Baxter International (BAX) AI Stock Analysis

• Market Cap: $9.82B
• Dividend Yield: 2.75%
• Average Volume (3M): 8.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -21.20%
• EPS Growth: -325.40%
• Country: US
• Employees: 38,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.69
• Shares Outstanding: 514,055,800
• 10 Day Avg. Volume: 9,512,555
• 30 Day Avg. Volume: 8,321,515
• PEG Ratio: 0.18
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 26.60
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 5.05
• Enterprise Value/Ebitda: 19.17
• 1Y Price Target: $22.80
• Price Target Upside: 19.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 2.36
• Revenue Forecast (FY): $11.08B

• Rating: 45 Neutral
• Price Target: $17.50 ▼(-8.42% Downside)

Baxter International's overall stock score reflects significant financial and operational challenges. The company's high leverage, negative profitability, and cash flow issues are major concerns. While there are some positive developments, such as the issuance of senior notes and growth in certain segments, these are overshadowed by the broader financial instability and technical downtrend.

Positive Factors

Revenue Growth

The 5% increase in global sales indicates Baxter's ability to grow its market presence and demand for its healthcare products, supporting long-term revenue expansion.

Advanced Surgery Segment Performance

Strong growth in the Advanced Surgery segment reflects effective commercial execution and rising demand, which can drive sustained revenue growth.

Debt Management

Proactive debt reduction through tender offers enhances financial stability and flexibility, supporting long-term strategic initiatives.

Negative Factors

Infusion Pump Challenges

Persistent issues with key products like the infusion pump can hinder sales growth and damage customer trust, affecting long-term business performance.

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting Baxter's ability to invest in growth opportunities.

Negative Cash Flow Growth

Negative cash flow growth indicates liquidity constraints, which can impede operational efficiency and limit investment in innovation.

Baxter International Business Overview & Revenue Model

Company Description

Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company offers peritoneal dialysis and hemodialysis, and additional dialysis therapies and services; intravenous therapies, infusion pumps, administration sets, and drug reconstitution devices; remixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services; parenteral nutrition therapies and related products; biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention; and continuous renal replacement therapies and other organ support therapies focused in the intensive care unit. It also provides connected care solutions, including devices, software, communications, and integration technologies; integrated patient monitoring and diagnostic technologies to help diagnose, treat, and manage a various illness and diseases, including respiratory therapy, cardiology, vision screening, and physical assessment; surgical video technologies, tables, lights, pendants, precision positioning devices and other accessories. In addition, the company offers contracted services to various pharmaceutical and biopharmaceutical companies. Its products are used in hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and patients at home under physician supervision. The company sells its products through direct sales force, as well as through independent distributors, drug wholesalers, and specialty pharmacy or other alternate site providers in approximately 100 countries. It has an agreement with Celerity Pharmaceutical, LLC to develop acute care generic injectable premix and oncolytic molecules. Baxter International Inc. was incorporated in 1931 and is headquartered in Deerfield, Illinois.

How the Company Makes Money

Baxter generates revenue through multiple key streams, primarily from the sale of its hospital products and renal care solutions. The Hospital Products segment, which includes IV solutions, infusion systems, and anesthesia products, contributes significantly to the company's earnings. The Renal segment, focusing on products for patients with kidney disease, including dialysis machines and related services, also represents a substantial revenue source. Additionally, Baxter engages in strategic partnerships with healthcare providers and organizations to enhance its product offerings and expand its market reach. Ongoing investments in research and development enable Baxter to innovate and introduce new products, which further drives revenue growth. The company's focus on efficiency and cost management also plays a crucial role in maintaining profitability.

Baxter International Financial Statement Overview

Summary

Baxter International faces significant financial challenges across its income statement, balance sheet, and cash flow. Despite modest revenue growth, profitability and cash flow metrics are under pressure, with high leverage and negative returns impacting financial stability. The company needs to address operational inefficiencies and improve cash generation to enhance its financial health.

