Bausch Health Companies (BHC) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: N/A
• Average Volume (3M): 377.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 11.87%
• EPS Growth: 91.09%
• Country: CA
• Employees: 20,700
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.84
• Shares Outstanding: 369,550,080
• 10 Day Avg. Volume: 322,270
• 30 Day Avg. Volume: 377,470
• PEG Ratio: -4.98
• Price to Book (P/B): -1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.39
• Enterprise Value/Market Cap: 9.39
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 3.20
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $10.25
• Price Target Upside: 61.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 54 Neutral
• Price Target: ―

Bausch Health's overall stock score reflects a mix of moderate recovery in financial performance and successful strategic refinancing, counterbalanced by significant risks such as high leverage and ongoing profitability challenges. The technical analysis indicates bearish market sentiment, and valuation metrics reflect the company's struggle to achieve positive earnings.

Positive Factors

Debt Management

The company has liquidity to address upcoming debt maturities, and debt restructuring is seen as a positive factor.

Shareholder Value

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.

Tariff Mitigation

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

Financial Performance

BHC revenue, operating income, and EPS missed analyst estimates.

Litigation Uncertainty

Bausch Health did not offer any updates on the timeline for the lawsuit regarding Norwich's generic Xifaxan, adding to the uncertainty.

Spin-off Uncertainty

Lack of clarity around the timeline and execution of the BLCO divestiture adds to cautious outlook.

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 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 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
9.73B	9.63B	8.76B	8.12B	8.43B	8.03B
	Gross Profit
6.89B	6.84B	6.20B	5.76B	6.04B	5.78B
	EBIT
1.54B	1.55B	963.00M	1.37B	1.21B	676.00M
	EBITDA
2.83B	2.82B	2.20B	2.88B	3.26B	3.14B
	Net Income Common Stockholders
-40.00M	-46.00M	-592.00M	-212.00M	-937.00M	-559.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.13B	1.18B	947.00M	564.00M	582.00M	605.00M
	Total Assets
26.42B	26.52B	27.35B	25.69B	29.20B	31.20B
	Total Debt
21.51B	21.62B	22.39B	20.77B	22.65B	23.93B
	Net Debt
20.38B	20.43B	21.44B	20.20B	22.07B	23.32B
	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: Negative
• Last Price: 6.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 6.34 is below the 20-day moving average (MA) of 6.36, below the 50-day MA of 7.01, and below the 200-day MA of 9.74, indicating a bearish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 71.05 is Neutral, 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
BHC	54 Neutral	$2.35B	―	3.60%	―	11.87%	91.09%
Sector *	54 Neutral	$5.24B	3.27	-45.39%	2.80%	16.77%	-0.07%
THTX		$120.52M	―		―	―	―
KHTRF		$424.29M	55.98	1.41%	―	―	―
CPHRF		$229.36M	26.16	9.69%	―	―	―
CRON		$747.38M	14.96	4.61%	―	―	―
HLS	60 Neutral	C$155.01M	―	-23.05%	―	-3.73%	32.70%

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.

Bausch Health Upsizes Private Offering to $4.4 Billion

Bausch Health Companies Inc. announced the pricing of an upsized private offering of $4.4 billion in senior secured notes due 2032, through its subsidiary 1261229 B.C. Ltd. The proceeds from this offering, along with borrowings from new senior secured credit facilities, will be used to repay existing debts, redeem senior notes, and for general corporate purposes. This financial maneuver is expected to streamline the company’s debt structure and potentially enhance its financial flexibility.

Bausch Health Announces Conditional Redemption of Senior Notes

Bausch Health announced a conditional redemption of several series of senior notes, contingent upon the completion of new debt financing transactions. The company plans to issue $4 billion in new senior secured notes due 2032 and secure $3.4 billion in borrowings under a new term loan facility. This strategic financial move aims to optimize the company’s debt structure and potentially enhance its market positioning.

Bausch Health Launches $4 Billion Note Offering to Restructure Debt

Bausch Health Companies announced a private offering of $4 billion in senior secured notes and plans to establish new senior secured credit facilities. The proceeds will be used to repay existing debt and for general corporate purposes, potentially improving the company’s financial flexibility and market positioning.

Bausch Health Launches $3.8 Billion Credit Facilities Syndication

Bausch Health Companies Inc. has announced the launch of syndication for new senior secured credit facilities totaling at least $3.8 billion as part of a broader refinancing initiative. This move aims to address near- and mid-term maturities, optimize the company’s capital structure, and reduce debt leverage, thereby strengthening its financial position for long-term success.