Bausch Health Companies (BHC) AI Stock Analysis

• Market Cap: $2.93B
• Dividend Yield: N/A
• Average Volume (3M): 348.55K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 1.24
• Revenue Growth: 10.20%
• EPS Growth: N/A
• Country: CA
• Employees: 20,700
• Sector: Healthcare
• Sector Strength: 37
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.45
• Shares Outstanding: 369,790,300
• 10 Day Avg. Volume: 411,364
• 30 Day Avg. Volume: 348,550
• PEG Ratio: 0.70
• Price to Book (P/B): -2.32
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 2.36
• Enterprise Value/Market Cap: 10.88
• Enterprise Value/Revenue: 3.24
• Enterprise Value/Gross Profit: 4.58
• Enterprise Value/Ebitda: 10.64
• 1Y Price Target: $11.45
• Price Target Upside: 44.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: C$8.50 ▲(7.19% Upside)

Bausch Health's overall score reflects a mix of financial recovery signs and ongoing profitability issues. The strong performance in earnings calls and strategic initiatives boost confidence, while technical indicators suggest potential for improvement. Valuation remains reasonable, but financial risks persist due to high leverage and negative equity.

Positive Factors

Earnings

BHC total revenue was above the estimate, signaling better-than-expected sales performance.

Sales Performance

Salix Segment sales exceeded forecasts, supported by a successful DTC campaign for Xifaxan.

Shareholder Value

The option of a share buyback was introduced, indicating a focus on returning value to shareholders.

Negative Factors

Debt and Interest Expenses

Interest expense was significantly higher than estimated due to refinancing debt at less favorable rates.

Divestiture Uncertainty

Uncertainty around the execution of Bausch's eye health subsidiary divestiture adds to a cautious outlook.

Tariffs and Manufacturing Challenges

Challenges in moving Solta's manufacturing from the US to China could complicate efforts to mitigate the impact of tariffs.

Bausch Health Companies Business Overview & Revenue Model

Company Description

Bausch Health Companies Inc. is a global pharmaceutical company that develops, manufactures, and markets a range of medical products primarily in the therapeutic areas of eye health, gastroenterology, and dermatology. With a diversified product portfolio, Bausch Health offers prescription pharmaceuticals, over-the-counter products, and medical devices that are distributed in more than 90 countries worldwide. The company's core products include contact lenses, ophthalmic pharmaceuticals, and aesthetic medical devices.

How the Company Makes Money

Bausch Health Companies generates revenue through the sale of its diverse portfolio of medical products. The company operates across several key segments, including Bausch + Lomb/International and Salix Pharmaceuticals. Its revenue streams primarily come from the sale of prescription drugs, over-the-counter products, and medical devices. Significant partnerships, such as distribution agreements and collaborations with healthcare providers and retailers, also play a crucial role in expanding the company's market reach and enhancing its earnings. Bausch Health focuses on both organic growth through product innovation and strategic acquisitions to strengthen its market position and drive profitability.

Bausch Health Companies Financial Statement Overview

Summary

Bausch Health Companies show signs of recovery with improving revenue and cash flow metrics, but profitability remains a concern with consistent net losses. High leverage and negative equity present significant financial risks that need addressing for long-term stability.

Income Statement

The company shows moderate growth in revenue from 2024 to TTM (Trailing-Twelve-Months) at 1.1%. Gross profit margin is strong at 70.8% for TTM. However, net profit margin is negative, indicating ongoing profitability challenges, despite improvements in EBIT and EBITDA margins.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to negative stockholders' equity, driven by accumulated losses. The equity ratio is negative, highlighting financial risk. Improvements in asset management and debt reduction are necessary.

Cash Flow

Operating cash flow is strong relative to net income, indicating good cash management. Free cash flow experienced positive growth, showing improvement in cash generation capabilities. However, past negative free cash flow raises concerns over sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.86B	9.63B	8.76B	8.12B	8.43B	8.03B
Gross Profit	6.97B	6.84B	6.20B	5.76B	6.04B	5.78B
EBITDA	3.00B	2.82B	2.20B	2.88B	3.26B	3.14B
Net Income	98.00M	-46.00M	-592.00M	-212.00M	-937.00M	-559.00M
Balance Sheet
Total Assets	27.27B	26.52B	27.35B	25.69B	29.20B	31.20B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.18B	947.00M	564.00M	582.00M	605.00M
Total Debt	21.74B	21.62B	22.39B	20.77B	22.65B	23.93B
Total Liabilities	27.12B	26.84B	27.43B	25.43B	29.24B	30.59B
Stockholders Equity	-764.00M	-1.28B	-1.02B	-692.00M	-106.00M	535.00M
Cash Flow
Free Cash Flow	1.10B	1.26B	760.00M	-996.00M	1.14B	802.00M
Operating Cash Flow	1.51B	1.60B	1.03B	-728.00M	1.43B	1.11B
Investing Cash Flow	-532.00M	-454.00M	-2.15B	-303.00M	409.00M	-261.00M
Financing Cash Flow	108.00M	-868.00M	1.48B	-474.00M	-1.51B	-2.29B

Bausch Health Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.93
• 50DMA: Negative
• 100DMA: Positive
• 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 7.93 is below the 20-day moving average (MA) of 8.68, below the 50-day MA of 8.25, and below the 200-day MA of 9.44, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 38.66 is Neutral, neither overbought nor oversold. The STOCH value of 14.46 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	75 Outperform	$394.59M	23.32	12.25%	―	121.40%	-47.34%
CRON	67 Neutral	$1.22B	46.90	1.73%	―	31.72%	―
GUD	65 Neutral	$630.81M	1,861.76	0.03%	―	12.21%	―
BHC	63 Neutral	$2.93B	21.86	3.60%	―	10.20%	―
TH	60 Neutral	$202.31M	―		―	5.24%	-7.99%
HLS	56 Neutral	C$157.91M	―	-23.05%	―	-3.73%	32.70%
Sector *	51 Neutral	$7.27B	-0.06	-62.84%	2.34%	15.16%	-2.86%

Bausch Health Companies Corporate Events

Bausch Health Reports Strong Q1 2025 Results with Revenue Growth and Strategic Refinancing

Bausch Health Companies reported a 5% increase in first-quarter 2025 consolidated revenues, reaching $2.26 billion, with an organic growth of 6%. Despite a GAAP net loss of $58 million, the company maintained strong financial momentum, achieving its eighth consecutive quarter of year-over-year revenue and adjusted EBITDA growth. The company successfully completed a $7.9 billion refinancing to extend maturities and received a favorable court ruling in a case against the FDA. Bausch Health remains committed to unlocking shareholder value and maintaining its full-year 2025 financial guidance.