📊 BHC Key Takeaways
Is Bausch Health Companies Inc. (BHC) a Good Investment?
Bausch Health operates with negative stockholders equity of -$2.1B, indicating balance sheet insolvency despite positive operating cash flow. The company cannot cover interest expenses from operations (interest coverage: -2.4x) and operates at a -37.6% operating margin with $20.8B in debt against $2.5B revenue. While 6.7% revenue growth and $121M free cash flow provide marginal sustainability near-term, the fundamental financial structure is unsustainable without major debt restructuring or asset disposition.
Bausch Health shows improving top-line growth, positive operating income, and solid free cash flow generation, which suggests the core business remains productive. However, the balance sheet is still severely constrained by very high debt, negative equity, and weak interest coverage, leaving little room for operational setbacks. Fundamentals point to a business that is stabilizing, but not yet financially strong enough to offset its leverage risk.
Bausch Health Companies Inc. Key Strengths (BHC)
- Revenue growing 6.7% year-over-year in pharmaceutical sector
- Operating cash flow of $230M and free cash flow of $121M remaining positive despite GAAP losses
- Current ratio of 1.32x provides near-term liquidity buffer with $1.3B cash on hand
- Revenue grew 6.7% year over year, indicating continued business momentum
- Operating income of $1.81B and free cash flow of $1.00B show the company remains cash generative
- Current ratio of 1.47x and quick ratio of 1.08x suggest near-term liquidity is manageable
BHC Stock Risks: Bausch Health Companies Inc. Investment Risks
- Negative stockholders equity of -$2.1B indicates balance sheet insolvency
- Long-term debt of $20.8B with interest coverage of -2.4x; company cannot service debt from operations
- Sustained operating losses (-$950M operating income) and negative net margin of -56.4% indicate core business economics are broken
- Liabilities exceed total assets by $1.1B; restructuring risk including potential bankruptcy or massive dilution
- Long-term debt of $20.82B is extremely high relative to the earnings base
- Negative stockholders equity indicates a highly stressed capital structure
- Interest coverage of 1.1x leaves very limited cushion against refinancing pressure or earnings volatility
Key Metrics to Watch
- Operating income and operating margin trend toward breakeven
- Long-term debt reduction or refinancing success
- Stockholders equity trajectory; return to positive territory is critical
- Interest coverage improvement and debt reduction progress
- Free cash flow consistency relative to net income and operating profit
Bausch Health Companies Inc. (BHC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.8% FCF margin may limit capital allocation flexibility.
BHC Profit Margin, ROE & Profitability Analysis
BHC vs Healthcare Sector: How Bausch Health Companies Inc. Compares
How Bausch Health Companies Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Bausch Health Companies Inc. Stock Overvalued? BHC Valuation Analysis 2026
Based on fundamental analysis, Bausch Health Companies Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Bausch Health Companies Inc. Balance Sheet: BHC Debt, Cash & Liquidity
BHC Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
BHC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.3B | -$58.0M | $-0.16 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Bausch Health Companies Inc. Dividends, Buybacks & Capital Allocation
BHC SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BHC's key strengths?
Claude: Revenue growing 6.7% year-over-year in pharmaceutical sector. Operating cash flow of $230M and free cash flow of $121M remaining positive despite GAAP losses. ChatGPT: Revenue grew 6.7% year over year, indicating continued business momentum. Operating income of $1.81B and free cash flow of $1.00B show the company remains cash generative.
What are the risks of investing in BHC?
Claude: Negative stockholders equity of -$2.1B indicates balance sheet insolvency. Long-term debt of $20.8B with interest coverage of -2.4x; company cannot service debt from operations. ChatGPT: Long-term debt of $20.82B is extremely high relative to the earnings base. Negative stockholders equity indicates a highly stressed capital structure.
What is BHC's revenue and growth?
Bausch Health Companies Inc. reported revenue of $2.5B.
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 $-3.82.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BHC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Bausch Health Companies Inc. has a C grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BHC stock overvalued or undervalued?
Valuation metrics for BHC: ROE of N/A (sector avg: 15%), net margin of -56.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is BHC's AI grade for 2026?
Our dual AI analysis gives Bausch Health Companies Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BHC's free cash flow?
Bausch Health Companies Inc.'s operating cash flow is $230.0M, with capital expenditures of $109.0M. FCF margin is 4.8%.
How does BHC compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -56.4% (avg: 12%), ROE N/A (avg: 15%), current ratio 1.32 (avg: 2).