Added to YB: 2026-03-27
Pitch date: 2026-03-25
BAX [neutral]
Baxter International Inc.
Author Info
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Company Info
Baxter International Inc., through its subsidiaries, provides a portfolio of healthcare products in the United States.
Market Cap
$8.6B
Pitch Price
N/A
Price Target
N/A
Dividend
0.24%
EV/EBITDA
7.65
P/E
-9.53
EV/Sales
1.46
Sector
Health Care Equipment and Supplies
Category
turnaround
Baxter International: Deep value turnaround or hopeless value trap?
BAX (overview): Med device/pharma co w/ 100yr history, down 80% over 4yrs to 20yr-low valuations. Rev stagnant $10.4B (2006) to $11.2B today (adjusted for inflation = decline). 3 segments post-divestitures: MPT (45% sales, low-mid single-digit growth), HST (30%, mid-high single-digit, 50% gross margin, highest quality), Pharma (25%, GDP+ growth). $9.8B debt (down from $18B). Major risk: history of fatal product recalls (2001 Althane, 2008 Heparin 80+ deaths, 2010 pump deaths), contamination scandals, unethical practices, 2024 Hurricane Helene IV shortage, Novum IQ litigation risk. Turnaround thesis: needs ex-Danaher mgmt to optimize operations without cutting corners. Sticky industry, secular tailwinds, deep value multiples but sketchy track record.
Read full article (3 min)