Bausch Health Companies Inc. (BHC): a likely value trap?

Avoid — this is a debt-crushed pharma whose main profit driver (Xifaxan) is walking off a patent cliff with no proven replacement.

⚠ TRAP Fundamentals66/100

Down 98% from its all-time high of $257.53 — now $5.65

Why BHC dropped

The recent slide was triggered by a failed Phase 3 trial trying to expand Xifaxan's use, which removed one of the company's few tools for softening its 2028-2029 patent cliff, on top of a Medicare price-negotiation cut taking effect in 2027.

Fwd P/E 1.3Op margin 27.2%Rev growth 12.7%Debt/equity —Analyst upside 32.7%

How this scored 66/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Loss-making today, but operations are profitable (27.2%) and analysts expect positive earnings next year

✅ Generates cash Free cash flow $1.4B

✅ Not drowning in debt Debt/equity unknown (limit 200%)

✅ Can pay its bills Current ratio 1.4 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 11/25

Operating margin 27.2% 9/9

Net profit margin -10.1% 0/8

Return on equity unknown 2/8

Growth Is it getting bigger, or dying? 21/25

Revenue growth 12.7% 5/9

Earnings growth 70.4% 8/8

Expected profit change 242.6% 8/8

Value Is it cheap right now? 22/25

Forward P/E 1.3 10/10

PEG ratio 0.0 8/8

Analyst target upside 32.7% 4/7

Balance sheet Will it survive? 12/25

Debt / equity unknown 3/10

Current ratio 1.4 2/8

Free cash flow $1.4B 7/7

🔒 Read the full AI analysis

Create a free account to unlock the bull case and the risks for BHC — plus today's other picks.

Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-25. Research only — not financial advice.