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1. Company Snapshot

1.a. Company Description

Bausch Health Companies Inc., together with its subsidiaries, develops, manufactures, and markets a range of pharmaceutical, medical device, and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology, and dermatology.The company operates through five segments: Bausch + Lomb, Salix, International Rx, Ortho Dermatologics, and Diversified Products.The Bausch + Lomb segment offers products with a focus on the vision care, surgical, and consumer, surgical, and ophthalmic pharmaceuticals products.


The Salix segment provides gastroenterology products in the United States.The International Rx segment offers Solta products, branded and generic pharmaceutical products, OTC products, and medical device products, and Bausch + Lomb products in Canada, Europe, Asia, Australia, Latin America, Africa, and the Middle East.The Ortho Dermatologics segment provides dermatological products in the United States; and Solta medical aesthetic devices internationally.


The Diversified Products segment offers pharmaceutical products in the areas of neurology and other therapeutic classes, as well as generic and dentistry products in the United States.The company was formerly known as Valeant Pharmaceuticals International, Inc.and changed its name to Bausch Health Companies Inc.


in July 2018.Bausch Health Companies Inc.is headquartered in Laval, Canada.

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1.b. Last Insights on BHC

Bausch Health Companies Inc.'s recent performance was negatively impacted by a correction in its Q1 revenue forecast, which is expected to narrowly miss consensus estimates. The company's financing initiative with J.P. Morgan has been ongoing, with the next steps announced in March. Additionally, Bausch Health has been exploring strategic alternatives, providing an update on its financing initiative with J.P. Morgan in March. The company's Q4 results, reported in February, showed a net income of $93 million, but the recent correction in revenue forecast may indicate ongoing challenges.

1.c. Company Highlights

2. Bausch Health's 2025 Earnings: A Strong Finish with Growth Momentum

Bausch Health reported a robust fourth quarter and full-year 2025 earnings, with revenue and adjusted EBITDA demonstrating significant growth. In Q4, the company, excluding Bausch + Lomb, reported revenue of $1.391 billion, up 9% on a reported basis and 5% organically, while adjusted EBITDA reached $773 million, a 9% increase. For the full year, revenue grew 7% on a reported basis and 6% organically, with double-digit adjusted EBITDA growth. However, the actual EPS came out at -$0.42113, missing estimates of $1.21.

Publication Date: Feb -22

📋 Highlights
  • 11th Consecutive Quarter of Growth:: Revenue and adjusted EBITDA growth accelerated in Q4, with revenue up 9% ($1.391B) and EBITDA up 9% ($773M) excluding Bausch + Lomb.
  • Full-Year Performance:: Delivered 7% reported revenue growth ($5.25B–$5.4B) and 6% organic growth, with double-digit adjusted EBITDA growth ($2.875B–$2.95B) in 2026 guidance.
  • Segment Strength:: Salix (Xifaxan +11%), Solta (+18%), and Thermage (+19%) drove organic growth, supported by strong international markets and brand leadership in key regions.
  • Debt Reduction & Flexibility:: $1.7B debt exchange in Dec 2025 reduced net debt by hundreds of millions, with under $700M in maturities until 2027 and $9.6B refinancing providing capital flexibility.
  • Strategic Focus:: Prioritizing innovation, portfolio optimization, and BD (e.g., DURECT, Shibo acquisitions), with plans to monetize Bausch + Lomb stake via stake sales or spin-off post-2028.

Financial Performance Highlights

The company's cash generation remained healthy, with over $1 billion in adjusted operating cash flow for the full year and a reduction in net debt by several hundred million dollars. A $1.7 billion debt exchange in December 2025 further strengthened the balance sheet, with less than $700 million of maturities obligation until the end of 2027. The company's 2026 financial guidance indicates revenue between $5.25 billion and $5.4 billion, representing a 3% increase year-over-year, and adjusted EBITDA between $2.875 billion and $2.950 billion, representing a 4% increase year-over-year.

Segment Performance and Growth Prospects

The company's diverse markets and established brands drove growth, with Salix, Solta, and other segments contributing to the positive performance. Xifaxan revenue was up 11%, Thermage up 19%, and Solta's revenue up 18%. The International segment is expected to grow in 2026, driven by fundamentals, with five strategic pillars guiding decision-making. The company is well-positioned in various markets, including EMEA, Latin America, and Canada, with strong brands and a robust commercial model.

Valuation and Outlook

With a P/E Ratio of 14.22 and an EV/EBITDA of 6.42, the company's valuation appears reasonable. The Net Debt / EBITDA ratio of 5.76 indicates a significant debt burden, but the company's refinancing efforts have provided a significant runway. Analysts estimate next year's revenue growth at 0.3%, indicating a slowdown in growth momentum. The company's medium-term outlook indicates EBITDA growth will be low to mid-single digits, followed by a dip in 2027.

