Recent News
On July 31, Baxter reported damage at its North Cove, North Carolina manufacturing site tied to Hurricane Helene and voluntarily paused shipments of the Novum IQ Large Volume Pump after reports of two deaths and multiple injuries. Analysts and research firms reacted with lowered price targets and guidance revisions later that day. In early September the company closed its acquisition of Claris Injectables, expanding the generic injectable medicines portfolio. In mid-September Baxter received inclusion to the Dow Jones Sustainability Indices, recognizing its corporate responsibility reporting.
Technical Analysis
ADX at 12.19 shows no trend strength, which tempers directional conviction and reduces the reliability of trend-following signals for the near term.
DI+ reads 23.75 and shows an increasing trend, a bullish directional sign that supports positive price bias versus recent consolidation.
DI- sits at 23.73 with a dip & reversal pattern, a bearish directional signal that suggests renewed downside pressure from sellers during recent trading swings.
MACD at -0.19 has been increasing and sits above its signal line (-0.28); that crossover constitutes a bullish momentum shift that favors short-term upside continuation.
MRO at -18.92 remains negative while trending higher; the negative level indicates price below target and therefore potential for upward mean reversion, with the rising trend reinforcing that potential.
RSI at 44.52 and increasing indicates improving buying interest inside a neutral band, leaving room for further upside before any overbought stress.
Price dynamics show the close at $22.99 sitting slightly above the 20-day average ($22.77) and 12-day EMA ($22.87), but below the 50-day ($23.41) and well under the 200-day average ($28.55), aligning technical bias toward a recovery attempt within a longer-term downtrend.
Bollinger bands place price between the 1x lower band ($22.37) and 1x upper band ($23.17), implying limited intraday volatility and a mean-reversion environment; the SuperTrend upper level at $23.67 acts as nearby resistance to any short-term rally.
Volume at 5,681,442 slightly exceeds the 10-day average (5,130,368), supporting the recent signal mix with above-average participation during consolidation.
Fundamental Analysis
Total revenue reached $2,810,000,000 for the period ending 2025-06-30 while gross profit measured $991,000,000, producing a gross margin of 35.27%. Operating income reached $191,000,000 and EBIT measured $205,000,000, giving an EBIT margin of 7.30%, below the industry peer mean (14.687%) and industry peer median (20.382%).
Operating margin at 6.80% improved quarter-over-quarter by 128.78% (operatingMarginQoQ 1.28778 converted to 128.78%), yet trended lower year-over-year by 269.332% (operatingMarginYoY -2.69332 converted to -269.33%), signaling volatile margin performance across reporting periods.
Revenue growth year-over-year registered 15.07%, while revenue growth quarter-over-quarter showed -251.60% (revenueGrowthQoQ -2.51602 converted to -251.60%), reflecting a deceleration in sequential sales momentum despite solid annual expansion.
Net income tallied $91,000,000 and EPS actual came in at $0.54 versus an estimate of $0.61, producing an EPS surprise of -11.48% (EPSsurpriseRatio -0.11475). Forward EPS stands at $0.72 with a forward P/E of 42.71 and a trailing P/E near 55.25, indicating elevated market valuation relative to current earnings.
Balance-sheet metrics show liquidity headroom: cash and short-term investments total $1,686,000,000, current ratio measures 2.30, and quick ratio sits at 1.49. Net debt reached $7,814,000,000 with total debt at $9,725,000,000 and debt-to-equity at 1.33; debt-to-EBITDA reads 21.05, reflecting significant leverage relative to earnings.
Free cash flow equaled $68,000,000, producing a free cash flow yield of 0.50%, while cash conversion ratio measured 73.75% and operating cash flow remained positive at $217,000,000. Return on equity measured 1.24% and return on assets 0.43%, suggesting current profitability sits well below typical industry operating returns and below the industry peer mean for EBIT margins referenced above.
