Bausch Health Companies (BHC) AI Stock Analysis

• Market Cap: $2.53B
• Dividend Yield: N/A
• Average Volume (3M): 540.68K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.31
• Revenue Growth: 8.68%
• EPS Growth: N/A
• Country: CA
• Employees: 20,700
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.47
• Shares Outstanding: 370,562,440
• 10 Day Avg. Volume: 473,726
• 30 Day Avg. Volume: 540,684
• PEG Ratio: -0.04
• Price to Book (P/B): -4.65
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 2.64
• Enterprise Value/Market Cap: 8.61
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 4.31
• 1Y Price Target: $9.94
• Price Target Upside: 45.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 5.98
• Revenue Forecast (FY): $14.61B

• Rating: 55 Neutral
• Price Target: C$7.00 ▲(2.64% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is primarily held back by elevated balance-sheet leverage/negative equity despite improving operating performance and generally positive cash generation. Technical signals are also weak (below key moving averages with negative MACD). These are partly offset by a reasonable P/E and a constructive earnings call with modest 2026 growth guidance and ongoing capital-structure improvements, tempered by R&D setbacks and Xifaxan-related medium-term risks.

Positive Factors

Improving revenue and margins

Sustained acceleration in top-line and rising EBIT/EBITDA margins in 2025 indicate the business regained pricing/volume traction and cost leverage. That durable improvement supports cash generation and operating resilience over the next several quarters, reducing reliance on one-off fixes.

Consistent cash generation

Multi-year positive free cash flow and >$1B adjusted operating cash flow in 2025 show the company can convert operations into cash. This strengthens ability to service debt, fund targeted investments, and absorb timing swings, a durable support for solvency over 2–6 months.

Capital structure repair

Material refinancing and a secured debt exchange that extended maturities meaningfully reduce near-term rollover risk. Lower near-term maturities and debt discounts improve flexibility, giving management time to execute operational improvements and de-risk refinancing over the medium term.

Negative Factors

Heavy leverage and negative equity

Extremely elevated debt and negative shareholders' equity materially constrain financial flexibility. High leverage increases refinancing, covenant, and downturn risks, limiting capacity for M&A or cushioning operational shocks and making balance-sheet repair a multi-quarter structural priority.

Xifaxan policy and lifecycle risk

Xifaxan is a meaningful revenue contributor but faces structural headwinds from upcoming Medicare/CMS rebate changes and looming generic/patent challenges. That creates an anticipated EBITDA step-down in 2027, undermining medium-term cash flow planning and leverage improvements.

R&D/pipeline setbacks

A late-stage Phase III failure materially reduces expected new-product contributions and demonstrates pipeline volatility. Such R&D setbacks can delay revenue diversification and make it harder to replace aging franchises, raising execution risk across the medium term.

Bausch Health Companies Business Overview & Revenue Model

Company Description

Bausch Health Companies Inc., together with its subsidiaries, develops, manufactures, and markets a range of pharmaceutical, medical device, and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology, and dermatology. The company operates through five segments: Bausch + Lomb, Salix, International Rx, Ortho Dermatologics, and Diversified Products. The Bausch + Lomb segment offers products with a focus on the vision care, surgical, and consumer, surgical, and ophthalmic pharmaceuticals products. The Salix segment provides gastroenterology products in the United States. The International Rx segment offers Solta products, branded and generic pharmaceutical products, OTC products, and medical device products, and Bausch + Lomb products in Canada, Europe, Asia, Australia, Latin America, Africa, and the Middle East. The Ortho Dermatologics segment provides dermatological products in the United States; and Solta medical aesthetic devices internationally. The Diversified Products segment offers pharmaceutical products in the areas of neurology and other therapeutic classes, as well as generic and dentistry products in the United States. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada.

