BSX Investment Analysis Report & Stock Research, Boston Scientific Corp.

Boston Scientific Corporation (BSX)

BSX Stock Report

2-Year Price History

View Larger BSX Chart
NYSE:BSX
$8.21
(2/5 4:33PM)
+0.4%
Open$8.16 Mkt Cap$12.4 Billion
High$8.21 52Wk High$11.77
Low$8.06 52Wk Low$6.08
Volume17.4 Million Avg Vol 10D23.1 Million

Ockham's Rating/Recommendation Summary

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BSX Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at BSX through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 4.81x and 2.65x respectively.

Utilizing this range we can see that BSX’s current Price to Sales per share ratio of 1.61x is significantly below its average levels historically. In fact, with a current price of $8.63, BSX is a full 57% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for BSX.

BSX Cash Earnings

When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of BSX, it appears that either the current estimate for Cash Earnings is negative or BSX is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters. Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis BSX receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.

BSX Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company. As far as our investing methodology goes, it is not necessary to pay a dividend in order to get a favorable rating, so as for right now BSX gets a neutral rating for the dividend portion of the model. As you can see, we are not receiving historical dividend information from our data provider on BSX at this time.

Peer Comparison

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Boston Scientific Corp. Industry Grouping

(2/4/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including BSX) 21.01 8.55 » 149.87 5.94 1.34 » 8.49 22.36% 16.46%
*10 year range does not include current year values
Aetna, Inc. AET $12.7 Billion $29.23 9.96 1.34 » 19.71 0.39 0.13 » 1.25 11.48% 18.92%
St. Jude Medical, Inc. STJ $12.6 Billion $37.61 21.08 14.69 » 37.21 2.69 1.98 » 6.71 17.69% 16.14%
Intuitive Surgical, Inc. ISRG $12.4 Billion $321.20 52.41 12.77 » 620.33 22.30 2.11 » 23.02 57.02% 14.68%
Boston Scientific Corp. BSX $12.4 Billion $8.18 -1.00 15.78 » 63.41 1.61 1.01 » 8.75 18.29% 8.14%
Zimmer Holdings, Inc. ZMH $11.8 Billion $55.62 11.33 6.17 » 51.26 2.93 1.53 » 9.17 16.74% 15.10%
Quest Diagnostics, Inc. DGX $10.2 Billion $55.43 10.25 7.80 » 20.83 1.38 0.97 » 2.29 8.88% 17.46%

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Boston Scientific Corporation: Bottom-Line (Net Income) Discussion on Seeking Alpha Wall St Breakfast

Net income is an important statistic for any company as they all try to generate greater profits for shareholders. There is news from Seeking Alpha Wall St Breakfast in regards to the current trend in net income.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BSX has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on BSX. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Boston Scientific Corporation will perform just about the same as the index.

“… The surprisingly pricey settlement could impede BOSTON SCIENTIFIC's ability to make the deals it needs to shore up its product pipeline and boost sales. …”

Dividends and Boston Scientific Corporation Among the Topics Covered on The Razor's Edge

For income investors, dividend news is obviously important. BSX's dividends were discussed recently on The Razor's Edge.

Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Boston Scientific Corporation will perform just about the same as the index. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, BSX has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on BSX.

“… BOSTON SCIENTIFIC says that the payout will not affect debt covenants, and will continue with its plan to refinance 2011 maturities later this year. …”

See More News on BSX from Power Lunch

The latest news from Power Lunch on BSX is available through Ockham's news analytics platform RazorWire.

Boston Scientific Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; BSX has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.

“… It's about the same size as stricker and two times as BOSTON SCIENTIFIC. Names you're familiar with. Tyler, over to you. > > thank you very much. …”

News on BSX From the Pundits on The Opening Bell on Fox Business

As always, the latest news on BSX is available to Ockham clients through RazorWire, and it was mentioned recently on The Opening Bell on Fox Business.

The Ockham valuation currently has a Fairly Valued stance on BSX because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Boston Scientific Corporation has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards BSX and think that it will generally perform in-line with the S&P 500.

“… And number five, BOSTON SCIENTIFIC group in the mix here the world's biggest maker of heart stents and the stocks have been falling in early trading down about 1. 5%. …”

BSX Back in the News on Mad Money

After a month of relative quiet from BSX, they have appeared back in the news.

The Ockham valuation currently has a Fairly Valued stance on BSX because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Boston Scientific Corporation has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards BSX and think that it will generally perform in-line with the S&P 500.

“… BOSTON SCIENTIFIC, and I added two more. I know it's supposed to be five, but today because of the drop in google, I got google and aig. . …”

News Developing on Closing Bell for BSX

As always, the latest news on BSX is available to Ockham clients through RazorWire, and it was mentioned recently on Closing Bell.

Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards BSX and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Boston Scientific Corporation has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on BSX because it trades within the price range that we would expect given current market conditions and fundamentals.

“… But big names that are on the upside, pfizer, hologig, and BOSTON SCIENTIFIC. > > > we're coming right back with the closing countdown. > > > …”

News Delevoping on Closing Bell for BSX

Pro-vigil to new-vigil. We think that's going better than the market is giving them credit for. Tomorrow they're having an analyst day. Appropriate. We also like BOSTON SCIENTIFIC. You know, BOSTON SCIENTIFIC has done a wonderful job of destroying shareholder value over the last five years. But they brought in a new ceo about four months ago. And he has an extraordinary track record. And we think that he's going to turn this company around. >> adam, who do you think are the losers in all this?

“… lder value over the last five years. But they brought in a new ceo about four months ago. And he has an extraordinary track record. And we think that he's going to turn this company around. >> adam, who do you think are the losers in all this? …”

Boston Scientific Corporation (BSX) Discussed on CNBC's Squawk On The Street

Boston Scientific Corporation is in the news. Find out how this impacts BSX trading on Ockham Research.

Week highs. Apple, peabody engine and cummins engine a couple of move, too, lexmark, BOSTON SCIENTIFIC. On the way, though, mark, obviously, we are lower, despite earnings. >> yo, let's take the markets. We're down almost half 1% on the

“… Week highs. Apple, peabody engine and cummins engine a couple of move, too, lexmark, BOSTON SCIENTIFIC. On the way, though, mark, obviously, we are lower, despite earnings. >> yo, let's take the markets. We're down almost half 1% on the …”

Boston Scientific Corporation (BSX) Discussed on Fox Business's The Opening Bell on Fox Business

Boston Scientific Corporation is in the news. Find out how this impacts BSX trading on Ockham Research.

Being up, initiated with an outperform over at oppenheimer. Apple oppenheimer calling that one an outperform as well and the only one with negative commentary, wells fargo on BOSTON SCIENTIFIC. Downgrading this one to a market perform from an outperform and this is certainly a name that traders on wall street watch closely as it's down nearly 11% so the action continues here during the busy, busy earnings season. Thanks so much. Let's head out to the cme group and check with martin mcguire of mf global.

“… nd this is certainly a name that traders on wall street watch closely as it's down nearly 11% so the action continues here during the busy, busy earnings season. Thanks so much. Let's head out to the cme group and check with martin mcguire of mf global. …”

Boston Scientific Corporation (BSX) Discussed on CNBC's Power Lunch

Boston Scientific Corporation is in the news. Find out how this impacts BSX trading on Ockham Research.

Space, knee co-ya innokia in particular. >> coca-cola, are you a buyer? >> it's right up near i'd like to see the earnings catalyst out of the way on this >> BOSTON SCIENTIFIC also out are you a buyer, eugene? St. Jude preannounced on a weak icd unit sales. I think BOSTON SCIENTIFIC has a lot of debt. I like abbott labs a lot better. >>> on tonight's "fast money" we have all the after hours action on apple. The conference call kicks off at 5:00 p.M. Sharp. Up next, a war for the web. After this.

“… s. I think BOSTON SCIENTIFIC has a lot of debt. I like abbott labs a lot better. >>> on tonight's "fast money" we have all the after hours action on apple. The conference call kicks off at 5:00 p.M. Sharp. Up next, a war for the web. After this. …”

View All Boston Scientific Corp. Stock News

Key Fundamentals

BSX - Boston Scientific Corporation Fundamentals
Price (2/5 4:33PM) $8.21
Volume (2/5 4:33PM) 17.4 Million
Last Close Price $8.18
10 Day Average Volume 23.1 Million
13 Week Price Range $8.03 - $9.79
52 Week Price Range $6.08 - $11.77
LTM Revenue $8.1 Billion
 
Shares Outstanding (12/2008) 1.5 Billion
Market Capitalization $12.4 Billion
Shares Held By Institutions 1.3 Billion
Institutional Holders 701
% Shares Held By Institutions 86.70%
Earnings Per Share (EPS) ($1.36)
P/E Ratio n/a
Book Value Per Share $8.80
 
Gross Margin 73.60%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.13
Fiscal Year Ends December

About Boston Scientific Corp.

Boston Scientific Corporation is considered to operate in the Healthcare sector. They specifically operate in the Medical Instruments/Supplies business segment contained within the Health Services industry.

A worldwide developer, manufacturer and marketer of medical devices, used in interventional cardiology, cardiac rhythm management, peripheral interventions, electrophysiology, neurovascular intervention, endoscopy, gynecology and neuromodulation.