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Bausch Health Companies Inc. (BHC) stock analysis

BHCNYSEPharmaceutical PreparationsFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Oct 29, 2026Score 8/3077% below fair value
$8.25−0.10 (-1.20%)

Close on Nov 12, 2026Market cap $3.09BP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value4Growth2Performance1Health1Dividend0

Weak8 of 30 checks passed

Bausch Health Companies passes 8 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
4/6
Growth
2/6
Past performance
1/6
Financial health
1/6
Dividend
0/6

What stands out

  • Margin of safety over 20%

    The price is 77.1% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $8.35 is below our fair value estimate of $36.40.

  • Guidance raised

    Bausch Health Companies raised its full year 2026 Revenues outlook on Oct 28, 2026.

  • EV/EBITDA below its 5-year median

    Bausch Health Companies's EV/EBITDA of 9.3 is below its 5-year median of 10.6.

What to watch

  • Return on capital under 10%

    Return on invested capital was 5.5%, below the 10% that usually covers the cost of capital.

  • Revenue growing under 10% a year

    Revenue grew 8.1% a year over the last three fiscal years, short of the 10% we look for.

  • Interest not well covered

    Operating income covers interest expense 0.8 times; we look for at least 5.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals 10.7% of total debt; we look for at least 20%.

Valuation4/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA below its 5-year median

    Bausch Health Companies's EV/EBITDA of 9.3 is below its 5-year median of 10.6.

  • P/S below the industry

    Bausch Health Companies's price-to-sales of 0.28 is below the Drugs median of 4.80 (book value is negative, so we use sales).

  • Trading below fair value

    The share price of $8.35 is below our fair value estimate of $36.40.

  • Margin of safety over 20%

    The price is 77.1% below fair value, more than the 20% cushion we look for.

Growth2/6

  • Revenue growing under 10% a year

    Revenue grew 8.1% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 10.8% over the last twelve months; the Drugs median is 8.0%.

  • Guidance raised

    Bausch Health Companies raised its full year 2026 Revenues outlook on Oct 28, 2026.

  • Gross margin trend

    This company does not report gross profit.

Past performance1/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on capital under 10%

    Return on invested capital was 5.5%, below the 10% that usually covers the cost of capital.

  • Return on equity against the industry

    Needs positive equity.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin below its 5-year average

    Net margin was -7.6% over the last twelve months, against a 5-year average of -3.9%.

  • Net margin above the industry

    Bausch Health Companies's net margin of -7.6% is above the Drugs median of -53.0%.

Financial health1/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals 10.7% of total debt; we look for at least 20%.

  • Interest not well covered

    Operating income covers interest expense 0.8 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 1.56 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is 0.22; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Bausch Health Companies has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$36.40

The share price is 77% below this estimate.

20%+ below
Near fair value
20%+ above
$8.35Price$36.40Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
EV/EBITDA13.8×10.6×17.1×$40.0870%
Earnings power9.9% cost of equity––$27.8230%
Fair value$36.40100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Drugs median 25.1

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$29.29M
Value traded per 1% price move
$8.08M

Downside

Medium risk

Typical loss in a bad month
22.0%
Volatility (annualized)
63%
Sharpe ratio, 1 year
0.42
Beta to the S&P 500 (5Y)
1.00

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

–

Operating margin

17.7%+9.2 pts over 5 years

Net margin

1.5%+8.5 pts over 5 years

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