Baxter International (BAX) AI Stock Analysis

• Market Cap: $12.42B
• Dividend Yield: 3.31%
• Average Volume (3M): 8.85M
• Price to Earnings (P/E): 136.1
• Beta (1Y): 0.75
• Revenue Growth: -27.41%
• EPS Growth: 67.01%
• Country: US
• Employees: 38,000
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.59
• Shares Outstanding: 513,621,030
• 10 Day Avg. Volume: 9,200,496
• 30 Day Avg. Volume: 8,851,658
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 5.50
• Enterprise Value/Ebitda: 36.44
• 1Y Price Target: $28.00
• Price Target Upside: 15.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 54 Neutral
• Price Target: $22.00 ▼(-9.02% Downside)

Baxter International's overall stock score is influenced by its mixed financial performance and bearish technical indicators. The company's strategic initiatives and leadership change are positive, but ongoing profitability and operational challenges weigh heavily. The technical analysis suggests significant downward pressure, highlighting risks in the current market conditions.

Positive Factors

Financial Strategy

The company is focused on de-leveraging the balance sheet to create greater financial flexibility, providing capacity for share buy-backs or acquisitions.

Growth Strategy

Management's strategic focus includes increasing investment in R&D to drive a steady cadence of innovative new product launches.

Sales Performance

Sales at $2.63B were better than expected vs. our estimate/consensus of $2.58B.

Negative Factors

Earnings

Baxter's shares have been downgraded from Buy to Neutral due to disappointing 2Q earnings results and revised 2025 guidance.

Operational Challenges

Key operational challenges include addressing customer-driven NOVUM large volume pump field actions, resolving issues in Infusion Therapies & Technologies, and reinvigorating the company’s innovation and commercial engine.

Stock Performance

Baxter's stock has underperformed significantly, returning -39.5% compared to the S&P 500's gain of 6.4%, due to slower than expected recovery and downward earnings revisions.

Baxter International Business Overview & Revenue Model

Company Description

Baxter International Inc. is a global healthcare company that specializes in the development, manufacturing, and marketing of a broad range of medical products. The company operates primarily in two segments: Hospital Products and Renal. Baxter's core products include intravenous (IV) solutions, infusion systems, and renal care products like dialysis equipment. The company is dedicated to improving patient outcomes and enhancing the safety and efficiency of healthcare delivery through innovative products and therapies.

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's financial performance is mixed. While it has a reasonable balance sheet and positive cash flow, profitability challenges persist due to negative EBIT and net income. The company maintains solid gross margins but must address operational inefficiencies to achieve sustainable profitability.

Income Statement

Baxter International's income statement reveals mixed performance. The TTM shows a gross profit margin of 36.03%, indicating solid profitability in core operations. However, negative EBIT and net income highlight significant operational and net losses, impacting the overall financial health. Revenue has declined over recent years, with a negative revenue growth rate from 2023 to TTM. The company faces challenges in achieving sustainable profitability.

Balance Sheet

The balance sheet shows a moderate risk profile with a debt-to-equity ratio of 1.46, reflecting a somewhat high leverage but manageable under current conditions. The equity ratio stands at 33.23%, indicating a stable proportion of equity financing. While return on equity is negative due to net losses, the company's substantial asset base provides some buffer against financial instability.

Cash Flow

Baxter's cash flow statement demonstrates resilience with positive free cash flow of $191 million in the TTM, despite a declining trend in operating cash flow from previous periods. The operating cash flow to net income ratio is negative, reflecting ongoing profitability issues. However, the company's ability to maintain positive free cash flow is a positive indicator of liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.89B	10.64B	10.36B	10.06B	12.15B	11.67B
Gross Profit	4.28B	3.98B	4.15B	3.55B	4.72B	4.59B
EBITDA	647.00M	1.12B	1.73B	-1.76B	2.19B	2.27B
Net Income	-560.00M	-649.00M	2.66B	-2.43B	1.28B	1.10B
Balance Sheet
Total Assets	21.30B	25.78B	28.28B	28.29B	33.52B	20.02B
Cash, Cash Equivalents and Short-Term Investments	2.29B	1.76B	3.08B	1.72B	2.95B	3.73B
Total Debt	10.31B	13.45B	14.11B	17.20B	18.31B	6.80B
Total Liabilities	14.25B	18.76B	19.81B	22.39B	24.40B	11.29B
Stockholders Equity	7.08B	6.96B	8.40B	5.83B	9.08B	8.69B
Cash Flow
Free Cash Flow	191.00M	559.00M	1.29B	576.00M	1.53B	1.16B
Operating Cash Flow	663.00M	1.02B	1.73B	1.21B	2.22B	1.87B
Investing Cash Flow	2.81B	-626.00M	3.21B	-931.00M	-11.20B	-1.18B
Financing Cash Flow	-4.17B	-1.08B	-3.49B	-1.44B	8.24B	-345.00M

Baxter International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.18
• 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 Negative. The current price of 24.18 is below the 20-day moving average (MA) of 25.10, below the 50-day MA of 28.02, and below the 200-day MA of 30.68, indicating a bearish trend. The MACD of -1.30 indicates Negative momentum. The RSI at 36.90 is Neutral, neither overbought nor oversold. The STOCH value of 74.68 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
RMD	80 Outperform	$41.71B	29.97	25.86%	0.77%	9.84%	37.48%
COO	78 Outperform	$14.62B	35.54	5.15%	―	6.88%	21.11%
WST	78 Outperform	$17.70B	36.88	17.72%	0.34%	2.88%	-5.50%
BDX	75 Outperform	$56.16B	35.23	6.26%	2.08%	7.86%	14.24%
HOLX	75 Outperform	$15.08B	28.13	11.38%	―	1.28%	-17.73%
Sector *	65 Neutral	¥343.60B	11.19	-0.17%	2.41%	9.60%	-12.34%
BAX	54 Neutral	$12.42B	136.07	-3.30%	3.31%	-27.41%	67.01%

Baxter International Corporate Events

Baxter International Appoints Andrew Hider as New CEO

On July 7, 2025, Baxter International announced the appointment of Andrew Hider as the new President and CEO, effective by September 3, 2025. Brent Shafer will transition from Interim CEO to Non-Executive Chair of the Board. Hider, with extensive experience in automation solutions and a proven track record of growth and operational excellence, is expected to lead Baxter into its next chapter, focusing on innovation and sustainable growth.

Baxter International Amends Credit and Loan Agreements

On June 11, 2025, Baxter International Inc. entered into an amended and restated five-year credit agreement, increasing its revolving credit facility to $2.2 billion and extending the maturity date. This agreement, which includes various lenders and JPMorgan Chase Bank as the administrative agent, allows Baxter and its Euro Borrowers to borrow in multiple currencies and replaces a previous €200 million facility. Additionally, Baxter amended a $645 million term loan agreement, extending its maturity and aligning its terms with the revolving credit facility. These financial arrangements aim to enhance Baxter’s liquidity and operational flexibility, potentially impacting its financial strategy and stakeholder interests.