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Bausch Health Companies Inc

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Bausch Health Companies Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-17

Snapshot

  • Negative equity (-565M) with 21B debt load; interest expense (1.5B TTM) consumes 79% of operating income (2.0B TTM)[Total Equity / Interest Expense TTM]
  • Goodwill of 11.3B represents 42% of total assets - impairment would accelerate equity erosion[Goodwill]
  • EPS 3Y CAGR of 149% vs industry median 0.8% driven by cost cuts, not revenue growth[EPS Growth 3Y TTM]

Watch Triggers

  • Interest Expense TTM: Exceeds 1.6B or >80% of operating incomeFCF would turn negative, forcing asset sales or restructuring
  • Free Cash Flow TTM: Falls below 900MInsufficient to service debt without refinancing at higher rates
  • Goodwill: Any impairment charge announcedWould further erode negative equity, triggering debt covenants

Bull Case

Gross margin 70.7% TTM with operating margin 19.6% generates 1.1B FCF despite debt burden - business fundamentals intact

Gross Margin TTMFree Cash Flow TTMOperating Margin TTM

P/E of 7.7x and P/S of 0.26x vs industry medians of 20x and 4.1x - extreme discount if debt restructured

PE RatioPS Ratio

Bear Case

Capital structure unsustainable: 21B debt, -565M equity, 1.5B annual interest vs 1.1B FCF leaves no margin for error

Total DebtTotal EquityInterest Expense TTM

Tangible book value -16.7B; any goodwill impairment accelerates covenant breach risk

Tangible Book ValueGoodwill

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
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Forward Thesis

Debt refinancing risk dominates - 21B debt at rising rates threatens FCF sustainability

1-3yhigh
  • Interest expense 1.5B TTM vs 1.1B FCF
  • Net debt 19.7B at 8.7x EV/EBITDA
  • 705M debt paydown in period
FCF of 1.1B barely covers interestNegative equity limits refinancingP/CF of 1.7x signals distress pricing

Valuation Context

Caveats

Data Partners
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Fundamental company data provided by Morningstar, updated daily.

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