How the Company Makes Money

BHC makes money primarily by selling pharmaceutical and medical products across its business segments through wholesale distributors, pharmacies, hospitals, clinics, and other healthcare providers. Revenue is largely generated from: (1) prescription drug sales of branded products, where earnings depend on prescription volumes, net pricing (including rebates, chargebacks, and other gross-to-net adjustments), payer formulary access, and competitive dynamics (including generic entry); (2) sales of certain generic products, where revenue tends to be driven more by unit volume and competitive pricing; and (3) eye health-related product sales (where applicable within the company’s portfolio and reporting structure), which can include both pharmaceuticals and device/consumer eye-care products depending on the period and segment definitions. The company’s net revenue is influenced by factors typical for pharma companies, including commercialization and distribution arrangements, inventory dynamics at wholesalers, product lifecycle management, regulatory/compliance requirements, and geographic mix. Specific major partnerships, royalty arrangements, or segment-by-segment revenue contributions are null.

Bausch Health Companies Financial Statement Overview

Summary

Operating trends are improving (2025 revenue up ~26% with better EBIT/EBITDA margins), and operating/free cash flow has generally been positive. However, the balance sheet is a major constraint: very high debt and negative equity elevate refinancing/downturn risk, and net profitability has been thin and historically inconsistent.

Income Statement

Revenue growth accelerated meaningfully in 2025 (up ~26% vs. low-single-digit growth in 2023–2024), and operating profitability improved, with EBIT and EBITDA margins rising versus prior years. However, bottom-line profitability remains thin and inconsistent: while 2025 returned to a small profit (net margin ~1.5%), the company posted losses in most of the prior five years, highlighting ongoing earnings volatility and limited net income conversion despite solid gross margins.

Balance Sheet

Leverage remains the key weakness. Total debt is very high (roughly $21–24B across the period) and stockholders’ equity is negative in most recent years (including 2025), which materially weakens balance-sheet flexibility and makes leverage metrics unfavorable and less informative. While total assets are sizable, the combination of heavy debt and negative equity elevates refinancing and downturn risk.

Cash Flow

Cash generation is generally a support: operating cash flow has been positive in most years and free cash flow was positive in 2023–2025, providing capacity to service obligations. That said, cash flow has not been consistently stable (notably negative operating and free cash flow in 2022), and 2025 free cash flow declined year over year (~10%), suggesting execution and working-capital swings can meaningfully impact cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.45B	9.63B	8.76B	8.12B	8.43B
Gross Profit	6.36B	6.84B	6.20B	5.76B	6.04B
EBITDA	3.45B	2.82B	2.20B	2.88B	3.26B
Net Income	159.75M	-46.00M	-592.00M	-212.00M	-937.00M
Balance Sheet
Total Assets	26.32B	26.52B	27.35B	25.69B	29.20B
Cash, Cash Equivalents and Short-Term Investments	1.32B	1.18B	947.00M	564.00M	582.00M
Total Debt	21.21B	21.62B	22.39B	20.77B	22.65B
Total Liabilities	25.94B	26.84B	27.43B	25.43B	29.24B
Stockholders Equity	-552.99M	-1.28B	-1.02B	-692.00M	-106.00M
Cash Flow
Free Cash Flow	974.77M	1.26B	760.00M	-996.00M	1.14B
Operating Cash Flow	1.38B	1.60B	1.03B	-728.00M	1.43B
Investing Cash Flow	-605.42M	-454.00M	-2.15B	-303.00M	409.00M
Financing Cash Flow	-709.20M	-868.00M	1.48B	-474.00M	-1.51B

Bausch Health Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 6.82 is below the 20-day moving average (MA) of 7.84, below the 50-day MA of 8.54, and below the 200-day MA of 8.90, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 26.88 is Positive, neither overbought nor oversold. The STOCH value of 12.36 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
CPH	78 Outperform	C$428.75M	10.05	24.23%	―	94.28%	5.23%
CRON	60 Neutral	$1.30B	-104.58	-0.87%	―	22.20%	―
DHT.UN	58 Neutral	C$923.64M	-9.05	-10.92%	3.56%	-0.94%	-540.90%
GUD	57 Neutral	C$598.01M	-38.64	-0.45%	―	18.70%	88.31%
BHC	55 Neutral	$2.53B	16.11	-20.27%	―	8.68%	―
HLS	52 Neutral	C$137.60M	-8.75	-20.49%	―	0.73%	33.51%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%