Baxter International filed a proxy statement opposing a shareholder proposal to change executive stock retention policies; this move unfolded amidst recent leadership changes including the immediate retirement of CEO José Almeida and appointment of interim CEO Brent Shafer. The company reported a significant net loss for Q4 2024, alongside goodwill and asset impairments. Against market-wide turbulence, driven by the global trade tensions that saw major indexes, like the Dow and Nasdaq, enter correction territory, Baxter’s share price reflected a 2% decline over the last quarter. The broader market volatility adds context to the stock's recent performance.

We've spotted 2 possible red flags for Baxter International you should be aware of, and 1 of them is concerning.

Find companies with promising cash flow potential yet trading below their fair value.

Over the last year, Baxter International experienced a total shareholder return decline of 30.65%. This performance lagged behind both the US Medical Equipment industry, which had a 3.4% gain, and the broader US market, which rose by 3.3%. Several factors played a role in this decline. The company faced significant goodwill and asset impairments totaling US$475 million, announced in February 2025, which adversely affected investor confidence and financial performance.

Furthermore, changes in the executive suite, notably the retirement of CEO José Almeida and new appointments, created leadership instability. Supply chain disruptions from events like Hurricane Helene in late 2024 also had a material impact on operations. These challenges were compounded by competitive pressures in the U.S. market and the absence of buybacks in the last quarter of 2024, which collectively put downward pressure on Baxter's share performance over the period.

Our valuation report here indicates Baxter International may be undervalued.

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Companies discussed in this article include NYSE:BAX.

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