Boston Scientific (BSX)
Health Care · $63.3B market cap · SEC CIK 0000885725
ahead of 74% of the S&P 500 · #17 of 59 in Health Care
Next reports on Feb 2, 2027, after the close, with analysts expecting $0.78 in earnings per share.
52-week range $39.57 to $105.65. 58% below its 52-week high and 13% above its low.
The case for BSX
- Generated $3.7B of free cash flow in FY2025, 18% of revenue.
- Revenue growing 8.9% year over year.
- Earnings per share up 26.3%.
- Reasonably priced for its growth: 18.1× earnings, where 13% a year of growth would justify about 28×.
- Has compounded revenue at 15.2% a year over five years.
- Gross margin of 69% absorbs cost shocks.
The case against
- Down 56.0% over the past year.
- Near the bottom of its 52-week range, 58% below the high. Falling prices usually have a reason; find it first.
- Long-term debt of $11.1B against $2.0B of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 80 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 79 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 71 |
| Momentumhow the price has behaved lately | 12 |
| Stabilityhow violently it moves, what it owes and what it pays you | 55 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +8.9% |
|---|---|
| Over 5 years | +15.2% a year |
| FY2025 revenue | $20.1B (+20%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $3.7B |
|---|---|
| Of revenue | 18% |
| Of profit | 126% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 69% |
|---|---|
| Operating margin | 19% |
| Net margin, FY24 → FY25 → now | 11.0% → 14.4% → 16.6% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $2.0B |
|---|---|
| Long-term debt | $11.1B |
| Net debt | $9.2B |
| Years to repay | 2.5 yrs |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 18.1× |
|---|---|
| Fair P/E for its growth | 28× |
| P/FCF | 17.3× |
| Forward P/E | 14.1× |
| EV / EBITDA | 15.4× |
At 18.1× earnings it trades below the 28× that 13% a year of growth would justify. At 17.3× free cash flow it trades below that same mark.
The financials, five years deep
Pulled from Boston Scientific's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $20.1B | $16.7B | $14.2B | $12.7B | $11.9B |
| Change on the year | +20% | +18% | +12% | +7% | — |
| Free cash flow | |||||
| Free cash flow | $3.7B | $2.6B | $1.8B | $938M | $1.3B |
| Of revenue | 18% | 16% | 13% | 7% | 11% |
| Profit margins | |||||
| Gross margin | 69.0% | 68.6% | 69.5% | 68.8% | 68.8% |
| Operating margin | 18.0% | 15.5% | 16.5% | 13.0% | 10.1% |
| Net margin | 14.4% | 11.0% | 11.2% | 5.5% | 8.8% |
| Debt vs. cash | |||||
| Cash | $2.0B | $414M | $865M | $928M | $1.9B |
| Long-term debt | $11.1B | $9.0B | $8.6B | $8.9B | $8.8B |
| Net cash (debt) | −$9.2B | −$8.6B | −$7.7B | −$8.0B | −$6.9B |
What Boston Scientific says it does
Our Company Boston Scientific Corporation is a global developer, manufacturer and marketer of medical devices that are used in a broad range of interventional medical specialties. Our mission is to transform lives through innovative medical solutions that improve the health of patients around the world. As a medical technology leader for more than 45 years, we have advanced the practice of less-invasive medicine by helping physicians and other medical professionals diagnose and treat a wide range of diseases and medical conditions and improve patients’ quality of life by providing alternatives to surgery and other medical procedures that are typically traumatic to the body. We advance science for life by providing a broad range of high-performance solutions to address unmet patient needs and reduce the cost of health care. When used in this report, the terms "we," "us," "our" and "the Company" mean Boston Scientific Corporation and its…
Risk factors BSX lists in its 10-K
- Challenging domestic and international economic conditions could have an adverse effect on our business, financial condition, cash flows and results of operations
- We may record future goodwill impairment charges related to one or more of our global reporting units or other intangible asset impairment charges, which could materially adversely impact our results of operations
- Failure to integrate acquired businesses into our operations successfully could adversely affect our business, financial condition and operating results
- We may not be successful in our strategy relating to future strategic acquisitions of, investments in, or alliances with, other companies and businesses
- Our business and operations are subject to risks related to natural disasters, climate change and other extreme weather
- Our business could be negatively impacted by corporate social responsibility and sustainability matters
- If we are unable to attract or retain key talent, it could have an adverse effect on our business, financial condition and results of operations
- Health care policy changes may have a material adverse effect on our business, financial condition, results of operations and cash flows
- Any failure to meet regulatory quality standards applicable to our manufacturing and quality processes could have an adverse effect on our business, financial condition and results of operations
- Changes in tax laws, unfavorable resolution of tax contingencies, or exposure to additional income tax liabilities could have a material impact on our financial condition, results of operations and/or liquidity
- Pending and future intellectual property litigation could be costly and disruptive to us
- Note I – Commitments and Contingencies