# Boston Scientific (BSX.US)

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

Analysis as of: 2026-10-16T07:27:07.228Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

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

Share price: $44.14 per share; close as of 2026-10-15.

Estimated value: low $22.14 per share, central $25.18 per share, high $29.23 per share. Buy at or below the central value $25.18 per share. Valuation as of 2026-10-16T07:27:07.228Z; scenarios are not confidence intervals.

Expected annual return: 6.9% at the stated quote. About 6.9% 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: pass

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

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.17×

- FY2018: 0.18×

- FY2019: 0.16×

- FY2020: 0.06×

- FY2021: 0.16×

- FY2022: 0.14×

- FY2023: 0.15×

- FY2024: 0.16×

- FY2025: 0.20×

- LTM to Jun 2026: 0.21×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 14.6%

- ROIC, second-lowest year: 9.1%

- Typical minus recent gross margin: 1.2 pp

- Typical gross margin (annual median): 63.2%

- Recent gross margin (lower of latest and 3-year median): 62.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.4%

- ROIC including acquisitions, ten-year median: 6.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 23.1%

- FY2017: 18.2%

- FY2018: 22.5%

- FY2019: 12.4%

- FY2020: 3.6%

- FY2021: 15.3%

- FY2022: 9.1%

- FY2023: 12.9%

- FY2024: 13.8%

- FY2025: 20.8%

### economics: pass

- Owner earnings / net income, 5-yr: 1.30×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $11B

- Net income, five-year total: $8.1B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 1.6 pp

- Working capital / revenue, final three-year average: 25.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.52×

- FY2022: 1.75×

- FY2023: 1.25×

- FY2024: 1.26×

- FY2025: 1.17×

### 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: 22.5% vs 13.8%

- Per-share earnings: 0.07 to 1.25 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- 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: 1.1%

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

- Market cap gain: $113B

- Cumulative retained earnings: $14B

- Diluted shares, 10-year annual growth: 1.1%

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

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 42.2%

- Per-share value change: $1.17

- Per-share value, starting three-year median: $0.07

- Per-share value, ending three-year median: $1.25

- Average buyback yield: 1.1%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: $15B

- Cumulative net income, 10 years: $15B

- ROIC, first three-year median: 22.5%

- ROIC, last three-year median: 13.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.25

- FY2017: $0.07

- FY2018: $1.19

- FY2019: $3.33

- FY2020: -$0.06

- FY2021: $0.73

- FY2022: $0.48

- FY2023: $1.09

- FY2024: $1.25

- FY2025: $1.93

### accounting: pass

- Sloan accruals: -3.8%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 6.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.57×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.5%

- FY2017: -6.9%

- FY2018: 6.5%

- FY2019: 9.4%

- FY2020: -5.2%

- FY2021: -2.6%

- FY2022: -2.6%

- FY2023: -2.6%

- FY2024: -4.0%

- FY2025: -3.8%

## Holders

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

- [David Hoeft](https://gigainvestors.com/DAC): 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.

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

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

## Price story

Down 59% since Jun 2025 · "Boston Scientific's 2026 Guidance Cut Puts Its Recovery to the Test" (finance.yahoo.com, Aug 2026) · sales +4.6%

Story as of 2026-10-16T09:58:26.033Z; price observation 2026-10-15.

Price needs cash profits to grow 8% a year for ten years

- 2026-02-04: Stock Market Today, Feb. 4: Boston Scientific Plunges After Cautious 2026 Guidance Disappoints Investors ([finance.yahoo.com](https://finance.yahoo.com/news/stock-market-today-feb-4-224117498.html))

- 2026-03-08: Boston Scientific Recall And Lawsuits Test Earnings Power And Capital Plans ([finance.yahoo.com](https://finance.yahoo.com/news/boston-scientific-recall-lawsuits-test-051125867.html))

- 2026-05-27: Boston Scientific shares fall 10% on Watchman weakness, competitive pressures ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/boston-scientific-stock-tumbles-6-134607210.html))

- 2026-06-24: Boston Scientific (BSX) Recalls Orca Valves Nationwide After Device Malfunction ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/boston-scientific-bsx-recalls-orca-191528332.html))

- 2026-07-29: Boston Scientific Q2 2026 earnings: profit forecast cut on Watchman slowdown ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/boston-scientific-q2-2026-earnings-130256737.html))

- 2026-09-08: Boston Scientific misses 2026 guidance after cyberattack ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/boston-scientific-misses-2026-guidance-174054579.html))

### Sales · FY2025–2026

sales +4.6%; source https://www.sec.gov/Archives/edgar/data/885725/000088572526000010/bsx-20251231.htm; observed 2026-02-17.

- FY2017: $9.0B 

- FY2018: $9.8B 

- FY2019: $11B 

- FY2020: $9.9B 

- FY2021: $12B 

- FY2022: $13B 

- FY2023: $14B 

- FY2024: $17B 

- FY2025: $20B 

- FY2026: $21B 

### Gross margin · FY2025

gross margin 69%; source https://www.sec.gov/Archives/edgar/data/885725/000088572526000010/bsx-20251231.htm; observed 2026-02-17.

