$BAX
Market Cap:
$16.86 Billion
$BAX Insights BETA
Expenses
- Gross Profit Margin is relatively consistent.
- Avg. Gross Profit Margin is ≈40.1%, which is pretty good. It would be ideal if it were above 60%.
Cost Of Revenues
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Gross Profit
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Gross Profit Margin
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- SGA is relatively inconsistent, which can mean they face intense competition.
- Avg. SGA is ≈63.92%, which is moderate. Ideally, this would be under 30%. If it's closer to 70%, it's on the bad side of the range.
- R&D as % of Gross Profit is 12.94% on average, which is low. Below 5% is very low and above 30% becomes high. The more a company has to invest into R&D, the more likely it's competitive advantages could be made obsolete in the future.
Selling, General & Admin Expense
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Research & Development
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Depreciation, Depletion & Amortization
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SGA Expense to Gross Profit Ratio
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R&D To Gross Profit Ratio
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DDA To Gross Profit Ratio
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Operating Expenses Total
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Operating Profits/Loss
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Income/Loss
- The tax rate (Income Tax Paid / Pretax Income) is 12.07% on average, which is well below the 21% corporate tax rate. It might be worth trying to understand what's going on.
- Net Income is relatively inconsistent. When Net Income is inconsistent, it's hard to determine a value of the company you can feel confident in.
- Net Income / Total Revenues is 13.16% on average. This is good when it's above 10%. When comparing with competitors, the company with the highest ratio will likely be the one with the competitive advantage.
- Earnings Per Share is relatively inconsistent. Erratic earnings picture is a red flag that indicates a fiercely competitive industry with lots of booms and busts. During the bust part of the cycle, the stock price might fall significantly after a bad earnings performance. This creates the illusion of a value buying opportunity but it’s not. Also keep in mind if the company has had stock splits or reverse splits.
Pretax Income
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Income Tax
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Net Profits/Loss
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Pretax Income YoY Change
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Income Tax Rate
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Net Profits/Loss YoY Change
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Basic EPS
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Net Income To Revenue Ratio
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Assets & Liabilities
- Inventory has been relatively inconsistent. Rise and falls, especially if they aren't aligned with earnings, is not what you want because it indicates a boom and bust cycle. The rise of inventory happens after a boom cycle and fall of inventory usually happens after the bust part of the cycle.
- Company's without competitive advantage have an ever increasing amount of PPE, which is going also be accompanied by increasing Depreciation expenses. This is a bad because it eats into the profits of the company and indicates that the company likely needs to continuously reinvent their products. This could indicate they are facing fierce competition and a lack of a competitive advantage. It’s particularly worse if the increases in PPE investments are done using debt, rather than internal sources so check debt growth.
- Goodwill is relatively inconsistent. Increasing Goodwill indicates that the company is out buying other companies at prices above their book value. This can be a good thing if it’s buying companies that have competitive advantages or it can be ignorable/bad if the acquired companies did not have competitive advantages.
- Total Assets on average has been really high. This can be a competitive advantage because raising that much cash to compete with the business becomes much harder.
Cash & Short-Term Investments
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Cash & Equivalents
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Cash To Operating Expenses Ratio
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Inventory
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Receivables
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Total Short-Term Assets
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Property, Plant And Equipment
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Long-Term Investments
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Total Long-Term Assets
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Total Assets
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Net Income To Total Assets Percentage
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Accounts Payable
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Short-Term Debt
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Long Term Debt Due
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Total Short-Term Liabilities
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Long-Term Debt
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Other Long-Term Liabilities
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Total Long-Term Liabilities
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Total Liabilities
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Short-Term To Long-Term Debt Ratio
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Short-Term Assets To Debt Ratio
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Long-Term Debt To Net Income Ratio
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Ownership
- Having Treasury Stock on the balance sheet is a hallmark of a company with a competitive advantage.
Basic Shares Outstanding
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Diluted Shares Outstanding
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Preferred Stock
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Treasury Stock Shares
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Stock Issuance & Repurchase
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- Return on Shareholders' Equity has been 3.28%, which is low (<10%). If Net Income as percentage of Total Revenue also weak (<10%) or negative, it’s a red flag. If it's strong (>10%), it's a green flag since this indicates that they are returning the earnings to shareholders somehow.
Return On Shareholders' Equity
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Book Value
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Free Cash Flow
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Free Cash Flow YoY
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Free Cash Flow Margin
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