📊 BSX Key Takeaways
Is Boston Scientific Corp. (BSX) a Good Investment?
Boston Scientific demonstrates impressive revenue growth (+19.9% YoY) and excellent profit margins (69.5% gross, 25.8% net), indicating strong market position in medical devices. However, a severe disconnect between reported net income and free cash flow (3.3% FCF margin vs 25.8% net margin), combined with weak ROE/ROA metrics, raises significant concerns about earnings quality and capital efficiency despite manageable debt levels.
Boston Scientific shows strong fundamental momentum, with nearly 20% revenue growth, high gross margins, and robust free cash flow generation that supports reinvestment and balance sheet flexibility. Financial health appears solid, with good liquidity, manageable leverage, and healthy interest coverage, although the sharp gap between revenue growth and net income growth suggests profit conversion should be monitored closely.
Boston Scientific Corp. Key Strengths (BSX)
- Strong topline growth at 19.9% YoY revenue increase
- Exceptional net margin of 25.8% and gross margin of 69.5% demonstrating pricing power and cost control
- Solid debt service capability with 12.2x interest coverage and moderate 0.42x debt-to-equity ratio
- Healthy liquidity position with 1.90x current ratio and $1.5B cash
- Strong top-line growth with revenue up 19.9% year over year
- High profitability profile, including 69.0% gross margin and 18.2% free cash flow margin
- Solid balance sheet and debt service capacity, with 1.62x current ratio and 10.4x interest coverage
BSX Stock Risks: Boston Scientific Corp. Investment Risks
- Severe cash flow conversion problem: 25.8% net margin but only 3.3% FCF margin indicates working capital stress or quality of earnings concerns
- Poor return metrics with ROE of only 5.2% and ROA of 3.0% despite high profitability margins
- Net income growth of only 0.2% YoY dramatically underperforms revenue growth, suggesting margin compression or significant non-operating charges
- Substantial $11.0B debt load creating financial leverage; low FCF generation limits debt reduction capacity
- Significant gap between operating income ($1.1B) and operating cash flow ($348M) suggests asset-heavy operations with poor cash yields
- Net income growth was only 0.2% despite strong revenue growth, indicating possible margin or expense pressure below the operating line
- Long-term debt of $11.14B is manageable but still meaningful relative to cash of $1.97B
- Sustaining near-20% revenue growth may become harder if operating leverage does not continue improving
Key Metrics to Watch
- Free cash flow trend and FCF margin expansion toward revenue growth rates
- Return on equity and return on assets improvement trajectory
- Operating cash flow relative to operating income; investigate working capital movements
- Debt reduction progress and interest expense management
- Revenue growth sustainability and whether it converts to proportional net income growth
- Net income and operating margin progression versus revenue growth
- Free cash flow generation and long-term debt reduction
Boston Scientific Corp. (BSX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.3% FCF margin may limit capital allocation flexibility.
BSX Profit Margin, ROE & Profitability Analysis
BSX vs Healthcare Sector: How Boston Scientific Corp. Compares
How Boston Scientific Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Boston Scientific Corp. Stock Overvalued? BSX Valuation Analysis 2026
Based on fundamental analysis, Boston Scientific Corp. 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.
Boston Scientific Corp. Balance Sheet: BSX Debt, Cash & Liquidity
BSX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Boston Scientific Corp.'s revenue has grown significantly by 69% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.07 reflects profitable operations.
BSX Revenue Growth, EPS Growth & YoY Performance
BSX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.7B | $672.0M | $0.45 |
| Q3 2025 | $4.2B | $468.0M | $0.32 |
| Q2 2025 | $4.1B | $322.0M | $0.22 |
| Q1 2025 | $3.9B | $493.0M | $0.33 |
| Q3 2024 | $3.5B | $468.0M | $0.32 |
| Q2 2024 | $3.6B | $270.0M | $0.18 |
| Q1 2024 | $3.4B | $314.0M | $0.21 |
| Q3 2023 | $3.2B | $188.0M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Boston Scientific Corp. Dividends, Buybacks & Capital Allocation
BSX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Boston Scientific Corp. (CIK: 0000885725)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BSX
What is the AI rating for BSX?
Boston Scientific Corp. (BSX) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BSX's key strengths?
Claude: Strong topline growth at 19.9% YoY revenue increase. Exceptional net margin of 25.8% and gross margin of 69.5% demonstrating pricing power and cost control. ChatGPT: Strong top-line growth with revenue up 19.9% year over year. High profitability profile, including 69.0% gross margin and 18.2% free cash flow margin.
What are the risks of investing in BSX?
Claude: Severe cash flow conversion problem: 25.8% net margin but only 3.3% FCF margin indicates working capital stress or quality of earnings concerns. Poor return metrics with ROE of only 5.2% and ROA of 3.0% despite high profitability margins. ChatGPT: Net income growth was only 0.2% despite strong revenue growth, indicating possible margin or expense pressure below the operating line. Long-term debt of $11.14B is manageable but still meaningful relative to cash of $1.97B.
What is BSX's revenue and growth?
Boston Scientific Corp. reported revenue of $5.2B.
Does BSX pay dividends?
Boston Scientific Corp. does not currently pay dividends.
Where can I find BSX SEC filings?
Official SEC filings for Boston Scientific Corp. (CIK: 0000885725) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BSX's EPS?
Boston Scientific Corp. has a diluted EPS of $0.90.
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 BSX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Boston Scientific Corp. has a A grade with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BSX stock overvalued or undervalued?
Valuation metrics for BSX: ROE of 5.2% (sector avg: 15%), net margin of 25.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is BSX's AI grade for 2026?
Our dual AI analysis gives Boston Scientific Corp. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is BSX's free cash flow?
Boston Scientific Corp.'s operating cash flow is $348.0M, with capital expenditures of $177.0M. FCF margin is 3.3%.
How does BSX compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 25.8% (avg: 12%), ROE 5.2% (avg: 15%), current ratio 1.90 (avg: 2).