BECTON DICKINSON AND CO (BDX)
US0758871091 - Common Stock
Overall BDX gets a fundamental rating of 5 out of 10. We evaluated BDX against 192 industry peers in the Health Care Equipment & Supplies industry. While BDX is still in line with the averages on profitability rating, there are concerns on its financial health. BDX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BDX was profitable.
BDX had a positive operating cash flow in the past year.
In the past 5 years BDX has always been profitable.
BDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BDX's Return On Assets of 2.43% is fine compared to the rest of the industry. BDX outperforms 75.00% of its industry peers.
BDX's Return On Equity of 5.14% is fine compared to the rest of the industry. BDX outperforms 77.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.71%, BDX is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
BDX had an Average Return On Invested Capital over the past 3 years of 4.42%. This is below the industry average of 8.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 5.14% | ||
| ROIC | 3.71% |
ROA(3y)3.2%
ROA(5y)2.62%
ROE(3y)6.89%
ROE(5y)5.8%
ROIC(3y)4.42%
ROIC(5y)3.91%
1.3 Margins
BDX has a better Profit Margin (6.68%) than 78.65% of its industry peers.
In the last couple of years the Profit Margin of BDX has grown nicely.
With a decent Operating Margin value of 11.14%, BDX is doing good in the industry, outperforming 78.65% of the companies in the same industry.
BDX's Operating Margin has improved in the last couple of years.
BDX has a worse Gross Margin (41.25%) than 63.54% of its industry peers.
BDX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.14% | ||
| PM (TTM) | 6.68% | ||
| GM | 41.25% |
OM growth 3Y14.68%
OM growth 5Y1.91%
PM growth 3Y15.49%
PM growth 5Y49.18%
GM growth 3Y0.84%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BDX is destroying value.
The number of shares outstanding for BDX has been increased compared to 1 year ago.
BDX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BDX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.35 indicates that BDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BDX has a better Altman-Z score (2.35) than 62.50% of its industry peers.
BDX has a debt to FCF ratio of 5.95. This is a neutral value as BDX would need 5.95 years to pay back of all of its debts.
BDX has a better Debt to FCF ratio (5.95) than 79.17% of its industry peers.
BDX has a Debt/Equity ratio of 0.62. This is a neutral value indicating BDX is somewhat dependend on debt financing.
BDX has a worse Debt to Equity ratio (0.62) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.4
WACC9.31%
2.3 Liquidity
BDX has a Current Ratio of 1.41. This is a normal value and indicates that BDX is financially healthy and should not expect problems in meeting its short term obligations.
BDX has a Current ratio of 1.41. This is amonst the worse of the industry: BDX underperforms 84.38% of its industry peers.
A Quick Ratio of 0.97 indicates that BDX may have some problems paying its short term obligations.
The Quick ratio of BDX (0.97) is worse than 86.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.71% over the past year.
BDX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.18% yearly.
The Revenue has been growing slightly by 4.82% in the past year.
Measured over the past years, BDX shows a small growth in Revenue. The Revenue has been growing by 3.92% on average per year.
EPS 1Y (TTM)8.71%
EPS 3Y6.24%
EPS 5Y2.18%
EPS Q2Q%10.84%
Revenue 1Y (TTM)4.82%
Revenue growth 3Y6.42%
Revenue growth 5Y3.92%
Sales Q2Q%4.65%
3.2 Future
BDX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.70% yearly.
The Revenue is expected to grow by 5.43% on average over the next years.
EPS Next Y7.78%
EPS Next 2Y8.44%
EPS Next 3Y9.02%
EPS Next 5Y8.7%
Revenue Next Year4.8%
Revenue Next 2Y5.28%
Revenue Next 3Y5.41%
Revenue Next 5Y5.43%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BDX is valuated rather expensively with a Price/Earnings ratio of 18.97.
Based on the Price/Earnings ratio, BDX is valued cheaper than 89.06% of the companies in the same industry.
BDX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.05.
Based on the Price/Forward Earnings ratio of 16.14, the valuation of BDX can be described as correct.
Based on the Price/Forward Earnings ratio, BDX is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
BDX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.07.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 16.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BDX is valued cheaper than 82.81% of the companies in the same industry.
89.58% of the companies in the same industry are more expensive than BDX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.16 | ||
| EV/EBITDA | 17.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BDX does not grow enough to justify the current Price/Earnings ratio.
BDX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)8.69
EPS Next 2Y8.44%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, BDX has a reasonable but not impressive dividend return.
BDX's Dividend Yield is rather good when compared to the industry average which is at 1.74. BDX pays more dividend than 95.31% of the companies in the same industry.
BDX's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of BDX has a limited annual growth rate of 0.78%.
BDX has paid a dividend for at least 10 years, which is a reliable track record.
BDX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.78%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
BDX pays out 83.54% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BDX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP83.54%
EPS Next 2Y8.44%
EPS Next 3Y9.02%
BECTON DICKINSON AND CO
NYSE:BDX (5/31/2024, 7:25:27 PM)
After market: 231.97 0 (0%)231.97
+5.19 (+2.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap67.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 16.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.44
PEG (5Y)8.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 5.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.14% | ||
| PM (TTM) | 6.68% | ||
| GM | 41.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.71%
EPS 3Y6.24%
EPS 5Y
EPS Q2Q%
EPS Next Y7.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.82%
Revenue growth 3Y6.42%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y