Baxter International Inc (BAX) Quote - XNYS | Morningstar

Skip to Content

Is it the right time to buy or sell?

Find out with Morningstar Premium

Is it the right time to buy or sell?

Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Baxter's 2021 Outlook Slightly Weaker Than Expected Due to COVID Challenges; Shares Fairly Valued

Senior Equity Analyst Julie Utterback

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA | Feb 4, 2021

Narrow-moat Baxter beat EPS expectations slightly in the fourth quarter, but its 2021 earnings outlook is a little weaker than we expected. While we may adjust our estimates for 2021 slightly, we do not anticipate materially changing our $73 fair value estimate at first glance. The shares appear about fairly valued.

Read Full Analysis

Company Profile

Business Description

Baxter manufactures medical products across seven major reported business segments. The renal segment (32% of 2020 sales) includes peritoneal dialysis and hemodialysis products for chronically ill patients while its acute therapies segment (6%) offers kidney or other organ support tools in intensive care situations. The medication delivery segment (23% of sales) sells IV pumps, administrative sets, and solutions while its nutrition segment (8% of sales) offers parenteral nutrition therapies. The pharmaceuticals segment (18% of sales) offers injectable drugs, anesthetic gases, and compounding services. The advanced surgery segment (8% of sales) provides hemostastic products and biosurgical sealants. Contract manufacturing rounds out the remaining sales.

Contact

One Baxter Parkway
Deerfield, IL, 60015

T +1 224 948-2000

Global_CORP_Investor_Relations@baxter.com

Sector Healthcare

Industry Medical Instruments & Supplies

Most Recent Earnings Dec 31, 2020

Fiscal Year End Dec 31, 2021

Stock Type Classic Growth

Employees 50,000

Related

Is It Time to Sell These 5 Stocks?

These names suffered double-digit losses in October. Should you hold on?

Susan Dziubinski

Stock Strategist

Home Dialysis to Benefit These Undervalued Providers

DaVita and Fresenius are best positioned to capture the incremental profits from home therapy.

Advisor Insights

Enduring Philosophy

At Aristotle, the emphasis is on long-term ownership.

Friday Five: Time to Tune In to Media Stocks

Overblown concerns over cable cord-cutters could be opening up opportunities in the media sector. Plus, Ackman's sweet tooth for Mondelez, Priceline still attractive, and more.

Stock Strategist

Biogen's Drop Looks Like Overreaction

We've lowered our fair value estimate, but the shares remain attractive.

Stock Strategist

Competition Rising for Baxalta

The newly independent firm still has a narrow moat, however.

Stock Strategist

Baxter's Headwinds Mostly Temporary

The company faces near-term challenges after the split, but we still like its moat.

Michael Waterhouse

Quarter-End Insights

Health Care: A Few Stocks Still Offer Upside

Despite the sector looking slightly overvalued, we still see stocks with attractive valuations across the different industries.

Quarter-End Insights

Stock Market Outlook: Pick Your Spots Carefully

Interest-rate fears bring utility and real estate valuations in line, but the broader market still looks fully valued.

Matthew Coffina

Baxter's Spin-Off Strategy Is Promising

Although 2015 may be rocky, both Baxter and Baxalta should see significant margin expansion and growth in the long term, says Morningstar's Karen Andersen.

Quarter-End Insights

Health Care: 3 Picks in a More Expensive Sector

Despite the sector looking slightly overvalued overall, we still see stocks that offer attractive valuations across the different industries.

Pfizer's Acquisition of Hospira Strengthens Its Moat at a Fair Price

Despite the high 39% premium to Hospira's stock price, we believe the acquisition price is justified based on Pfizer's ability to unlock more value with its global reach.

Quarter-End Insights

Health Care: A Strong Run, but Some Stocks Still Look Undervalued

While the sector looks slightly overvalued overall, we still see several stocks that offer attractive valuations across the different industries.

5 Issues Still on Investors' Plates

Central Bank recipes, leftover housing disappointments, and full valuations may still cause indigestion for investors, says Morningstar markets editor Jeremy Glaser.

Finding a Margin of Safety in a Fully Valued Market

These three wide-moat firms are trading at reasonable prices in a market with little breathing room in valuations.

Quarter-End Insights

Health Care: Some Healthy Bargains Still Remain

While the sector looks fairly valued overall, we still see several stocks that offer attractive valuations across the different industries, including pharmacy benefit managers.

The Friday Five

This week: Financial-services firms post lukewarm earnings, two tech giants strike a deal, Time Warner turns down a foxy offer, and more.

A Portfolio Checkup in 6 Steps

In this special midyear presentation, Morningstar's Christine Benz demonstrates how to gauge the viability of your current plan, evaluate positioning, troubleshoot risk factors, and much more.

Quarter-End Insights

Credit Market Outlook: Tight Spreads Will Keep a Lid on Returns

As credit spreads have tightened on a nearly continuous trend over the past year, they are becoming richly valued relative to their historical average.

Stock Strategist

Moats and Growth Drivers Look Solid for Post-Split Baxter

Focus remains on hemophilia competition, but Baxter's comprehensive product portfolios are unmatched.