WMDST values the stock as under-valued, a conclusion that balances low free cash flow yield and high leverage against substantial cash holdings, completed strategic portfolio moves (Claris Injectables) and near-term margin recovery potential as supply constraints normalize.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-31 |
| NEXT REPORT DATE: | 2025-10-30 |
| CASH FLOW | Begin Period Cash Flow | $ 2.3 B |
| Operating Cash Flow | $ 217.0 M | |
| Capital Expenditures | $ -149.00 M | |
| Change In Working Capital | $ -182.00 M | |
| Dividends Paid | $ -87.00 M | |
| Cash Flow Delta | $ -608.00 M | |
| End Period Cash Flow | $ 1.7 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.8 B | |
| Forward Revenue | $ 2.9 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.8 B | |
| Depreciation | $ 257.0 M | |
| Depreciation and Amortization | $ 257.0 M | |
| Research and Development | $ 134.0 M | |
| Total Operating Expenses | $ 2.6 B | |
| PROFITABILITY | ||
| Gross Profit | $ 991.0 M | |
| EBITDA | $ 462.0 M | |
| EBIT | $ 205.0 M | |
| Operating Income | $ 191.0 M | |
| Interest Income | $ 14.0 M | |
| Interest Expense | $ 72.0 M | |
| Net Interest Income | $ -58.00 M | |
| Income Before Tax | $ 133.0 M | |
| Tax Provision | $ 11.0 M | |
| Tax Rate | 8.271 % | |
| Net Income | $ 91.0 M | |
| Net Income From Continuing Operations | $ 122.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.61 | |
| EPS Actual | $ 0.54 | |
| EPS Difference | $ -0.07 | |
| EPS Surprise | -11.475 % | |
| Forward EPS | $ 0.72 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 21.0 B | |
| Intangible Assets | $ 10.3 B | |
| Net Tangible Assets | $ -3.02 B | |
| Total Current Assets | $ 6.7 B | |
| Cash and Short-Term Investments | $ 1.7 B | |
| Cash | $ 1.7 B | |
| Net Receivables | $ 1.8 B | |
| Inventory | $ 2.4 B | |
| Long-Term Investments | $ 861.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 995.0 M | |
| Short-Term Debt | $ 8.0 M | |
| Total Current Liabilities | $ 2.9 B | |
| Net Debt | $ 7.8 B | |
| Total Debt | $ 9.7 B | |
| Total Liabilities | $ 13.8 B | |
| EQUITY | ||
| Total Equity | $ 7.3 B | |
| Retained Earnings | $ 15.0 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 14.26 | |
| Shares Outstanding | 513.498 M | |
| Revenue Per-Share | $ 5.47 | |
| VALUATION | Market Capitalization | $ 13.7 B |
| Enterprise Value | $ 21.7 B | |
| Enterprise Multiple | 46.949 | |
| Enterprise Multiple QoQ | -36.903 % | |
| Enterprise Multiple YoY | -65.009 % | |
| Enterprise Multiple IPRWA | high: 234.897 median: 76.655 mean: 69.504 BAX: 46.949 low: -228.246 |
|
| EV/R | 7.719 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.875 | |
| Asset To Liability | 1.53 | |
| Debt To Capital | 0.571 | |
| Debt To Assets | 0.462 | |
| Debt To Assets QoQ | -4.509 % | |
| Debt To Assets YoY | 392.623 % | |
| Debt To Assets IPRWA | high: 1.297 BAX: 0.462 mean: 0.238 median: 0.167 low: 0.002 |
|
| Debt To Equity | 1.329 | |
| Debt To Equity QoQ | -8.745 % | |
| Debt To Equity YoY | 311.43 % | |
| Debt To Equity IPRWA | high: 2.971 BAX: 1.329 mean: 0.382 median: 0.266 low: -1.733 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.865 | |
| Price To Book QoQ | -18.319 % | |
| Price To Book YoY | -19.654 % | |
| Price To Book IPRWA | high: 17.161 median: 4.499 mean: 4.305 BAX: 1.865 low: -7.981 |
|
| Price To Earnings (P/E) | 55.245 | |
| Price To Earnings QoQ | -3.571 % | |
| Price To Earnings YoY | 8.011 % | |
| Price To Earnings IPRWA | high: 246.592 median: 104.657 mean: 85.517 BAX: 55.245 low: -204.468 |
|
| PE/G Ratio | -30.388 | |
| Price To Sales (P/S) | 4.858 | |
| Price To Sales QoQ | -21.121 % | |
| Price To Sales YoY | 4.39 % | |
| Price To Sales IPRWA | high: 154.906 mean: 21.132 median: 20.417 BAX: 4.858 low: 0.297 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 42.711 | |
| Forward PE/G | -23.493 | |
| Forward P/S | 4.783 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 23.103 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.133 | |
| Asset Turnover Ratio QoQ | 19.013 % | |
| Asset Turnover Ratio YoY | -5.833 % | |
| Asset Turnover Ratio IPRWA | high: 0.482 mean: 0.16 median: 0.135 BAX: 0.133 low: 0.0 |
|
| Receivables Turnover | 1.644 | |
| Receivables Turnover Ratio QoQ | 4.105 % | |
| Receivables Turnover Ratio YoY | 11.251 % | |
| Receivables Turnover Ratio IPRWA | high: 3.864 BAX: 1.644 mean: 1.489 median: 1.457 low: 0.477 |
