Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026
Bausch Health Companies Inc. (BHC)
A forensic read on Bausch Health Companies Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-0.3
Altman Z-score
Clean
Earnings quality
5
Forensic signals
-96.8%
ROE
$2.0B
Market cap
Bausch Health Companies Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -0.3, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
5%Return on invested capital.Return on invested capital is 5% and rising from 2% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+1.2%/yrShare-count dilution.Diluted share count changed +4% over the last 3 years to FY2025 (+1.2%/yr). The count is GROWING — existing holders are being diluted. That's ~1.2% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~4%.
2% of revStock-based comp load.Stock-based compensation ran 2% of revenue and 22% of free cash flow in FY2025 — about $0.58 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
$1.9BGoodwill impairments.Took $1.9B of goodwill writedowns across 4 year(s) (FY2022 ($824M), FY2023 ($493M), FY2025 ($145M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
-18%Dividend — cut.The payout was CUT ~18% in FY2009 (from FY2008). It still returns some cash, but it is NOT the dependable, rising dividend an unbroken streak implies — weigh the cut when judging reliability.
Key fundamentals
Net Margin1.5%
Free Cash Flow$1.00B
Latest Revenue$10.27B
Revenue Growth YoY+6.7%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Bausch Health Companies Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about BHC's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown