Bausch Health Companies (BHC) AI Stock Analysis

• Market Cap: $3.26B
• Dividend Yield: N/A
• Average Volume (3M): 420.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 11.87%
• EPS Growth: 91.09%
• Country: CA
• Employees: 20,700
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.84
• Shares Outstanding: 369,550,080
• 10 Day Avg. Volume: 563,133
• 30 Day Avg. Volume: 420,596
• PEG Ratio: 0.14
• Price to Book (P/B): -3.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.28
• Enterprise Value/Market Cap: 6.89
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 3.26
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: $10.28
• Price Target Upside: 16.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 57 Neutral
• Price Target: C$9.00 ▲(1.93%Upside)

Bausch Health's overall score is driven primarily by financial performance concerns, particularly its high leverage and negative equity. While recent earnings call highlights growth and successful refinancing, valuation challenges and technical resistance impact the stock's attractiveness.

Positive Factors

Capital Allocation

Bausch Health Companies introduced the option of a share buyback as part of its capital allocation strategy, indicating a focus on returning value to shareholders.

Debt Management

The company has liquidity to address upcoming debt maturities, and debt restructuring is considered possible given the retained ownership of B+L.

Operational Strategy

Bausch Health Companies expects to mitigate the near-term impact of tariffs on its Solta business with locally sourced inventory, reducing potential disruptions.

Negative Factors

Litigation and Exclusivity Concerns

Concerns persist over the high contribution of Xifaxan to growth, which faces loss of exclusivity by January 2028, raising questions about future growth drivers.

Spin-off Uncertainty

Bausch Health Companies did not provide a meaningful update on the proposed spin-off of Bausch + Lomb, which could be affecting investor sentiment.

Tariff Impacts

There are challenges in moving Solta's manufacturing from the US to China, which could complicate efforts to mitigate the impact of tariffs on the company's sales.

Bausch Health Companies Business Overview & Revenue Model

Company Description

Bausch Health Companies Inc. is a global company dedicated to the advancement of human health. It primarily operates in the health care sector with a focus on pharmaceuticals, over-the-counter products, and medical devices. Bausch Health is renowned for its innovative and high-quality products in therapeutic areas such as dermatology, gastrointestinal, eye health, and neurology. The company's portfolio includes well-known brands such as Bausch + Lomb, Salix Pharmaceuticals, and Ortho Dermatologics.

How the Company Makes Money

Bausch Health Companies generates revenue through the development, manufacturing, and marketing of a wide range of health care products. Its primary revenue streams are derived from the sale of prescription drugs, over-the-counter products, and medical devices. The company's prescription pharmaceutical segment is a significant contributor to its earnings, with a focus on niche areas that include eye health, dermatology, and gastroenterology. Over-the-counter products also play a key role, providing accessible health solutions to consumers. Additionally, Bausch Health benefits from strategic partnerships and alliances that help expand its market reach and enhance its product offerings. The company's global presence and diversified product portfolio enable it to capture a broad customer base, which is critical to its financial performance.

Bausch Health Companies Financial Statement Overview

Summary

Bausch Health shows moderate revenue growth and strong gross profit margin, but profitability issues persist with a negative net profit margin. High debt levels and negative equity highlight financial risk despite improvements in cash flow.

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	9.73B	9.63B	8.76B	8.12B	8.43B	8.03B
Gross Profit	6.89B	6.84B	6.20B	5.76B	6.04B	5.78B
EBITDA	2.83B	2.82B	2.20B	2.88B	3.26B	3.14B
Net Income	-40.00M	-46.00M	-592.00M	-212.00M	-937.00M	-559.00M
Balance Sheet
Total Assets	26.42B	26.52B	27.35B	25.69B	29.20B	31.20B
Cash, Cash Equivalents and Short-Term Investments	1.13B	1.18B	947.00M	564.00M	582.00M	605.00M
Total Debt	21.51B	21.62B	22.39B	20.77B	22.65B	23.93B
Total Liabilities	26.66B	26.84B	27.43B	25.43B	29.24B	30.59B
Stockholders Equity	-1.18B	-1.28B	-1.02B	-692.00M	-106.00M	535.00M
Cash Flow
Free Cash Flow	1.22B	1.26B	760.00M	-996.00M	1.14B	802.00M
Operating Cash Flow	1.60B	1.60B	1.03B	-728.00M	1.43B	1.11B
Investing Cash Flow	-511.00M	-454.00M	-2.15B	-303.00M	409.00M	-261.00M
Financing Cash Flow	-674.00M	-868.00M	1.48B	-474.00M	-1.51B	-2.29B

Bausch Health Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: 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 8.83 is above the 20-day moving average (MA) of 7.62, above the 50-day MA of 7.09, and below the 200-day MA of 9.72, indicating a neutral trend. The MACD of 0.54 indicates Negative momentum. The RSI at 73.02 is Negative, neither overbought nor oversold. The STOCH value of 81.98 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPH	72 Outperform	$327.20M	24.80	9.69%	―	84.83%	-58.69%
CRON	61 Neutral	$1.00B	14.52	4.61%	―	38.16%	―
GUD	60 Neutral	$572.85M	51.85	1.41%	―	12.21%	―
BHC	57 Neutral	$3.26B	―	3.60%	―	11.87%	91.09%
HLS	56 Neutral	C$151.16M	―	-23.05%	―	-3.73%	32.70%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	16.99%	1.69%
TH	49 Neutral	$150.81M	―		―	16.23%	85.76%

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.

Bausch Health Addresses Icahn’s Equity Swaps and Adopts Shareholder Rights Plan

Bausch Health has filed a supplement to its proxy statement in response to Carl Icahn and affiliates’ cash-settled equity swaps covering 90 million of its common shares, giving Icahn an economic interest in 34% of the company. The company has also adopted a shareholder rights plan to prevent any entity from acquiring 20% or more of its shares without complying with exemptions, aiming to protect against creeping take-over bids and ensure value-enhancing alternatives for all shareholders.

U.S. District Court Rules in Favor of Bausch Health and FDA in XIFAXAN Case

Bausch Health Companies, along with its gastroenterology business Salix Pharmaceuticals, announced that the U.S. District Court ruled in favor of the FDA, Salix, and Teva, denying Norwich Pharmaceuticals’ motion for a preliminary injunction regarding the approval of a generic version of XIFAXAN® (rifaximin). This decision supports Bausch Health’s continued market position and access to XIFAXAN, a key product for treating hepatic encephalopathy and irritable bowel syndrome with diarrhea, until at least 2028.

Bausch Health Adopts Shareholder Rights Plan to Ensure Fair Treatment

Bausch Health Companies Inc. has announced the adoption of a shareholder rights plan (SRP) to ensure fair treatment of all shareholders in the event of any unsolicited take-over bid or acquisition of control. This move is not in response to any specific acquisition proposal but aims to provide the board with the opportunity to explore value-enhancing alternatives. The SRP, which requires acceptance by the Toronto Stock Exchange and ratification by shareholders within six months, is similar to plans adopted by other Canadian public companies.