Baxter International (BAX) AI Stock Analysis

• Market Cap: $16.15B
• Dividend Yield: 2.92%
• Average Volume (3M): 4.90M
• Price to Earnings (P/E): 136.1
• Beta (1Y): 0.62
• Revenue Growth: -20.17%
• EPS Growth: -138.32%
• Country: US
• Employees: 38,000
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.55
• Shares Outstanding: 513,174,600
• 10 Day Avg. Volume: 3,825,450
• 30 Day Avg. Volume: 4,903,102
• PEG Ratio: -3.07
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.39
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 5.77
• Enterprise Value/Ebitda: 4.06
• 1Y Price Target: $35.67
• Price Target Upside: 17.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 57 Neutral
• Price Target: $31.00 ▲( 1.87% Upside)

The overall score reflects a mixed outlook for Baxter International. The earnings call provided a positive view with strong segment performance and exceeded guidance, significantly boosting the score. However, financial performance challenges, bearish technical indicators, and valuation concerns due to a negative P/E ratio weigh heavily. The stock's potential is contingent on strategic improvements in profitability and operational efficiency.

Positive Factors

Earnings

Q4 revenue and EPS of $2.75B and $0.58 beat Street targets of $2.67B and $0.52.

Market Growth

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

Negative Factors

Guidance

BAX's guidance for Q2 sales growth is below previous estimates, primarily due to ongoing conservation of IV fluids.

Tariff Impact

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

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 through the sale of its broad range of healthcare products and services. Key revenue streams include the sale of renal care products such as dialysis machines and consumables, intravenous therapies, and nutritional products. Additionally, the company earns income from its pharmaceuticals division, which produces generic injectable drugs and other critical care medications. Baxter also benefits from its advanced surgery segment, supplying hemostats and sealants used in surgical procedures. The company's global presence and strategic partnerships with healthcare providers and distributors further bolster its revenue by expanding market reach and driving sales across various regions.

Baxter International Financial Statement Overview

Summary

Baxter International is facing financial headwinds characterized by declining revenue, inconsistent profitability metrics, and cash flow challenges. The company has managed to slightly improve its debt position, but overall financial health remains a concern with negative operating cash flow and weakening equity metrics. Strategic interventions are needed to stabilize and enhance financial performance.

Income Statement

Baxter International has experienced significant revenue fluctuations, with a decline in Total Revenue from 2022 to 2024. The Gross Profit Margin showed some resilience but has been negatively impacted by operational challenges, leading to negative EBIT and EBITDA margins in 2024. The company suffered a net loss in 2024, reflecting financial strain. Overall, profitability has been inconsistent, with a concerning trend toward declining net income.

Balance Sheet

The company's debt-to-equity ratio has improved slightly from 2023 to 2024, indicating a cautious approach towards managing debt. However, the equity ratio has decreased due to reduced stockholders' equity, reflecting potential financial vulnerability. Despite this, Baxter maintains substantial total assets, suggesting the potential for recovery with strategic financial management.

Cash Flow

Baxter's cash flow situation is challenging, with a significant decline in operating cash flow in 2024 and negative free cash flow growth. The absence of positive operating cash flow raises concerns about the company's ability to generate sufficient internal funds to cover expenses and invest in growth. The free cash flow to net income ratio is unfavorable, indicating strains in converting earnings to cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.64B	14.81B	15.11B	12.78B	11.67B
	Gross Profit
3.98B	4.97B	5.40B	5.11B	4.59B
	EBIT
-112.00M	390.00M	-549.00M	779.00M	603.00M
	EBITDA
-112.00M	1.68B	-849.00M	2.52B	2.54B
	Net Income Common Stockholders
-649.00M	2.66B	-2.42B	1.28B	1.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.76B	3.19B	1.72B	2.95B	3.73B
	Total Assets
25.78B	28.28B	28.29B	33.52B	20.02B
	Total Debt
13.45B	14.36B	17.21B	18.31B	6.80B
	Net Debt
11.69B	11.17B	15.49B	15.36B	3.07B
	Total Liabilities
18.76B	19.81B	22.39B	24.40B	11.29B
	Stockholders Equity
6.96B	8.40B	5.83B	9.08B	8.69B
Cash Flow		Free Cash Flow
559.00M	1.03B	532.00M	1.48B	1.16B
	Operating Cash Flow
1.02B	1.73B	1.21B	2.22B	1.87B
	Investing Cash Flow
-626.00M	3.21B	-931.00M	-11.20B	-1.18B
	Financing Cash Flow
-1.08B	-3.49B	-1.44B	8.24B	-345.00M

Baxter International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.43
• 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 30.43 is below the 20-day moving average (MA) of 30.86, below the 50-day MA of 31.27, and below the 200-day MA of 33.37, indicating a bearish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 41.88 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	85 Outperform	$36.38B	27.86	25.81%	0.83%	9.54%	37.23%
COO	68 Neutral	$16.30B	38.38	5.25%	―	7.15%	41.96%
WST	68 Neutral	$15.48B	33.83	17.42%	0.39%	-1.14%	-16.35%
BDX	68 Neutral	$50.63B	33.71	5.97%	2.25%	5.84%	15.12%
HOLX	66 Neutral	$12.58B	23.15	11.77%	―	1.66%	21.95%
BAX	57 Neutral	$16.15B	136.07	-8.96%	2.92%	-20.17%	-138.32%
Sector *	53 Neutral	$5.24B	3.07	-43.58%	2.80%	16.87%	-0.11%

Baxter International Corporate Events

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.

Baxter International Appoints New Leadership Amid Strategic Changes

In March 2025, Baxter International announced significant leadership changes, with Brent Shafer appointed as Chair and Interim CEO, and Heather Knight as COO and Interim Group President of Medical Products & Therapies. The company completed its strategic initiatives from January 2023, including the divestiture of its Kidney Care segment, and implemented a redesigned operating model to enhance accountability and support accelerated growth. An Operating Committee of independent directors was also established to oversee product development and operational efficiency improvements.