One-glance verdict
Undervalued
$97.40 our estimate vs market $45.44
Wall Street consensus: $57.82 (-40.6% lower than our fair-value estimate)
53% below our estimate, below the bear case
Fundamentals snapshot
Boston Scientific Corporation
BSX · NYQ · Healthcare · Medical Devices
Current price
$45.44
52-week range
$41.39 - $105.65
Market cap
$65.85B
Balance sheet
Watch
11.38x Adequate
Net debt $12.09B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 4.6% last year.
- Reward Returns 15.3% on equity, ahead of 60% of its peers.
- Risk Net debt grew 13.4% over 3 years.
- Risk Insider ownership is only 0.3% (peer median: 0.4%).
What this company does
Boston Scientific Corporation
Boston Scientific makes important medical devices that doctors use to help patients, especially for heart and stomach issues. The money they make comes from selling these devices, which helps them keep developing new and better tools for healthcare.
How the company got here
Boston Scientific was founded in 1979 by John Abele and Peter Nicholas with a vision to create less-invasive surgical alternatives. The company started by focusing on steerable catheters and grew through a series of strategic acquisitions, expanding its product lines into various medical specialties. A key turning point was its initial public offering in 1992, which provided capital for further growth and acquisitions. Over the years, Boston Scientific has evolved by focusing on specific high-growth areas within the medical technology market, shifting from broad expansion to building leadership in selected therapeutic categories. This strategic focus, combined with both internal innovation and acquisitions, has shaped the company into a global leader in minimally invasive medical devices.
What it actually does
Boston Scientific develops and manufactures a wide range of medical devices designed for minimally invasive procedures. These devices help doctors diagnose and treat various conditions across different parts of the body, aiming to improve patient outcomes and reduce the need for more invasive surgeries. The company's products are used in hospitals and clinics by healthcare professionals to perform procedures that are often less painful and have quicker recovery times for patients.
Cardiovascular
This segment is Boston Scientific's largest, making up a significant portion of its revenue, over 60% in recent years. It focuses on developing technologies to treat heart and vascular conditions. This includes devices like coronary stents, which are small mesh tubes used to open blocked arteries, and the WATCHMAN device, which helps prevent strokes in patients with atrial fibrillation (an irregular heartbeat). The products in this segment are crucial for procedures aimed at improving blood flow and managing heart rhythm disorders.
MedSurg
The MedSurg segment is the other major part of Boston Scientific's business, accounting for the remaining portion of its revenue. This segment is quite diverse, encompassing several areas. It includes devices for urology and pelvic health, such as treatments for conditions like kidney stones, enlarged prostates, and incontinence. It also covers neuromodulation, which involves devices like spinal cord stimulators used to manage chronic pain and neurological movement disorders. Additionally, this segment includes endoscopy products used for diagnosing and treating gastrointestinal and lung conditions.
What management is betting on now
Boston Scientific's current strategy centers on achieving top-tier revenue growth by focusing on leadership in specific, high-growth medical technology categories. They aim to expand globally and improve efficiency to increase profit margins. A key part of this strategy involves continuous investment in developing new products and acquiring innovative technologies from other companies. This approach allows them to stay at the forefront of medical advancements and address unmet patient needs in areas like cardiovascular care, urology, and pain management.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$823.00M
FY2024 Q4
$1.18B
FY2025 Q1
$354.00M
FY2025 Q2
$1.13B
FY2025 Q3
$1.16B
FY2025 Q4
$1.01B
FY2026 Q1
$171.00M
FY2026 Q2
$1.28B
Revenue
$5.44B
Net income
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Diluted EPS
0.61
Operating cash flow
$1.47B
Free cash flow
$1.28B
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Sources
Revenue
$5.20B
Net income
—
Diluted EPS
0.90
Operating cash flow
$348.00M
Free cash flow
$171.00M
Fetching…
Sources
Revenue
$5.29B
Net income
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Diluted EPS
0.45
Operating cash flow
$1.36B
Free cash flow
$1.01B
Fetching…
Sources
Revenue
$5.07B
Net income
—
Diluted EPS
0.51
Operating cash flow
$1.34B
Free cash flow
$1.16B
Fetching…
Sources
Revenue
$5.06B
Net income
—
Diluted EPS
0.53
Operating cash flow
$1.29B
Free cash flow
$1.13B
Fetching…
Sources
Revenue
$4.66B
Net income
—
Diluted EPS
0.45
Operating cash flow
$541.00M
Free cash flow
$354.00M
Fetching…
Sources
Revenue
$4.56B
Net income
—
Diluted EPS
0.38
Operating cash flow
$1.46B
Free cash flow
$1.18B
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Sources
Revenue
$4.21B
Net income
—
Diluted EPS
0.32
Operating cash flow
$1.00B
Free cash flow
$823.00M
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Sources
Is it cheap or expensive?
Fair value $97.40 vs current price $45.44
Wall Street consensus is the average analyst price target: $57.82 (-40.6% lower than our fair-value estimate).
Our most-likely fair value is $97.40 a share — about 114.4% above today's price of $45.44, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $12.1B. Interest coverage 11.4x.
Net debt
$12.09B
Interest coverage
11.38x
Boston Scientific Corporation's profit covers its interest bill about 11.4 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
BSX
BASELINE
Boston Scientific Corporation
Total debt $12.62B Interest coverage 11.38x This is the baseline the peer rows are being compared against.
Total debt $28.15B Interest coverage 9.55x -16% vs BSX Carries about 1.2x less debt cushion than BSX.
Total debt $15.45B Interest coverage 8.33x -27% vs BSX Carries about 1.4x less debt cushion than BSX.
Total debt $32.72B Interest coverage 16.33x +44% vs BSX Carries about 1.4x more debt cushion than BSX.
Total debt $704.40M Interest coverage 80.21x +605% vs BSX Carries about 7.0x more debt cushion than BSX.
Total debt $16.81B Interest coverage 4.87x -57% vs BSX Carries about 2.3x less debt cushion than BSX.
What you should know
The case for and against BSX
3 Rewards
2 Risks
Rewards
-
Revenue grew 4.6% last year.
-
Returns 15.3% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Net debt grew 13.4% over 3 years.
-
Insider ownership is only 0.3% (peer median: 0.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.39x
Forward P/E
13.45x
P/B
2.64x
P/S
3.14x
EV/EBITDA
13.75x
PEG ratio
0.64x
Profitability
How much profit each dollar creates
Gross margin
69.2%
Operating margin
22.9%
Net margin
17.5%
ROE
15.3%
ROA
6.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.50x
Current ratio
1.24x
Quick ratio
0.56x
Total debt
$12.62B
Total cash
$539.00M
Growth
How the business has been compounding
Revenue TTM
$21.00B
Revenue 5Y CAGR
14.0%
EPS TTM
2.47
EPS 5Y CAGR
62.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.53B
Free CF TTM
$3.66B
FCF margin
17.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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