-
INITIATING COVERAGE REPORT
William C. Dunkelberg Owl Fund March, 17
th 2014
Michael Lam: Lead Analyst [email protected] Ethan Friedland:
Associate Analyst [email protected] Niclas Dombrowski:
Associate Analyst [email protected]
Sector Outperform Recommendation: BUY Key Statistics: Price
$66.49 52 Week Low $62.80
Return 22.57% 52 Week High $74.60
Shares O/S (mm) 1,010 Yield 2.94%
Market Cap (mm) $36,257 Enterprise Value $8,094
Earnings History: Quarters EPS Rev. YoY Price
1Q13 $1.055 1.77% -1.89% 2Q13 $1.218 2.72% 0.05% 3Q13 $1.190
8.43% -0.47% 4Q13 $1.258 16.39% -1.06% Earnings Projections: Year
Q1 Q2 Q3 Q4 Total
2011 $0.973 $1.059 $1.083 $1.160 $4.28
2012 $1.009 $1.170 $1.147 $1.070 $4.40
2013 $1.055 $1.218 $1.190 $1.258 $4.72
2014e $1.083 $1.277 $1.323 $1.435 $5.12
2015e $1.213 $1.370 $1.427 $1.540 $5.55
All prices current at end of previous trading sessions from date
of report. Data is sourced from local exchanges via CapIQ,
Bloomberg and other vendors. The William C. Dunkelberg Owl fund
does and seeks to do business with companies covered in its
research reports.
COMPANY OVERVIEW Baxter International Inc is a diversified
health care company that derives its sales from the US (42.28% of
revenue), Europe (30.13%), Asia-Pacific (15.58%), and Latin America
and Canada (12.01%). Baxter manufactures in 30 countries and sells
its products in over 100. Baxter is divided into two segments:
BioScience and Medical Products. The BioScience segment accounts
for 43% of revenue and 63.5% of pretax income. The segment includes
processing plasma based proteins to treat hemophilia and other
blood disorders, plasma based therapies, biosurgery products and
some vaccines. The reported sub-segments include Hemophilia (22.5%
of total revenue), Bio Therapeutics (13.9%), Bio Surgery (4.7%) and
Vaccines (1.9%) The Medical Products segment accounts for 57% of
revenue and 36.5% of pretax income. The segment includes IV
products, premixed drug systems, pre-filled vials and syringes,
infusion pumps, and inhalation anesthetics. Services included are
pharmacy compounding, drug formulation, and renal therapies and
dialysis. The reported sub-segments include Fluid Systems (20.4% of
total revenue), Specialty Pharmaceuticals (9.9%), and BioPharma
Solutions (6.5%).
INVESTMENT THESIS BAXs multiple and price was heavily discounted
due to deep concerns on the expected increasing competition in its
largest business sub-segment, Hemophilia. The competition is
expected to provide a longer acting drug that will steal market
share from BAX. These expectations caused a number of analyst
downgrades at the end of September 2013, where the company dropped
12% within the week. BAX is currently trading at a 18% discount to
its implied NTM Price to Earnings ratio against its weighted peer
group. However, BAX is still one of the most diversified healthcare
companies in the world with a wide economic moat built through its
diversification, scope and scale, and intangible assets. Moving
forward; further development of BAXs pipeline, the growth and
efficiency provided by Gambro,
managements business optimization initiatives, and industry
tailwinds should sustain growth and boost earnings. This will
result in BAX returning to normal trading levels to yield a total
gain of 22.57%.
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Baxter International, Inc. Exchange: NYSE Ticker: BAX Target
Price: $79.57
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CATALYSTS
Drug Development: BAXs pipeline has 53 drugs within
different stages of clinical trials. Key drugs set to launch
this year
include: HyQvia, Rixubis, OBI-1, and FEIBA prophylaxis. Key
drugs in Phase III trials include: BAX 855, BAX 111, and
BAX-
817. The execution of the development and launches of these
drugs are crucial for the company to accelerate growth,
diversify
BAXs product mix, and combat new competition. BAX has
shown its commitment through an increase in R&D and
SG&A
margins to ensure the successful development and launch of
these drugs.
Gambro: Gambro is a medical technology company based in
Sweden that manufactures products for Dialysis treatment.
