BOSTON SCIENTIFIC CORP (BSX) Stock Analysis
BOSTON SCIENTIFIC CORP (BSX) Stock Analysis
Analysis from 10-Q filed 2025-11-03. Data as of Q4 2025.
Overall Grade: F (Concerning)
BOSTON SCIENTIFIC CORP faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 10.3% | Near cost of capital |
| FCF Margin | 18.2% | Strong cash generation |
| Debt/Equity | 0.5x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 18.2% provides financial flexibility for growth and shareholder returns.
Explore BOSTON SCIENTIFIC CORP: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: BOSTON SCIENTIFIC CORP earns 10.3% ROIC, Top 25% in Healthcare
BOSTON SCIENTIFIC CORP's trailing-twelve-month ROIC of 10.3% ranks Top 25% in Healthcare companies (sector median: -3.9%), driven by NOPAT margin of 15.4% combined with asset turnover of 0.5x. Source: 10-Q filed 2025-11-03. Gross margin of 69.0% with operating margin at 18.0% reflects strong pricing power.
| Metric | BSX | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.3% | Adequate | Above sector median of -3.9% |
| Return on Equity (ROE) | 12.7% | Adequate | Moderate equity returns |
| Gross Margin | 69.0% | Excellent | Strong pricing power |
| Operating Margin | 18.0% | Good | Efficient operations |
Cash Flow: BOSTON SCIENTIFIC CORP generates $3.7B FCF at 18.2% margin, positive NaN/8 quarters
BOSTON SCIENTIFIC CORP generated $3.7B in free cash flow (TTM), a 18.2% FCF margin, a margin that ranks Top 5% in Healthcare. Operating cash flow exceeds net income by 1.6x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-03.
| Metric | BSX | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 18.2% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $3.7B | Good | Positive cash generation |
| OCF/Net Income | 1.6x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: BOSTON SCIENTIFIC CORP at 0.5x leverage
BOSTON SCIENTIFIC CORP's debt-to-equity ratio of 0.5x reflects moderate leverage. Total debt of $11.4B offset by $2.1B in cash. Source: 10-Q filed 2025-11-03.
| Metric | BSX | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.5x | Good | Conservative capital structure |
| Net Cash Position | $-9.3B | Warning | Net debt position |
Valuation: BOSTON SCIENTIFIC CORP trades at 48.4x earnings
BOSTON SCIENTIFIC CORP trades at a P/E of 48.4x. Free cash flow yield of 2.6% reflects market expectations for growth.
| Metric | BSX | Rating | Context |
|---|---|---|---|
| P/E Ratio | 48.4x | Adequate | Premium valuation |
| EV/Sales | 7.5x | Adequate | Growth premium priced in |
| FCF Yield | 2.6% | Adequate | Lower cash yield |
Capital Allocation: BOSTON SCIENTIFIC CORP returns 0.0% shareholder yield
BOSTON SCIENTIFIC CORP's total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-11-03.
| Metric | BSX | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.3% | Top 25% | - |
| Free Cash Flow Margin | 18.2% | Top 5% | - |
| Gross Margin | 69.0% | Top 50% | 1.1x above |
| Operating Margin | 18.0% | Top 25% | 9.4x above |
| Return on Equity (ROE) | 12.7% | Top 25% | - |
| P/E Ratio | 48.4x | N/A | - |
Financial Scorecard
| Metric | BSX | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.3% | Adequate | Top 25% of sector (median: -3.9%) |
| Free Cash Flow Margin | 18.2% | Good | Top 5% of sector (median: 0.0%) |
| Gross Margin | 69.0% | Excellent | Top 50% of sector (median: 64.0%) |
| Debt to Equity Ratio | 47.2% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 48.4x | Adequate | High expectations priced in |
| Free Cash Flow Yield | 2.6% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is BOSTON SCIENTIFIC CORP's Return on Invested Capital (ROIC)?
BOSTON SCIENTIFIC CORP (BSX) has a trailing twelve-month Return on Invested Capital (ROIC) of 10.3%. This compares above the sector median of -3.9%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is BOSTON SCIENTIFIC CORP's Free Cash Flow Margin?
BOSTON SCIENTIFIC CORP (BSX) has a free cash flow margin of 18.2%, generating $3.7 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is BOSTON SCIENTIFIC CORP stock overvalued or undervalued?
BOSTON SCIENTIFIC CORP (BSX) trades at a P/E ratio of 48.4x, which is above the sector median of N/A. The EV/Sales multiple is 7.5x. Free cash flow yield is 2.6%, reflecting growth expectations priced into the stock.
Q: What is BOSTON SCIENTIFIC CORP's revenue and earnings growth?
BOSTON SCIENTIFIC CORP (BSX) grew revenue by 19.9% year-over-year. Earnings per share increased by 55.2% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: How does BOSTON SCIENTIFIC CORP compare to competitors in Healthcare?
Compared to other companies in Healthcare, BOSTON SCIENTIFIC CORP (BSX) shows: ROIC of 10.3% is above the sector median of -3.9% (Top 25%). FCF margin of 18.2% exceeds the sector median of 0.0% (Top 0% of sector). Gross margin at 69.0% is 5.1 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.
Q: What warning signs should I watch for with BOSTON SCIENTIFIC CORP?
BOSTON SCIENTIFIC CORP (BSX) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-03. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.