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Boston Scientific (BSX)
NYSE:BSX
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Boston Scientific
(NYSE:BSX)78Outperform
Positive Factors
Acquisition
BSX announced an agreement to acquire SoniVie for an upfront payment of $360M and a milestone payment of up to $180M upon a regulatory milestone.
Market Potential
SoniVie has developed an ultrasound-based system, TIVUS, for renal denervation, which represents a potential multi-billion dollar market.
Negative Factors
Earnings Impact
BSX expects the deal to be slightly dilutive to its 2025E adjusted EPS.
Boston Scientific (BSX) vs. S&P 500 (SPY)
Market Cap
$152.91B
Dividend YieldN/A
Average Volume (3M)6.98M
Price to Earnings (P/E)83.1
Beta (1Y)0.75
Revenue Growth17.60%
EPS Growth16.84%
CountryUS
Employees48,000
SectorHealthcare
Sector Strength74
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)1.25
Shares Outstanding1,475,778,100
10 Day Avg. Volume8,049,001
30 Day Avg. Volume6,983,529
Financial Highlights & Ratios
PEG Ratio4.93
Price to Book (P/B)N/A
Price to Sales (P/S)9.24
Price to Cash Flow (P/CF)26.60
P/FCF Ratio30.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$118.95Price Target Upside14.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering23
Boston Scientific Business Overview & Revenue Model
Company DescriptionBoston Scientific Corporation engages in the manufacturing of medical devices and products that are used in various interventional medical specialties worldwide. The company provides implantable devices including heart monitors, technologies for treating coronary artery disease and other cardiovascular disorders, and devices for diagnosing and treating gastrointestinal and pulmonary problems.
How the Company Makes MoneyBoston Scientific generates revenue primarily through the sale of its medical devices and technology solutions across its various sectors. The company's key revenue streams stem from its Cardiovascular, Rhythm and Neuro, and MedSurg segments. Within these segments, Boston Scientific offers products such as pacemakers, implantable cardioverter-defibrillators, heart valves, stents, endoscopes, and surgical instruments. Additionally, the company engages in strategic partnerships and collaborations with healthcare providers, research institutions, and other industry players to enhance its product offerings and expand its market reach. Factors such as innovation in medical technology, an aging population, and rising global demand for healthcare solutions significantly contribute to its earnings.
Boston Scientific Financial Statement Overview
Summary
Boston Scientific shows strong financial health with robust revenue and profit growth, efficient cost management, and a solid balance sheet. Increasing operating and free cash flows highlight effective cash management. The company's strong equity position mitigates risks from rising debt, positioning it well for future growth.Income Statement
Boston Scientific has shown strong revenue growth, with a substantial increase in total revenue over the years, notably a 17.6% growth from 2023 to 2024. The gross profit margin remains robust, consistently above 60%, which indicates efficient cost management. Net profit margin has improved, reaching 11.1% in 2024, reflecting enhanced profitability. The EBIT and EBITDA margins are healthy, demonstrating strong operational performance.85
Very Positive
Balance Sheet
The company maintains a stable balance sheet with a Debt-to-Equity ratio of 0.49 in 2024, indicating a balanced use of leverage. The Return on Equity (ROE) is impressive at 8.5%, showcasing effective use of shareholders' funds. An equity ratio of 55.3% suggests a strong equity base supporting assets. While debt levels have increased, the strong equity position mitigates risk.78
Positive
Cash Flow
Operating cash flow has significantly increased, supporting a 35.5% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio stands at 1.85, indicating strong cash conversion efficiency. The free cash flow to net income ratio is 1.43, showcasing excellent cash flow management and ability to generate cash beyond net income.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 16.75B | 14.24B | 12.68B | 11.89B | 9.91B | Gross Profit |
| 11.49B | 9.89B | 8.68B | 8.13B | 6.40B | EBIT |
| 2.60B | 2.34B | 1.65B | 2.04B | 1.04B | EBITDA |
| 2.60B | 3.45B | 2.74B | 2.52B | 1.51B | Net Income Common Stockholders |
| 1.85B | 1.59B | 698.00M | 1.04B | -140.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 414.00M | 865.00M | 928.00M | 1.93B | 1.73B | Total Assets |
| 39.40B | 35.14B | 32.47B | 32.23B | 30.78B | Total Debt |
| 10.75B | 9.49B | 9.28B | 9.45B | 9.54B | Net Debt |
| 10.33B | 8.63B | 8.35B | 7.53B | 7.80B | Total Liabilities |
| 17.39B | 15.61B | 14.90B | 15.61B | 15.45B | Stockholders Equity |
| 21.77B | 19.28B | 17.57B | 16.62B | 15.33B |
| Cash Flow | Free Cash Flow | |||
| 2.65B | 1.70B | 914.00M | 1.32B | 1.13B | Operating Cash Flow |
| 3.44B | 2.50B | 1.53B | 1.87B | 1.51B | Investing Cash Flow |
| -5.69B | -2.57B | -2.01B | -1.60B | -411.00M | Financing Cash Flow |
| 1.81B | 5.00M | -548.00M | -95.00M | 293.00M |
Boston Scientific Technical Analysis
Positive
103.61
Price Trends
99.12
Positive
93.61
Positive
85.93
Positive
Market Momentum
0.87
Positive
53.87
Neutral
81.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSX, the sentiment is Positive. The current price of 103.61 is below the 20-day moving average (MA) of 104.48, above the 50-day MA of 99.12, and above the 200-day MA of 85.93, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 81.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSX.