BAX
acquired Gambro in September 2013 for $4 billion. With the
acquisition of Gambro completed, BAX expects to enhance its
market leading position in Renal, optimize manufacturing,
create
efficiencies through its current Real business, and boost
penetration rates in key products and demographics. Gambro
will
create deal synergies of about $300 million by 2017 and
accretion
of $135 million in 2014. Expectations are that by 2015, 80%
of
the expected synergies will be realized.
Business Optimization Initiative: Management has committed
to the optimization of its business through initiatives to
grow
margins and earnings. In 2013, there were eliminations of a
number of positions to streamline operations, rationalize
manufacturing footprint, and optimize general and
administrative
functions in 2013. The savings from these initiatives should
add
$0.13 to 2014 earnings, and $0.17 to 2015 earnings.
Management
plans to reinvest a portion of these savings into activities
to
support the global launch of new products.
Industry Consolidation: The increased regulation and charges
such as the device tax creates a difficult environment for
smaller
competitors. This added market requirement will also raise
the
barriers of entry for the small competitors, allowing for the
large
companies to develop larger market share. BAX will be able
to
more easily navigate these changes through its size and
diversification. Although the company has just completed a
major acquisition, BAX is still committed to capitalize on
possible acquisitions to grow market share growth.
RISKS
Competition: Any acceleration in the production of a competitors
pipeline or new entrance will result in a loss of market share in
key high margin areas, and lower brand recognition leading to a
slowdown in earnings and sales growth.
Pipeline Failure: Any bad news in relations to the pipeline
would delay the release of profit earning products. Inability to
stay ahead will need to loss of industry leader status and erode
brand recognition.
Regulations: Increased regulation or increased reimbursement
pressure would adversely affect top line growth and shrink bottom
line potential growth.
International: BAX is an international company with 57% of sales
derived outside of the US. Currency fluctuations, downgrade in
emerging market growth, or international crises would take away
from top line growth.
ECONOMIC MOATS:
Summary: BAX has a wide and stable economic moat. The moat has
been developed through constant innovation, a commitment to
R&D, and market leading products. The moat stems from 3 major
advantages: Diversification, Economies of Scale and Scope, and
Intangible Assets.
Diversification: BAX operates as a biotech, a medical device,
and a specialty pharmaceutical firm with operations in over 30
countries. The diversification offers efficiencies between
departments, convince for customers, and low reliance on specific
business units.
Scale/Scope: With only a few competitors in the BioScience
industry, specifically in Hemophilia and Plasma production,
efficient scale is created through oligopolistic competition. Scope
is achieved in the medical product segment where cross selling and
diversification allows for a cost advantage.
Intangible Assets: Includes strong brand recognition, patent
protection, and pipeline development. With over 70% of sales from
market leading products, and a brand recognized of safety and
efficiency along with patent protection; allows for pricing power
on premium products.
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INDUSTRY ANALYSIS
BioScience
The hemophilia market is expected to growth by a CAGR of 5.9%
till 2016 to a market volume of $11.4 billion due to
increased recombinant and prophylaxis use, and growing treatment
and volumes per patient in emerging markets. The
market in whole faces greater competition due to more companies
having developed sufficient therapies. Barriers of
entry for the hemophilia A market, 70% of the total hemophilia,
are high because of the difficult production process and
lack of an recent extension to the half-life of proteins.
However for hemophilia B, there have been developments that
have increased the half life of drugs which has slightly lowered
the barriers of entry. Approximately 400,000 patients are
believed to have hemophilia A globally, where only about
one-third of patients is diagnosed and receives treatment.
About 80,000 people are estimated to have hemophilia B globally,
but only roughly 30% of them are diagnosed and
treated. Another trend has been the growth of the plasma
fractionation market, where capacity and production has
grown at 10% in the past decade. In response to these trends,
BAX has gained more emerging market exposure such as
with is partnership in Brazil, developed long acting products
(BAX 885), and expanded its plasma capacity by investing
in a new facility.
Medical Products
Economic weakness and high unemployment rates from the latest
financial crisis have caused lower hospital utilization,
higher uncompensated care costs and decreased hospital capital
expenditure resulting in slowdown in demand for
medical products. Revenues are expected to rise in the upper
single digit rate from macroeconomic improvements, new
products, expansion into emerging markets, and industry
consolidation. Headwinds include lower capital expenditures
and longer replacement cycles at US hospitals, pricing
pressures, European austerity policy, and currency risk. The
medical device tax of 2.3% on sales as part of ACA, pressures
companies to align costs to prevent lower profit margins
and increases industry consolidation. In the long run, aging
populations, especially in the USA, Europe and Japan,
increasing global demand and spending for health care products
stimulate steady growth. According to GlobalData, the
renal denervation market is expected to benefit from the general
market rebound, decreases in international barriers, and
increased global demand. The expected growth in these markets
will be tailwinds for BAXs medical products unit,
especially with its increased exposure in the renal denervation
space with its acquisition of Gambro.
