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

Avoid — cheap only because its single most profitable drug (Xifaxan) is racing toward a patent cliff while the company carries crushing, negative-equity debt.

⚠ TRAP Fundamentals66/100

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

Why BHC dropped

The stock isn't crashing today so much as grinding lower for years off a 2015 fraud scandal, and now it's sliding further because Xifaxan — its main profit engine — faces generic competition starting 2028, a Phase 3 trial (RED-C) meant to extend the franchise failed in January 2026, and a Q4 2025 earnings miss added a goodwill writedown.

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

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-18. Research only — not financial advice.