MeritValue

Bausch Health Companies Inc.

BHCdata completeness 100%18 fiscal years on file
The thesis, from the filings

Bausch Health Companies Inc. earns about 2% on invested capital, but has diluted owners by 4% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$8.43B1$8.12B2$8.76B3$9.63B3$10.3B3
Net income−$948M4−$225M5−$592M6−$46M6$157M6
Operating cash flow$1.43B7−$728M8$1.03B9$1.6B9$1.4B9
Capital expenditure$269M10$218M11$215M12$337M12$397M12
Free cash flow (derived)$1.16B7−$946M8$817M9$1.26B9$1B9
Total debt$45.3B13$41.5B14$44.8B15$43.2B16$41.6B16
Cash & equivalents$582M17$564M18$947M19$1.18B19$1.31B19
Diluted shares358.9M362.0M364.9M368.0M375.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$14.77
your share of equity
Profit it earned you last year
$4.19
Free cash flow it threw off
$26.75
Debt you’d be carrying
$1,110.24

10 shares is a claim on −$14.77 of net worth that earned you $4.19 and generated $26.75 of cash last year, against $1,110.24 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
2% avg · 5y
FY21 1%FY22 3%FY23 2%FY24 2%FY25 2%

It earned an average 2% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+4% shares · 5y

Share count is up 4% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth7.4%
  • fcfBase$1B
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth7.4%
  • fcfBase$1B
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
book value / share count missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000885590-24-000011 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000885590-25-000007 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000885590-26-000023 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0000885590-24-000011 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000885590-25-000007 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000885590-26-000023 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000885590-24-000011 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000885590-25-000007 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000885590-26-000023 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000885590-24-000011 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000885590-25-000007 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0000885590-26-000023 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0000885590-23-000009 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0000885590-24-000011 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0000885590-25-000007 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0000885590-26-000023 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0000885590-24-000011 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000885590-25-000007 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0000885590-26-000023 (CashAndCashEquivalentsAtCarryingValue)