Quality Investor

Boston Scientific Corporation

Rank #212Op. LeverageWatchlistCompare with other stocks

BSX · NYSE · Healthcare

Boston Scientific Corporation (BSX) — Rank #212 by gross profitability (GP/assets 0.31) · ROE 11.6% · Piotroski F-Score N/A.

As-of 2026-10-30 · 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

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

59,000

Industry

Medical Devices

Exchange

NYSE

12/12

Flags passed

BSX passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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

2/2 pass
Revenue growth
19.9%
Piotroski F-Score
N/A
Share dilution
0.6%

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 26th percentile of 20 SIC 3841 peers

Gross profitability (GP / assets)

0.31

Primary signal (Novy-Marx).

26th pctl of 20 SIC 3841 peers

Return on equity

11.6%

Gross margin

69.0%

74th pctl of 20 SIC 3841 peers

Revenue growth (YoY)

19.9%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

16.5%

Revenue CAGR (5Y)

15.2%

Earnings CAGR (3Y)

65.3%

FCF CAGR (3Y)

57.4%

Cash Flow Health

Is the cash real?

No warning flags · FCF 26% above net income

Free cash flow

$3.66B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

26.2%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.5%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $1.07B

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.80

12th of 19 SIC 3841 peers (best = lowest)

Current ratio

1.24×

0th pctl of 20 SIC 3841 peers

Quick ratio

—

Net cash

$1.07B

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Valuation History

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

P / E

Price / diluted EPS

39.3xCheap
39.3xmed 63.4x104.9x

P / S

Price / revenue per share

5.7xFair
5.3xmed 5.6x9.3x

P / B

Price / book value per share

4.7xFair
3.6xmed 4.3x7.2x

P / GP

Price / gross profit per share

8.2xFair
7.7xmed 8.4x13.6x

P / FCF

Price / free cash flow per share

31.2xCheap
31.2xmed 51.3x72.4x

Capital allocation quality

Composite score

3.3 / 5

Good
Share count trend
0.6%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
6.9%5/5 Strong

Lifecycle Phase History

20202025
Decline
Capital Return
Op. Leverage

Price History

BSX-0.5% · -0.1% CAGRSPY+84.0% · +12.9% CAGR