Last Updated: 14 Sep 2024
Executive Summary
Baxter International Inc. (BAX) is a leading healthcare company focused on treating chronic and acute medical conditions. The company has a strong financial position with a market capitalization of $20.26 billion and an EBITDA of $2.87 billion. Despite recent challenges leading to negative EPS, Baxter's fundamentals remain solid, with a PEGRatio of 1.696, indicating potential for future growth. The company's dividend yield of 0.0295% and analyst target price of $40.65 suggest a favorable outlook.
Company Overview
Baxter International Inc. is a multinational healthcare company headquartered in Deerfield, Illinois. The company primarily focuses on products for treating hemophilia, kidney disease, immune disorders, and other chronic and acute medical conditions. Baxter operates in over 100 countries and employs approximately 49,000 people.
Fundamental Analysis
Revenue: Baxter reported revenue of $14.99 billion in the last twelve months, indicating a 0.028% growth year-over-year.
Earnings: The company reported a diluted EPS of -$0.3 in the last twelve months, reflecting a decline from the previous year.
Profitability: Baxter's profit margin is 0.165%, and its operating margin is 0.0958%, indicating a moderate level of profitability.
Valuation: The company's forward PE ratio of 12.61 suggests that it is currently trading at a reasonable valuation compared to its peers.
Dividend: Baxter pays an annual dividend of $1.16 per share, resulting in a dividend yield of 0.0295%.
Technical Analysis
Price Action: BAX's stock price is currently trading at $39.72, within the range of its 52-week high of $43.29 and low of $30.05.
Moving Averages: The stock's 50-day moving average is $36.47, and its 200-day moving average is $37.94, indicating a neutral trend.
Support and Resistance: Key support levels for BAX include $36.47 and $30.05, while resistance levels include $40.65 and $43.29.
Short Term Outlook
In the short term, BAX's stock price may continue to fluctuate within its current range. The company's upcoming earnings report and any updates on its product pipeline will likely influence the stock's performance. Technical indicators suggest a neutral trend, with the stock potentially finding support at $36.47 and resistance at $40.65.
Long Term Outlook
Baxter International Inc. has a strong brand reputation and a diversified product portfolio. The company's focus on chronic and acute medical conditions provides a stable revenue stream. However, competition in the healthcare industry remains intense. Baxter's ability to innovate and expand its product offerings will be crucial for its long-term success. Analysts have a generally positive outlook on the company, with a majority rating it as a "Hold."
Analyst Recommendations
Strong Buy: 1
Buy: 1
Hold: 12
Sell: 1
Strong Sell: 0
The analyst target price of $40.65 implies a potential upside of 2.34% from the current stock price.
