# Bausch Health Companies (BHC.US)

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

Analysis as of: 2026-10-15T06:32:34.143Z. 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: $6.31 per share; close as of 2026-10-15.

Estimated value: low $33.43 per share, central $37.45 per share, high $42.80 per share. Buy at or below the central value $37.45 per share. Valuation as of 2026-10-15T06:32:34.143Z; scenarios are not confidence intervals.

Expected annual return: 132.6% at the stated quote. About 132.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines 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: 4

- Years with a net loss: 8

- Operating margin variation: 2.24×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.01×

- FY2018: -0.28×

- FY2019: -0.02×

- FY2020: 0.08×

- FY2021: 0.05×

- FY2022: 0.06×

- FY2023: 0.11×

- FY2024: 0.16×

- FY2025: 0.21×

- LTM to Jun 2026: 0.25×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 4.1%

- ROIC, second-lowest year: -2.7%

- Typical minus recent gross margin: 0.7 pp

- Typical gross margin (annual median): 71.4%

- Recent gross margin (lower of latest and 3-year median): 70.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.3%

- ROIC including acquisitions, ten-year median: 3.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -2.7%

- FY2017: 0.5%

- FY2018: -14.3%

- FY2019: -1.5%

- FY2020: 4.9%

- FY2021: 3.7%

- FY2022: 4.5%

- FY2023: 8.2%

- FY2024: 12.1%

- FY2025: 17.6%

### economics: pass

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.5B

- Net income, five-year total: -$1.7B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.9 pp

- Working capital / revenue, final three-year average: 32.4%

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

- FY2021: $321M

- FY2022: $901M

- FY2023: $400M

- FY2024: $884M

- FY2025: $968M

### management: fail

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

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -2.7% vs 12.1%

- Per-share earnings: -0.78 to -0.13 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.9%

- Ordinary dilution, 5-year annual growth: 1.1%

- Market cap gain: -$2.5B

- Cumulative retained earnings: -$4.5B

- Diluted shares, 10-year annual growth: 0.9%

- Diluted shares, 5-year annual growth: 1.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $0.66

- Per-share value, starting three-year median: -$0.78

- Per-share value, ending three-year median: -$0.13

- Buybacks concentrated in cheaper years (correlation): 0.15

- Average buyback yield: 0.5%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $292M

- Cumulative net income, 10 years: -$8.1B

- ROIC, first three-year median: -2.7%

- ROIC, last three-year median: 12.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$6.94

- FY2017: $6.83

- FY2018: -$11.81

- FY2019: -$5.06

- FY2020: -$1.57

- FY2021: -$2.64

- FY2022: -$0.62

- FY2023: -$1.62

- FY2024: -$0.13

- FY2025: $0.42

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -4.7%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 15.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 8.92×

- Accounting red flags: 1

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.3%

- FY2017: 0.3%

- FY2018: -20.6%

- FY2019: -9.7%

- FY2020: -5.4%

- FY2021: -8.1%

- FY2022: 2.0%

- FY2023: -5.9%

- FY2024: -6.2%

- FY2025: -4.7%

## Holders

## Price story

Down 78% since Oct 2021 · "BHC's Late-Stage Liver Cirrhosis Studies Fail, Stock Down" (finance.yahoo.com, Jan 2026) · sales +5.7%

Story as of 2026-10-16T09:58:23.759Z; price observation 2026-10-15.

Price needs cash profits to shrink 40.1% a year for ten years

- 2025-04-07: Correction: Bausch Health's Q1 Revenue Expected to Narrowly Miss Consensus Estimates, RBC Capital Says ([finance.yahoo.com](https://finance.yahoo.com/news/correction-bausch-health-apos-q1-203704903.html))

- 2025-05-01: Bausch Health Q1 Earnings and Revenues Miss Estimates, Stock Down ([finance.yahoo.com](https://finance.yahoo.com/news/bausch-health-q1-earnings-revenues-134800475.html))

- 2025-07-31: Bausch Health Stock Falls on Q2 Earnings Miss, Revenues Beat ([finance.yahoo.com](https://finance.yahoo.com/news/bausch-health-stock-falls-q2-144800943.html))

- 2025-10-30: BHC Stock Up on Q3 Earnings Beat, Salix and Solta Drive Sales ([finance.yahoo.com](https://finance.yahoo.com/news/bhc-stock-q3-earnings-beat-142800453.html))

- 2026-01-23: Bausch Health falls on phase 3 failure of liver disease complications drug ([seekingalpha.com](https://seekingalpha.com/news/4542062-bausch-health-falls-phase-3-failure-liver-disease-complications-drug?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-07-30: BHC Q2 Earnings Beat Estimates on Salix and Solta Growth, '26 View Raised ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/bhc-q2-earnings-beat-estimates-163300748.html))

### Sales · FY2025–2026

sales +5.7%; source https://www.sec.gov/Archives/edgar/data/885590/000088559026000023/bhc-20251231.htm; observed 2026-02-19.