|
| Inventory Turnover | 0.799 | |
| Inventory Turnover Ratio QoQ | -4.535 % | |
| Inventory Turnover Ratio YoY | 0.202 % | |
| Inventory Turnover Ratio IPRWA | high: 3.161 BAX: 0.799 mean: 0.739 median: 0.714 low: 0.003 |
|
| Days Sales Outstanding (DSO) | 55.513 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 122.657 | |
| Cash Conversion Cycle Days QoQ | 5.827 % | |
| Cash Conversion Cycle Days YoY | -7.053 % | |
| Cash Conversion Cycle Days IPRWA | high: 401.407 mean: 139.738 BAX: 122.657 median: 114.45 low: -252.738 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.738 | |
| CapEx To Revenue | -0.053 | |
| CapEx To Depreciation | -0.58 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 16.8 B | |
| Net Invested Capital | $ 16.8 B | |
| Invested Capital | $ 16.8 B | |
| Net Tangible Assets | $ -3.02 B | |
| Net Working Capital | $ 3.8 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.574 | |
| Current Ratio | 2.296 | |
| Current Ratio QoQ | 13.627 % | |
| Current Ratio YoY | 63.842 % | |
| Current Ratio IPRWA | high: 14.715 BAX: 2.296 mean: 2.255 median: 1.849 low: 0.353 |
|
| Quick Ratio | 1.485 | |
| Quick Ratio QoQ | 6.269 % | |
| Quick Ratio YoY | 62.37 % | |
| Quick Ratio IPRWA | high: 10.15 mean: 1.646 BAX: 1.485 median: 1.303 low: 0.411 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 21.05 | |
| Cost Of Debt | 0.659 % | |
| Interest Coverage Ratio | 2.847 | |
| Interest Coverage Ratio QoQ | 195.674 % | |
| Interest Coverage Ratio YoY | -293.537 % | |
| Interest Coverage Ratio IPRWA | high: 274.877 mean: 25.898 median: 15.82 BAX: 2.847 low: -384.45 |
|
| Operating Cash Flow Ratio | 0.013 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 50.643 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 1.046 | |
| Dividend Payout Ratio | 0.956 | |
| Dividend Rate | $ 0.17 | |
| Dividend Yield | 0.006 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.211 % | |
| Revenue Growth | 7.048 % | |
| Revenue Growth QoQ | -251.602 % | |
| Revenue Growth YoY | 15.069 % | |
| Revenue Growth IPRWA | high: 47.668 % median: 7.569 % mean: 7.5 % BAX: 7.048 % low: -33.065 % |
|
| Earnings Growth | -1.818 % | |
| Earnings Growth QoQ | -64.849 % | |
| Earnings Growth YoY | -139.393 % | |
| Earnings Growth IPRWA | high: 200.0 % median: 15.596 % mean: 14.969 % BAX: -1.818 % low: -227.273 % |
|
| MARGINS | ||
| Gross Margin | 35.267 % | |
| Gross Margin QoQ | 7.521 % | |
| Gross Margin YoY | -6.052 % | |
| Gross Margin IPRWA | high: 94.498 % mean: 57.404 % median: 56.435 % BAX: 35.267 % low: 6.0 % |
|
| EBIT Margin | 7.295 % | |
| EBIT Margin QoQ | 145.54 % | |
| EBIT Margin YoY | -281.739 % | |
| EBIT Margin IPRWA | high: 33.87 % median: 20.382 % mean: 14.687 % BAX: 7.295 % low: -1000.426 % |
|
| Return On Sales (ROS) | 6.797 % | |
| Return On Sales QoQ | 128.778 % | |
| Return On Sales YoY | -269.332 % | |
| Return On Sales IPRWA | high: 35.533 % median: 18.417 % mean: 13.025 % BAX: 6.797 % low: -1349.836 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 68.0 M | |
| Free Cash Flow Yield | 0.498 % | |
| Free Cash Flow Yield QoQ | -125.565 % | |
| Free Cash Flow Yield YoY | -4627.273 % | |
| Free Cash Flow Yield IPRWA | high: 11.539 % mean: 0.741 % median: 0.679 % BAX: 0.498 % low: -40.868 % |
|
| Free Cash Growth | -121.587 % | |
| Free Cash Growth QoQ | -35.921 % | |
| Free Cash Growth YoY | 35.891 % | |
| Free Cash Growth IPRWA | high: 303.235 % mean: 11.525 % median: -1.288 % BAX: -121.587 % low: -261.538 % |
|
| Free Cash To Net Income | 0.747 | |
| Cash Flow Margin | 1.388 % | |
| Cash Flow To Earnings | 0.429 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.43 % | |
| Return On Assets QoQ | -19.626 % | |
| Return On Assets YoY | -137.037 % | |
| Return On Assets IPRWA | high: 19.773 % median: 2.151 % mean: 1.838 % BAX: 0.43 % low: -72.965 % |
|
| Return On Capital Employed (ROCE) | 1.132 % | |
| Return On Equity (ROE) | 0.012 | |
| Return On Equity QoQ | -30.129 % | |
| Return On Equity YoY | -130.258 % | |
| Return On Equity IPRWA | high: 0.769 median: 0.035 BAX: 0.012 mean: 0.002 low: -1.731 |
|
| DuPont ROE | 1.264 % | |
| Return On Invested Capital (ROIC) | 1.118 % | |
| Return On Invested Capital QoQ | 309.524 % | |
| Return On Invested Capital YoY | -103.45 % | |
| Return On Invested Capital IPRWA | high: 20.851 % mean: 2.968 % median: 2.936 % BAX: 1.118 % low: -30.099 % |
|