Bausch Health Companies (BHC) AI Stock Analysis

• Market Cap: C$3.69B
• Dividend Yield: N/A
• Average Volume (3M): 488.65K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 1.29
• Revenue Growth: 10.20%
• EPS Growth: N/A
• Country: CA
• Employees: 20,700
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.45
• Shares Outstanding: 369,790,300
• 10 Day Avg. Volume: 354,977
• 30 Day Avg. Volume: 488,651
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$11.53
• Price Target Upside: 13.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: C$12.50 ▲(22.79% Upside)

Bausch Health Companies' stock score is driven by strong technical indicators and a positive earnings call outlook, despite financial stability concerns due to high leverage and negative equity. The valuation is moderate, reflecting a relatively high P/E ratio.

Positive Factors

Capital Allocation

Bausch Health Companies introduced a share buyback option, indicating a focus on returning value to shareholders.

Revenue Performance

BHC total revenue surpassed estimates by $35 million, showcasing stronger than anticipated sales.

Sales Strategy

Salix Segment sales exceeded forecasts by $37 million, driven by a successful direct-to-consumer campaign for Xifaxan.

Negative Factors

Interest Expense

Interest expense was significantly higher due to refinancing debt at less favorable rates, impacting financial performance.

Spin-off Uncertainty

The lack of a meaningful update on the proposed spin-off of Bausch + Lomb adds uncertainty to investor sentiment.

Tariff Challenges

Challenges in moving Solta's manufacturing from the US to China could complicate efforts to mitigate tariff impacts on sales.

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

Bausch Health generates revenue through multiple streams, primarily from the sale of prescription drugs and medical devices. The company has a diversified portfolio, with key revenue contributors including eye health products, such as contact lenses and surgical devices, as well as pharmaceutical products in areas like dermatology and gastrointestinal health. Bausch Health also benefits from strategic partnerships and collaborations that enhance its product offerings and market reach. Additionally, the company engages in licensing agreements and has a robust pipeline of new drug candidates, which can further drive revenue growth as they move through clinical development and gain regulatory approval.

Bausch Health Companies Financial Statement Overview

Summary

Bausch Health Companies shows strong revenue growth and operational efficiency, with a healthy gross profit margin. However, the balance sheet reveals significant leverage and negative equity, posing financial risks. Cash flow analysis indicates moderate cash generation but declining free cash flow, suggesting 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.

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.

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.

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: Positive
• Last Price: 10.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 10.18 is above the 20-day moving average (MA) of 10.13, above the 50-day MA of 9.38, and above the 200-day MA of 9.25, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 54.97 is Neutral, neither overbought nor oversold. The STOCH value of 39.19 is Neutral, 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
BHC	63 Neutral	C$3.69B	28.07	3.60%	―	10.20%	―
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
THTX	―	$149.85M	―		―	―	―
KHTRF	―	$464.80M	4,209.09	0.03%	―	―	―
CPHRF	―	$291.13M	24.32	12.25%	―	―	―
CRON	―	$956.82M	52.63	1.73%	―	―	―
HLS	53 Neutral	C$173.61M	―	-20.58%	―	-1.42%	35.15%

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.