Boston Scientific Risk Analysis
Boston Scientific disclosed 27 risk factors in its most recent earnings report. Boston Scientific reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Boston Scientific Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $147.36B | 49.75 | 14.51% | 0.82% | 10.23% | -5.74% | |
79 Outperform | $238.61B | 18.01 | 30.95% | 1.60% | 4.59% | 134.50% | |
78 Outperform | $152.91B | 83.05 | 9.03% | ― | 17.60% | 16.84% | |
78 Outperform | $202.22B | 87.00 | 15.62% | ― | 17.24% | 27.76% | |
77 Outperform | $119.32B | 28.28 | 8.63% | 2.96% | 2.72% | 4.48% | |
71 Outperform | $20.77B | 23.53 | 7.25% | 0.92% | 3.84% | -9.29% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
BSX
Boston Scientific
103.61
36.59
54.60%
ABT
Abbott Laboratories
137.58
21.47
18.49%
ISRG
Intuitive Surgical
557.96
170.64
44.06%
MDT
Medtronic
93.03
11.22
13.71%
SYK
Stryker
389.92
40.75
11.67%
ZBH
Zimmer Biomet Holdings
103.99
-19.73
-15.95%
Boston Scientific Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 0.07% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong operational and financial performance with significant growth in key areas such as electrophysiology and Watchmen sales. Despite challenges in China and currency impacts, the company exceeded its financial guidance and demonstrated solid strategic execution.Highlights
Record Growth in Operational and Organic Sales
Operational sales grew 23% in Q4 and 18.5% for the full year 2024. Organic sales grew 20% in Q4 and 16% for the full year, both exceeding guidance.
Strong Adjusted EPS Growth
Q4 adjusted EPS grew 26% to $0.70, exceeding guidance. Full-year adjusted EPS grew 22% to $2.51, surpassing expectations.
Electrophysiology and FerraPulse Success
Electrophysiology sales grew 172% in Q4 and 139% for the full year. FerraPulse surpassed $1 billion in revenue globally.
Watchmen Sales Growth
Watchmen sales grew 20% in Q4 and 19% for the full year, supported by new DRG and positive trial data.
Strong Free Cash Flow Performance
Free cash flow for the full year 2024 was $2.648 billion, achieving 71% free cash flow conversion.
Lowlights
Challenges in China with VBP Pricing Pressures
Despite strong growth in China, ongoing VBP pricing pressures present a challenge.
Lower Growth in Neuromodulation
Neuromodulation sales grew 12% operationally but only 5% organically in Q4, with full-year organic growth at 3%.
Impact of Foreign Exchange
A 70 basis point headwind from foreign exchange affected Q4 results, with a 90 basis point headwind for the full year.
Company Guidance
During the call, Boston Scientific provided guidance for 2025, projecting organic revenue growth between 10% and 12% for the full year. They anticipate adjusted earnings per share (EPS) to be in the range of $2.80 to $2.87, reflecting growth of 12% to 14%. Operational revenue growth is expected to be between 13.5% and 15.5%, excluding a 350 basis point contribution from closed acquisitions. The company also expects first-quarter organic revenue growth to be between 14% and 16%. Additionally, Boston Scientific aims for an adjusted operating margin expansion of 50 to 75 basis points, improving from the full-year 2024 adjusted gross margin of 70.3%. They forecast a free cash flow in excess of $3 billion for 2025, emphasizing strategic tuck-in mergers and acquisitions as a key capital allocation priority.Boston Scientific Corporate Events
Business Operations and Strategy
Boston Scientific Launches 2025 Incentive Programs
Positive
Nov 22, 2024
Boston Scientific Corporation has unveiled its 2025 Annual Bonus Plan and Performance Share Programs, promising enticing incentives for its workforce. The bonus plan offers cash rewards based on corporate performance metrics, while the performance share programs align executive compensation with shareholder interests through benchmarks in total shareholder return and organic net sales growth. These initiatives underscore the company’s commitment to rewarding performance and aligning employee motivations with business success.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.