- FY2017: $8.7B 

- FY2018: $8.4B 

- FY2019: $8.6B 

- FY2020: $8.0B 

- FY2021: $8.4B 

- FY2022: $8.1B 

- FY2023: $8.8B 

- FY2024: $9.6B 

- FY2025: $10B 

- FY2026: $11B 

### Gross margin · FY2025

gross margin 70.7%; source https://www.sec.gov/Archives/edgar/data/885590/000088559026000023/bhc-20251231.htm; observed 2026-02-19.

- FY2016: 73.4% 

- FY2017: 70.8% 

- FY2018: 71.9% 

- FY2019: 72.7% 

- FY2020: 72.0% 

- FY2021: 71.6% 

- FY2022: 70.9% 

- FY2023: 70.8% 

- FY2024: 71.1% 

- FY2025: 70.7% 

## Owner memo

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

### How it makes money

Operates in drug manufacturers specialty & generic; annual sales are USD 10.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/885590/000088559026000023/bhc-20251231.htm (filed 2026-02-19); FY2025: revenue 10266000000; grossProfit 7253000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 70.7% to 71.1% during 2023–25; it earns 4.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 70.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 71.1%.

- Source: https://www.sec.gov/Archives/edgar/data/885590/000088559026000023/bhc-20251231.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 70.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2016,-0.02683591405593566],[2017,0.005379172229639519],[2018,-0.1429495256166983],[2019,-0.0151449617527623],[2020,0.04916137346957562],[2021,0.037190345965038736],[2022,0.045040813763656914],[2023,0.08237007362494586],[2024,0.12137925105271219],[2025,0.17621521383464578]]; median 0.04111557986434783. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 71% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/885590/000088559026000023/bhc-20251231.htm (filed 2026-02-19); Gross margin observations: [[2021,0.7161489210339104],[2022,0.7090103397341211],[2023,0.7077766358341898]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 3 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2016: growth capex 0; upkeep 291000000; owner earnings 166000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2017: growth capex 0; upkeep 336000000; owner earnings 4926000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2019: growth capex 0; upkeep 278000000; owner earnings 14000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2020: growth capex 0; upkeep 309000000; owner earnings 957000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 0; upkeep 283000000; owner earnings 321000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2022: growth capex 0; upkeep 268000000; owner earnings 901000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: growth capex 0; upkeep 272000000; owner earnings 400000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: growth capex 0; upkeep 337000000; owner earnings 884000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/885590/000088559026000023/bhc-20251231.htm (filed 2026-02-19); FY2025: growth capex 0; upkeep 397000000; owner earnings 968000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,9000000],[2017,18000000],[2018,0],[2019,0],[2020,0],[2021,0],[2022,31000000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 11.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); BHC.US SharesStats.PercentInsiders = 11.123 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits shrink 40.1% yearly over ten years; actual decline was 7.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Ten-year compound average after fade. Initial solved rate -0.5427309584537585. Price 6.31; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 5.52973795739714 → FY2025 2.5813333333333333. Closing-price date 2026-10-15.

