Baxter International (BAX) AI Stock Analysis

• Market Cap: $14.77B
• Dividend Yield: 3.19%
• Average Volume (3M): 4.56M
• Price to Earnings (P/E): 136.1
• Beta (1Y): 0.73
• Revenue Growth: -14.00%
• EPS Growth: -184.82%
• Country: US
• Employees: 38,000
• Sector: Healthcare
• Sector Strength: 76
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -1.27
• Shares Outstanding: 512,924,100
• 10 Day Avg. Volume: 3,635,921
• 30 Day Avg. Volume: 4,558,348
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.60
• Price to Cash Flow (P/CF): 8.70
• P/FCF Ratio: 4.60
• 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: $38.10
• Price Target Upside: 32.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Baxter International faces significant financial challenges, including declining revenue and cash flow issues. These are partially offset by strategic recovery efforts and a positive outlook for 2025 as highlighted in the recent earnings call. Technical indicators show upward momentum, though valuation metrics flag potential risks. The appointment of a new Chief Accounting Officer adds a positive dimension to the company's future prospects.

Positive Factors

Earnings Performance

Q4 revenue and EPS of $2.75B and $0.58 beat Street targets of $2.67B and $0.52.

Market Share

The growth of infusion pumps remains strong, with BAX gaining approximately 2% market share and anticipates similar growth driven by increased demand for Novum.

Operational Stability

The North Carolina facility is now producing at pre-hurricane levels, with manufacturing lines reaching full production, indicating recovery and operational stability.

Negative Factors

Conservative Guidance

BAX's 2025 guidance came in line with well previewed expectations, implying a better cadence than some had feared.

Market Confidence

BAX is likely to take a few quarters to regain confidence after a bumpy few years.

Sales Decline

Healthcare Systems & Technologies (HST) sales of $784M declined 1% on a reported and CC basis.

Baxter International Business Overview & Revenue Model

Company Description

Baxter International Inc. is a global healthcare company that develops, manufactures, and markets a diverse portfolio of essential products and services. The company operates in various sectors, including renal care, medication delivery, pharmaceuticals, clinical nutrition, and advanced surgery. Baxter is committed to saving and sustaining lives by providing innovative healthcare solutions that improve patient outcomes and meet the needs of healthcare professionals worldwide.

How the Company Makes Money

Baxter International generates revenue through the sale of its broad range of healthcare products and services. Key revenue streams include the sale of renal care products such as dialysis machines and consumables, intravenous therapies, and nutritional products. Additionally, the company earns income from its pharmaceuticals division, which produces generic injectable drugs and other critical care medications. Baxter also benefits from its advanced surgery segment, supplying hemostats and sealants used in surgical procedures. The company's global presence and strategic partnerships with healthcare providers and distributors further bolster its revenue by expanding market reach and driving sales across various regions.

Baxter International Financial Statement Overview

Summary

Baxter International is facing financial headwinds characterized by declining revenue, inconsistent profitability metrics, and cash flow challenges. The company has managed to slightly improve its debt position, but overall financial health remains a concern with negative operating cash flow and weakening equity metrics. Strategic interventions are needed to stabilize and enhance financial performance.

Income Statement

Baxter International has experienced significant revenue fluctuations, with a decline in Total Revenue from 2022 to 2024. The Gross Profit Margin showed some resilience but has been negatively impacted by operational challenges, leading to negative EBIT and EBITDA margins in 2024. The company suffered a net loss in 2024, reflecting financial strain. Overall, profitability has been inconsistent, with a concerning trend toward declining net income.

Balance Sheet

The company's debt-to-equity ratio has improved slightly from 2023 to 2024, indicating a cautious approach towards managing debt. However, the equity ratio has decreased due to reduced stockholders' equity, reflecting potential financial vulnerability. Despite this, Baxter maintains substantial total assets, suggesting the potential for recovery with strategic financial management.

