t-1 0.53) |
| SGI: 1.05 (Revenue 11.3b / 10.8b) |
| TATA: -0.12 (NI -1.10b - CFO 1.25b) / TA 19.8b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of May 27, 2026, the stock is trading at USD 19.38 with a total of 3,913,246 shares traded.
Over the past week, the price has changed by +8.94%,
over one month by +4.81%,
over three months by -4.77% and
over the past year by -36.36%.
Baxter International has received a consensus analysts rating of 3.44. Therefore, it is recommended to hold BAX.
- StrongBuy: 4
- Buy: 2
- Hold: 11
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 22.1 | 14.1% |
P/E Forward = 10.0908
P/S = 0.8751
P/B = 1.6392
P/EG = 36.6767
Revenue TTM = 11.3b USD
EBIT TTM = -227.0m USD
EBITDA TTM = 744.0m USD
Long Term Debt = 8.62b USD (from longTermDebt, last quarter)
Short Term Debt = 842.0m USD (from shortTermDebt, last quarter)
Debt = 9.91b USD (from shortLongTermDebtTotal, last quarter) + Leases 224.0m
Net Debt = 7.89b USD (calculated: Debt 9.91b - CCE 2.02b)
Enterprise Value = 17.8b USD (9.91b + Debt 9.91b - CCE 2.02b)
Interest Coverage Ratio = -0.83 (Ebit TTM -227.0m / Interest Expense TTM 275.0m)
EV/FCF = 24.93x (Enterprise Value 17.8b / FCF TTM 714.0m)
FCF Yield = 4.01% (FCF TTM 714.0m / Enterprise Value 17.8b)
FCF Margin = 6.31% (FCF TTM 714.0m / Revenue TTM 11.3b)
Net Margin = -9.70% (Net Income TTM -1.10b / Revenue TTM 11.3b)
Gross Margin = 30.11% ((Revenue TTM 11.3b - Cost of Revenue TTM 7.91b) / Revenue TTM)
Gross Margin QoQ = 32.99% (prev 19.40%)
Tobins Q-Ratio = 0.90 (Enterprise Value 17.8b / Total Assets 19.8b)
Interest Expense / Debt = 2.77% (Interest Expense 275.0m / Debt 9.91b)
Taxrate = 21.0% (US default 21%)
NOPAT = -179.3m (EBIT -227.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.85 (Total Current Assets 6.85b / Total Current Liabilities 3.69b)
Debt / Equity = 1.64 (Debt 9.91b / totalStockholderEquity, last quarter 6.04b)
Debt / EBITDA = 10.61 (Net Debt 7.89b / EBITDA 744.0m)
Debt / FCF = 11.06 (Net Debt 7.89b / FCF TTM 714.0m)
Total Stockholder Equity = 6.68b (last 4 quarters mean from totalStockholderEquity)
RoA = -5.34% (Net Income -1.10b / Total Assets 19.8b)
RoE = -16.43% (Net Income TTM -1.10b / Total Stockholder Equity 6.68b)
RoCE = -1.48% (EBIT -227.0m / Capital Employed (Equity 6.68b + L.T.Debt 8.62b))
RoIC = -1.06% (negative operating profit) (NOPAT -179.3m / Invested Capital 17.0b)
WACC = 5.15% (E(9.91b)/V(19.8b) * Re(8.10%) + D(9.91b)/V(19.8b) * Rd(2.77%) * (1-Tc(0.21)))
Discount Rate = 8.10% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 84.47 | Cagr: 0.70%
[DCF] Terminal Value 77.97% ; FCFF base≈504.8m ; Y1≈578.7m ; Y5≈851.6m
[DCF] Fair Price = 9.53 (EV 12.8b - Net Debt 7.89b = Equity 4.92b / Shares 516.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -88.23 | EPS CAGR: -10.21% | SUE: 0.40 | # QB: 0
Revenue Correlation: -84.14 | Revenue CAGR: -9.70% | SUE: 0.14 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.37 | Chg30d=-16.40% | Revisions=-75% | Analysts=12
EPS next Quarter (2026-09-30): EPS=0.53 | Chg30d=+0.64% | Revisions=+0% | Analysts=12
EPS current Year (2026-12-31): EPS=1.92 | Chg30d=+0.57% | Revisions=+23% | GrowthEPS=-15.6% | GrowthRev=+1.1%
EPS next Year (2027-12-31): EPS=2.01 | Chg30d=-0.68% | Revisions=+0% | GrowthEPS=+4.9% | GrowthRev=+2.0%
[Analyst] Revisions Ratio: -75%