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Boston Scientific Corporation

BSX
66
Medical - Devices · Healthcare
Price
$44.03
-0.59 (-1.32%)
Market Cap
$65.44B
Winston Score
66
Winston is curious
A decent business — some strong pillars, some weaker.

Share count rising — dilution

+4.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.43B (2021) → 1.49B (2025)

Boston Scientific makes medical devices — tools that doctors use to treat patients without major surgery. Its main products include stents (tiny tubes that keep arteries open), pacemakers, catheters, and devices that treat conditions like irregular heartbeats, chronic pain, and urological problems. The company sells primarily to hospitals and clinics around the world.

Boston Scientific earns money by selling its devices directly to healthcare providers, with some recurring revenue from disposable components used in procedures. It operates globally, with significant sales in the United States, Europe, and Asia, and generates roughly $14 billion in annual revenue. The company's competitive position comes from its broad product portfolio, deep relationships with hospitals, and a large library of patents that make it hard for competitors to copy its designs. The key growth driver is an aging global population that will need more heart and other minimally invasive procedures over time, though the company faces ongoing risk from regulatory approvals, product liability lawsuits, and pricing pressure from hospital purchasing groups.

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+97.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$2.1B/ year

Rising (+27% vs prior year)

10.2% of revenue

Below sector average (18%)

Investing heavily in future products and technology

Insider Activity

0.5%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$1.5B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Boston Scientific Corporation is a rare growth stock that's already generating positive cash flow while growing at 12%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
69.4%
Premium pricing power — 69.4% gross margin
Operating Margin
20.6%
Excellent — 20.6% operating margin
ROCE
2.9%
Weak — 2.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+17.4%
Fast-growing sales (17.4% YoY)
EPS YoY
+74.0%
Earnings growing fast (74.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
122%
Turns 122% of profit into real cash
FCF Margin
16.7%
Converts sales into free cash efficiently (16.7%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.42
Conservative — low debt load (0.42)
Interest Cover
11.62x
Comfortably covers interest (11.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
18.3x
Fair value — P/E 18.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+7.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (18.3 → 10.9)

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Dividends

Not applicable for this business.
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