Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Baxter International Inc. (NYSE:BAX) due to its excellent fundamentals in more than one area. BAX is a company with great financial health as well as a a great history of performance. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Baxter International here.
Outstanding track record with excellent balance sheet
In the previous year, BAX has ramped up its bottom line by 73%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 20% return to shareholders, which is an optimistic signal for the future. BAX's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that BAX has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. BAX appears to have made good use of debt, producing operating cash levels of 0.36x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Baxter International, I've put together three relevant aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for BAX’s future growth? Take a look at our free research report of analyst consensus for BAX’s outlook.
- Valuation: What is BAX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BAX is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BAX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.