Cash Flow

Baxter's cash flow situation is challenging, with a significant decline in operating cash flow in 2024 and negative free cash flow growth. The absence of positive operating cash flow raises concerns about the company's ability to generate sufficient internal funds to cover expenses and invest in growth. The free cash flow to net income ratio is unfavorable, indicating strains in converting earnings to cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.51B	14.81B	15.11B	12.78B	11.67B
	Gross Profit
1.70B	4.97B	5.40B	5.11B	4.59B
	EBIT
-112.00M	390.00M	-549.00M	779.00M	603.00M
	EBITDA
-112.00M	1.68B	-849.00M	2.52B	2.54B
	Net Income Common Stockholders
-312.00M	2.66B	-2.42B	1.28B	1.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.76B	3.19B	1.72B	2.95B	3.73B
	Total Assets
25.78B	28.28B	28.29B	33.52B	20.02B
	Total Debt
13.37B	14.36B	17.21B	18.31B	6.80B
	Net Debt
11.61B	11.17B	15.49B	15.36B	3.07B
	Total Liabilities
18.76B	19.81B	22.39B	24.40B	11.29B
	Stockholders Equity
6.96B	8.40B	5.83B	9.08B	8.69B
Cash Flow		Free Cash Flow
559.00M	1.03B	532.00M	1.48B	1.16B
	Operating Cash Flow
1.02B	1.73B	1.21B	2.22B	1.87B
	Investing Cash Flow
-410.00M	3.21B	-931.00M	-11.20B	-1.18B
	Financing Cash Flow
-1.08B	-3.49B	-1.44B	8.24B	-345.00M

Baxter International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAX, the sentiment is Negative. The current price of 28.79 is below the 20-day moving average (MA) of 33.77, below the 50-day MA of 33.20, and below the 200-day MA of 34.01, indicating a bearish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 51.67 is Neutral, neither overbought nor oversold. The STOCH value of 65.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAX.

Baxter International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	78 Outperform	$30.13B	24.24	25.65%	1.01%	9.38%	40.38%
BDX	76 Outperform	$59.53B	34.44	6.92%	1.92%	5.89%	42.05%
COO	73 Outperform	$14.75B	35.67	5.25%	―	7.15%	41.96%
HOLX	71 Outperform	$13.66B	19.26	15.78%	―	1.75%	50.25%
WST	65 Neutral	$14.69B	30.40	17.71%	0.40%	-1.93%	-15.47%
BAX	54 Neutral	$14.77B	136.07	-9.24%	3.19%	-14.00%	-184.82%
Sector *	48 Neutral	$6.36B	1.09	-49.92%	2.63%	17.17%	0.95%

Baxter International Corporate Events

Baxter International Appoints New Leadership Amid Strategic Changes

In March 2025, Baxter International announced significant leadership changes, with Brent Shafer appointed as Chair and Interim CEO, and Heather Knight as COO and Interim Group President of Medical Products & Therapies. The company completed its strategic initiatives from January 2023, including the divestiture of its Kidney Care segment, and implemented a redesigned operating model to enhance accountability and support accelerated growth. An Operating Committee of independent directors was also established to oversee product development and operational efficiency improvements.

Baxter International Announces Leadership Transition and Appointments

On February 3, 2025, Baxter International announced the transition of José E. Almeida from his roles as CEO and Chair to a non-executive advisory position, effective the same day, with Brent Shafer appointed as interim CEO and Chair. The company has initiated a search for a permanent CEO while appointing Heather Knight as Chief Operating Officer. These leadership changes are aligned with Baxter’s strategic transformation and growth objectives, following significant business repositioning under Almeida’s tenure.

Baxter International’s Strategic Divestment and Leadership Changes

On January 31, 2025, Baxter International Inc. completed the sale of several entities, including Vantive Health LLC and Gambro Renal Products, to a consortium of buyers for approximately $3.71 billion in cash after adjustments. This transaction marks a significant divestment for Baxter, likely impacting its strategic focus and operations, as well as the stakeholders involved, including the transition of Chris Toth from his executive roles.

Baxter International Announces New Chief Accounting Officer

Baxter International Inc. has appointed Ms. Anita Zielinski as its Senior Vice President, Chief Accounting Officer, and Controller, effective February 21, 2025. This strategic leadership change is expected to strengthen Baxter’s financial oversight and operational efficiency, as Ms. Zielinski brings extensive experience from her tenure at Sysco Corporation. Her appointment will allow Mr. Joel Grade to concentrate on his role as Executive Vice President and Chief Financial Officer.