PEER GROUP IDENTIFICATION
Bioscience Peer Group - (43% of revenue) o Biogen Idec Inc.
(NasdaqGS:BIIB) o Bayer AG (DB:BAYN) o Novo Nordisk A/S (CPSE:NOVO
B) o CSL Ltd. (ASX:CSL) o Grifols, S.A. (CATS:GRF)
Medical Product Peer Group - (57% of revenue) o Becton, Dickson
and Co. (NYSE: BDX) o Covidien PLC (NYSE COV) o CareFusion
Corporation (NYSE:CFN)
TARGET PRICE
The target price is computed using a weighted
comparison group. The target multiple is the weighted
average of the implied multiples that BAX trades at
against its peer groups, yielding a target NTM P/E of
15.88x. The target multiple is multiplied by consensus
NTM EPS of $5.01 per share to yield $79.57 price
target. After factoring the companys 2.90% dividend
yield results in a projected return of 22.57%.
Peer Analysis Target Price= $79.57
Relative Target Multiple = 15.88.x NTM Forecasted EPS =
$5.01
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PRODUCT ANALYSIS
Overview
BAX has developed a diversified product line offered worldwide
and specifically gained brand recognition as the leader
in the treatment of Hemophilia, Immune Disorders, and Alpha-1
Antitrypsin deficiency; with initiatives to expand
deeper in the fields of Renal Denervation and Oncology. BAX
currently has 53 drugs in the pipeline where a product
has either been Launched (25), Registered (2), Pre-registration
(1), Phase III (6), Phase II (5), Phase I (3), Clinical (1),
and
Discovery (10). As of now, BAXs key drug offerings with
significant developments are within the categories of
Anesthesia, Immunoglobulin, Hemophilia, Biotherapy, and
Renal.
o Anesthesia: The key drugs include Suprane and Forane which are
the liquids that vaporized to create general
inhalant for anesthetic purposes. There are concerns of
increased competition and sales erosion for Suprane.
o Immunoglobulin: Includes its key offering Gammagard, and is
used to treat immune deficiencies, and bacterial
infections. The expected US launch of HyQvia is expected to
boost sales and growth of this segment.
o Hemophilia: This segment includes BAXs gold standard products
such as the high margin Advate and
Recombinate drugs used to combat Hemophilia. Concerns for this
segment are an increase in competition from
longer acting products that could reshape the industry leaders.
New drug launches and a diversified business should
help BAX navigate through these changes until the release of its
own long acting product BAX 855.
o Biotherapy: The major product with significant implication is
the generic Cyclophosphamide, which is an injection
used to treat specific cancers. BAX is anticipating an increase
in competition and a loss of market share.
o Renal: Includes Peritoneal Dialysis and Hemodialiys which is
the process of removing waste and excess fluids from
the body created from Renal denervation. The segment is expected
to grow at a faster face due to the acquisition of
Gambro.
Pipeline Highlights
o BAX855: BAXs longer acting equivalent to Advate, BAXs top
hemophilia a drug, is currently in Phase III of
clinical trials. The product is expected to file for approval at
the end of 2014, and launch in the middle of 2015.
o BAX817: The recombinant factor for the treatment of
both hemophilia A and B with inhibitors, expected to
launch in 2016
o BAX 111: The recombinant form to treat Von
Willebrand diseases, a bleeding disorder where the
blood is not able to clot properly. Currently in Phase
III trials with a target launch in 2014
o HyQvia: The long acting version on BAXs
immunoglobulin product Gammagard, a liquid
antibody to treat immune disorder. The product
received regulatory approval in Europe and is expected
to be launched in America in the second half of 2014.
o RIXUBIS: The recombinant factor drug used to treat,
prevent or reduce the frequency of bleeding for
hemophilia B patients. The product is expected to
launch in the US in the first half of 2014
o FEIBA: The anti-inhibitor blood clot preventive drug
for hemophilia patients with inhibitors. FDA approved
at the end of 2013, and officially launched in the US in the
first half of 2014.
o OBI-1 Used for acquired hemophilia and delivered via an IV
treatment. Launch date is expected for the second half
of 2014
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FINANCIALS
Revenue
Total revenue has grown at a CAGR of 5.91% since
2010 with consensus estimates expecting a CAGR of
4.86% for the next 3 years. Sales are primarily
contract based with the end clientele mainly being
hospitals, facilities, and doctor offices. Growth
projections for 2014 are in the upper single due to the
contribution from Gambro, international expansion
specifically in Brazil, and new product launches.
