Morningstar

Baxter International Inc BAX

Morningstar Rating
Unlock
Stock XNYS Rating as of
—
View Full Chart
As of Delayed Price

Company Report

View Archive

Baxter to Divest Kidney Care Segment at Discount to Intrinsic Value

Julie Utterback

Although the 2015 Baxalta spinoff was successful, Baxter's financial results fell substantially in 2022-23 on external pressures, such as inflation and weak medical utilization trends. We see these external pressures easing. Also, we suspect Baxter's financial prospects will improve, especially in 2025 and beyond, as hospitals renegotiate their reimbursement deals with third-party payers, and as Baxter renegotiates significant contracts, a key group purchasing organization among them.

Read Full Report

Price vs Fair Value

View History
BAX is trading at a 852% premium.
Price
$38.91
Fair Value
$85.00
Uncertainty
High
1-Star Price
$96.10
5-Star Price
$67.60
Economic Moat
Tcfnwk
Capital Allocation
Rdgbwyphv

Bulls Say, Bears Say

Bulls

In the long run, Baxter should continue to grow at a decent clip, primarily around evolutionary innovation in all of the major business lines and moderate pricing or mix improvements.

Bears

Although Baxter's products are essential for medical care and patient health, many have similar alternatives, which can limit pricing power.

Show More

News

View All

Trading Information

Previous Close Price
—
Day Range
—–—
52-Week Range
—–—
Bid/Ask
— / —
Market Cap
—
Volume/Avg
— / —

Key Statistics

Price/Earnings (Normalized)
13.46
Price/Sales
1.32
Dividend Yield (Trailing)
2.98%
Dividend Yield (Forward)
2.98%
Total Yield
2.98%

Company Profile

Baxter offers a variety of medical instruments and supplies to caregivers. It enhanced its portfolio of hospital-focused offerings by acquiring Hillrom in late 2021, which added basic equipment, including hospital beds, to the portfolio, although about half of Hillrom's revenue comes from more digitally connected offerings like its smart beds and Voalte medical communications app. From its legacy operations, Baxter sells a variety of injectable therapies for use in care settings, such as IV pumps, administrative sets, and solutions; nutritional products; and surgical sealants and hemostatic agents. It has signed an agreement to sell its kidney care segment by early 2025.
Sector
Healthcare
Industry
Medical Instruments & Supplies
Stock Style Box
Mid Value
Total Number of Employees
60,000
Website
https://www.baxter.com

Competitors

Valuation

View More
Metric
BAX
BDX
FMS
Price/Earnings (Normalized)
 13.4618.9315.06
Price/Book Value
 2.602.700.84
Price/Sales
 1.323.550.60
Price/Cash Flow
 12.9719.185.06
Price/Earnings
BAX
BDX
FMS

Financial Strength

Metric
BAX
BDX
FMS
Quick Ratio
 0.771.200.86
Current Ratio
 1.401.851.46
Interest Coverage
 0.634.203.29
Quick Ratio
BAX
BDX
FMS

Profitability

Metric
BAX
BDX
FMS
Return on Assets (Normalized)
 5.24%3.65%2.63%
Return on Equity (Normalized)
 19.49%7.60%6.59%
Return on Invested Capital (Normalized)
 7.74%5.30%4.20%
Return on Assets
BAX
BDX
FMS

Medical Instruments & Supplies Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Intuitive Surgical Inc
ISRG
VfscngrtxMrdd$170.3 Bil
 Becton Dickinson & Co
BDX
PrxjsdzwKbfhv$69.8 Bil
 Alcon Inc
ALC
ZscfqthtyBnflqk$49.3 Bil
 ResMed Inc
RMD
PvfgfvdfhtYzlwbm$35.1 Bil
 Coloplast AS ADR
CLPBY
HyrwwmbfggHths$29.7 Bil
 West Pharmaceutical Services Inc
WST
ZqrnsfyfdHlhrn$22.6 Bil
 The Cooper Companies Inc
COO
BnkklmlgTlgmyv$21.9 Bil
 Align Technology Inc
ALGN
HypdrtvfLkvrtc$19.0 Bil
 Hologic Inc
HOLX
WqvrvpnGdrywg$18.8 Bil

Sponsor Center