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Bausch Health Companies (TSE:BHC)
:BHC
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Bausch Health Companies
(NYSE:BHC)
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Rating:59Neutral
Price Target:
C$10.50
▲(22.09% Upside)
Bausch Health Companies' overall stock score is primarily influenced by its financial challenges, including high leverage and declining revenue growth. Positive earnings call sentiment and undervaluation provide some support, but technical indicators suggest limited upside potential. Addressing financial stability and profitability is crucial for improving the stock's outlook.
Positive Factors
Debt Reduction
Significant debt reduction improves financial stability and reduces interest expenses, enhancing long-term financial health and flexibility.
Product-Level Achievements
Strong product performance indicates successful market penetration and supports sustained revenue growth, enhancing competitive positioning.
Acquisition of Wuhan Shibo
Acquiring Wuhan Shibo enhances Solta Medical's market presence in China, providing localized solutions and expanding distribution capabilities.
Negative Factors
High Leverage
High leverage and negative equity pose financial risks, limiting strategic flexibility and increasing vulnerability to economic downturns.
Declining Revenue Growth
Declining revenue growth indicates challenges in market demand or competitiveness, potentially impacting long-term profitability and market share.
International Segment Revenue Decline
Revenue decline in international markets suggests challenges in global competitiveness and market penetration, affecting overall growth prospects.
Bausch Health Companies (BHC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.66B
Dividend YieldN/A
Average Volume (3M)384.42K
Price to Earnings (P/E)7.4
Beta (1Y)1.30
Revenue Growth8.68%
EPS GrowthN/A
CountryCA
Employees20,700
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.62
Shares Outstanding370,516,940
10 Day Avg. Volume285,252
30 Day Avg. Volume384,417
Financial Highlights & Ratios
PEG Ratio0.70
Price to Book (P/B)-2.32
Price to Sales (P/S)0.31
P/FCF Ratio2.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.87Price Target Upside38.04% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)5.36
Revenue Forecast (FY)C$14.27B
Bausch Health Companies Business Overview & Revenue Model
Company DescriptionBausch Health Companies Inc. (BHC) is a global healthcare company focused on developing, manufacturing, and marketing a range of pharmaceutical and medical products. The company operates primarily in three sectors: Pharmaceuticals, Vision Care, and Medical Devices. Bausch Health's core products include a variety of prescription medications, over-the-counter products, and vision care solutions such as contact lenses and surgical devices, aimed at addressing a wide array of medical conditions.
How the Company Makes MoneyBausch Health generates revenue through several key streams, primarily from its pharmaceutical segment, which includes sales of prescription medications for various therapeutic areas such as dermatology, ophthalmology, and gastroenterology. The company also earns revenue from its vision care products, including both contact lenses and lens care solutions. Additionally, Bausch Health has established partnerships and collaborations with other healthcare organizations and research institutions, which contribute to its revenue through co-development and licensing agreements. The company's strategy includes focusing on high-growth segments and enhancing its product portfolios through acquisitions and innovation, further bolstering its financial performance.
Bausch Health Companies Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with multiple quarters of revenue and EBITDA growth, significant debt reduction, and strong product-level performance. However, some challenges remain in international markets and specific segments.Q3-2025 Updates
Positive Updates
Consecutive Revenue and EBITDA Growth
Bausch Health, excluding Bausch + Lomb, achieved its 10th consecutive quarter of year-over-year revenue and adjusted EBITDA growth, with a 7% increase in both metrics on a reported basis.
Debt Reduction
The company reduced its debt by approximately $600 million using cash on hand, showcasing strong financial management.
Solta and Salix Double-Digit Growth
Solta saw a 25% growth on a reported basis and 24% on an organic basis, while Salix delivered 12% growth on a reported basis and 11% on an organic basis.
Product-Level Achievements
Triple-digit growth for Cabtreo and Ryaltris, and double-digit growth for Xifaxan and Thermage were observed, indicating strong product performance.
Negative Updates
International Segment Revenue Decline
Revenues in the International segment decreased by 2% on a reported basis and 4% on an organic basis, with specific challenges in Canada and Latin America.
Diversified Segment Performance
The diversified segment saw a revenue decrease of 4% on a reported basis and 6% on an organic basis, primarily due to neurology business impacts.
Challenges in China
Growth in China was limited to 3% in Q3, primarily due to cautious consumer behavior in the aesthetics market amidst economic uncertainty.
