BHC

Bausch Health Companies

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Healthcare

industry

Drug Manufacturers - Specialty & Generic

Exchange

NYSE

County of HQ

Canada

Next Earnings Date

04/29/26

Business Summary

Bausch Health Companies operates as a diversified specialty and generic drug manufacturer, generating revenue through branded pharmaceuticals and off-patent products across multiple therapeutic categories. Cash flow is driven by established drug portfolios where pricing power, distribution scale, and regulatory approvals create barriers to entry. The moat is not innovation-driven dominance but portfolio breadth and embedded relationships with healthcare providers and payers. Its competitive position relies on maintaining product relevance, managing lifecycle strategies, and extracting operating leverage from a global commercial infrastructure.

VALUATION

P/E

13.3

Market Cap ($M USD)

$2,062

Forward P/E

1.4

PEG

0.3

PRICE TO SALES

0.2

PRICE TO BOOK

-

EV / EBITDA

6.8

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.42

Next Year EPS Growth Estimate

$4.02

Next Year Revenue Growth Estimate

0.10%

Return on Equity (ROE)

-28.30%

Operating Margin

21.30%

Debt-to-Equity

-

Piotroski F-Score

7

Altman Z-Score

0.3

Return on Invested Capital (ROIC)

8.70%%

Current Ratio

1.5

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 13.3x earnings and just 0.2x sales, the market is pricing BHC like a distressed asset despite a Piotroski F-Score of 7 and ROIC of 8.70%. The 1.4 Forward P/E and 0.3 PEG Forward scream deep value, but the 0.3 Altman Z-Score signals extreme balance sheet fragility and potential solvency risk. This is not a stable compounder; it is a leveraged restructuring story where equity holders are betting on survival and operational normalization. The valuation implies either a dramatic earnings step-down (supported by the $0.42 EPS Next Year estimate versus 6.8 current EPS) or severe financial risk, and the negative -28.30% operating margin confirms the core business is under pressure. The market is not irrational here — it is discounting significant structural risk.

AI Exposure / Tech Reliance

As a Drug Manufacturers - Specialty & Generic company in Healthcare, BHC operates in a sector where AI is increasingly relevant for drug discovery, clinical trial optimization, and cost efficiencies. However, with a -28.30% operating margin, the immediate priority appears to be operational stabilization rather than aggressive AI-driven expansion. The company’s ability to benefit from AI will depend more on capital allocation discipline than technological ambition.

The Bull Case

A deep value or GARP investor could justify a position based on statistical cheapness and improving internal metrics. A Piotroski F-Score of 7 suggests operational improvement and financial stabilization trends, while ROIC of 8.70% indicates the company can generate returns above many distressed peers despite margin compression. The 0.2 Price/Sales ratio implies the market is valuing each dollar of revenue at just twenty cents, an extreme discount for a Healthcare name. The 1.5 current ratio shows near-term liquidity is not immediately alarming, and a 13.3 P/E paired with a 0.3 PEG Forward suggests that if earnings stabilize rather than collapse to the $0.42 estimate, the stock could rerate violently upward. With a $2,062M market cap, even modest operational improvement could produce outsized equity appreciation.

The Bear Case

The bear case is dominated by capital structure risk and collapsing forward profitability. A Debt/Equity ratio of 21.30% combined with a catastrophic 0.3 Altman Z-Score places the company firmly in financial distress territory. Operating margin at -28.30% indicates the core business is not currently generating operating profit, and the projected EPS drop from 6.8 to $0.42 next year reinforces fears of earnings compression. Return on Equity of just 0.10% suggests shareholders are not being compensated for the risk, and the absence of a dividend or yield removes any income cushion. This is a highly levered balance sheet attached to a structurally pressured earnings base — a dangerous mix if refinancing conditions tighten.

Market Sentiment & Smart Money

Short Interest %

1.80%

Analyst Consensus

3

Average Analyst Price Target

$7.67

Institutional Ownership %

66.20%

1-Year Beta

1.17

Insider Buying % (6 Mo)

11.00%%

Distance to 52-Week High

64.50%%

Distance to 52-Week Low

131.80%%