- FY2016: 63.7% 

- FY2017: 64.9% 

- FY2018: 65.9% 

- FY2019: 64.1% 

- FY2020: 56.2% 

- FY2021: 62.8% 

- FY2022: 60.8% 

- FY2023: 62.0% 

- FY2024: 61.3% 

- FY2025: 69.0% 

## Owner memo

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

### How it makes money

Operates in medical devices; annual sales are USD 20.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/885725/000088572526000010/bsx-20251231.htm (filed 2026-02-17); FY2025: revenue 20074000000; grossProfit 13853000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BSX.US: Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. The company operates in two segments, MedSurg and Cardiovascular. It offers devices to diagnose and treat a range of gastrointestinal conditions, such as resolution clips, biliary stent systems, stents and electrocautery enhanced delivery systems, SpyGlass, single-use scopes used for diagnostic and therapeutic procedures in the pancreaticobiliary system, in endoscopic retrograde cholangiopancreatography procedures, and single-use duodenoscopes, as well as endoluminal surgery and infection prevention products; devices to treat urological conditions, including ureteral stents, catheters, baskets, guidewires, urinary and bowel dysfunction, sheaths, balloons, single-use digital flexible ureteroscopes, holmium laser systems, penile implants, artificial urinary sphincter, laser system, and hydrogel systems; and devices to treat neurological movement disorders and manage chronic pain, such as spinal cord stimulator systems, radiofrequency ablation, and intraosseous nerve ablation and deep brain stimulation systems. The company also provides technologies for diagnosing and treating a range of diseases and abnormalities of the heart; WATCHMAN FLX, a left atrial appendage closure (LAAC) device; and implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, such as cardioverter and cardiac resynchronization therapy defibrillators, MRI S-ICD systems, cardiac resynchronization therapy pacemakers, remote patient management systems, insertable cardiac monitor systems, and remote cardiac monitoring systems. In addition, it offers diagnosis and treatment of rate and rhythm disorders of the heart; peripheral arterial and venous diseases; and products to diagnose and treat forms of cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.

### Why customers stay

Margins ranged from 61.3% to 69% during 2023–25; it earns 14.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: grossProfit / revenue = 62%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: grossProfit / revenue = 61.3%.

- Source: https://www.sec.gov/Archives/edgar/data/885725/000088572526000010/bsx-20251231.htm (filed 2026-02-17); FY2025: grossProfit / revenue = 69%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); 10-year return on capital observations [[2016,0.2313307130825379],[2017,0.18218158426759787],[2018,0.22488348006214395],[2019,0.12440956325848412],[2020,0.036020787497154996],[2021,0.15277098415182938],[2022,0.09115091873606519],[2023,0.12935918963294074],[2024,0.138286989291295],[2025,0.2078322391078446]]; median 0.14552898672156217. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 61% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/885725/000088572526000010/bsx-20251231.htm (filed 2026-02-17); Gross margin observations: [[2021,0.6276076716016151],[2022,0.6082636808074436],[2023,0.6201544943820225]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 7 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2016: growth capex 0; upkeep 376000000; owner earnings 786000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2017: growth capex 0; upkeep 319000000; owner earnings 629000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2018: growth capex 0; upkeep 316000000; owner earnings 2249000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2019: growth capex 0; upkeep 461000000; owner earnings 5250000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2020: growth capex 0; upkeep 376000000; owner earnings 665000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2021: growth capex 0; upkeep 554000000; owner earnings 1579000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2022: growth capex 0; upkeep 612000000; owner earnings 1222000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: growth capex 0; upkeep 800000000; owner earnings 1989000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: growth capex 0; upkeep 790000000; owner earnings 2333000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/885725/000088572526000010/bsx-20251231.htm (filed 2026-02-17); FY2025: growth capex 0; upkeep 876000000; owner earnings 3378000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Dividend observations: [[2016,0],[2017,28000000],[2018,28000000],[2019,28000000],[2020,28000000],[2021,55000000],[2022,55000000],[2023,28000000],[2024,0],[2025,0]]. 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); BSX.US SharesStats.PercentInsiders = 0.254 percentage points; cache date 2026-10-16.

### What could break it

"Pending and future product liability claims and other litigation" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/885725/000088572526000010/bsx-20251231.htm (filed 2026-02-17); Pending and future product liability claims and other litigation

### What the price says

The price assumes cash profits grow 8% yearly over ten years; actual growth was 26.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Ten-year compound average after fade. Initial solved rate 0.10128472883660125. Price 44.14; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.21100507008648972 → FY2025 2.2602877216460353. Closing-price date 2026-10-15.

