Baxter International (BAX) AI Stock Analysis

• Market Cap: $15.91B
• Dividend Yield: 2.19%
• Average Volume (3M): 3.26M
• Price to Earnings (P/E): 136.1
• Beta (1Y): 0.61
• Revenue Growth: -20.17%
• EPS Growth: -138.32%
• Country: US
• Employees: 38,000
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.55
• Shares Outstanding: 513,174,600
• 10 Day Avg. Volume: 3,414,322
• 30 Day Avg. Volume: 3,260,435
• PEG Ratio: -1.95
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 80.58
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 5.46
• Enterprise Value/Ebitda: 5.11
• 1Y Price Target: $35.22
• Price Target Upside: 13.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 60 Neutral
• Price Target: $33.00 ▲(6.42%Upside)

Baxter International's overall stock score reflects a balanced view of mixed financial performance, stable technical indicators, and strong earnings call results. The most significant factors are its ability to maintain positive cash flow and strong earnings call performance, offset by valuation concerns due to negative P/E ratio and operational challenges highlighted in financial statements.

Positive Factors

Financial Performance

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

Product Launch

The ongoing US NOVUM IQ pump launch continues to drive double-digit growth for the US infusion system business.

Strategic Investment

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

Negative Factors

Adjusted Margin

Adjusted gross margin lagged the Street's assumption, at 41.8% compared to 43.2%.

Growth Deceleration

Guidance for 2Q25 organic growth of 1-2% implied a meaningful deceleration following stronger than expected 1Q results.

Tariff-related Headwind

BAX left full-year 2025 operational sales growth guidance and EPS guidance basically unchanged despite an incremental $60M-$70M 2H25 tariff-related headwind.

Baxter International Business Overview & Revenue Model

Company Description

Baxter International Inc. is a global healthcare company specializing in medical products and services that support patient care across various clinical settings. The company operates in sectors such as renal care, medication delivery, pharmaceuticals, and advanced surgery. Baxter's core products include dialysis products, IV solutions, parenteral nutrition therapies, inhalation anesthetics, and surgical products designed to improve patient outcomes and enhance healthcare efficiency.

How the Company Makes Money

Baxter International makes money primarily through the sale of its diverse range of medical products and services. The company's revenue model is based on manufacturing and distributing essential healthcare products such as dialysis machines and consumables, IV solutions, and surgical tools. Baxter also generates revenue through its pharmaceutical segment, which includes the production and sale of generic injectables and nutritional therapies. Key revenue streams include sales to hospitals, clinics, and dialysis centers worldwide. Strategic partnerships and collaborations with healthcare providers, as well as a broad distribution network, play a significant role in driving Baxter's earnings by expanding its market reach and enhancing its product offerings.

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: Positive
• Last Price: 31.01
• 50DMA: Positive
• 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 31.01 is above the 20-day moving average (MA) of 30.63, above the 50-day MA of 30.55, and below the 200-day MA of 32.29, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 74.11 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
RMD	85 Outperform	$37.68B	28.85	25.81%	0.83%	9.54%	37.23%
WST	74 Outperform	$15.97B	34.90	17.42%	0.38%	-1.14%	-16.35%
HOLX	70 Outperform	$14.44B	27.35	11.77%	―	1.66%	21.95%
COO	69 Neutral	$14.62B	35.55	5.15%	―	6.88%	21.11%
BAX	60 Neutral	$15.91B	136.07	-8.96%	2.19%	-20.17%	-138.32%
BDX	60 Neutral	$50.49B	33.62	5.97%	2.36%	5.84%	15.12%
BDX	60 Neutral	$50.49B	33.62	5.97%	2.36%	5.84%	15.12%
Sector *	52 Neutral	$7.53B	0.32	-61.76%	2.28%	16.60%	1.56%

Baxter International Corporate Events

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.

The most recent analyst rating on (BAX) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Baxter International stock, see the BAX Stock Forecast page.

Baxter International Holds 2025 Annual Meeting with Key Decisions

On May 6, 2025, Baxter International Inc. held its 2025 Annual Meeting, where a quorum of approximately 93.9% was achieved with 481,459,559 shares represented. The meeting resulted in the election of ten directors, approval of executive compensation for 2024, and ratification of PricewaterhouseCoopers LLP as the independent auditor for 2025. However, a stockholder proposal regarding executives retaining significant stock was not approved.