# Baxter International (BAX.US)

Canonical: https://gigainvestors.com/s/BAX

Analysis as of: 2026-10-16T07:26:48.094Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $25.76 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 4

- Operating margin variation: 3.13×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.12×

- FY2018: 0.14×

- FY2019: 0.16×

- FY2020: 0.14×

- FY2021: 0.11×

- FY2022: -0.28×

- FY2023: 0.07×

- FY2024: 0.00×

- FY2025: -0.03×

- LTM to Jun 2026: -0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 9.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 10.8%

- ROIC, second-lowest year: -2.6%

- Typical minus recent gross margin: 9.6 pp

- Typical gross margin (annual median): 39.7%

- Recent gross margin (lower of latest and 3-year median): 30.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.0%

- ROIC including acquisitions, ten-year median: 9.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.1%

- FY2017: 13.6%

- FY2018: 23.4%

- FY2019: 23.7%

- FY2020: 16.2%

- FY2021: 8.6%

- FY2022: -15.1%

- FY2023: 3.9%

- FY2024: 0.1%

- FY2025: -2.6%

### economics: fail

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.0B

- Net income, five-year total: -$99M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 1.0 pp

- Working capital / revenue, change between three-year averages: 4.6 pp

- Working capital / revenue, final three-year average: 27.2%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $1.4B

- FY2022: -$2.0B

- FY2023: $3.2B

- FY2024: -$112M

- FY2025: -$498M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 13.6% vs 0.1%

- Per-share earnings: 1.76 to -1.27 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.7%

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: -$15B

- Cumulative retained earnings: -$495M

- Diluted shares, 10-year annual growth: -0.7%

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$3.04

- Per-share value, starting three-year median: $1.76

- Per-share value, ending three-year median: -$1.27

- Buybacks concentrated in cheaper years (correlation): -0.02

- Average buyback yield: 2.0%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: $14B

- Cumulative net income, 10 years: $9.1B

- ROIC, first three-year median: 13.6%

- ROIC, last three-year median: 0.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $9.01

- FY2017: $1.08

- FY2018: $2.83

- FY2019: $1.93

- FY2020: $2.13

- FY2021: $2.53

- FY2022: -$4.83

- FY2023: $5.23

- FY2024: -$1.27

- FY2025: -$1.87

### accounting: pass

- Sloan accruals: -9.0%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 13.8%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.52×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 21.3%

- FY2017: -6.5%

- FY2018: -3.0%

- FY2019: -6.1%

- FY2020: -3.8%

- FY2021: -2.8%

- FY2022: -12.9%

- FY2023: 3.3%

- FY2024: -6.5%

- FY2025: -9.0%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Steven Romick](https://gigainvestors.com/FPA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Edgar Wachenheim](https://gigainvestors.com/GA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mark Hillman](https://gigainvestors.com/HCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 70% since Dec 2021 · "The medical device company posted weaker-than-expected quarterly earnings and issued dim guidance for 2026." (finance.yahoo.com, Feb 2026) · sales +2%

Story as of 2026-10-16T09:58:22.307Z; price observation 2026-10-15.

- 2025-05-15: BAX Q1 Earnings Call: Revenue Tops Expectations, Margins Face Tariff and Cost Pressures ([finance.yahoo.com](https://finance.yahoo.com/news/bax-q1-earnings-call-revenue-142905931.html))

- 2025-07-31: Baxter cuts forecast, misses estimates amid lingering hurricane impact on medical products unit ([finance.yahoo.com](https://finance.yahoo.com/news/baxter-cuts-forecast-misses-estimates-133205955.html))

- 2025-08-13: BAX Q2 Deep Dive: Margin Pressure and Product Headwinds Temper Near-Term Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/bax-q2-deep-dive-margin-040738456.html))

- 2025-10-31: BAX Q3 Deep Dive: Mixed Segment Results and Lowered Guidance Drive Market Reaction ([finance.yahoo.com](https://finance.yahoo.com/news/bax-q3-deep-dive-mixed-142126920.html))

- 2026-02-12: Baxter shares plunge 14% after earnings miss, weak profit guidance ([finance.yahoo.com](https://finance.yahoo.com/news/baxter-shares-plunge-14-earnings-125743544.html))

- 2026-07-30: Baxter Int'l Q2 Profit Rises; Boosts FY26 Outlook; Stock Surges 15% ([nasdaq.com](https://www.nasdaq.com/articles/baxter-intl-q2-profit-rises-boosts-fy26-outlook-stock-surges-15))

### Sales · FY2025–2026

sales +2%; source https://www.sec.gov/Archives/edgar/data/10456/000162828026007733/bax-20251231.htm; observed 2026-02-12.

