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Bausch Health Companies (TSE:BHC)
TSX:BHC
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Bausch Health Companies
(TSX:BHC)59Neutral
Positive Factors
Financial performance
Bausch Health traded with strength, with its guidance exceeding consensus, showing a stronger than expected performance.
Revenue growth
Bausch & Lomb sales exceeded projections, indicating robust demand in this segment.
Negative Factors
Market uncertainty
Concerns persist over the high contribution of Xifaxan to growth, which faces loss of exclusivity by January 2028, raising questions about future growth drivers.
Bausch Health Companies (BHC) vs. S&P 500 (SPY)
Market Cap
$3.73B
Dividend YieldN/A
Average Volume (3M)370.19K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth11.61%
EPS Growth92.72%
CountryCA
Employees20,700
SectorHealthcare
Sector Strength74
IndustryPharmaceuticals
Share Statistics
EPS (TTM)-0.16
Shares Outstanding367,933,900
10 Day Avg. Volume488,835
30 Day Avg. Volume370,186
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.28
Price to Cash Flow (P/CF)1.60
P/FCF Ratio0.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$12.51Price Target Upside23.23% Upside
Rating ConsensusHold
Number of Analyst Covering6
Bausch Health Companies Business Overview & Revenue Model
Company DescriptionBausch Health Companies Inc is a global specialty pharmaceutical, consumer health, and medical device company with a focus on branded products for the dermatology, gastrointestinal, and ophthalmology markets.
How the Company Makes MoneyBausch Health Companies makes money through the sale of its pharmaceutical products, which are categorized primarily into three key areas: eye health, gastroenterology, and dermatology. The company generates revenue from both branded and generic prescription medications, over-the-counter products, and medical devices. Bausch Health's revenue streams include direct sales to healthcare providers and institutions, distribution through retail and wholesale channels, and international sales. Additionally, strategic partnerships and licensing agreements with other pharmaceutical entities contribute to its earnings by expanding its product reach and enhancing its portfolio. Bausch Health's focus on market expansion and innovation in healthcare solutions aids in sustaining its financial performance.
Bausch Health Companies Financial Statement Overview
Summary
Bausch Health Companies shows solid revenue growth and operational efficiency improvements. Despite strong cash flow generation, high leverage and negative equity pose financial stability risks, with persistent net losses indicating profitability concerns.Income Statement
Bausch Health Companies has shown a steady revenue growth from $8.13 billion in 2022 to $9.63 billion in 2024, indicating a positive trajectory. The gross profit margin has remained consistently strong, exceeding 70% in recent years. However, the net income remains negative, indicating profitability issues. The increase in EBIT and EBITDA margins suggests improving operational efficiency, but the persistent net losses are a significant concern.64
Positive
Balance Sheet
The company has a high debt-to-equity ratio due to negative stockholders' equity, indicating significant leverage and potential financial instability. Despite a decrease in total debt over the years, the equity ratio remains negative, reflecting the company's financial structure challenges. Return on equity is not meaningful due to negative equity, highlighting the need for improved financial health.42
Neutral
Cash Flow
Operating cash flow has improved significantly, reaching $1.60 billion in 2024, indicating strong cash generation capabilities. Free cash flow has also shown growth, improving from $760 million in 2023 to $1.26 billion in 2024. While the free cash flow to net income ratio is not applicable due to negative net income, the company's ability to generate cash flow is a positive sign.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 9.63B | 8.76B | 8.12B | 8.43B | 8.03B | Gross Profit |
| 6.84B | 6.20B | 5.76B | 6.04B | 5.78B | EBIT |
| 1.55B | 963.00M | 1.37B | 1.21B | 676.00M | EBITDA |
| 2.82B | 2.20B | 2.88B | 3.26B | 3.14B | Net Income Common Stockholders |
| -46.00M | -592.00M | -212.00M | -937.00M | -559.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.18B | 947.00M | 564.00M | 582.00M | 605.00M | Total Assets |
| 26.52B | 27.35B | 25.69B | 29.20B | 31.20B | Total Debt |
| 21.62B | 22.39B | 20.77B | 22.65B | 23.93B | Net Debt |
| 20.43B | 21.44B | 20.20B | 22.07B | 23.32B | Total Liabilities |
| 26.84B | 27.43B | 25.43B | 29.24B | 30.59B | Stockholders Equity |
| -1.28B | -1.02B | -692.00M | -106.00M | 535.00M |
| Cash Flow | Free Cash Flow | |||
| 1.26B | 760.00M | -996.00M | 1.14B | 802.00M | Operating Cash Flow |
| 1.60B | 1.03B | -728.00M | 1.43B | 1.11B | Investing Cash Flow |
| -454.00M | -2.15B | -303.00M | 409.00M | -261.00M | Financing Cash Flow |
| -868.00M | 1.48B | -474.00M | -1.51B | -2.29B |
Bausch Health Companies Technical Analysis
Negative
10.15
Price Trends
10.56
Negative
11.12
Negative
10.11
Positive
Market Momentum
0.03
Negative
47.96
Neutral
50.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BHC, the sentiment is Negative. The current price of 10.15 is above the 20-day moving average (MA) of 9.89, below the 50-day MA of 10.56, and above the 200-day MA of 10.11, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 47.96 is Neutral, neither overbought nor oversold. The STOCH value of 50.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BHC.
Bausch Health Companies Risk Analysis
Bausch Health Companies disclosed 64 risk factors in its most recent earnings report. Bausch Health Companies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bausch Health Companies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Performance Comparison
TSE:BHC
Bausch Health Companies
10.15
-2.16
-17.55%
KHTRF
Knight Therapeutics
3.89
-0.03
-0.77%
TSE:NEO
Neo Performance Materials Inc
7.44
0.79
11.88%
TSE:HLS
HLS Therapeutics Inc
4.17
-0.05
-1.18%
Bausch Health Companies Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 9.14% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Bausch Health demonstrated strong operational and financial performance in 2024, with consecutive quarters of revenue and EBITDA growth, significant cash flow generation, and strategic advancements in key segments. However, challenges such as foreign exchange impacts, legal proceedings, and declines in certain segments present areas of concern.Highlights
Consistent Revenue and EBITDA Growth
Bausch Health marked its seventh consecutive quarter of revenue and adjusted EBITDA growth, with a 4% revenue increase on a reported basis and 7% on an organic basis for Q4 2024. Full-year revenue increased by 5% on a reported basis and 6% on an organic basis.
Strong Cash Flow Generation
The company generated approximately $1.3 billion in adjusted operating cash flow for the full year, which exceeded guidance, driven by operational performance, low cash taxes, and favorable timing of outflows.
Solta Medical Segment Performance
Solta revenue increased by 34% in Q4, primarily driven by volume and strong performance in South Korea and China. The segment is well-positioned for sustained growth.
Xifaxan Revenue Growth
Xifaxan delivered a 16% revenue growth in Q4, with solid volume growth across all channels, marking the fourth consecutive quarter of growth.
International Business Growth
Canada achieved double-digit growth in promoted brands, and EMEA business achieved its eighth consecutive quarter of organic growth.
Lowlights
Impact of Foreign Exchange Rates
The strengthening of the dollar, mostly against the Mexican peso, negatively impacted International segment revenue by 5% in Q4.
Challenges in Diversified Segment
Revenues for the diversified segments decreased by 12% in Q4 due to the non-recurrence of marketplace supply constraints from the previous year.
Legal and Regulatory Challenges
Norwich has sued the FDA regarding its tentative approval, and Bausch Health is involved in the legal proceedings, which could impact Xifaxan's market exclusivity.
Company Guidance
During the Bausch Health Fourth Quarter 2024 Earnings Call, the company highlighted its robust performance and provided financial guidance for 2025. Bausch Health, excluding Bausch + Lomb, achieved a 4% increase in reported revenue and a 7% rise in organic revenue for the fourth quarter, while full-year revenues rose by 5% reported and 6% organic compared to 2023. Adjusted EBITDA for the fourth quarter increased by 7%, and the full year saw an 8% rise, with adjusted operating cash flow reaching approximately $1.3 billion. The 2025 guidance projects revenues between $4.950 billion and $5.100 billion, a 4% year-over-year increase, and adjusted EBITDA between $2.625 billion and $2.725 billion, a 5% increase. Adjusted operating cash flow is expected to be between $975 million and $1.025 billion. The call emphasized strategic priorities focusing on people, growth, innovation, efficiency, and unlocking value, as well as efforts to optimize the capital structure and explore monetization of Bausch + Lomb assets.Bausch Health Companies Corporate Events
Business Operations and StrategyFinancial Disclosures
Bausch Health Reports Strong 2024 Financial Results with Continued Growth
Positive
Feb 19, 2025
Bausch Health reported strong financial results for the fourth quarter and full year of 2024, with consecutive year-over-year growth in revenue and adjusted EBITDA. The company achieved high-end revenue guidance and exceeded other financial expectations, highlighting robust growth across all business segments and positioning itself well for future opportunities.
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Bausch Health Retains Bausch + Lomb, Explores New Financial Strategies
Neutral
Feb 6, 2025
Bausch Health has announced it will not proceed with the sale of its subsidiary, Bausch + Lomb, following a regulatory request and subsequent evaluation of offers that did not meet the company’s valuation expectations. Despite this, Bausch Health is committed to exploring other liability management alternatives, including raising new debt financing, and continues to focus on improving business performance, as evidenced by positive financial guidance and upcoming earnings reports.
Bausch Health’s XIFAXAN Selected for Medicare Price Negotiation
Jan 17, 2025
Bausch Health has announced that its medicine XIFAXAN has been chosen by the Centers for Medicare and Medicaid Services for the Medicare Negotiation Program under the Inflation Reduction Act. This selection, with pricing to take effect in 2027, highlights the drug’s significant impact and recognition, as it has been highly recommended by major liver disease associations for its effectiveness. Bausch Health aims to engage constructively in negotiations to ensure patient access to essential medications, while also promoting innovation in healthcare.
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.