Bausch Health Companies (BHC) AI Stock Analysis

• Market Cap: C$2.88B
• Dividend Yield: N/A
• Average Volume (3M): 438.43K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 1.22
• Revenue Growth: 8.68%
• EPS Growth: N/A
• Country: CA
• Employees: 20,700
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.62
• Shares Outstanding: 370,516,940
• 10 Day Avg. Volume: 682,868
• 30 Day Avg. Volume: 438,434
• PEG Ratio: 0.70
• Price to Book (P/B): -2.32
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 2.36
• 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$11.82
• Price Target Upside: 52.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: C$8.00 ▲(2.96% Upside)

The score is held back primarily by weak financial health (negative equity/high leverage and declining TTM revenue growth) and a bearish technical trend (below major moving averages with negative MACD). These risks are partially offset by attractive valuation (low P/E) and a constructive earnings call featuring raised guidance and meaningful debt reduction.

Positive Factors

Consistent revenue and EBITDA growth

A decade-long cadence of sequential revenue and adjusted EBITDA expansion (excluding Bausch + Lomb) signals durable operational execution and repeatable demand for core products. This consistency enhances forecasting, supports reinvestment and deleveraging, and underpins medium-term recovery plans.

Very high gross margins

An 81.6% gross margin implies significant product-level pricing power or low COGS, providing structural cushion to absorb SG&A and R&D spend. High gross margins support cash generation and resilience to volume fluctuations, aiding sustainable profitability as revenue normalizes.

Material debt reduction

Significant paydown of debt materially eases leverage pressure, reduces interest burden, and strengthens liquidity optionality. Improved capital structure increases strategic flexibility for R&D, targeted M&A, or further deleveraging, lowering structural default and refinancing risks.

Negative Factors

Negative equity and extreme leverage

Persistently negative equity and outsized leverage reflect accumulated losses and a fragile solvency profile. This structural weakness constrains access to cheap capital, raises covenant/default risk, and limits strategic investments, hindering medium-term growth initiatives.

TTM revenue contraction

A sizeable trailing revenue decline undermines sustainable margin expansion and cash conversion despite high gross margins. Structural revenue weakness suggests product mix issues or market share erosion that require time and investment to reverse, pressuring long-term operating leverage.

Phase 3 RED-C clinical program failure

A failed global Phase 3 program removes a potential new indication and diminishes pipeline value, reducing near-to-medium-term growth catalysts. The setback forces R&D reprioritization, raises opportunity cost of invested capital, and weakens future product-driven revenue prospects.

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 several key streams, primarily from its pharmaceutical segment, which includes sales of prescription medications for various therapeutic areas such as dermatology, ophthalmology, and gastroenterology. The company also earns revenue from its vision care products, including both contact lenses and lens care solutions. Additionally, Bausch Health has established partnerships and collaborations with other healthcare organizations and research institutions, which contribute to its revenue through co-development and licensing agreements. The company's strategy includes focusing on high-growth segments and enhancing its product portfolios through acquisitions and innovation, further bolstering its financial performance.

Bausch Health Companies Financial Statement Overview

Summary

Overall fundamentals are pressured: the income statement shows declining revenue growth (-16.21% TTM) and low net margin (4.38%) despite strong gross margin (81.55%). The balance sheet is the biggest weakness with negative equity and very high leverage (debt-to-equity -37.21), creating elevated financial risk. Cash flow is mixed with modest efficiency (FCF to net income 0.73) but slightly declining FCF growth (-1.81% TTM).

Income Statement

Bausch Health Companies shows a declining revenue trend with a significant drop in revenue growth rate of -16.21% in the TTM period. Despite a strong gross profit margin of 81.55% in the TTM, net profit margin remains low at 4.38%, indicating challenges in converting revenue into profit. EBIT and EBITDA margins are relatively healthy, but the overall income statement reflects mixed performance with profitability concerns.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative stockholders' equity and a high debt-to-equity ratio of -37.21 in the TTM, indicating significant leverage and financial risk. The return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is also negative, highlighting potential solvency issues.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth by -1.81% in the TTM, but the company maintains a reasonable free cash flow to net income ratio of 0.73. Operating cash flow to net income ratio is 0.31, suggesting moderate efficiency in cash generation relative to net income. Despite some strengths, the overall cash flow position is weakened by declining growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.26B	9.63B	8.76B	8.12B	8.43B	8.03B
Gross Profit	6.74B	6.84B	6.20B	5.76B	6.04B	5.78B
EBITDA	4.87B	2.82B	2.20B	2.88B	3.26B	2.42B
Net Income	362.00M	-46.00M	-592.00M	-212.00M	-937.00M	-559.00M
Balance Sheet
Total Assets	26.80B	26.52B	27.35B	25.69B	29.20B	31.20B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.18B	947.00M	564.00M	582.00M	605.00M
Total Debt	21.02B	21.62B	22.39B	20.77B	22.65B	23.93B
Total Liabilities	26.44B	26.84B	27.43B	25.43B	29.24B	30.59B
Stockholders Equity	-564.45M	-1.28B	-1.02B	-692.00M	-106.00M	535.00M
Cash Flow
Free Cash Flow	1.08B	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	-513.00M	-454.00M	-2.15B	-303.00M	409.00M	-261.00M
Financing Cash Flow	-422.00M	-868.00M	1.48B	-474.00M	-1.51B	-2.29B

Bausch Health Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 7.77 is below the 20-day moving average (MA) of 8.99, below the 50-day MA of 9.36, and below the 200-day MA of 8.75, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 29.45 is Positive, neither overbought nor oversold. The STOCH value of 19.48 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPH	78 Outperform	C$374.96M	15.67	16.32%	―	94.28%	5.23%
CRON	67 Neutral	C$1.35B	26.93	3.34%	―	22.20%	―
DHT.UN	59 Neutral	C$913.67M	-12.75	-10.92%	3.56%	-0.94%	-540.90%
GUD	57 Neutral	C$584.24M	-165.92	-0.48%	―	18.70%	88.31%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BHC	50 Neutral	C$2.88B	5.82	―	―	8.68%	―
HLS	48 Neutral	C$140.73M	-7.20	-20.49%	―	0.73%	33.51%