Stockchase Opinions

Brett Girard, CPA, CA, CFABausch Health Companies Inc.BHC.TODON'T BUYApr 01, 2020

The old Valent Pharmaceutical company. When it became over-levered it struggled. He thinks there are far better opportunities in the health care space.
$21.81

Stock price when the opinion was issued

$7.41

As of May 29, 2026. Market Open.

Healthcare
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SELL
Kudos to the new executive at delevering and cleaning things up. Inexpensive valuation. Still a lot of debt. A turnaround story. 3% of your portfolio is a bit heavy. Add some diversity. Had a great move. Be cautious.
DON'T BUY
He won't offer a buy-sell-hold verdict. BHC has done a good reorganization. There's talk of spinning out their eye division. Has a 6.5% EBITDA-to-debt ratio, so there's still some debt. They're still restructuring, so there will be little growth.
DON'T BUY
A turnaround story. They have done a good job stabilizing the company. It has a lot of debt and legal issues to resolve. The debt levels are probably still too high. They are spinning out their eyecare business which is their crown jewel. There is some more work to do before taking a position.
DON'T BUY
Spinning out the eyecare side. Better to go to the US with bigger, safer stocks or one of the ETFs.
BUY ON WEAKNESS
He likes and owns it. It is basically the old broken valiant. He likes the space and he likes the big time drugs. These stocks offer incredible value. His model price is $72.41, 122% upside. Buy it when it comes down again. Buy half on the way in.
DON'T BUY
He gives managements kudos for restructuring the business. They are still heavily indebted. He is looking for valuation with consistent cashflow which this is not. It's not the type of company he looks at.
WATCH
Kudos to the management for selling off businesses and paying down debt. It may be something investor should look at again.
BUY
If it can continue on volume, it looks very positive. It has built a nice base and it’s worthy of a buy. Support should be around $27. He would aim for the 100 day moving average.
BUY
A covered call He likes covered calls and you can do it with BHC. Write them and take the premium here. BHC has been rangebound, but demographics favour health stocks. However, governments will limit pricing of health services.
DON'T BUY
There's too much debt and not enough growth to pay it off. The stock has sold off as their generic products face new competition.
COMMENT
They still only have a couple products that are growing. Other drugs are in their infancy or not growing. If they're not able to cover debt with free cashflow, you won't see any dividends.
BUY
After a stunning fall from grace, there's been a stunning recovery. FMV is 127% higher than it's currently trading, and it's been there before. Looks like a resurrection.
DON'T BUY
There are better opportunities out there. They meet his criteria except for their debt levels.
TOP PICK
He likes it because nobody likes it. It is former Valiant Pharmaceuticals and trades at 6 times cash-flow. He encourages investors to look beyond its checkered past. It has high quality recurring cash-flows in the contact lens division. Every division is growing organically. It does have a high debt load, but the trajectory of cash flow will elevate that risk. Yield 0%. (Analysts’ price target is $35.39)