Boston Scientific Corporation (BSX) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Boston Scientific Corporation

Updated on October 29, 2026 · accounts published on October 28, 2026

A fast-growing healthcare business earning its best operating margins in over a decade

Boston Scientific trades at a P/E of 17.8× over the last 12 months, 42 % below its sector median of 30.7×, after a 58 % fall in the stock.

• Is Boston Scientific expensive or cheap? The P/E of 17.8× over the last 12 months sits 42 % below the sector median of 30.7× and far under its 9-year average of 85.9×.
• How is the business doing? Operating margin reached 21.5 % over the last 12 months, against a 14.6 % average for fiscal 2014-2025, with revenue up 20 %.
• How strong is the balance sheet? Net debt was $7.24 per share in fiscal 2025, about 17 % of the current price, and 2.0× EBITDA, under the 2.5× healthy limit.
• What to expect from the next earnings? Analysts expect EPS of $0.83 in the results due February 3, 2027; the 2026 EPS consensus slipped 1.6 % in the last 30 days.
• Does it invest enough in R&D and turn profit into cash? Free cash flow was 127 % of net income in fiscal 2025, well above the 90 % healthy mark, while R&D at 10.2 % of revenue misses 15 %.

Is Boston Scientific expensive or cheap?

Boston Scientific trades at a P/E of 17.8× over the last 12 months, 42 % below the 30.4× median across 246 healthcare companies. Its own nine-year average is 85.9×, so today's multiple is a fraction of what investors used to pay. The share price explains the gap. The stock is down 58 % over the last 12 months and sits 60 % below its 52-week high of $104.98. A free cash flow yield of 7.1 % and an EV/EBITDA of 13.5× tell the same story. The market is pricing in doubt even though the reported figures have improved.

How is the business doing?

Over the last 12 months revenue grew 20 % and EPS grew 55 %, so profit rose almost three times as fast as sales. That shows in the margins. The operating margin of 21.5 % compares with a 14.6 % average over fiscal 2014-2025, and fiscal 2025, at 19.8 %, was already the best of those 12 years. ROIC of 10.6 % is 5.0 points above the sector median of 5.6 %, but it did not clear 10 % in any of the last ten fiscal years. The business is at its most profitable in over a decade. The open question is whether it can stay there.

How strong is the balance sheet?

Debt is manageable. Net debt of $7.24 per share at the end of fiscal 2025 equals 17 % of the share price. At 2.0× EBITDA, it stays below the 2.5× level that marks a healthy healthcare balance sheet. Debt to equity of 0.51 over the last 12 months is moderate, and a current ratio of 1.24 covers short-term obligations without much spare room. The financial-health scores agree: an Altman Z of 5.4 sits in the safe zone, and a Piotroski score of 7 out of 9 points to solid fundamentals. The steep fall in the stock does not come from an overstretched balance sheet.

What to expect from the next earnings?

Boston Scientific has beaten EPS estimates in each of the last 8 quarters. The latest report, published October 28, 2026, showed $0.73 against $0.72 expected, a narrow 2.0 % beat. Expectations are cooling slightly. Over the last 30 days the 2026 EPS consensus fell from $3.27 to $3.22 among 15 analysts, and the revenue consensus dipped 0.5 %. Of the 44 analysts covering the company, 36 rate it a buy, 7 a hold and none a sell. The next report, on February 3, 2027, carries an expected EPS of $0.83, above the $0.73 just delivered, so the bar is going up.

Does it invest enough in R&D and turn profit into cash?

In healthcare the R&D pipeline is the invisible asset. Expiring patents are revenue that disappears, so the sector watches innovation spending and cash generation more closely than headline earnings. Boston Scientific turns profit into cash convincingly: free cash flow was 127 % of net income in fiscal 2025, against a healthy threshold of 90 %. Innovation spending is lighter. R&D was 10.2 % of revenue in fiscal 2025, short of the 15 % the sector treats as healthy, and the gross margin of 69.0 % sits right at the 70 % branded-pharma line. Strong cash conversion buys time, but R&D intensity is the metric to keep checking.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.