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Bausch Health Companies (TSE:BHC)
TSX:BHC
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Bausch Health Companies
(TSX:BHC)
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Rating:61Neutral
Price Target:
C$10.00
▲(8.11% Upside)
Bausch Health Companies' overall stock score is driven by strong earnings call performance and undervaluation, suggesting potential upside. However, significant financial risks due to high leverage and declining free cash flow weigh down the score. Technical indicators provide a neutral outlook, reflecting market caution.
Positive Factors
Revenue Growth
Consistent revenue and EBITDA growth indicate strong market demand and effective business strategies, supporting long-term financial health.
Debt Reduction
Significant debt reduction enhances financial stability and flexibility, allowing for strategic investments and reducing interest expenses.
Product-Level Achievements
Strong product performance across key brands suggests successful innovation and market penetration, supporting future revenue streams.
Negative Factors
High Leverage
High leverage and negative equity pose financial risks, potentially limiting the company's ability to invest in growth and manage downturns.
Liquidity Concerns
Reduced free cash flow can constrain operational flexibility and limit the company's ability to fund new initiatives or manage unexpected expenses.
Regulatory Changes
Exiting Medicaid and 340B could impact revenue from these programs, requiring adjustments in pricing or patient support strategies to maintain market share.
Bausch Health Companies (BHC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.53B
Dividend YieldN/A
Average Volume (3M)348.00K
Price to Earnings (P/E)7.1
Beta (1Y)1.46
Revenue Growth8.68%
EPS GrowthN/A
CountryCA
Employees20,700
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.62
Shares Outstanding370,516,940
10 Day Avg. Volume265,825
30 Day Avg. Volume348,003
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.65Price Target Upside25.94% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Bausch Health Companies Business Overview & Revenue Model
Company DescriptionBausch Health Companies Inc. (BHC) is a global company focused on the development, manufacture, and marketing of a range of pharmaceutical and medical device products. The company operates primarily in the eye health, gastrointestinal, dermatology, and neurology sectors. Bausch Health's core product offerings include prescription medications, over-the-counter products, and medical devices, with a strong emphasis on innovative therapies and solutions for patients. The company also has a significant presence in the contact lens market through its Bausch + Lomb subsidiary, providing products that enhance vision and eye health.
How the Company Makes MoneyBausch Health generates revenue through multiple streams, primarily from the sale of prescription drugs and medical devices. The company has a diversified portfolio, with key revenue contributors including eye health products, such as contact lenses and surgical devices, as well as pharmaceutical products in areas like dermatology and gastrointestinal health. Bausch Health also benefits from strategic partnerships and collaborations that enhance its product offerings and market reach. Additionally, the company engages in licensing agreements and has a robust pipeline of new drug candidates, which can further drive revenue growth as they move through clinical development and gain regulatory approval.
Bausch Health Companies Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with multiple quarters of revenue and EBITDA growth, significant debt reduction, and strong product-level performance. However, some challenges remain in international markets and specific segments.Q3-2025 Updates
Positive Updates
Consecutive Revenue and EBITDA Growth
Bausch Health, excluding Bausch + Lomb, achieved its 10th consecutive quarter of year-over-year revenue and adjusted EBITDA growth, with a 7% increase in both metrics on a reported basis.
Debt Reduction
The company reduced its debt by approximately $600 million using cash on hand, showcasing strong financial management.
Solta and Salix Double-Digit Growth
Solta saw a 25% growth on a reported basis and 24% on an organic basis, while Salix delivered 12% growth on a reported basis and 11% on an organic basis.
Product-Level Achievements
Triple-digit growth for Cabtreo and Ryaltris, and double-digit growth for Xifaxan and Thermage were observed, indicating strong product performance.
Negative Updates
International Segment Revenue Decline
Revenues in the International segment decreased by 2% on a reported basis and 4% on an organic basis, with specific challenges in Canada and Latin America.
Diversified Segment Performance
The diversified segment saw a revenue decrease of 4% on a reported basis and 6% on an organic basis, primarily due to neurology business impacts.
Challenges in China
Growth in China was limited to 3% in Q3, primarily due to cautious consumer behavior in the aesthetics market amidst economic uncertainty.
