New York Stock Exchange, Inc. / Health Care / Pharmaceuticals
Technical Analysis
Fundamental Analysis
Analyst Ratings, Profile & Chart
Fundamental Rating
Overall BMY gets a fundamental rating of 6 out of 10. We evaluated BMY against 198 industry peers in the Pharmaceuticals industry. While BMY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BMY is valued quite cheap, while showing a decent growth score. This is a good combination! BMY also has an excellent dividend rating. With these ratings, BMY could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year BMY was profitable.
In the past year BMY had a positive cash flow from operations.
In multiple years BMY reported negative net income over the last 5 years.
BMY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.86%, BMY belongs to the best of the industry, outperforming 90.40% of the companies in the same industry.
BMY has a better Return On Equity (31.16%) than 95.45% of its industry peers.
BMY has a better Return On Invested Capital (14.88%) than 90.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BMY is significantly below the industry average of 41.61%.
The 3 year average ROIC (12.29%) for BMY is below the current ROIC(14.88%), indicating increased profibility in the last year.
Industry Rank
Sector Rank
ROA
5.86%
ROE
31.16%
ROIC
14.88%
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)12.29%
ROIC(5y)10.36%
1.3 Margins
BMY's Profit Margin of 11.38% is amongst the best of the industry. BMY outperforms 87.37% of its industry peers.
BMY has a better Operating Margin (27.11%) than 91.92% of its industry peers.
BMY's Operating Margin has declined in the last couple of years.
BMY has a Gross Margin of 74.69%. This is amongst the best in the industry. BMY outperforms 80.30% of its industry peers.
BMY's Gross Margin has been stable in the last couple of years.
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BMY is still creating some value.
The number of shares outstanding for BMY has been reduced compared to 1 year ago.
Compared to 5 years ago, BMY has less shares outstanding
Compared to 1 year ago, BMY has a worse debt to assets ratio.
2.2 Solvency
BMY has an Altman-Z score of 2.12. This is not the best score and indicates that BMY is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.12, BMY is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
The Debt to FCF ratio of BMY is 3.80, which is a good value as it means it would take BMY, 3.80 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.80, BMY belongs to the best of the industry, outperforming 86.87% of the companies in the same industry.
BMY has a Debt/Equity ratio of 2.67. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.67, BMY is doing worse than 76.26% of the companies in the same industry.
Industry Rank
Sector Rank
Debt/Equity
2.67
Debt/FCF
3.8
Altman-Z
2.12
ROIC/WACC1.64
WACC9.08%
2.3 Liquidity
BMY has a Current Ratio of 1.28. This is a normal value and indicates that BMY is financially healthy and should not expect problems in meeting its short term obligations.
BMY has a worse Current ratio (1.28) than 78.79% of its industry peers.
A Quick Ratio of 1.17 indicates that BMY should not have too much problems paying its short term obligations.
BMY has a Quick ratio of 1.17. This is in the lower half of the industry: BMY underperforms 72.22% of its industry peers.
A Price/Earnings ratio of 6.48 indicates a rather cheap valuation of BMY.
93.43% of the companies in the same industry are more expensive than BMY, based on the Price/Earnings ratio.
BMY is valuated cheaply when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.71 indicates a rather cheap valuation of BMY.
BMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 91.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, BMY is valued rather cheaply.
Industry Rank
Sector Rank
PE
6.48
Fwd PE
7.71
4.2 Price Multiples
BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 89.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BMY is valued cheaper than 92.93% of the companies in the same industry.
Industry Rank
Sector Rank
P/FCF
7.4
EV/EBITDA
6.61
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BMY has a very decent profitability rating, which may justify a higher PE ratio.
BMY's earnings are expected to grow with 75.28% in the coming years. This may justify a more expensive valuation.
BMY has a Yearly Dividend Yield of 5.00%, which is a nice return.
Compared to an average industry Dividend Yield of 4.20, BMY pays a better dividend. On top of this BMY pays more dividend than 97.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, BMY pays a better dividend.
Industry Rank
Sector Rank
Dividend Yield
5%
5.2 History
The dividend of BMY is nicely growing with an annual growth rate of 11.67%!
BMY has paid a dividend for at least 10 years, which is a reliable track record.
BMY has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.67%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
90.59% of the earnings are spent on dividend by BMY. This is not a sustainable payout ratio.
The dividend of BMY is growing, but earnings are growing more, so the dividend growth is sustainable.