BAXTER INTERNATIONAL INC. $76 (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 542.6 million; Market cap: $41.2 billion; Price-to-sales ratio: 2.7; Dividend yield: 2.7%; TSINetwork Rating: Average; www.baxter.com) recently announced that it will split into two separate companies.
One firm will focus on medical devices, such as intravenous pumps and kidney dialysis equipment. This business currently provides 60% of Baxter’s revenue. The other company will make biopharmaceuticals, including vaccines and hemophilia drugs.
In mid-2015, Baxter will hand out shares in the biopharmaceutical firm to its investors as a tax-deferred dividend.
Meanwhile, Baxter earned $692 million, or $1.26 a share, in the three months ended June 30, 2014. That’s up 5.0% from $659 million, or $1.20 a share, a year earlier.
Revenue rose 16.2%, to $4.3 billion from $3.7 billion. If you exclude the contribution of dialysis equipment maker Gambro, which Baxter bought for $3.9 billion in September 2013, revenue rose 5%.
The stock has gained 14% since Baxter announced the spinoff in March 2014. It now trades at 14.7 times the company’s likely 2014 earnings of $5.16 a share. That’s an attractive p/e ratio for a market leader that spends around 7% of its revenue on research. The $2.08 dividend yields 2.7%.
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Privacy Policy and Terms of Use
The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.
This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.
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We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
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We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
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Changes to this Policy
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