Company Guidance
During the Bausch Health Third Quarter 2025 Earnings Conference Call, the company reported continued strong operational performance with its 10th consecutive quarter of revenue and adjusted EBITDA growth, excluding Bausch + Lomb. The revenue for Bausch Health, excluding Bausch + Lomb, grew by 7% on a reported basis and 5% on an organic basis year-over-year, while adjusted EBITDA saw a 7% rise, reaching $773 million, despite an $81 million charge related to R&D acquisition. Excluding this charge, adjusted EBITDA grew by 18%. The company reduced its debt by approximately $600 million and raised its full-year guidance for revenue, adjusted EBITDA, and adjusted cash flow from operations. Notable achievements included double-digit growth in the Solta and Salix segments, with Solta experiencing a 25% increase and Salix a 12% increase in revenue. Additionally, product-level highlights included triple-digit growth for Cabtreo and Ryaltris and double-digit growth for Xifaxan and Thermage. The company also discussed a 7% revenue growth for Bausch + Lomb and improvements in financial priorities, including optimizing its capital structure and assessing options to unlock value for stakeholders.Bausch Health Companies Financial Statement Overview
Summary
Bausch Health Companies shows strong revenue growth and operational efficiency, with a healthy gross profit margin. However, the balance sheet reveals significant leverage and negative equity, posing financial risks. Cash flow analysis indicates moderate cash generation but declining free cash flow, suggesting potential liquidity concerns.Income Statement
Bausch Health Companies shows a positive revenue growth trend with a TTM growth rate of 1.31%. The gross profit margin is strong at 75.04%, indicating efficient cost management. However, the net profit margin is low at 0.98%, suggesting challenges in translating revenue into profit. The EBIT and EBITDA margins are healthy, reflecting operational efficiency.65
Positive
Balance Sheet
The company has a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -1.15 in TTM. This indicates high leverage and potential financial instability. The return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is also negative, highlighting a reliance on debt financing.40
Negative
Cash Flow
Operating cash flow is positive, but free cash flow has declined by 9.21% in TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.30, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.74, indicating some ability to cover net income with free cash flow.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.86B | 9.63B | 8.76B | 8.12B | 8.43B | 8.03B |
| Gross Profit | 6.97B | 6.84B | 6.20B | 5.76B | 6.04B | 5.78B |
| EBITDA | 3.00B | 2.82B | 2.20B | 2.88B | 3.26B | 3.14B |
| Net Income | 98.00M | -46.00M | -592.00M | -212.00M | -937.00M | -559.00M |
Balance Sheet | ||||||
| Total Assets | 27.27B | 26.52B | 27.35B | 25.69B | 29.20B | 31.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.73B | 1.18B | 947.00M | 564.00M | 582.00M | 605.00M |
| Total Debt | 21.74B | 21.62B | 22.39B | 20.77B | 22.65B | 23.93B |
| Total Liabilities | 27.12B | 26.84B | 27.43B | 25.43B | 29.24B | 30.59B |
| Stockholders Equity | -764.00M | -1.28B | -1.02B | -692.00M | -106.00M | 535.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.10B | 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 | -532.00M | -454.00M | -2.15B | -303.00M | 409.00M | -261.00M |
| Financing Cash Flow | 108.00M | -868.00M | 1.48B | -474.00M | -1.51B | -2.29B |
Bausch Health Companies Technical Analysis
Positive
9.25
Price Trends
9.31
Positive
9.20
Positive
8.82
Positive
Market Momentum
0.08
Negative
57.51
Neutral
73.12
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 9.25 is above the 20-day moving average (MA) of 8.88, below the 50-day MA of 9.31, and above the 200-day MA of 8.82, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 57.51 is Neutral, neither overbought nor oversold. The STOCH value of 73.12 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 64 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $375.57M | 22.40 | 12.25% | ― | 121.40% | -47.34% | |
63 Neutral | C$1.33B | 51.18 | 1.73% | ― | 31.72% | ― | |
61 Neutral | C$3.53B | 7.14 | ― | ― | 8.68% | ― | |
61 Neutral | ― | ― | ― | ― | 5.24% | -7.99% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | C$169.51M | -8.20 | -20.58% | ― | -1.42% | 35.15% | |
47 Neutral | $578.13M | 1,705.88 | 0.03% | ― | 13.82% | ― |
* Healthcare Sector Average
TSE:BHC
Bausch Health Companies
9.55
-3.71
-27.98%
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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.