BAXBaxter International
Is the business good?
The checks split: nothing decisive, though margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BAX?
Baxter International earns −4.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 13 points below what the capital costs: growth destroys value
- Operating margin
- −2.4%
Operating margin · Medical Instruments & Supplies median 6.6% · 12 months to Q2 2026
- Share count, year on year
- +0.78%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 4.5%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 14% |
| FY2021 | 11% |
| FY2022 | −28% |
| FY2023 | 6.8% |
| FY2024 | 0.13% |
| FY2025 | −2.7% |
Details›
- Gross margin12 months to Q2 2026
- 30%
- Operating margin12 months to Q2 2026
- −2.4%
- Net margin12 months to Q2 2026
- −9.3%
- R&D as % of revenue
- 4.5%
- Revenue, trailing twelve months
- $11.5B
- Net income, trailing twelve months
- −$1.06B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −4.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Medical Instruments & Supplies
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