Bausch Health Companies Inc. Common Stock (BHC)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable franchises purchased with a margin of safety, and Bausch Health is not a classic Buffett compounder. It sells specialty pharmaceuticals and medical devices across Salix, International, Solta, Diversified, and Bausch + Lomb; that gives some recurring demand, but the figures do not prove a wide moat. The growth is real: revenue rose from $8.8B in fiscal year 2023 to $9.6B in fiscal year 2024 and $10.3B in fiscal year 2025. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.9B, net income $258.0M, and diluted EPS $0.68, better than fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $2.5B, net income $148.0M, and diluted EPS $0.40. But fiscal Q1 2026, the quarter ended 2026-03-31, produced a $1.4B net loss and $-3.82 diluted EPS, which makes trailing EPS -$2.94 and the FairStock P/E -2.00 at the $5.89 close on 2026-10-13. Financial health is mixed: TTM free cash flow is $1.4B, a FairStock FCF yield of 63.2% on a $2.2B market cap, and the FairStock Piotroski F-Score is 8/9. Yet the FairStock Altman Z-Score is -0.25, debt-to-equity is 55.91, and FairStock EV/EBITDA is 10.34, so enterprise value is not as cheap as equity. I would call this a speculative turnaround: cash flow could provide a margin of safety, but lumpy earnings and leverage make the downside real.

In plain English: Bausch Health is a drug and medical device company with products for stomach, eye, skin, dental, and beauty care. Sales have grown and it recently returned to profit, but it also reported a large loss earlier in 2026 and carries a lot of debt. At $5.89, the shares look cheap compared with the cash the business produces, but the weak balance-sheet signals mean the price is not clearly a safe bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer