Boston Scientific (BSX) AI Stock Analysis

• Market Cap: $143.13B
• Dividend Yield: N/A
• Average Volume (3M): 9.14M
• Price to Earnings (P/E): 77.6
• Beta (1Y): 0.86
• Revenue Growth: 17.60%
• EPS Growth: 16.84%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Devices
• EPS (TTM): 1.25
• Shares Outstanding: 1,479,070,200
• 10 Day Avg. Volume: 10,657,109
• 30 Day Avg. Volume: 9,135,306
• PEG Ratio: 4.61
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.87
• Price to Cash Flow (P/CF): 25.50
• P/FCF Ratio: 29.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $121.20
• Price Target Upside: 30.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

Boston Scientific's strong financial performance and positive earnings call outlook are key drivers of its overall score. The company shows excellent revenue and profit growth, alongside effective cash flow management. However, the high P/E ratio suggests potential overvaluation, and mixed technical indicators add a level of caution. While the company faces challenges in China and currency impacts, its strategic execution remains robust.

Positive Factors

Acquisition Strategy

The acquisition of Bolt Medical by Boston Scientific is expected to enhance the company's portfolio with innovative medical technologies.

Financial Performance

Boston's historical revenue growth is strong at 9.8%, surpassing the industry average.

Product Approval

Bolt Medical received approval for the Bolt Intravascular Lithotripsy (IVL) System, which is expected to be acquired by Boston Scientific.

Negative Factors

Competition

Chinese peers may manufacture similar products at a fraction of the cost, posing a risk to Boston's business.

Earnings Impact

BSX expects the deal to be slightly dilutive to its 2025E adjusted EPS.

Boston Scientific Business Overview & Revenue Model

Company Description

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Neuro, and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions; devices to treat various urological and pelvic conditions; implantable cardioverter and implantable cardiac resynchronization therapy defibrillators; pacemakers and implantable cardiac resynchronization therapy pacemakers; and remote patient management systems. It also provides medical technologies to diagnose and treat rate and rhythm disorders of the heart comprising 3-D cardiac mapping and navigation solutions, ablation catheters, diagnostic catheters, mapping catheters, intracardiac ultrasound catheters, delivery sheaths, and other accessories; spinal cord stimulator systems for the management of chronic pain; indirect decompression systems; and deep brain stimulation systems. In addition, the company offers interventional cardiology products, including drug-eluting coronary stent systems used in the treatment of coronary artery disease; percutaneous coronary interventions products to treat atherosclerosis; intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve devices, and systems for use in coronary arteries and heart chambers, as well as various peripheral vessels; and structural heart therapies. Further, it provides stents, balloon catheters, wires, and atherectomy systems to treat arterial diseases; thrombectomy and acoustic pulse thrombolysis systems, wires, and stents to treat venous diseases; and peripheral embolization devices, radioactive microspheres, ablation systems, cryotherapy ablation systems, and micro and drainage catheters to treat cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.

How the Company Makes Money

Boston 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 demonstrates strong financial health with robust revenue and profit growth, efficient cost management, and a solid balance sheet. Increasing operating and free cash flows highlight the company's ability to generate and manage cash effectively. While debt levels have risen, the company's strong equity position and profitability mitigate potential risks, 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 92.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSX, the sentiment is Negative. The current price of 92.64 is below the 20-day moving average (MA) of 98.42, below the 50-day MA of 101.05, and above the 200-day MA of 88.95, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 40.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BSX.

Boston Scientific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABT	79 Outperform	$220.33B	16.63	30.95%	1.76%	4.59%	134.50%
BSX	78 Outperform	$143.13B	77.57	9.03%	―	17.60%	16.84%
SYK	78 Outperform	$138.54B	46.76	15.26%	0.90%	10.23%	-5.74%
ISRG	77 Outperform	$187.36B	81.54	15.62%	―	17.24%	27.76%
MDT	77 Outperform	$109.38B	25.92	8.42%	3.28%	2.72%	4.48%
ZBH	73 Outperform	$20.59B	23.34	7.24%	0.93%	3.84%	-9.29%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%

Boston Scientific Corporate Events

Boston Scientific Launches 2025 Incentive Programs

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.