BioScience revenue has grown at a 5.19% CAGR
since 2010 driven primarily by its key drug Advate,
new product launches, and expansion of its international
footprint. Expectations are that sales will continue to grow at
an annual average of 3- 4% as BAX continues to innovate current
drugs, and launch new ones. Growth projections have
been dampened due to an expect loss in market share due to
completion in the Hemophilia sub-segment from longer
acting products.
Medical Products revenue has grown at a CAGR of 6.48% since
2010 driven by growth by the acquisition of Gambro, and an
increase in worldwide demand. Guidance is for the segment to
grow in the lower double digits in 2014 due to the accretion,
the
increase in penetration, and commercial synergies created by
Gambro. Headwinds for growth include expected competition
within the generic cyclophosphamide and a slowdown in China
demand.
Overall, there are concerns about BAXs ability to grow sales
with
the expected increase in competition in the Hemophilia market.
BAX still remains one of the more diversified healthcare
companies that will be able to source its growth through
different business segments and geographic locations. BAX has
committed to the expansion of its other businesses such as with
Gambro, increase international exposure as with its
recent agreement with Brazil, and invested heavily in pipeline
development. These developments should ease the initial
loss of market share in the Hemophilia market until BAX releases
its long acting drug, BAX855, in late 2015.
Margins:
Gross margin has fluctuated between 50% and 52% between 2010
and 2013 and is currently at 51.1%. EBITDA margin has ranged
between 26% and 27% 2010 and is currently at 26.1% due to
the
increased restructuring and merger expenses associated with
the
integration of Gambro, increased SG&A, and increased
R&D.
Net margin has been as low as 11.1% in 2010 and as high
16.4%
in 2012, with the current margin at 13.2%. GM is expected to
decrease by 1.5% in 2014 due to the lower margin business of
Gambro, and currency related issues. However EBITDA margin
and Net Margin is expected to increase due to the lower
restructuring costs, the efficiencies of Gambro, and the effects
of
the business optimization initiatives.
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The Bioscience segment accounts for 63.5% of total pre-tax
income, and operates with on a 37.10% pre-tax income
margin. In comparison, the Medical Supplies segment accounts for
36.5% of total pre-tax income, and operates on a
16.08% pre-tax income margin. The segment is more profitable
than its counterpart because of the high margin nature,
premium pricing, and efficient scale of the pharmaceutical
industry versus the medical supplies industry. The margins in
the BioScience are expected to face some near term pressure due
to the expected release of its competitors longer acting
hemophilia drug. However, BAX margin should stabilize due to the
expected filing and release of new drugs, and
emerging market expansion. The margin in the Medical Supplies
unit is expected to increase as the BAX begins to realize
efficiencies from its Gambro acquisition.
R&D
R&D expense was accelerated in 2013 to 8.17% of sales versus
the average its 3 year average R&D margin of 6.9%. The
increase shows BAXs intent on innovating current products,
expanding discovery efforts, and accelerating the current
pipeline. Part of this increase is due to Baxters establishment
of Baxter Ventures in July of 2011, a strategic initiative to
invest up to $200 million in early-stage companies developing
products and therapies to accelerate innovation and
growth for the company. Through December 31, 2013, over 25% of
Baxter Ventures funds have been invested,
including in therapeutic areas such as immunology, hematology
and renal. Also Baxters BioScience business has been
actively engaged in investigating new potential
biosimilar and oncology treatments, primarily
through business collaborations. Included in
Baxters R&D activities in 2013 were upfront
and milestone payments of $103 million related
to collaboration arrangements and $73 million
related to business optimization charges.
SG&A:
SG&A is important for BAX to incur in order to
educate current and potential customers about
the complex product and to expand its customer
base. In 2013 the SG&A ratio was 24.12% and
represents a ratio growth of 2.5% since 2009. SG&A expense
in 2013 increased by 10.74% YOY due to the Gambro
acquisition. However, the increase in revenue of 7.53% offset
the major rise in SG&A expenses. Although the increase
in SG&A takes away from the bottom line, the increase is
necessary to raise aware, educate clients, and develop strong
relationships.
Earnings
BAXs earning breakdown equates to a 63.5% BioScience and 37.5%
Medical Supplies split due to the high margin
business and the pricing power that BAX commands within
the BioScience segment. BAX missed earnings on Q3 2013
but has consistently beat earnings since the end of 2009,
representing 14 consecutive earnings beat. Earnings have
grown at a CAGR of 3.66% between 2008 and 2012.
However, 2013s EPS was a YOY 12% decrease primarily
due to an addition $200 million associated with
restructuring
and merger relation expense specifically related to Gambro.
Guidance for 2014 is $5.05 to $5.25, which accounts for an
8.37% to 12.66 % growth from the adjusted 2013 EPS. Growth in
earnings stems from the business optimization
initiatives, and the growth and efficiency benefits from
Gambro.
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Shareholder Return:
BAXs dividend is currently 2.95%, representing a payout ratio of
49.70% and a 5-year dividend growth of 15.47%. With
the goal of paying down $1 billion of debt over the next 2-3
years, BAX is expected to bring down the payout ratio to
38.25% during that period. However, after this period, the
payout ratio is expected to increase at an annual average of
5.93% for the next 3 years. BAX repurchased shares in the amount
of $405 million in 2013, and management expects to
buy back about $300 million in 2014. BAX has committed to
returning 35-40% of FCF to its shareholders.
Debt:
BAXs capital structure has become highly leveraged due to the
large amount of debt issued to complete the acquisition
of Gambro AB. As of 2013, the debt to equity ratio (D/E) is
108.01% and debt to capital (D/C) is 51.93%, which is a
significant increase when compared with 2009s D/E of 55.94% and
D/C of 35.87%. Since then, D/E increased year-
over-year by 10%, with a hike of 20% from 2012s D/E of 84.98% to
108.01% in 2013. BAXs capital ratios are well
above the comps average D/E of 54.20% and D/C of 32.65%. The
long-term debt portion represents about 89% of
total debt; where 11% ($1.04B) is due within the next year.
Additionally, having a revolving credit line of $1.8B for the
next two years and a cash flow from operations enables BAX to
meet its liabilities. With a current ratio of 1.69 and an
interest coverage ratio of 11.86x, BAX is able to efficiently
manage its debt. Furthermore, management committed to
pay down over $1B within the next 2-3 years.
Free Cash Flow
From 2009-2013 FCF has decreased at a CAGR of
(3.07%) due to an increase in CAPEX, mostly from
M&A activity like the acquisition of Gambro. CAPEX
is expected increase to $1.8 billion for 2014 due to
Gambro expansion plans and a plasma manufacturing
in Georgia. However, 2014 will be the peak value in
CAPEX, with expectations that CAPEX will decrease
to $1.5 billion in 2015, and decrease each subsequent
year. Operating cash flow has grown at a CAGR of 6.49%
in the same time period, and expected to grow at a 4.5%
annual growth rate due to the expected product
launches, and incremental cash flow generated by
Gambro. The expected decrease in CAPEX and the
expected growth in FCF will increase FCF by a CAGR
of 8.65% till 2016.
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VALUATION
Undervaluation
Investors continue to heavily discount BAX due to concerns
surrounding the expected competitive pressures that BAX
will face in the Hemophilia market, specifically from Biogen,
Novo Nordisk, and Bayer. The main concern stems from
Biogens Elocate, a longer acting product, which is set for
approval in the second half of 2014. This puts considerable
pressure on BAXs Hemophilia sub segment, the largest business
segment by sales and earnings. JP Morgan was the first
to initiate the concerns and downgraded BAX from Outperform to
Neutral, dropping the stock 6% on the day and as
low as 12% within the week. BAX is also expecting an increase in
competition for its generic cyclophosphamide and is
currently waiting for companies to file for a new drug
application.
Within the last year BAX has underperformed the Healthcare
industry due to the concerns listed above where BAX now
trades at a 28% discount to the S&P 500 Healthcare Index on
a P/E base versus a 5 year average of trading in line with
the index. Against the S&P 500 Healthcare Pharmaceuticals
Index BAX is currently trading at 26% discount versus its 2%
discount on a 5 year average on a P/E basis. Against the S&P
500 Healthcare Equipment Index, BAX is currently
trading at a 20% discount versus its 16% five year average on a
P/E basis.