Business Development and Strategy

The company is focused on business development, having acquired DURECT, and sees opportunities to leverage its commercial team. The plan is to repay debt and reinvest in the business, with no change in the separation decision framework for Bausch + Lomb despite RED-C readout. The refinancing provides flexibility to deal with maturities until 2028, and the company is open to various deal types and sizes, constrained only by its capital structure.

3. NewsRoom

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Bausch Health Announces Early Exchange Offer Results for Exchange Offers

Dec -09

Source: accessnewswire.com

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BHC Stock Up as Solta Acquires Shibo's Aesthetics Distribution Business

Dec -02

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Is There Now an Opportunity in Bausch Health Companies After Recent Debt Restructuring Developments?

Dec -02

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Why Bausch Health Companies Stock Rocketed 11% Higher Today

Dec -02

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Stock Market Today: Nasdaq, S&P 500 Mount Midday Recovery As Market Returns From Holiday

Dec -01

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TSX Down 140 Points at Midday With Info Tech The Worst Performer

Dec -01

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Bausch Health's Aesthetics Business, Solta Medical, Acquires Longtime Distribution Partner, the Shibo Group, to Strengthen Presence in China

Dec -01

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The Bull Case for Bausch Health (BHC) Could Change Following Debt Exchange and Maturity Extension Initiative

Nov -27

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.47%)

6. Segments

Bausch + Lomb/International

Expected Growth: 2%

Bausch + Lomb/International's 2% growth is driven by increasing demand for contact lenses and surgical products, expansion in emerging markets, and strategic partnerships. Additionally, the company's focus on innovation, including the development of new products and technologies, contributes to its growth. Furthermore, the segment's diversified product portfolio and strong brand recognition also support its growth momentum.

Salix

Expected Growth: 3%

Salix's 3% growth is driven by increasing demand for gastrointestinal products, particularly Xifaxan, which treats irritable bowel syndrome. Strong sales and marketing efforts, as well as expanded product offerings, contribute to growth. Additionally, strategic partnerships and acquisitions, such as the purchase of Hypothesis, further boost Salix's revenue.

International

Expected Growth: 1%

Bausch Health's international segment growth is driven by increasing demand for its pharmaceutical products, particularly in emerging markets, expansion of its geographic footprint, and strategic partnerships. Additionally, the company's focus on ophthalmology and dermatology products, which have high growth potential, contributes to its international growth.

Diversified

Expected Growth: 4%

Bausch Health's diversified segment, with 4% growth, is driven by increasing demand for its eye care products, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on R&D and innovation in ophthalmology, dermatology, and orthopedics is expected to fuel future growth.

Solta Medical

Expected Growth: 5%

Solta Medical's 5% growth is driven by increasing demand for non-invasive aesthetic treatments, expansion into new markets, and strategic partnerships. The company's focus on innovation, particularly in radiofrequency and laser-based technologies, has also contributed to its growth. Additionally, the growing trend of self-care and beauty investments among consumers has fueled demand for Solta's products and services.

7. Detailed Products

Xifaxan

An antibiotic used to treat travelers' diarrhea and irritable bowel syndrome with diarrhea (IBS-D)

Vyzulta

A prostaglandin analog used to reduce intraocular pressure in patients with open-angle glaucoma or ocular hypertension

Latisse

A medication used to treat hypotrichosis (inadequate eyelashes) by increasing the length, thickness, and darkness of eyelashes

Silenor

A sedative-hypnotic used to treat insomnia

Ortho Dermatologics

A range of dermatological products used to treat various skin conditions such as acne, psoriasis, and atopic dermatitis

Solta Medical

A range of medical aesthetic devices used for skin tightening, body contouring, and hair removal

Therapeutic Pharmaceuticals

A range of pharmaceutical products used to treat various therapeutic areas such as gastroenterology, dermatology, and neurology

Bausch + Lomb

A range of ophthalmic products used to treat various eye conditions such as cataracts, glaucoma, and age-related macular degeneration

8. Bausch Health Companies Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Bausch Health Companies Inc. is medium due to the presence of alternative treatments and products in the pharmaceutical industry.

Bargaining Power Of Customers

The bargaining power of customers for Bausch Health Companies Inc. is low due to the company's strong brand presence and limited switching options for customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Bausch Health Companies Inc. is medium due to the presence of multiple suppliers and the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants for Bausch Health Companies Inc. is high due to the growing demand for pharmaceutical products and the increasing trend of new entrants in the industry.

Intensity Of Rivalry

The intensity of rivalry for Bausch Health Companies Inc. is high due to the presence of several established players in the pharmaceutical industry and the high level of competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 104.78%
Debt Cost 3.95%
Equity Weight -4.78%
Equity Cost 8.46%
WACC 3.73%
Leverage -2190.61%

11. Quality Control: Bausch Health Companies Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Bausch Health

A-Score: 3.9/10

Value: 9.0

Growth: 3.8

Quality: 5.5

Yield: 0.0

Momentum: 2.0

Volatility: 3.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.21$

Current Price

8.21$

Potential

-0.00%

Expected Cash-Flows