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Baxter International Inc - Stock Quote BAX

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Morningstar's Baxter International Inc Stock Analysis

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Is it the right time to buy or sell?
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Economic Moat

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Baxter Bought Hillrom to Enhance Digital Connections for Caregivers

Julie Utterback, CFA Senior Equity Analyst

Business Strategy and Outlook

| Julie Utterback, CFA |

Following the spin-off of Baxalta in mid-2015, Baxter's new management team has focused on increasing efficiencies and innovating in medical products. That focus has resulted in much-improved profitability and cash flow generation since then. In the intermediate term, the company aims for mid-single-digit sales growth primarily through new product launches and for double-digit adjusted earnings per share and free cash flow growth compounded annually. Acquisitions, like the recent combination with Hillrom (medical equipment like hospital beds with digital connection capabilities), could add to those prospects.

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Baxter International Inc's Company Profile

Business Description

Baxter offers a variety of medical instruments and supplies to caregivers, and the company enhanced its portfolio of hospital-focused offerings by acquiring Hillrom in late 2021. Legacy Baxter offers tools to help patients with acute and chronic kidney failure. It also sells a variety of injectable therapies for use within care settings, such as IV pumps, administrative sets, and solutions; nutritional products; and surgical sealants and hemostatic agents. The company also offers contract manufacturing services to pharmaceutical companies. The Hillrom transaction has added basic equipment, including hospital beds, to its portfolio, although about half of Hillrom's 2021 revenue came from more digitally connected offerings like its smart beds and Voalte medical communications app.

Contact
One Baxter Parkway
Deerfield, IL, 60015
T +1 224 948-2000
Sector Healthcare
Industry Medical Instruments & Supplies
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type Classic Growth
Employees 60,000

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