BSX is not currently an attractive buy despite strong business metrics, citing poor 5-year performance and mediocre ROIC.

The second arrow, Boston Scientific. The trading symbol is BSX. Let's feature it in our program. It has fallen by about 50% this year, and this stock is completely different from TTD because the business is still very strong.

Boston Scientific produces life-saving medical devices, especially for the heart, and continues to grow by about 7% annually. So why did its price drop by half? Well, because investors were expecting too much.

At the beginning of the year, management was expecting growth of around 10 to 11%. Then they reduced it again to 5-6%. Therefore, when a high-growth company suddenly stops growing rapidly, its high price collapses.

Last February, the stock fell 17% in a single day, its worst day in more than 20 years. This happened when they lowered their expectations for the first time. However, the last quarter was actually very strong.

Sales of 5.4 billion with a good rise in profits compared to what they were just one year ago.

So, the optimistic side. About 75% of this company is still growing well. The world is aging, which means increased demand for heart procedures for decades to come. These are life-saving treatments , not optional purchases.

Therefore, this demand is incredibly constant. It is an innovative and proven company . Its international sales are growing at double digits, and it has just made a major acquisition to expand into promising new areas.

This is generally a good business, but it became expensive and then went through a correction phase.

The pessimistic side. The specific products that were supposed to fuel growth are suddenly facing strong new competition , and this market is mostly saturated. Therefore, the fear is that the days of rapid growth are gone forever.

A second major product , the " Watchman" heart monitor, is also slowing down. Lowering the guidelines twice in 6 months also damages the credibility of the administration. It is in the process of completing a massive and risky $14.5 billion acquisition, and has just suffered a cyberattack that disrupted shipping operations.

So, the big question is whether 5 to 6% growth is the new normal for this company, or is it a temporary low point before growth picks up again?

Let's check the numbers and make assumptions for the worst-case scenario. Guys, once again, it's a company with a market capitalization of $72 billion. The institution is valued at 91 billion, which is equivalent to $19 billion in debt, mainly.

Free cash flow of 3.6% over the past year, and 2.2% over the past five years. Therefore, it is slightly higher. It is about six times or five and a half times the free cash flow in terms of debt.

What I like is that the free cash flow is almost the same as the net income over the past year. The price-to- free cash flow is 20, and the price-to-earnings ratio is 20 , but these returns on capital are rather lukewarm .

5.7% annually for the past five years , and 7.3% last year. Not bad, but not great either. In fact, the performance over the past five years has been extremely poor. Forget what I said.

It's very bad. Now, why has their profit margin jumped from 13% annually over the past ten years? It dropped to 12 % and then rose to 17.5% last year. This is something worth thinking about and considering in the future.

Members of our community currently consider this company to be in retention mode. But let's look at the eight pillars. Good. There are many negative things here. Yes, the cash flow is increasing.

Yes, net income is on the rise. Yes, revenues are rising, but everything else is not good . The existing stocks aren't bad, but guys, I don't know. This doesn't seem like an attractive buying opportunity to me yet . I may be wrong.

Interestingly, analysts predict its earnings will double from $3.40 to $7 over the next six years. Doubling in 6 years means a 12% growth in earnings per share. Revenue growth from 22 billion to 38 billion .

There don't seem to be many concerns about growth here. From 8 to 11% annually for the next seven or eight years. Therefore, analysts seem very optimistic about this in the