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

- 2016-10: $22.00 per share

- 2016-11: $20.46 per share

- 2016-12: $21.63 per share

- 2017-01: $24.06 per share

- 2017-02: $24.55 per share

- 2017-03: $24.87 per share

- 2017-04: $26.38 per share

- 2017-05: $27.03 per share

- 2017-06: $27.72 per share

- 2017-07: $26.62 per share

- 2017-08: $27.55 per share

- 2017-09: $29.17 per share

- 2017-10: $28.14 per share

- 2017-11: $26.28 per share

- 2017-12: $24.79 per share

- 2018-01: $27.96 per share

- 2018-02: $27.26 per share

- 2018-03: $27.32 per share

- 2018-04: $28.72 per share

- 2018-05: $30.39 per share

- 2018-06: $32.70 per share

- 2018-07: $33.61 per share

- 2018-08: $35.56 per share

- 2018-09: $38.50 per share

- 2018-10: $36.14 per share

- 2018-11: $37.67 per share

- 2018-12: $35.34 per share

- 2019-01: $38.15 per share

- 2019-02: $40.12 per share

- 2019-03: $38.38 per share

- 2019-04: $37.12 per share

- 2019-05: $38.41 per share

- 2019-06: $42.98 per share

- 2019-07: $42.46 per share

- 2019-08: $42.73 per share

- 2019-09: $40.69 per share

- 2019-10: $41.70 per share

- 2019-11: $43.25 per share

- 2019-12: $45.22 per share

- 2020-01: $41.87 per share

- 2020-02: $37.39 per share

- 2020-03: $32.63 per share

- 2020-04: $37.48 per share

- 2020-05: $37.99 per share

- 2020-06: $35.11 per share

- 2020-07: $38.57 per share

- 2020-08: $41.02 per share

- 2020-09: $38.21 per share

- 2020-10: $34.27 per share

- 2020-11: $33.15 per share

- 2020-12: $35.95 per share

- 2021-01: $35.44 per share

- 2021-02: $38.78 per share

- 2021-03: $38.65 per share

- 2021-04: $43.60 per share

- 2021-05: $42.55 per share

- 2021-06: $42.76 per share

- 2021-07: $45.60 per share

- 2021-08: $45.15 per share

- 2021-09: $43.39 per share

- 2021-10: $43.13 per share

- 2021-11: $38.07 per share

- 2021-12: $42.48 per share

- 2022-01: $42.90 per share

- 2022-02: $44.17 per share

- 2022-03: $44.29 per share

- 2022-04: $42.11 per share

- 2022-05: $41.01 per share

- 2022-06: $37.27 per share

- 2022-07: $41.05 per share

- 2022-08: $40.31 per share

- 2022-09: $38.73 per share

- 2022-10: $43.11 per share

- 2022-11: $45.27 per share

- 2022-12: $46.27 per share

- 2023-01: $46.25 per share

- 2023-02: $46.72 per share

- 2023-03: $50.03 per share

- 2023-04: $52.12 per share

- 2023-05: $51.48 per share

- 2023-06: $54.09 per share

- 2023-07: $51.85 per share

- 2023-08: $53.94 per share

- 2023-09: $52.80 per share

- 2023-10: $51.19 per share

- 2023-11: $55.89 per share

- 2023-12: $57.81 per share

- 2024-01: $63.26 per share

- 2024-02: $66.21 per share

- 2024-03: $68.49 per share

- 2024-04: $71.87 per share

- 2024-05: $75.57 per share

- 2024-06: $77.01 per share

- 2024-07: $73.88 per share

- 2024-08: $81.79 per share

- 2024-09: $83.80 per share

- 2024-10: $84.02 per share

- 2024-11: $90.66 per share

- 2024-12: $89.32 per share

- 2025-01: $102.36 per share

- 2025-02: $103.79 per share

- 2025-03: $100.88 per share

- 2025-04: $102.87 per share

- 2025-05: $105.26 per share

- 2025-06: $107.41 per share

- 2025-07: $104.92 per share

- 2025-08: $105.50 per share

- 2025-09: $97.63 per share

- 2025-10: $100.72 per share

- 2025-11: $101.58 per share

- 2025-12: $95.35 per share

- 2026-01: $93.53 per share

- 2026-02: $76.85 per share

- 2026-03: $62.75 per share

- 2026-04: $57.61 per share

- 2026-05: $48.31 per share

- 2026-06: $42.68 per share

- 2026-07: $46.73 per share

- 2026-08: $48.30 per share

- 2026-09: $43.65 per share

- 2026-10: $43.31 per share

## Annual estimated value (USD per share)

- FY2016: low $3.03 per share, central $3.45 per share, high $4.00 per share

- FY2017: low $3.34 per share, central $3.80 per share, high $4.42 per share

- FY2018: low $5.33 per share, central $6.06 per share, high $7.04 per share

- FY2019: low $7.80 per share, central $8.87 per share, high $10.30 per share

- FY2020: low $8.25 per share, central $9.24 per share, high $10.56 per share

- FY2021: low $13.21 per share, central $14.87 per share, high $17.08 per share

- FY2022: low $13.26 per share, central $15.02 per share, high $17.37 per share

- FY2023: low $14.52 per share, central $16.47 per share, high $19.06 per share

- FY2024: low $16.42 per share, central $18.67 per share, high $21.68 per share

- FY2025: low $21.55 per share, central $24.37 per share, high $28.13 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 2026-10-15T06:32:46.384Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/885725/000088572526000010/bsx-20251231.htm); period 2025-12-31, filed 2026-02-17.

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.