Want to see TSE:BHC full AI Analyst Report?
Top Page
Bausch Health Companies
(TSX:BHC)
Select Model
Select Model
Rating:61Neutral
Price Target:
C$12.00
▲(28.89% Upside)
Action:Reiterated
Date:10/31/26
The score is held back mainly by balance-sheet risk (very high debt and negative equity) and ongoing net-loss volatility despite strong operating margins and free cash flow. Technicals are supportive with strong trend momentum, and the latest earnings call was constructive due to raised 2026 guidance and ongoing debt reduction, but near-term Xifaxan-related headwinds and valuation limitations (negative P/E, no dividend yield provided) temper the outlook.
Positive Factors
Sustained diversified growth
Broad-based growth across therapeutic and geographic segments reduces reliance on any single product or market. The company’s 14-quarter record of revenue and adjusted EBITDA growth indicates durable commercial execution and supports continued reinvestment across its portfolio.
Negative Factors
Highly levered balance sheet
Very high debt combined with negative equity leaves Bausch Health with a thin capital buffer and reduced financial flexibility. The structure increases exposure to refinancing and interest burdens, making the company more sensitive to any sustained deterioration in operating performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained diversified growth
Broad-based growth across therapeutic and geographic segments reduces reliance on any single product or market. The company’s 14-quarter record of revenue and adjusted EBITDA growth indicates durable commercial execution and supports continued reinvestment across its portfolio.
Read all positive factors
Bausch Health Companies (BHC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.29B
Dividend Yield5.04%
Average Volume (3M)583.47K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth10.07%
EPS Growth-328.97%
CountryCA
Employees20,300
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-2.25
Shares Outstanding373,990,570
10 Day Avg. Volume768,031
30 Day Avg. Volume583,467
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$11.65Price Target Upside25.09% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)6.42
Revenue Forecast (FY)C$15.38B
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:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Highlights significantly outweighed the lowlights, supported by broad-based revenue and profit growth, record adjusted EBITDA for Bausch Health excluding Bausch + Lomb, substantial cash generation and debt reduction, another increase in full-year guidance, and continued pipeline and portfolio development. The principal challenges were expected Q4 and 2027 Xifaxan pricing and inventory effects, Solta's quarterly organic decline and market competition, and unresolved litigation timing.Positive Updates
Strong Consolidated Third-Quarter Financial Results
Consolidated revenue was $2.941 billion, up 10% on a reported basis and 8% on an organic basis year over year. Adjusted gross margin was 75%, up 32 basis points. Adjusted EBITDA was $1.305 billion, up $319 million or 32%, and adjusted cash flow from operations was $782 million, up $274 million or 54%.
Negative Updates
Expected Q4 Xifaxan Gross-to-Net Headwind
Q4 performance is expected to be affected by an adjustment to the gross-to-net accrual associated with channel inventory ahead of the new Xifaxan price to Medicare taking effect on January 1, 2027. Management said this element alone represents an 800-basis-point reduction in revenue growth and a 1,400-basis-point reduction in adjusted EBITDA growth for the quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Consolidated Third-Quarter Financial Results
Consolidated revenue was $2.941 billion, up 10% on a reported basis and 8% on an organic basis year over year. Adjusted gross margin was 75%, up 32 basis points. Adjusted EBITDA was $1.305 billion, up $319 million or 32%, and adjusted cash flow from operations was $782 million, up $274 million or 54%.
Read all positive updates
Company Guidance
For full-year 2026, revenue is expected to be between $5.525 billion and $5.625 billion, with the midpoint translating to an 8% increase year over year; adjusted EBITDA is expected to be between $3.225 billion and $3.275 billion, with the midpoint representing a 13% increase versus 2025; and adjusted cash flow from operations is expected to be between $1.6 billion and $1.675 billion, with the mid point translating to a 29% increase year over year. The company increased the midpoint of its full year guidance by $150 million for revenue, approximately $190 million for adjusted EBITDA and $200 million for adjusted cash flow from operations. Q4 guidance includes an 800 basis points of revenue growth reduction and 1.4 thousand basis points of adjusted EBITDA growth reductions from the Xifaxan gross to net accrual, plus at least another 300 basis points of growth reduction and 500 basis points of adjusted EBITDA reduction from normalization of Xifaxan channel inventory; Solta is expected to be in the mid-single-digits for overall SALTA on an organic basis in Q4. The implicit guidance provided for 2027 is about $2.7 billion, with the net impact of all the puts and takes around $400 million to $500 million year over year.Bausch Health Companies Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
18
Very Negative
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.07B | 10.45B | 9.63B | 8.76B | 8.12B | 8.43B |
| Gross Profit | 7.11B | 6.36B | 6.84B | 6.20B | 5.76B | 6.04B |
| EBITDA | 4.17B | 3.43B | 2.82B | 2.20B | 2.88B | 3.26B |
| Net Income | -822.09M | 159.75M | -46.00M | -592.00M | -212.00M | -937.00M |
Balance Sheet | ||||||
| Total Assets | 25.32B | 26.32B | 26.52B | 27.35B | 25.69B | 29.20B |
| Cash, Cash Equivalents and Short-Term Investments | 2.47B | 1.32B | 1.18B | 947.00M | 564.00M | 582.00M |
| Total Debt | 20.58B | 21.21B | 21.62B | 22.39B | 20.77B | 22.65B |
| Total Liabilities | 25.66B | 25.94B | 26.84B | 27.43B | 25.43B | 29.24B |
| Stockholders Equity | -1.32B | -552.99M | -1.28B | -1.02B | -692.00M | -106.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.83B | 974.77M | 1.26B | 760.00M | -996.00M | 1.14B |
| Operating Cash Flow | 2.21B | 1.38B | 1.60B | 1.03B | -728.00M | 1.43B |
| Investing Cash Flow | -602.84M | -605.42M | -454.00M | -2.15B | -303.00M | 409.00M |
| Financing Cash Flow | -461.33M | -709.20M | -868.00M | 1.48B | -474.00M | -1.51B |
Bausch Health Companies Technical Analysis
Positive
9.31
Price Trends
8.76
Positive
8.08
Positive
7.91
Positive
Market Momentum
0.60
Negative
71.97
Negative
86.43
Negative
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 9.12, above the 50-day MA of 8.76, and above the 200-day MA of 7.91, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 71.97 is Negative, neither overbought nor oversold. The STOCH value of 86.43 is Negative, 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$1.70B | 17.61 | 6.46% | ― | 36.21% | 264.71% | |
74 Outperform | C$331.67M | 8.19 | 22.74% | ― | 3.18% | 140.09% | |
67 Neutral | C$1.11B | 76.61 | 1.91% | ― | 42.32% | 4332.35% | |
63 Neutral | C$997.22M | -14.90 | -10.07% | 3.32% | 6.33% | -1216.48% | |
61 Neutral | C$4.29B | -3.61 | 58.90% | 5.04% | 10.07% | -328.97% | |
58 Neutral | C$139.52M | -12.23 | -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
Bausch Health Companies
11.47
1.87
19.48%
TSE:GUD
Knight Therapeutics
11.27
5.43
92.98%
TSE:CPH
Cipher Pharmaceuticals
13.05
-1.69
-11.47%
TSE:CRON
Cronos Group
4.62
1.06
29.78%
TSE:HLS
HLS Therapeutics Inc
4.51
-0.99
-18.00%
TSE:DHT.UN
DRI Healthcare
18.14
2.52
16.15%
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.