- FY2017: $11B 

- FY2018: $11B 

- FY2019: $11B 

- FY2020: $12B 

- FY2021: $12B 

- FY2022: $10B 

- FY2023: $10B 

- FY2024: $11B 

- FY2025: $11B 

- FY2026: $11B 

### Gross margin · FY2025

gross margin 30.1%; source https://www.sec.gov/Archives/edgar/data/10456/000162828026007733/bax-20251231.htm; observed 2026-02-12.

- FY2016: 40.5% 

- FY2017: 42.3% 

- FY2018: 42.9% 

- FY2019: 41.9% 

- FY2020: 39.3% 

- FY2021: 38.9% 

- FY2022: 35.3% 

- FY2023: 40.1% 

- FY2024: 37.5% 

- FY2025: 30.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical instruments & supplies; annual sales are USD 11.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/10456/000162828026007733/bax-20251231.htm (filed 2026-02-12); FY2025: revenue 11244000000; grossProfit 3379000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 30.1% to 40.1% during 2023–25; it earns 10.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: grossProfit / revenue = 40.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: grossProfit / revenue = 37.5%.

- Source: https://www.sec.gov/Archives/edgar/data/10456/000162828026007733/bax-20251231.htm (filed 2026-02-12); FY2025: grossProfit / revenue = 30.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2016,0.13125440451021847],[2017,0.13635179153094462],[2018,0.23429288497645936],[2019,0.23696175447980744],[2020,0.16245718852409724],[2021,0.08558882015024305],[2022,-0.15118727297188214],[2023,0.038756175329694165],[2024,0.0008269777179602213],[2025,-0.026341885893688428]]; median 0.10842161233023076. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2016: growth capex 0; upkeep 719000000; owner earnings 5046000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2017: growth capex 0; upkeep 616000000; owner earnings 736000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2018: growth capex 0; upkeep 659000000; owner earnings 1658000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2019: growth capex 0; upkeep 696000000; owner earnings 1094000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2020: growth capex 0; upkeep 709000000; owner earnings 1216000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2021: growth capex 0; upkeep 743000000; owner earnings 1408000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: growth capex 0; upkeep 436000000; owner earnings 3204000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,268000000],[2017,315000000],[2018,376000000],[2019,423000000],[2020,473000000],[2021,530000000],[2022,573000000],[2023,586000000],[2024,590000000],[2025,348000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BAX.US SharesStats.PercentInsiders = 0.335 percentage points; cache date 2026-10-16.

### What could break it

"We may experience manufacturing, sterilization, supply, or distribution difficulties." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/10456/000162828026007733/bax-20251231.htm (filed 2026-02-12); We may experience manufacturing, sterilization, supply, or distribution difficulties.

### What the price says

The price is 1.2 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Closing price 25.76 USD; reporting-to-trading FX 1; FY2025 annual sales per share 21.91812865497076; price multiple 1.1752828175026682. FY2025 cash earnings/share -0.9707602339181286. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $47.59 per share

