Boston Scientific logged a -0.2% change during today's morning session, and is now trading at a price of $103.65 per share.
Boston Scientific returned gains of 22.0% last year, with its stock price reaching a high of $109.5 and a low of $80.64. Over the same period, the stock outperformed the S&P 500 index by 6.7%. More recently, the company's 50-day average price was $101.17. Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. Based in Marlborough, MA, the Large-Cap Health Care company has 53,000 full time employees. Boston Scientific has not offered a dividend during the last year.
Wider Gross Margins Than the Industry Average of 59.78%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $10,735 | $9,913 | $11,888 | $12,682 | $14,240 | $16,747 |
| Gross Margins | 71% | 65% | 69% | 69% | 69% | 69% |
| Net Margins | 44% | -1% | 9% | 6% | 11% | 11% |
| Net Income (M) | $4,700 | -$82 | $1,041 | $698 | $1,592 | $1,846 |
| Net Interest Expense (M) | $473 | $361 | $341 | $470 | $265 | $305 |
| Depreciation & Amort. (M) | $1,011 | $1,123 | $1,093 | $1,136 | $1,196 | $412 |
| Diluted Shares (M) | 1,411 | 1,417 | 1,434 | 1,440 | 1,464 | 1,486 |
| Earnings Per Share | $3.33 | -$0.08 | $0.69 | $0.45 | $1.07 | $1.25 |
| EPS Growth | n/a | -102.4% | 962.5% | -34.78% | 137.78% | 16.82% |
| Avg. Price | $40.25 | $37.41 | $41.59 | $41.86 | $57.81 | $103.85 |
| P/E Ratio | 11.91 | -467.62 | 60.28 | 93.02 | 53.53 | 82.42 |
| Free Cash Flow (M) | $1,375 | $1,132 | $1,316 | $938 | $1,792 | $2,645 |
| CAPEX (M) | $461 | $376 | $554 | $588 | $711 | $790 |
| EV / EBITDA | 25.93 | 57.18 | 28.83 | 24.32 | 25.76 | 53.96 |
| Total Debt (M) | $10,008 | $9,143 | $9,065 | $8,935 | $9,102 | $10,746 |
| Net Debt / EBITDA | 3.87 | 7.1 | 3.12 | 2.88 | 2.33 | 3.43 |
| Current Ratio | 0.97 | 1.82 | 1.48 | 1.51 | 1.32 | 1.08 |
Boston Scientific has rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and wider gross margins than its peer group. However, the firm has declining EPS growth. Finally, we note that Boston Scientific has just enough current assets to cover current liabilities, as shown by its current ratio of 1.08 and significant leverage levels.
Boston Scientific's Valuation Is in Line With Its Sector Averages:
Boston Scientific has a trailing twelve month P/E ratio of 54.1, compared to an average of 22.94 for the Health Care sector. Based on its EPS guidance of $2.79, the company has a forward P/E ratio of 36.3. The -2.5% compound average growth rate of Boston Scientific's historical and projected earnings per share yields a PEG ratio of -21.68. This indicates that its shares are overvalued.Furthermore, Boston Scientific is likely overvalued compared to the book value of its equity, since its P/B ratio of 6.84 is higher than the sector average of 3.19. The company's shares are currently trading 410.6% below their Graham number. Ultimately, Boston Scientific's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Boston Scientific Has an Analyst Consensus of Some Upside Potential:
The 32 analysts following Boston Scientific have set target prices ranging from $99.0 to $140.0 per share, for an average of $125.98 with a buy rating. The company is trading -17.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Boston Scientific has a very low short interest because 1.3% of the company's shares are sold short. Institutions own 93.4% of the company's shares, and the insider ownership rate stands at 0.19%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 10% stake in the company is worth $15,204,184,474.
