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Bausch Health Companies (TSE:BHC)
TSX:BHC
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Bausch Health Companies
(TSX:BHC)
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Rating:55Neutral
Price Target:
C$9.50
▲(5.09% Upside)
Bausch Health Companies' overall stock score reflects a balance of strong operational performance and growth in key segments, as highlighted in the earnings call, against significant financial risks due to high leverage and negative equity. The technical analysis indicates mixed signals, with the stock nearing oversold territory. Valuation concerns further weigh down the score, given the high P/E ratio and lack of dividend yield.
Positive Factors
Negative Factors
Bausch Health Companies (BHC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$3.34B
Dividend YieldN/A
Average Volume (3M)472.55K
Price to Earnings (P/E)24.9
Beta (1Y)1.38
Revenue Growth10.20%
EPS GrowthN/A
CountryCA
Employees20,700
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.45
Shares Outstanding369,800,350
10 Day Avg. Volume546,012
30 Day Avg. Volume472,553
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap9.55
Enterprise Value/Revenue3.24
Enterprise Value/Gross Profit4.58
Enterprise Value/Ebitda10.64
Forecast
1Y Price Target
$11.62Price Target Upside28.48% Upside
Rating ConsensusHold
Number of Analyst Covering4
Bausch Health Companies Business Overview & Revenue Model
Company DescriptionBausch 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 MoneyBausch 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 Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with consistent growth in key segments like Salix and Solta, successful debt refinancing, and strategic acquisitions. However, challenges remain in specific regions like China and LATAM, and there are concerns about future pricing impacts due to the IRA on Xifaxan.Q2-2025 Updates
Positive Updates
Consistent Revenue and EBITDA Growth
Bausch Health delivered its ninth consecutive quarter of revenue and adjusted EBITDA growth, with a 5% year-over-year revenue increase and a 10% increase in adjusted EBITDA.
Strong Performance in Salix and Solta Segments
Salix segment profit increased by 21% with a 12% growth in revenue driven by Xifaxan's 10% growth. Solta segment achieved a 25% increase in revenue, with 115% organic growth in South Korea.
Successful Debt Refinancing
Completed a $7.9 billion debt refinancing, extending maturities and reducing high-interest debt to improve the capital structure.
Strategic Acquisition Announcement
Announced an agreement to acquire DURECT Corporation to develop a treatment for alcohol hepatitis, demonstrating commitment to advancing R&D and business development.
Solid International Growth
EMEA achieved its 10th consecutive quarter of organic growth with a 6% increase. Canada also showed strong performance with successful product launches.
Negative Updates
Softened Growth in China
Growth in China temporarily softened due to tariff-related headwinds, impacting Solta segment performance.
Challenges in LATAM
The LATAM region experienced a softer performance due to ongoing macroeconomic challenges and channel destocking.
Decrease in Diversified Segment Revenue
Diversified segment revenue decreased by 13%, driven by lower performance in neurology and dermatology businesses.
Impact of IRA on Xifaxan
Ongoing negotiations regarding the IRA impact on Xifaxan, with potential significant price cuts expected by 2027.
Company Guidance
During Bausch Health's second quarter of 2025 earnings call, the company reaffirmed its full-year guidance, projecting revenues between $4.95 billion and $5.1 billion, with a midpoint representing a 4% increase year-over-year. The guidance for adjusted EBITDA remains between $2.625 billion and $2.725 billion, with an anticipated 5% increase from 2024. The company also expects adjusted operating cash flow to be between $825 million and $875 million. Bausch Health, excluding Bausch + Lomb, reported a 5% revenue growth to $1.252 billion and a 10% increase in adjusted EBITDA to $676 million. The call highlighted continued strong performance in the Salix segment, with 12% growth driven by Xifaxan's 10% increase, and substantial growth in the Solta segment, which saw a 25% revenue jump. Despite macroeconomic challenges impacting LATAM, double-digit growth was achieved in Canada and EMEA.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.65
Positive
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.40
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.55
Neutral
| 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
Negative
9.04
Price Trends
9.54
Negative
8.54
Positive
9.11
Negative
Market Momentum
-0.17
Positive
39.25
Neutral
9.01
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 9.04 is below the 20-day moving average (MA) of 9.73, below the 50-day MA of 9.54, and below the 200-day MA of 9.11, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 9.01 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 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
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 406.55M | 24.25 | 11.28% | ― | 121.40% | -47.34% | |
69 Neutral | 1.40B | 53.83 | 1.71% | ― | 31.72% | ― | |
61 Neutral | 205.53M | -16.29 | 32.79% | ― | 5.24% | -7.99% | |
55 Neutral | $3.34B | 24.92 | 3.60% | ― | 10.20% | ― | |
53 Neutral | 169.20M | -8.17 | -27.55% | ― | -1.42% | 35.15% | |
47 Neutral | 590.95M | 1,744.12 | 0.05% | ― | 13.82% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
TSE:BHC
Bausch Health Companies
9.04
-2.00
-18.12%
THTX
Theratechnologies
3.39
2.15
173.39%
KHTRF
Knight Therapeutics
4.27
-0.09
-2.06%
CPHRF
Cipher Pharmaceuticals
11.46
0.27
2.41%
CRON
Cronos Group
2.63
0.44
20.09%
TSE:HLS
HLS Therapeutics Inc
5.40
1.64
43.62%
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.