- 2016-11: $44.37 per share

- 2016-12: $44.34 per share

- 2017-01: $47.91 per share

- 2017-02: $50.92 per share

- 2017-03: $51.86 per share

- 2017-04: $55.68 per share

- 2017-05: $59.31 per share

- 2017-06: $60.54 per share

- 2017-07: $60.48 per share

- 2017-08: $62.04 per share

- 2017-09: $62.75 per share

- 2017-10: $64.47 per share

- 2017-11: $65.53 per share

- 2017-12: $64.64 per share

- 2018-01: $72.03 per share

- 2018-02: $67.79 per share

- 2018-03: $65.04 per share

- 2018-04: $69.50 per share

- 2018-05: $70.84 per share

- 2018-06: $73.84 per share

- 2018-07: $72.45 per share

- 2018-08: $74.37 per share

- 2018-09: $77.09 per share

- 2018-10: $62.51 per share

- 2018-11: $68.55 per share

- 2018-12: $65.82 per share

- 2019-01: $72.49 per share

- 2019-02: $74.73 per share

- 2019-03: $81.31 per share

- 2019-04: $76.30 per share

- 2019-05: $73.44 per share

- 2019-06: $81.90 per share

- 2019-07: $83.97 per share

- 2019-08: $87.95 per share

- 2019-09: $87.47 per share

- 2019-10: $76.70 per share

- 2019-11: $81.97 per share

- 2019-12: $83.62 per share

- 2020-01: $89.22 per share

- 2020-02: $83.47 per share

- 2020-03: $81.19 per share

- 2020-04: $88.78 per share

- 2020-05: $90.01 per share

- 2020-06: $86.10 per share

- 2020-07: $86.38 per share

- 2020-08: $87.07 per share

- 2020-09: $80.42 per share

- 2020-10: $77.57 per share

- 2020-11: $76.07 per share

- 2020-12: $80.24 per share

- 2021-01: $76.83 per share

- 2021-02: $77.69 per share

- 2021-03: $84.34 per share

- 2021-04: $85.69 per share

- 2021-05: $82.12 per share

- 2021-06: $80.50 per share

- 2021-07: $77.35 per share

- 2021-08: $76.22 per share

- 2021-09: $80.43 per share

- 2021-10: $78.96 per share

- 2021-11: $74.57 per share

- 2021-12: $85.84 per share

- 2022-01: $85.44 per share

- 2022-02: $84.97 per share

- 2022-03: $77.54 per share

- 2022-04: $71.06 per share

- 2022-05: $76.05 per share

- 2022-06: $64.23 per share

- 2022-07: $58.66 per share

- 2022-08: $57.46 per share

- 2022-09: $53.86 per share

- 2022-10: $54.35 per share

- 2022-11: $56.53 per share

- 2022-12: $50.97 per share

- 2023-01: $45.69 per share

- 2023-02: $39.95 per share

- 2023-03: $40.56 per share

- 2023-04: $47.68 per share

- 2023-05: $40.72 per share

- 2023-06: $45.56 per share

- 2023-07: $45.23 per share

- 2023-08: $40.60 per share

- 2023-09: $37.74 per share

- 2023-10: $32.43 per share

- 2023-11: $36.08 per share

- 2023-12: $38.66 per share

- 2024-01: $38.69 per share

- 2024-02: $40.92 per share

- 2024-03: $42.74 per share

- 2024-04: $40.37 per share

- 2024-05: $34.09 per share

- 2024-06: $33.45 per share

- 2024-07: $35.82 per share

- 2024-08: $37.94 per share

- 2024-09: $37.97 per share

- 2024-10: $35.70 per share

- 2024-11: $33.71 per share

- 2024-12: $29.16 per share

- 2025-01: $32.56 per share

- 2025-02: $34.51 per share

- 2025-03: $34.23 per share

- 2025-04: $31.17 per share

- 2025-05: $30.50 per share

- 2025-06: $30.28 per share

- 2025-07: $21.76 per share

- 2025-08: $24.69 per share

- 2025-09: $22.77 per share

- 2025-10: $18.47 per share

- 2025-11: $18.74 per share

- 2025-12: $19.11 per share

- 2026-01: $20.07 per share

- 2026-02: $20.37 per share

- 2026-03: $16.80 per share

- 2026-04: $17.58 per share

- 2026-05: $18.78 per share

- 2026-06: $21.32 per share

- 2026-07: $26.16 per share

- 2026-08: $26.00 per share

- 2026-09: $24.00 per share

- 2026-10: $25.76 per share

## Annual estimated value (USD per share)

- FY2016: low $46.29 per share, central $52.02 per share, high $59.65 per share

- FY2017: low $48.72 per share, central $54.64 per share, high $62.53 per share

- FY2018: low $36.15 per share, central $40.73 per share, high $46.82 per share

- FY2019: low $29.03 per share, central $32.20 per share, high $36.43 per share

- FY2020: low $32.47 per share, central $36.02 per share, high $40.73 per share

- FY2021: low $32.55 per share, central $36.31 per share, high $41.31 per share

- FY2022: low $25.73 per share, central $28.86 per share, high $33.03 per share

- FY2023: low $28.87 per share, central $32.07 per share, high $36.34 per share

- FY2024: low $26.79 per share, central $30.06 per share, high $34.42 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:32:26.082Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/10456/000162828026007733/bax-20251231.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.