StockCV
Baxter International Inc. logo

Baxter International Inc.

Surgical & Medical Instruments & Apparatus

$24.35
+1.88%
Market cap $12.6B

Baxter offers a variety of medical supplies and equipment to providers. From its legacy operations, Baxter sells injectable therapies for use in care settings, including IV pumps, administrative sets, and solutions; nutritional products; and surgical sealants and hemostatic agents.

It is a $12.6B healthcare company. Revenue grew 32.3% over the last year, it currently loses money, and it holds more cash than debt.

Website
baxter.com
Location
Deerfield, IL
Employees
37 500
Sector
Healthcare
Founded
1931

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation45Growth0Profitability0Health61Quality65Moat51

Valuation, Growth and Profitability lag behind.

Valuation45
  • P/E vs own history92th pct · 0/25
  • FCF yield7.4% · 20/25
  • P/S1.1x · 25/25
  • EV/EBITDA105.3x · 0/25
Growth0
  • Revenue CAGR-3.2% · 0/25
  • Net income CAGRn/a · 0/25
  • EPS CAGR ~5Yn/a · 0/25
  • Fwd implied growthn/a · 0/25
Profitability0
  • ROIC-23.0% · 0/25
  • ROE-16.6% · 0/25
  • Net margin-9.3% · 0/25
  • Operating margin-2.3% · 0/25
Health61
  • Altman Z2.12 · 18/25
  • Current ratio1.95 · 18/25
  • Interest coverage-1.0x · 0/25
  • Net cash / debtNet cash · 25/25
Quality65
  • Piotroski F5/9 · 15/25
  • Beneish M-2.61 · 25/25
  • FCF conversion-88% · 0/25
  • Margin stabilityσ 3.7% · 25/25
Moat51
  • ROIC >12% years6/10 yrs · 13/25
  • Median gross margin39.6% · 13/25
  • FCF-positive years10/10 yrs · 25/25
  • Worst-year net marginworst -16.1% · 0/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

  1. 2021Acquisition
    The acquisition was completed in December 2021 for $12.5 billion
  2. FY2019Financial
    Became debt-free
    cash now exceeds total debt
  3. FY2016Financial
    First recorded profitable year
    $4.96B net income
  4. FY2016Financial
    Revenue already above $10B
    $10.2B in first reported year
  5. FY2016Financial
    Positive free cash flow every year since
    10-year streak
  6. FY2016Financial
    Best year on record
    $4.96B net income
  7. 2016Acquisition
    Shire PLC agreed to acquire Baxalta for $32 billion
  8. Nov 10, 2011Acquisition
    Baxter acquired medical device firm Baxa on November 10, 2011
  9. 2010Milestone
    Baxter was ordered by the FDA to recall all of their Colleague infusion pumps from the market due to 87…
  10. 1982Acquisition
    Baxter acquired Medcom, Inc., a New York-based firm founded by Richard Fuisz and his brother
  11. 1956Product
    Baxter International introduced the first functioning artificial kidney
  12. 1939Product
    The company developed a vacuum-type collection container, extending the shelf life of blood from hours to…
  13. 1935Acquisition
    Baxter's interest was bought out in 1935 by Ralph Falk, who established a research and development function
  14. 1931Founded
    Baxter International was founded in 1931 by Donald Baxter, a Los Angeles-based medical doctor

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$3 020 today — price return only
$11.2B revenue in FY2025
Revenue up 32.3% year over year
Positive free cash flow 10 years in a row
37 500 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

  • Revenue growing 32.3% year over year
  • Net cash position after subtracting debt from cash

Watch-outs

  • Not profitable — 9.3% net margin
  • Net debt would take ~8.1 years of free cash flow to repay
  • Thin interest coverage (-1.0×)
  • Loss-making in 3 of the recent years

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

8 of 10 checks passed
  • Revenue growing+32.3% YoY
  • Profitable-$1.06B TTM
  • Profit growing-47.5% YoY
  • Generates cash$931M TTM
  • Debt under controlmore cash than debt
  • Established company$12.6B market cap
  • Not printing shares-0.8% shares over ~5y
  • Proven track record7/10 profitable years
  • Financially stableAltman Z 2.1 — grey
  • Pays a dividendyield 1.46%
  • Valuation not extremeno data
Peer comparisonBaxter International Inc. vs 6 largest healthcare peers — cap, P/E, growth and margin side by sideOpen ▾
CompanyMarket capP/ERevenue growthNet marginProfile
BAX this company$12.6B—+32.3%-9.3%Mixed
LLY Eli Lilly & Co.$1.0T41.6+49.6%33.5%Solid
JNJ Johnson & Johnson$630.9B29.9+8.1%21.5%Mixed
ABBV Abbvie Inc.$488.5B77.4+10.4%9.8%Mixed
MRK Merck & Co., Inc.$361.0B113.2+4.6%4.8%Mixed
UNH UNITEDHEALTH GROUP INCORPORATED (Delaware)$340.7B24.1+6.5%3.1%Mixed
NVS Novartis AG$273.2B20.3+9.6%24.7%Solid

Head-to-head: BAX vs LLY · BAX vs JNJ · BAX vs ABBV

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 1Buy 4Hold 14Sell 1

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

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Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $24.35 · market cap $12.6B.