NYSE:BHC
Bausch Health Companies Inc.
A diversified healthcare innovator turning the corner on profitability with a robust pipeline in respiratory, urology, and consumer health segments.
Key Metrics
Investment Thesis
Bull Case
Investors may buy this stock based on the confirmed financial turnaround with positive net income and healthy operating cash flow generation. The diversified product portfolio across high-growth respiratory and consumer health sectors offers multiple revenue streams that can weather regulatory headwinds, while the recent debt management strategy suggests a focus on strengthening the balance sheet.
Bear Case
Potential buyers should avoid this stock due to historically high leverage with long-term debt of $20.59B against shareholders' equity of only $377M. The massive retained earnings deficit of nearly $10B indicates historical profitability issues that could persist, and the significant non-operating losses suggest ongoing structural challenges within specific business units.
About Bausch Health Companies Inc.
Bausch Health Companies Inc. is a global healthcare innovator specializing in medical devices, pharmaceuticals, and consumer health products. The company serves markets including respiratory care, urology, and women's health with a diverse portfolio of branded and generic medications. Recent financials highlight a turnaround trajectory with revenue reaching $10.27B and net profit returning to positive territory at $120M in 2025.
Analysis
Management Discussion
Management successfully guided the company to a net profit of $120M in 2025, reversing years of losses seen in 2023 and 2024. This improvement is supported by strong operating cash flow of $1.40B and disciplined capital allocation, evidenced by significant debt issuances exceeding repayments to fund strategic growth initiatives.
Industry Overview
The healthcare sector is characterized by rapid innovation in medical devices and pharmaceuticals, driven by an aging global population and increasing demand for respiratory treatments. Companies face constant pressure from patent expirations and price negotiations with payers, requiring robust R&D pipelines to maintain market share and growth rates.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $8.12B | $8.76B | $9.62B | $10.27B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $8.12B | $8.76B | $9.62B | $10.27B |
| Operating Expenses | $7.67B | $7.79B | $8.08B | $8.45B |
| Operating Income | $454.0M | $963.0M | $1.55B | $1.81B |
| G&A | $2.62B | $2.92B | $3.30B | $3.44B |
| Stock-Based Comp | $126.0M | $132.0M | $150.0M | $216.0M |
| D&A | $1.39B | $1.26B | $1.27B | $1.21B |
| Depreciation | $179.0M | $187.0M | $190.0M | $207.0M |
| Other OpEx | $5.04B | $4.88B | $4.78B | $5.01B |
| Non-Operating Income | $-583.0M | $-1.35B | $-1.38B | $-1.45B |
| Interest Income | $14.0M | $26.0M | $33.0M | $48.0M |
| Pre-Tax Income | $-129.0M | $-390.0M | $167.0M | $367.0M |
| Income Tax | $83.0M | $221.0M | $239.0M | $247.0M |
| Continuing Ops | $-212.0M | $-611.0M | $-72.0M | $120.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-212.0M | $-611.0M | $-72.0M | $120.0M |
| Minority Interest | $13.0M | $-19.0M | $-26.0M | $-37.0M |
| Net to Common | $-225.0M | $-592.0M | $-46.0M | $157.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $4.25B | $5.60B | $5.77B | $6.16B |
| Cash & Equivalents | $564.0M | $947.0M | $1.18B | $1.31B |
| Inventory | $1.09B | $1.54B | $1.59B | $1.63B |
| Prepaid Expenses | $776.0M | $1.09B | $838.0M | $852.0M |
| Other Current Assets | $1.82B | $2.01B | $2.16B | $2.37B |
| Long-Term Assets | $21.44B | $21.75B | $20.75B | $20.21B |
| PP&E (Net) | $1.60B | $1.71B | $1.78B | $2.07B |
| Intangibles | $5.80B | $6.46B | $5.55B | $4.64B |
| Goodwill | $11.55B | $11.18B | $11.09B | $11.27B |
| Operating Leases | $221.0M | $185.0M | $211.0M | $215.0M |
| Other LT Assets | $2.27B | $2.22B | $2.12B | $2.01B |
| Total Assets | $25.69B | $27.35B | $26.52B | $26.37B |
| Current Liabilities | $3.94B | $4.30B | $6.75B | $4.18B |
| Accounts Payable | $521.0M | $719.0M | $656.0M | $600.0M |
| Current Debt | $432.0M | $450.0M | $2.67B | $225.0M |
| Current Leases | $50.0M | $61.0M | $58.0M | $61.0M |
| Taxes Payable | $30.0M | $47.0M | $63.0M | $38.0M |
| Other Current Liab | $-80.0M | $-108.0M | $-121.0M | $-88.0M |
| Long-Term Liabilities | $21.48B | $23.13B | $20.09B | $21.81B |
| Long-Term Debt | $20.33B | $21.94B | $18.94B | $20.59B |
| LT Operating Leases | $184.0M | $148.0M | $165.0M | $167.0M |
| Other LT Liab | $967.0M | $1.04B | $986.0M | $1.05B |
| Total Liabilities | $25.43B | $27.43B | $26.84B | $25.99B |
| Shareholders' Equity | $260.0M | $-82.0M | $-322.0M | $377.0M |
| Retained Earnings | $-9.19B | $-9.78B | $-9.82B | $-9.67B |
| AOCI | $-2.06B | $-1.88B | $-2.18B | $-1.76B |
| Total L&E | $25.69B | $27.35B | $26.52B | $26.37B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-212.0M | $-611.0M | $-72.0M | $120.0M |
| Non-Cash Adjustments | $-762.0M | $745.0M | $962.0M | $1.21B |
| Working Capital Changes | $246.0M | $898.0M | $707.0M | $67.0M |
| Cash from Operations | $-728.0M | $1.03B | $1.60B | $1.40B |
| Capital Expenditures | $218.0M | $215.0M | $337.0M | $397.0M |
| Cash from Investing | $-303.0M | $-2.15B | $-454.0M | $-595.0M |
| Debt Issuances | $6.84B | $3.29B | $661.0M | $10.55B |
| Debt Repayments | $7.85B | $1.71B | $1.46B | $11.19B |
| Cash from Financing | $-474.0M | $1.48B | $-868.0M | $-742.0M |
| FX Effect | $-23.0M | $9.0M | $-36.0M | $61.0M |
| Net Change in Cash | $-1.53B | $371.0M | $239.0M | $124.0M |
| Beginning Cash | $2.12B | $591.0M | $962.0M | $1.20B |
| Ending Cash | $591.0M | $962.0M | $1.20B | $1.32B |
Frequently Asked Questions
How does Bausch Health Companies Inc. make money?
The company operates primarily through three key revenue streams: Respiratory Care devices and inhalation therapies, Urology solutions including surgical instruments and implants, and Consumer Health products comprising over-the-counter medications and supplements.
What are the main risks for BHC?
Regulatory hurdles regarding generic drug exclusivity and patent cliffs, intense competition in the medical device sector from larger pharmaceutical firms, currency exchange rate fluctuations impacting international earnings, and the ongoing execution risk associated with its post-acquisition integration of various business units.
What is BHC's competitive advantage?
Bausch Health leverages a strong global distribution network for its consumer health brands, a specialized pipeline of patented respiratory therapeutics, and cost-efficient manufacturing capabilities that support its turnaround strategy.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.