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$7.50
▲(0.27% Upside)
Action:ReiteratedDate:02/20/26
The score is primarily held back by elevated balance-sheet leverage/negative equity despite improving operating performance and generally positive cash generation. Technical signals are also weak (below key moving averages with negative MACD). These are partly offset by a reasonable P/E and a constructive earnings call with modest 2026 growth guidance and ongoing capital-structure improvements, tempered by R&D setbacks and Xifaxan-related medium-term risks.
Positive Factors
Revenue & EBITDA acceleration
Sustained revenue and EBITDA improvement in 2025 reflects successful commercial execution and portfolio momentum across key products. Durable margin recovery and top-line growth improve internal funding capacity for operations and strategic initiatives, supporting stability and reinvestment over the next 2–6 months.
Negative Factors
High leverage & negative equity
Extremely elevated debt and negative equity materially constrain financial flexibility, amplify refinancing and downturn risk, and increase interest expense sensitivity. Structural leverage reduces capacity for large organic investments and raises default risk if cash flows weaken, limiting long-term strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & EBITDA acceleration
Sustained revenue and EBITDA improvement in 2025 reflects successful commercial execution and portfolio momentum across key products. Durable margin recovery and top-line growth improve internal funding capacity for operations and strategic initiatives, supporting stability and reinvestment over the next 2–6 months.
Read all positive factors
Bausch Health Companies (BHC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.77B
Dividend YieldN/A
Average Volume (3M)468.86K
Price to Earnings (P/E)16.1
Beta (1Y)1.22
Revenue Growth8.68%
EPS GrowthN/A
CountryCA
Employees20,700
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.47
Shares Outstanding370,562,440
10 Day Avg. Volume372,660
30 Day Avg. Volume468,856
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)-4.65
Price to Sales (P/S)0.25
P/FCF Ratio2.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$10.07Price Target Upside34.66% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)5.99
Revenue Forecast (FY)C$14.64B
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, an...
How the Company Makes Money
BHC makes money primarily by selling pharmaceutical and medical products across its business segments through wholesale distributors, pharmacies, hospitals, clinics, and other healthcare providers. Revenue is largely generated from: (1) prescripti...
Bausch Health Companies Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial picture: strong revenue and EBITDA growth, robust cash generation (> $1 billion adjusted operating cash flow for 2025), meaningful debt and maturity profile improvements, targeted M&A to strengthen strategic footholds (notably in China), and advancement of a promising larsucosterol Phase III program. Key negatives include the RED-C Phase III failures, one-time Q4 impacts related to Solta China integration, margin pressure (adjusted gross margin down 80 bps), a Q4 timing-related reduction in adjusted operating cash flow for the Bausch Health segment, and medium-term risks to Xifaxan from Medicare rebate changes and generic/patent litigation uncertainty that imply a likely EBITDA step-down in 2027. Overall, the positives (consistent multi-quarter growth, strong cash flow, balance sheet repair, and targeted BD/portfolio investments) outweigh the setbacks, though the company flagged clear near- and medium-term headwinds that investors should monitor.Positive Updates
Consecutive Growth Streak and Full-Year Outperformance
11th consecutive quarter of growth in both revenue and adjusted EBITDA; full year 2025 revenue (Bausch Health ex Bausch + Lomb) grew 7% reported and 6% organic year-over-year, with double-digit adjusted EBITDA growth for the full year (excluding Bausch + Lomb).
Negative Updates
RED-C Phase III Failures
RED-C Phase III trials did not meet primary endpoints despite being safe and well tolerated; management expressed disappointment and is reviewing the full dataset to determine next steps — a material R&D setback for that program.
Read all updates
Q4-2025 Updates
Positive
Negative
Consecutive Growth Streak and Full-Year Outperformance
11th consecutive quarter of growth in both revenue and adjusted EBITDA; full year 2025 revenue (Bausch Health ex Bausch + Lomb) grew 7% reported and 6% organic year-over-year, with double-digit adjusted EBITDA growth for the full year (excluding Bausch + Lomb).
Read all positive updates
Company Guidance
Bausch Health (excluding Bausch + Lomb) guided 2026 revenue of $5.25–$5.40 billion (midpoint ≈ +3% year‑over‑year), adjusted EBITDA of $2.875–$2.95 billion (midpoint ≈ +4% YoY) and adjusted operating cash flow of $1.20–$1.275 billion (midpoint ≈ +4% YoY), with guidance stated at current FX rates and expected to be stronger in H1 2026 given some temporary H2 2025 benefits; for context, Q4 FY25 results for the same scope were revenue $1.391 billion (+9% reported), adjusted EBITDA $773 million (+9%), and adjusted operating cash flow $362 million (down $205 million YoY due to interest‑timing), and full‑year FY25 performance was revenue +7% (6% organic) with double‑digit adjusted EBITDA growth and over $1 billion in adjusted operating cash flow.Bausch Health Companies Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
22
Negative
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.45B | 9.63B | 8.76B | 8.12B | 8.43B |
| Gross Profit | 6.36B | 6.84B | 6.20B | 5.76B | 6.04B |
| EBITDA | 3.45B | 2.82B | 2.20B | 2.88B | 3.26B |
| Net Income | 159.75M | -46.00M | -592.00M | -212.00M | -937.00M |
Balance Sheet | |||||
| Total Assets | 26.32B | 26.52B | 27.35B | 25.69B | 29.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.32B | 1.18B | 947.00M | 564.00M | 582.00M |
| Total Debt | 21.21B | 21.62B | 22.39B | 20.77B | 22.65B |
| Total Liabilities | 25.94B | 26.84B | 27.43B | 25.43B | 29.24B |
| Stockholders Equity | -552.99M | -1.28B | -1.02B | -692.00M | -106.00M |
Cash Flow | |||||
| Free Cash Flow | 974.77M | 1.26B | 760.00M | -996.00M | 1.14B |
| Operating Cash Flow | 1.38B | 1.60B | 1.03B | -728.00M | 1.43B |
| Investing Cash Flow | -605.42M | -454.00M | -2.15B | -303.00M | 409.00M |
| Financing Cash Flow | -709.20M | -868.00M | 1.48B | -474.00M | -1.51B |
Bausch Health Companies Technical Analysis
Neutral
7.48
Price Trends
7.69
Negative
8.62
Negative
8.92
Negative
Market Momentum
-0.13
Negative
51.52
Neutral
87.76
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BHC, the sentiment is Neutral. The current price of 7.48 is above the 20-day moving average (MA) of 7.13, below the 50-day MA of 7.69, and below the 200-day MA of 8.92, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 87.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BHC.
Bausch Health Companies Risk Analysis
Bausch Health Companies disclosed 58 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | C$475.29M | 10.05 | 24.23% | ― | 94.28% | 5.23% | |
71 Outperform | C$730.36M | -112.09 | -0.45% | ― | 18.70% | 88.31% | |
61 Neutral | C$1.33B | -104.58 | -0.87% | ― | 22.20% | ― | |
58 Neutral | C$905.03M | -9.05 | -10.92% | 3.56% | -0.94% | -540.90% | |
55 Neutral | C$2.77B | 16.11 | -20.27% | ― | 8.68% | ― | |
52 Neutral | C$137.60M | -8.75 | -19.40% | ― | 0.73% | 33.51% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
TSE:BHC
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7.48
0.02
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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.