Discounted Cash Flow
Assumptions:
The 7 years CAGR sales growth of 4.3 % is derived through the
expected growth stated by management in each
segment, driven by a combination of geographic expansion and
product launches. Gross margins decreases initially due
to increase participation in lower margin business, but expand
back to historical average after efficiencies are realized and
new product launches throughout 2015. EBITDA margin grows with
expectation of cost efficiencies through Gambro
synergies and managements business optimization initiatives.
Depreciation historically has been around 4.5% of sales;
the initial increase is account for the recent increase in
Capital Expenditures., but begins to decrease back to
historical
averages. Capital Expenditures is forecasted to be $1.8 billion
2014, but 2014 represents the peak with expectation that
the expenditures will decrease in each subsequent year.
WACC
The WACC is calculated to be 9.239% using the 5 year average
weights of 84% for Equity and 16% for Debt. Cost of
capital of 9.239% is calculated using CAPM, with a risk free
rate of 2.65 %, a market risk premium is 10.14%, and using
a 3 year daily beta of .88. The cost of debt of .28% is
calculated using the pre-tax weighted cost of ST debt of 21%
and
interest rate of .34%, the pre-tax weighted cost of LT debt of
89% and interest rate of 2.43%, and the effective tax rate
of 33.86%. An additional 1.5% was added to accommodate for the
increased risk from new competition, and emerging
market uncertainty.
Price Targets
For the EV/EBITDA method, the implied EV/EBITDA of 10.0x is
derived from the relative valuation. This method
yields an enterprise value of $40,873.56, an equity value of
$42,759.56, and a price target of $78.75 per share.
Management expects to FCF to continue growing at low single
digit % rate, a 4% rate is used for the growing perpetuity
This method yields an enterprise value of $40,263.2, an equity
value of $42,149.2, and a price target of $77.62 per share.
WACC
9.213x
EM Method
EM:10.0x
$78.75
GP Method
GP: 3.5%
$77.62
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Peer Group Valuation
The relative valuation is completed using two peer groups there
were weighted to match BAXs revenue breakdown.
Companies used in the Bioscience relative valuation include
Biogen, Bayer AG, Novo Nordisk A/S, Grifols, and CSL
Ltd. On a 5 year P/E basis, BAX trades at a 29% discount against
this group and is currently at a 35% discount.
Companies used in the Medical Supplies relative valuation
included: Becton Dickson and Co, Covidien PLC, and Care
Fusion Corp. On a 5 year P/E basis, BAX trades in at a 5%
premium against this group but is currently at a 17%
discount. The peer groups include companies that are direct
competitors with similar products and geographic location.
The price target was achieved by obtaining a weighted average of
the implied NTM P/E using the revenue breakdown
as the weights to receive a 15.88x multiple. Because Biogen has
not yet released the Elocate product, it was excluded in
the final calculations. Through the catalyst stated in the
previous sections, BAXs multiples should expand back to
normal trading levels; resulting in an 18% multiple expansion
from its current NTM P/E of 13.36x. Using the implied
forward P/E multiplied by consensus EPS estimates of $5.01 per
share yields a price target of $79.57. After accounting
for a dividend yield of 2.90%, the total return equates to
22.57%.
Implied P/E
15.88x
Consensus EPS
$5.01
Target Price
$79.57
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Appendix
5 Year P/E vs. SP 500 Healthcare
5 Year PE vs Bioscience comps
5 Year PE vs Medical Products comps
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DISCLAIMER
This report is prepared strictly for educational purposes and
should not be used as an actual investment guide.
The forward looking statements contained within are simply the
authors opinions. The writer does not own any
Baxter International, Inc. stock.
TUIA STATEMENT
Established in honor of Professor William C. Dunkelberg, former
Dean of the Fox School of Business, for his
tireless dedication to educating students in real-world
principles of economics and business, the William C.
Dunkelberg (WCD) Owl Fund will ensure that future generations of
students have exposure to a challenging,
practical learning experience. Managed by Fox School of Business
graduate and undergraduate students with
oversight from its Board of Directors, the WCD Owl Funds goals
are threefold:
Provide students with hands-on investment management
experience
Enable students to work in a team-based setting in consultation
with investment professionals.
Connect student participants with nationally recognized money
managers and financial institutions
Earnings from the fund will be reinvested net of fund expenses,
which are primarily trading and auditing costs
and partial scholarships for student participants.