Bausch Health Companies (BHC) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: N/A
• Average Volume (3M): 306.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 11.61%
• EPS Growth: 92.72%
• Country: CA
• Employees: 20,700
• Sector: Healthcare
• Sector Strength: 77
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.16
• Shares Outstanding: 369,512,500
• 10 Day Avg. Volume: 300,925
• 30 Day Avg. Volume: 306,772
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.27
• Price to Cash Flow (P/CF): 1.10
• P/FCF Ratio: 0.90
• 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: C$12.21
• Price Target Upside: 63.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Bausch Health Companies' stock is moderately rated mainly due to solid revenue growth and cash flow generation. However, high leverage, negative equity, and profitability issues weigh heavily. Technical indicators show neutral momentum, while valuation is unattractive due to negative earnings. Positive earnings call and corporate events provide some optimism, but financial stability concerns remain prevalent.

Positive Factors

Earnings

BHC total revenue was significantly above estimates, showcasing strong performance.

Sales Performance

Bausch & Lomb sales exceeded projections, indicating robust demand in this segment.

Negative Factors

Divestiture Uncertainty

Lack of clarity around the timeline and execution of the BLCO divestiture adds to cautious outlook.

Litigation and Legal Issues

Concerns persist about the lingering litigation, gx Xifaxan issues, and IRA inclusion, adding to the challenges facing Bausch Health Companies.

Market Sentiment

The stock is expected to be range-bound due to uncertainties and is considered difficult to recommend in the near term.

Bausch Health Companies Business Overview & Revenue Model

Company Description

Bausch Health Companies Inc. (BHC) is a global pharmaceutical company that develops, manufactures, and markets a wide range of prescription and over-the-counter products, primarily in the fields of eye health, gastroenterology, and dermatology. With a diverse portfolio, Bausch Health focuses on delivering high-quality healthcare solutions and improving patient outcomes through its innovative products and research-driven approach.

How the Company Makes Money

Bausch 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, but high leverage and negative equity present significant financial stability challenges. Strong cash flow generation is a positive, but persistent net losses remain a concern, impacting overall financial health.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 7.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.46 is below the 20-day moving average (MA) of 9.49, below the 50-day MA of 9.87, and below the 200-day MA of 10.21, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 13.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BHC.

Bausch Health Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GUD	70 Outperform	$583.17M	129.32	0.53%	―	13.13%	―
NEO	61 Neutral	C$328.32M	―	-3.15%	5.09%	-15.41%	-69.47%
BHC	56 Neutral	$2.80B	―	3.60%	―	11.61%	92.72%
HLS	52 Neutral	C$135.76M	―	-23.20%	―	-8.80%	26.77%
Sector *	48 Neutral	$6.35B	1.19	-46.87%	2.63%	17.16%	1.34%

Bausch Health Companies Corporate Events

Bausch Health Upsizes Private Offering to $4.4 Billion

Bausch Health Companies Inc. announced the pricing of an upsized private offering of $4.4 billion in senior secured notes due 2032, through its subsidiary 1261229 B.C. Ltd. The proceeds from this offering, along with borrowings from new senior secured credit facilities, will be used to repay existing debts, redeem senior notes, and for general corporate purposes. This financial maneuver is expected to streamline the company’s debt structure and potentially enhance its financial flexibility.

Bausch Health Announces Conditional Redemption of Senior Notes

Bausch Health announced a conditional redemption of several series of senior notes, contingent upon the completion of new debt financing transactions. The company plans to issue $4 billion in new senior secured notes due 2032 and secure $3.4 billion in borrowings under a new term loan facility. This strategic financial move aims to optimize the company’s debt structure and potentially enhance its market positioning.

Bausch Health Launches $4 Billion Note Offering to Restructure Debt

Bausch Health Companies announced a private offering of $4 billion in senior secured notes and plans to establish new senior secured credit facilities. The proceeds will be used to repay existing debt and for general corporate purposes, potentially improving the company’s financial flexibility and market positioning.

Bausch Health Launches $3.8 Billion Credit Facilities Syndication

Bausch Health Companies Inc. has announced the launch of syndication for new senior secured credit facilities totaling at least $3.8 billion as part of a broader refinancing initiative. This move aims to address near- and mid-term maturities, optimize the company’s capital structure, and reduce debt leverage, thereby strengthening its financial position for long-term success.

Bausch Health Reports Strong 2024 Financial Results with Continued Growth

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.

Bausch Health Retains Bausch + Lomb, Explores New Financial Strategies

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

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.