Baxter International (BAX) AI Stock Analysis

• Market Cap: $9.61B
• Dividend Yield: 3.68%
• Average Volume (3M): 7.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• 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: 10,590,186
• 30 Day Avg. Volume: 7,764,771
• 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: 2.05
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 5.04
• Enterprise Value/Ebitda: 19.15
• 1Y Price Target: $23.67
• Price Target Upside: 28.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 2.37
• Revenue Forecast (FY): $11.31B

• Rating: 40 Neutral
• Price Target: $17.00 ▼(-7.96% Downside)

Baxter International's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant financial challenges, including high leverage and negative profitability, which are reflected in its valuation metrics. Technical indicators suggest a bearish trend, further weighing on the stock's outlook. While the earnings call provides some positive guidance, the overall risks and challenges overshadow potential growth opportunities.

Positive Factors

Revenue Growth

The 5% increase in global sales indicates strong demand and effective market strategies, supporting long-term revenue growth potential.

Advanced Surgery Segment Performance

The robust growth in the Advanced Surgery segment highlights Baxter's competitive advantage and potential for sustained market leadership.

Leadership and Strategic Initiatives

The new leadership and strategic initiatives aim to enhance operational efficiency and drive future growth, strengthening Baxter's market position.

Negative Factors

Infusion Pump Challenges

Persistent issues with key products like the Novum IQ pump could hinder sales and damage Baxter's reputation in the long term.

High Leverage

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

Cash Flow Challenges

Significant cash flow issues indicate liquidity constraints, which could affect Baxter's ability to fund operations and strategic initiatives.

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 International generates revenue primarily through the sale of its medical products and services across various healthcare settings. Key revenue streams include the sale of IV solutions, infusion systems, and renal care equipment, which are crucial for hospital and outpatient care. The company also earns revenue from ongoing service contracts and maintenance of its devices. Significant partnerships with healthcare providers, hospitals, and distributors enhance its market reach and contribute to stable revenue generation. Additionally, Baxter invests in research and development to innovate and expand its product offerings, which helps drive sales and maintain competitive advantage in the healthcare market.

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	-22.00M	559.00M	1.29B	576.00M	1.53B	1.16B
Operating Cash Flow	488.00M	1.02B	1.73B	1.21B	2.22B	1.87B
Investing Cash Flow	-555.00M	-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: Negative
• Last Price: 18.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAX, the sentiment is Negative. The current price of 18.47 is below the 20-day moving average (MA) of 20.14, below the 50-day MA of 21.92, and below the 200-day MA of 27.63, indicating a bearish trend. The MACD of -1.22 indicates Positive momentum. The RSI at 30.95 is Neutral, neither overbought nor oversold. The STOCH value of 79.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAX.

Baxter International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COO	72 Outperform	$14.41B	35.32	5.01%	―	6.35%	12.94%
RMD	71 Outperform	$36.91B	25.88	25.41%	0.92%	9.36%	29.56%
HOLX	69 Neutral	$16.59B	29.90	11.12%	―	1.74%	-25.29%
WST	68 Neutral	$19.70B	40.56	16.94%	0.32%	4.90%	-0.26%
BDX	64 Neutral	$55.07B	33.01	6.54%	2.35%	8.23%	-2.04%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	40 Neutral	$9.61B	―	-4.70%	3.68%	-21.20%	-325.40%

Baxter International Corporate Events

Baxter International’s Earnings Call: Growth Amid Challenges

Baxter International’s recent earnings call presented a mixed sentiment, highlighting both growth and challenges. The company reported revenue growth in key segments such as Advanced Surgery and Healthcare Systems & Technologies, yet faced significant hurdles in Infusion Therapies and Pharmaceuticals. Additionally, the decision to reduce the dividend to focus on deleveraging indicates a proactive strategy to stabilize operations and improve financial health.

Baxter International Reports Strong Q3 2025 Results

Baxter International Inc., a prominent player in the global medtech sector, specializes in providing essential healthcare solutions, including medical devices and advanced injectable technologies. In its third-quarter 2025 earnings report, Baxter reported a 5% increase in sales from continuing operations, totaling $2.84 billion, with adjusted diluted earnings per share rising to $0.69. The company recently appointed Andrew Hider as CEO, who is focused on driving sustainable growth and enhancing shareholder value.

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.

The most recent analyst rating on (BAX) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Baxter International stock, see the BAX Stock Forecast page.