Income Statement

Baxter International's income statement shows a mixed performance. The company has experienced a slight revenue growth of 1.25% in the TTM, but profitability metrics are concerning. The gross profit margin is relatively stable at 35.39%, yet the net profit margin is negative at -3.09%, indicating losses. The EBIT and EBITDA margins have also declined, reflecting operational challenges. Overall, the income statement suggests pressure on profitability despite revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.34 in the TTM, indicating significant leverage. The return on equity is negative, at -4.77%, due to net losses, which is a concern for shareholders. However, the equity ratio is reasonable, suggesting a balanced asset structure. The balance sheet reflects financial stability challenges due to high debt levels and negative returns.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate of -106.61% in the TTM, highlighting cash generation issues. The operating cash flow to net income ratio is 0.13, indicating limited cash flow relative to net losses. The free cash flow to net income ratio is also negative, reflecting cash flow challenges. Overall, the cash flow statement suggests liquidity constraints and inefficiencies in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.02B	10.64B	10.36B	10.06B	12.15B	11.67B
Gross Profit	3.90B	3.98B	4.15B	3.55B	4.72B	4.59B
EBITDA	1.03B	1.12B	1.73B	-1.76B	2.19B	2.27B
Net Income	-341.00M	-649.00M	2.66B	-2.43B	1.28B	1.10B
Balance Sheet
Total Assets	21.07B	25.78B	28.28B	28.29B	33.52B	20.02B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.76B	3.08B	1.72B	2.95B	3.73B
Total Debt	9.71B	13.45B	14.11B	17.20B	18.31B	6.80B
Total Liabilities	13.85B	18.76B	19.81B	22.39B	24.40B	11.29B
Stockholders Equity	7.24B	6.96B	8.40B	5.83B	9.08B	8.69B
Cash Flow
Free Cash Flow	230.00M	559.00M	1.29B	576.00M	1.53B	1.16B
Operating Cash Flow	749.00M	1.02B	1.73B	1.21B	2.22B	1.87B
Investing Cash Flow	2.83B	-626.00M	3.21B	-931.00M	-11.20B	-1.18B
Financing Cash Flow	-3.93B	-1.08B	-3.49B	-1.44B	8.24B	-345.00M

Baxter International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAX, the sentiment is Positive. The current price of 19.11 is above the 20-day moving average (MA) of 18.85, below the 50-day MA of 19.49, and below the 200-day MA of 25.73, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 46.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAX.

Baxter International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COO	77 Outperform	$16.18B	44.06	4.59%	―	5.06%	-4.47%
HOLX	76 Outperform	$16.62B	30.00	11.12%	―	1.74%	-25.29%
RMD	76 Outperform	$35.68B	25.02	25.41%	0.92%	9.36%	29.56%
WST	68 Neutral	$19.90B	40.98	16.94%	0.32%	4.90%	-0.26%
BDX	67 Neutral	$55.88B	33.72	6.54%	2.13%	8.23%	-2.04%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	45 Neutral	$9.82B	-36.65	-4.70%	2.75%	-21.20%	-325.40%

Baxter International Corporate Events

Baxter International Issues $2 Billion in Senior Notes

On December 4, 2025, Baxter International Inc. announced the issuance of $2 billion in senior notes, with proceeds intended to fund a tender offer for its 2026 and 2027 notes. The company reported early tender results and pricing for these offers, indicating a strong investor response, which may enhance its financial flexibility and strategic positioning.

Baxter International Amends Credit Agreement for Flexibility

On November 25, 2025, Baxter International Inc. amended its five-year credit agreement to adjust the net leverage ratio covenant, allowing for an increased maximum net leverage ratio for the fiscal quarters ending December 31, 2025, March 30, 2026, June 30, 2026, and September 30, 2026. This amendment may impact Baxter’s financial strategy by providing greater flexibility in managing its leverage, potentially affecting its operations and stakeholder interests.

Baxter International Ups Tender Offer to $600 Million

On November 19, 2025, Baxter International announced an increase in the maximum purchase price for its cash tender offer for 1.915% Senior Unsecured Notes due 2027 from $300 million to $600 million. This move could impact Baxter’s financial strategy and market positioning by potentially increasing liquidity and financial flexibility.

Baxter International Launches $300M Cash Tender Offers

On November 19, 2025, Baxter International Inc. announced the commencement of cash tender offers for its senior unsecured notes due in 2026 and 2027, with a total purchase price up to $300 million. This strategic financial maneuver is aimed at optimizing the company’s debt structure and could potentially impact its financial stability and market positioning.

Baxter International EVP Alok Sonig Resigns

On November 5, 2025, Alok Sonig informed Baxter International of his decision to resign from his role as Executive Vice President and Group President, Pharmaceuticals, effective December 1, 2025, to join another healthcare company.

Baxter International COO Heather Knight Resigns

On October 16, 2025, Heather Knight announced her resignation from Baxter International as Executive Vice President, COO, and interim group president of Medical Products and Therapies, effective October 29, 2025, to join another healthcare company. Following her departure, CEO Andrew Hider will take on the interim group president role for MPT, and the company will eliminate the COO position.