Company Guidance
During the Bausch Health Third Quarter 2025 Earnings Conference Call, the company reported continued strong operational performance with its 10th consecutive quarter of revenue and adjusted EBITDA growth, excluding Bausch + Lomb. The revenue for Bausch Health, excluding Bausch + Lomb, grew by 7% on a reported basis and 5% on an organic basis year-over-year, while adjusted EBITDA saw a 7% rise, reaching $773 million, despite an $81 million charge related to R&D acquisition. Excluding this charge, adjusted EBITDA grew by 18%. The company reduced its debt by approximately $600 million and raised its full-year guidance for revenue, adjusted EBITDA, and adjusted cash flow from operations. Notable achievements included double-digit growth in the Solta and Salix segments, with Solta experiencing a 25% increase and Salix a 12% increase in revenue. Additionally, product-level highlights included triple-digit growth for Cabtreo and Ryaltris and double-digit growth for Xifaxan and Thermage. The company also discussed a 7% revenue growth for Bausch + Lomb and improvements in financial priorities, including optimizing its capital structure and assessing options to unlock value for stakeholders.Bausch Health Companies Financial Statement Overview
Summary
Bausch Health Companies shows strong revenue growth and operational efficiency, but significant leverage and negative equity pose financial risks. Cash flow analysis indicates moderate cash generation with declining free cash flow, highlighting potential liquidity concerns.Income Statement
Bausch Health Companies shows a positive revenue growth trend with a TTM growth rate of 1.31%. The gross profit margin is strong at 75.04%, indicating efficient cost management. However, the net profit margin is low at 0.98%, suggesting challenges in translating revenue into profit. The EBIT and EBITDA margins are healthy, reflecting operational efficiency.45
Neutral
Balance Sheet
The company has a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -1.15 in TTM. This indicates high leverage and potential financial instability. The return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is also negative, highlighting a reliance on debt financing.30
Negative
Cash Flow
Operating cash flow is positive, but free cash flow has declined by 9.21% in TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.30, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.74, indicating some ability to cover net income with free cash flow.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.26B | 9.63B | 8.76B | 8.12B | 8.43B | 8.03B |
| Gross Profit | 6.74B | 6.84B | 6.20B | 5.76B | 6.04B | 5.78B |
| EBITDA | 4.87B | 2.82B | 2.20B | 2.88B | 3.26B | 2.42B |
| Net Income | 362.00M | -46.00M | -592.00M | -212.00M | -937.00M | -559.00M |
Balance Sheet | ||||||
| Total Assets | 26.80B | 26.52B | 27.35B | 25.69B | 29.20B | 31.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.34B | 1.18B | 947.00M | 564.00M | 582.00M | 605.00M |
| Total Debt | 21.02B | 21.62B | 22.39B | 20.77B | 22.65B | 23.93B |
| Total Liabilities | 26.44B | 26.84B | 27.43B | 25.43B | 29.24B | 30.59B |
| Stockholders Equity | -564.45M | -1.28B | -1.02B | -692.00M | -106.00M | 535.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.08B | 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 | -513.00M | -454.00M | -2.15B | -303.00M | 409.00M | -261.00M |
| Financing Cash Flow | -422.00M | -868.00M | 1.48B | -474.00M | -1.51B | -2.29B |
Bausch Health Companies Technical Analysis
Positive
8.60
Price Trends
8.98
Positive
9.24
Positive
8.71
Positive
Market Momentum
>-0.01
Negative
63.91
Neutral
80.21
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BHC, the sentiment is Positive. The current price of 8.6 is below the 20-day moving average (MA) of 9.04, below the 50-day MA of 8.98, and below the 200-day MA of 8.71, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 80.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $375.57M | 22.40 | 16.32% | ― | 94.28% | 5.23% | |
64 Neutral | C$1.34B | 26.70 | 3.34% | ― | 22.20% | ― | |
61 Neutral | ― | ― | ― | ― | 5.24% | -7.99% | |
59 Neutral | C$3.66B | 7.41 | ― | ― | 8.68% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $578.13M | 1,705.88 | -0.48% | ― | 18.70% | 88.31% | |
44 Neutral | C$169.51M | -8.20 | -20.49% | ― | 0.73% | 33.51% |
* Healthcare Sector Average
TSE:BHC
Bausch Health Companies
9.65
-1.79
-15.65%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.