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

- 2016-10: $17.84 per share

- 2016-11: $15.79 per share

- 2016-12: $14.52 per share

- 2017-01: $13.78 per share

- 2017-02: $14.38 per share

- 2017-03: $11.03 per share

- 2017-04: $9.25 per share

- 2017-05: $12.05 per share

- 2017-06: $17.30 per share

- 2017-07: $16.46 per share

- 2017-08: $13.42 per share

- 2017-09: $14.33 per share

- 2017-10: $11.69 per share

- 2017-11: $16.75 per share

- 2017-12: $20.78 per share

- 2018-01: $18.51 per share

- 2018-02: $16.39 per share

- 2018-03: $15.92 per share

- 2018-04: $18.07 per share

- 2018-05: $22.00 per share

- 2018-06: $23.24 per share

- 2018-07: $21.74 per share

- 2018-08: $23.11 per share

- 2018-09: $25.67 per share

- 2018-10: $22.88 per share

- 2018-11: $24.35 per share

- 2018-12: $18.47 per share

- 2019-01: $24.55 per share

- 2019-02: $23.70 per share

- 2019-03: $24.70 per share

- 2019-04: $23.09 per share

- 2019-05: $20.73 per share

- 2019-06: $25.22 per share

- 2019-07: $23.97 per share

- 2019-08: $21.34 per share

- 2019-09: $21.85 per share

- 2019-10: $24.84 per share

- 2019-11: $28.24 per share

- 2019-12: $29.92 per share

- 2020-01: $27.43 per share

- 2020-02: $22.13 per share

- 2020-03: $15.50 per share

- 2020-04: $18.12 per share

- 2020-05: $18.48 per share

- 2020-06: $18.29 per share

- 2020-07: $18.27 per share

- 2020-08: $16.62 per share

- 2020-09: $15.54 per share

- 2020-10: $16.50 per share

- 2020-11: $18.57 per share

- 2020-12: $20.80 per share

- 2021-01: $25.50 per share

- 2021-02: $31.42 per share

- 2021-03: $31.74 per share

- 2021-04: $32.17 per share

- 2021-05: $32.16 per share

- 2021-06: $29.32 per share

- 2021-07: $29.25 per share

- 2021-08: $29.13 per share

- 2021-09: $27.85 per share

- 2021-10: $28.08 per share

- 2021-11: $23.84 per share

- 2021-12: $27.61 per share

- 2022-01: $24.57 per share

- 2022-02: $24.06 per share

- 2022-03: $22.85 per share

- 2022-04: $19.01 per share

- 2022-05: $9.72 per share

- 2022-06: $8.36 per share

- 2022-07: $4.62 per share

- 2022-08: $5.97 per share

- 2022-09: $6.89 per share

- 2022-10: $6.50 per share

- 2022-11: $7.03 per share

- 2022-12: $6.28 per share

- 2023-01: $7.70 per share

- 2023-02: $9.31 per share

- 2023-03: $8.10 per share

- 2023-04: $7.37 per share

- 2023-05: $8.21 per share

- 2023-06: $8.00 per share

- 2023-07: $9.71 per share

- 2023-08: $8.34 per share

- 2023-09: $8.22 per share

- 2023-10: $6.82 per share

- 2023-11: $7.14 per share

- 2023-12: $8.02 per share

- 2024-01: $7.85 per share

- 2024-02: $9.39 per share

- 2024-03: $10.61 per share

- 2024-04: $8.76 per share

- 2024-05: $6.56 per share

- 2024-06: $6.97 per share

- 2024-07: $6.03 per share

- 2024-08: $5.93 per share

- 2024-09: $8.16 per share

- 2024-10: $9.20 per share

- 2024-11: $8.37 per share

- 2024-12: $8.06 per share

- 2025-01: $7.43 per share

- 2025-02: $7.44 per share

- 2025-03: $6.47 per share

- 2025-04: $5.30 per share

- 2025-05: $4.53 per share

- 2025-06: $6.66 per share

- 2025-07: $5.89 per share

- 2025-08: $7.42 per share

- 2025-09: $6.45 per share

- 2025-10: $7.02 per share

- 2025-11: $6.35 per share

- 2025-12: $6.95 per share

- 2026-01: $5.74 per share

- 2026-02: $5.93 per share

- 2026-03: $5.40 per share

- 2026-04: $5.72 per share

- 2026-05: $5.36 per share

- 2026-06: $4.93 per share

- 2026-07: $6.89 per share

- 2026-08: $6.37 per share

- 2026-09: $5.83 per share

- 2026-10: $6.04 per share

## Annual estimated value (USD per share)

- FY2016: low $56.26 per share, central $63.88 per share, high $74.02 per share

- FY2017: low $50.74 per share, central $57.52 per share, high $66.55 per share

- FY2018: low $48.89 per share, central $55.42 per share, high $64.10 per share

- FY2019: low $13.30 per share, central $13.94 per share, high $14.78 per share

- FY2020: low $5.35 per share, central $5.93 per share, high $6.71 per share

- FY2021: low $10.93 per share, central $12.28 per share, high $14.07 per share

- FY2022: low $10.45 per share, central $11.73 per share, high $13.45 per share

- FY2023: low $14.10 per share, central $15.75 per share, high $17.95 per share

- FY2024: low $28.94 per share, central $32.56 per share, high $37.38 per share

- FY2025: low $30.46 per share, central $34.25 per share, high $39.30 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

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/885590/000088559026000023/bhc-20251231.htm); period 2025-12-31, filed 2026-02-19.

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.