📊 BHC Key Takeaways
Investment Thesis
While BHC demonstrates revenue growth of 6.7% YoY and improved net income profitability, the company faces severe structural challenges including negative stockholders' equity of -$554M, dangerously low interest coverage of 1.1x, and a debt burden of $20.8B that consumes nearly the entire asset base. The pharmaceutical sector cyclicality combined with overleveraged capital structure and minimal net margins of 1.5% create significant financial distress risk.
BHC Strengths
- Revenue growth of 6.7% YoY demonstrates market demand and top-line resilience
- Operating margin of 17.7% shows core business operations are fundamentally profitable
- Free cash flow of $1.0B provides some debt servicing capacity despite leverage concerns
- Operating cash flow of $1.4B exceeds capex needs, supporting operational sustainability
BHC Risks
- Negative stockholders' equity of -$554M indicates balance sheet insolvency and violation of debt covenants risk
- Interest coverage ratio of 1.1x is critically low; minimal earnings cushion for debt service if revenue declines
- Debt-to-assets ratio of 78.8% ($20.8B/$26.4B) shows extreme leverage with limited equity buffer
- Net margin of 1.5% is unsustainably thin; small revenue disruption would eliminate profitability
- Pharmaceutical sector exposure to patent cliffs, regulatory risk, and pricing pressure
- Long-term solvency questionable given negative equity position and refinancing risk
Key Metrics to Watch
- Debt reduction trajectory and covenant compliance status
- Interest coverage ratio trend - must improve above 2.5x for financial stability
- Operating margin sustainability and gross margin trends
- Free cash flow adequacy relative to debt service obligations
- Stockholders' equity recovery path to positive territory
- Revenue growth sustainability in competitive pharma environment
BHC Financial Metrics
💡 AI Analyst Insight
Bausch Health Companies Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BHC Profitability Ratios
BHC vs Healthcare Sector
How Bausch Health Companies Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BHC Balance Sheet & Liquidity
BHC 5-Year Financial Trend
5-Year Trend Summary: Bausch Health Companies Inc.'s revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.62 indicates the company is currently unprofitable.
BHC Growth Metrics (YoY)
BHC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.5B | -$85.0M | $-0.23 |
| Q2 2025 | $2.4B | $10.0M | $0.03 |
| Q1 2025 | $2.2B | -$58.0M | $-0.16 |
| Q3 2024 | $2.2B | -$85.0M | $-0.23 |
| Q2 2024 | $2.2B | $10.0M | $0.03 |
| Q1 2024 | $1.9B | -$64.0M | $-0.17 |
| Q3 2023 | $2.0B | $185.0M | $0.51 |
| Q2 2023 | $2.0B | $26.0M | $0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BHC Capital Allocation
BHC SEC Filings
Access official SEC EDGAR filings for Bausch Health Companies Inc. (CIK: 0000885590)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BHC
What is the AI rating for BHC?
Bausch Health Companies Inc. (BHC) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BHC's key strengths?
Revenue growth of 6.7% YoY demonstrates market demand and top-line resilience. Operating margin of 17.7% shows core business operations are fundamentally profitable.
What are the risks of investing in BHC?
Negative stockholders' equity of -$554M indicates balance sheet insolvency and violation of debt covenants risk. Interest coverage ratio of 1.1x is critically low; minimal earnings cushion for debt service if revenue declines.
What is BHC's revenue and growth?
Bausch Health Companies Inc. reported revenue of $10.3B.
Does BHC pay dividends?
Bausch Health Companies Inc. does not currently pay dividends.
Where can I find BHC SEC filings?
Official SEC filings for Bausch Health Companies Inc. (CIK: 0000885590) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BHC's EPS?
Bausch Health Companies Inc. has a diluted EPS of $0.42.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.