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Bausch Health Companies
(TSX:BHC)
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Rating:57Neutral
Price Target:
C$8.50
▼(-8.70% Downside)
Action:Reiterated
Date:08/04/26
The score is held back primarily by balance-sheet risk (very high debt and negative equity) and inconsistent bottom-line results despite stable revenue and strong gross margins. Offsetting these risks are improving operating/free cash flow and a positive earnings-call update with raised guidance and strong operational momentum, while technicals show an uptrend but are currently overbought. Valuation is less supportive given the negative P/E and no dividend yield provided.
Positive Factors
Sustained growth and margin expansion
Repeated revenue and adjusted EBITDA growth indicates broadening operating momentum rather than an isolated quarter. Higher margins alongside sales expansion can strengthen internal cash generation, support investment across the portfolio, and improve the company’s ability to manage its substantial debt burden.
Negative Factors
Very high leverage and negative equity
The large debt load and negative equity materially restrict financial flexibility even as cash generation improves. Interest and refinancing sensitivity remain important constraints, while a substantial share of future operating cash flow may need to support deleveraging instead of acquisitions, innovation, or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained growth and margin expansion
Repeated revenue and adjusted EBITDA growth indicates broadening operating momentum rather than an isolated quarter. Higher margins alongside sales expansion can strengthen internal cash generation, support investment across the portfolio, and improve the company’s ability to manage its substantial debt burden.
Read all positive factors
Bausch Health Companies (BHC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.07B
Dividend Yield5.04%
Average Volume (3M)641.38K
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth9.12%
EPS Growth-1203.19%
CountryCA
Employees20,300
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-2.95
Shares Outstanding373,990,570
10 Day Avg. Volume595,699
30 Day Avg. Volume641,382
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$12.73Price Target Upside36.78% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)6.27
Revenue Forecast (FY)C$15.12B
Bausch Health Companies Business Overview & Revenue Model
Company Description
Bausch Health Companies Inc. is a global healthcare enterprise dedicated to the creation, production, and sale of a diverse array of pharmaceutical, medical device, and over-the-counter items. Its primary therapeutic focus areas include eye health...
How the Company Makes Money
Bausch Health primarily makes money by selling prescription pharmaceuticals and certain medical devices across its business segments. Revenue is generated when BHC sells products to customers such as pharmaceutical wholesalers, specialty distribut...
Bausch Health Companies Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum with multiple quarters of consistent top-line and margin expansion, exceptional cash generation, meaningful net-debt reduction, and raised full-year guidance. Management flagged identifiable second-half headwinds (gross-to-net accruals, Aplenzin LOE, gradual Medicaid/340B erosion) and longer-term uncertainties (Xifaxan IP outcome, policy risks), but characterized many drivers of outperformance as transitional. Overall, the positive growth, margin improvement, cash flow strength, and upgraded guidance outweigh the listed challenges.Positive Updates
Sustained Top- and Bottom-Line Growth
13 consecutive quarters of revenue and adjusted EBITDA growth; LTM revenue growth of 20% since year-end 2023.
Negative Updates
Second-Half Headwinds to Growth
Management expects lower H2 growth due to three main headwinds: a gross-to-net accrual change (~$150M impact), Aplenzin generic competition (~$50M impact in H2), and gradual Medicaid/340B erosion (~$75M H2 headwind).
Read all updates
Q2-2026 Updates
Positive
Negative
Sustained Top- and Bottom-Line Growth
13 consecutive quarters of revenue and adjusted EBITDA growth; LTM revenue growth of 20% since year-end 2023.
Read all positive updates
Company Guidance
Bausch Health raised its full‑year guidance (ex‑Bausch + Lomb), increasing the midpoints by $100M revenue, $150M adjusted EBITDA and $200M adjusted cash flow from operations; the new 2026 guidance is revenue $5.35B–$5.50B (midpoint ≈ +5% YoY), adjusted EBITDA $3.025B–$3.100B (midpoint ≈ +10% vs. 2025) and adjusted cash flow from operations $1.40B–$1.475B (midpoint ≈ +21% YoY). Management noted strong H1 performance (revenue and adjusted EBITDA up ~15% and ~23% year‑to‑date), but expects H2 growth to be lower due to a ~$150M gross‑to‑net channel inventory headwind, a ~$50M H2 impact from Aplenzin LOE and roughly $75M of Medicaid/340B erosion; 2027 adjusted EBITDA guidance remains at $2.7B and assumes Xifaxan market exclusivity through Jan 1, 2028.Bausch Health Companies Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
18
Very Negative
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.01B | 10.45B | 9.63B | 8.76B | 8.12B | 8.43B |
| Gross Profit | 6.70B | 6.36B | 6.84B | 6.20B | 5.76B | 6.04B |
| EBITDA | 5.38B | 3.45B | 2.82B | 2.20B | 2.88B | 3.26B |
| Net Income | -1.08B | 159.75M | -46.00M | -592.00M | -212.00M | -937.00M |
Balance Sheet | ||||||
| Total Assets | 24.79B | 26.32B | 26.52B | 27.35B | 25.69B | 29.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.82B | 1.32B | 1.18B | 947.00M | 564.00M | 582.00M |
| Total Debt | 20.78B | 21.21B | 21.62B | 22.39B | 20.77B | 22.65B |
| Total Liabilities | 25.60B | 25.94B | 26.84B | 27.43B | 25.43B | 29.24B |
| Stockholders Equity | -1.77B | -552.99M | -1.28B | -1.02B | -692.00M | -106.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.39B | 974.77M | 1.26B | 760.00M | -996.00M | 1.14B |
| Operating Cash Flow | 1.80B | 1.38B | 1.60B | 1.03B | -728.00M | 1.43B |
| Investing Cash Flow | -601.71M | -605.42M | -454.00M | -2.15B | -303.00M | 409.00M |
| Financing Cash Flow | -1.10B | -709.20M | -868.00M | 1.48B | -474.00M | -1.51B |
Bausch Health Companies Technical Analysis
Positive
9.31
Price Trends
8.35
Negative
7.73
Positive
8.00
Positive
Market Momentum
-0.11
Positive
49.80
Neutral
76.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BHC, the sentiment is Positive. The current price of 9.31 is above the 20-day moving average (MA) of 8.33, above the 50-day MA of 8.35, and above the 200-day MA of 8.00, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 49.80 is Neutral, neither overbought nor oversold. The STOCH value of 76.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | C$1.77B | 17.58 | 6.46% | ― | 36.21% | 264.71% | |
74 Outperform | C$347.93M | 8.41 | 22.74% | ― | 3.18% | 140.09% | |
67 Neutral | C$1.02B | 71.99 | 1.91% | ― | 42.32% | 4332.35% | |
63 Neutral | C$1.01B | -16.40 | -10.07% | 3.29% | 6.33% | -1216.48% | |
57 Neutral | C$3.07B | -1.98 | 88.77% | 5.04% | 9.12% | -1203.19% | |
54 Neutral | C$123.43M | -10.50 | -14.43% | 3.42% | -1.18% | 42.93% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
TSE:BHC
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8.29
-0.93
-10.09%
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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.