Quality Investor

Boston Scientific Corporation

Rank #220Hypergrowth

BSX · NYSE · Healthcare

Boston Scientific Corporation (BSX) — Rank #220 by gross profitability (GP/assets 0.31) · ROE 11.6% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000885725 · all metrics point-in-time as of the filing date.

About

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide.

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The company operates in two segments, MedSurg and Cardiovascular. It offers devices to diagnose and treat a range of gastrointestinal conditions, such as resolution clips, biliary stent systems, stents and electrocautery enhanced delivery systems, SpyGlass, single-use scopes used for diagnostic and therapeutic procedures in the pancreaticobiliary system, in endoscopic retrograde cholangiopancreatography procedures, and single-use duodenoscopes, as well as endoluminal surgery and infection prevention products; devices to treat urological conditions, including ureteral stents, catheters, baskets, guidewires, urinary and bowel dysfunction, sheaths, balloons, single-use digital flexible ureteroscopes, holmium laser systems, penile implants, artificial urinary sphincter, laser system, and hydrogel systems; and devices to treat neurological movement disorders and manage chronic pain, such as spinal cord stimulator systems, radiofrequency ablation, and intraosseous nerve ablation and deep brain stimulation systems. The company also provides technologies for diagnosing and treating a range of diseases and abnormalities of the heart; WATCHMAN FLX, a left atrial appendage closure (LAAC) device; and implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, such as cardioverter and cardiac resynchronization therapy defibrillators, MRI S-ICD systems, cardiac resynchronization therapy pacemakers, remote patient management systems, insertable cardiac monitor systems, and remote cardiac monitoring systems. In addition, it offers diagnosis and treatment of rate and rhythm disorders of the heart; peripheral arterial and venous diseases; and products to diagnose and treat forms of cancer.

The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.

Industry
Medical Devices
Sector
Healthcare
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

BSX-0.1% · -0.0% CAGRSPY+80.3% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$63.74B

P/E (annual)

22.7

P/S (annual)

3.2

P/B

2.6

P/OCF (annual)

14.1

Shareholder Yield

-11.4%

Employees

59,000

Industry

Medical Devices

Exchange

NYSE

Signal Flags

2 green1 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

Quality Profile

Profitability

1/1 pass
GP / assets
0.31
Return on equity
11.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.80
Current ratio
1.24×
Net cash
$1.07B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.5%

Growth

1/2 pass
Revenue growth
148.8%
Piotroski F-Score
N/A
Share dilution
11.4%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

6.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 11.4% — per-share value needs a total required return of 17.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 6.8%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

2.0%

r = 10% (base)

6.3%

r = 12%

9.9%

Net debt / market cap: -1.6%

Base FCF: $3.7B3Y mean FCF: $653M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
12.0xmed 65.7x498.3x

P / S

Price / revenue per share

5.5xExpensive
2.9xmed 3.7x6.1x

P / B

Price / book value per share

3.6xFair
3.5xmed 3.7x7.9x

P / GP

Price / gross profit per share

8.5xExpensive
4.3xmed 5.7x8.6x

P / FCF

Price / free cash flow per share

48.5xFair
22.2xmed 44.7x65.8x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.31

Primary signal (Novy-Marx).

14th of 17 SIC 3841 peers

Return on equity

11.6%

Gross margin

69.0%

6th of 17 SIC 3841 peers

Revenue growth (YoY)

148.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2014201520162020
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

15.2%

Earnings CAGR (3Y)

65.3%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.80

10th of 16 SIC 3841 peers (best = lowest)

Current ratio

1.24×

17th of 17 SIC 3841 peers

Quick ratio

Net cash

$1.07B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$3.66B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.26

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.5%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20122020
Startup
Op. Leverage
Hypergrowth