New York Stock Exchange, Inc. / Health Care / Pharmaceuticals
Technical Analysis
Fundamental Analysis
Analyst Ratings, Profile & Chart
Fundamental Rating
Taking everything into account, BMY scores 6 out of 10 in our fundamental rating. BMY was compared to 197 industry peers in the Pharmaceuticals industry. BMY has an excellent profitability rating, but there are some minor concerns on its financial health. BMY may be a bit undervalued, certainly considering the very reasonable score on growth 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.
BMY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BMY reported negative net income in multiple years.
Each year in the past 5 years BMY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.86%, BMY belongs to the top of the industry, outperforming 89.34% of the companies in the same industry.
With an excellent Return On Equity value of 31.16%, BMY belongs to the best of the industry, outperforming 95.43% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.88%, BMY belongs to the best of the industry, outperforming 91.88% of the companies in the same industry.
BMY had an Average Return On Invested Capital over the past 3 years of 12.29%. This is significantly below the industry average of 42.34%.
The last Return On Invested Capital (14.88%) for BMY is above the 3 year average (12.29%), which is a sign of increasing profitability.
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 has a Profit Margin of 11.38%. This is amongst the best in the industry. BMY outperforms 87.31% of its industry peers.
Looking at the Operating Margin, with a value of 27.11%, BMY belongs to the top of the industry, outperforming 91.88% of the companies in the same industry.
In the last couple of years the Operating Margin of BMY has declined.
The Gross Margin of BMY (74.69%) is better than 82.74% of its industry peers.
In the last couple of years the Gross Margin of BMY has remained more or less at the same level.
BMY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BMY has been reduced compared to 1 year ago.
The number of shares outstanding for BMY has been reduced compared to 5 years ago.
Compared to 1 year ago, BMY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.07 indicates that BMY is not a great score, but indicates only limited risk for bankruptcy at the moment.
BMY has a better Altman-Z score (2.07) than 70.05% of its industry peers.
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.
The Debt to FCF ratio of BMY (3.80) is better than 87.31% of its industry peers.
A Debt/Equity ratio of 2.67 is on the high side and indicates that BMY has dependencies on debt financing.
With a Debt to Equity ratio value of 2.67, BMY is not doing good in the industry: 78.17% of the companies in the same industry are doing better.
Industry Rank
Sector Rank
Debt/Equity
2.67
Debt/FCF
3.8
Altman-Z
2.07
ROIC/WACC1.63
WACC9.15%
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.
The Current ratio of BMY (1.28) is worse than 75.13% of its industry peers.
BMY has a Quick Ratio of 1.17. This is a normal value and indicates that BMY is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BMY (1.17) is worse than 68.53% of its industry peers.
Based on the Price/Earnings ratio of 6.39, the valuation of BMY can be described as very cheap.
Based on the Price/Earnings ratio, BMY is valued cheaper than 95.43% of the companies in the same industry.
BMY is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.57, the valuation of BMY can be described as very cheap.
Based on the Price/Forward Earnings ratio, BMY is valued cheaply inside the industry as 89.34% of the companies are valued more expensively.
BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
Industry Rank
Sector Rank
PE
6.39
Fwd PE
7.57
4.2 Price Multiples
BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 92.39% of the companies in the same industry.
BMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMY is cheaper than 94.92% of the companies in the same industry.
Industry Rank
Sector Rank
P/FCF
7.29
EV/EBITDA
6.29
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.
The decent profitability rating of BMY may justify a higher PE ratio.
BMY's earnings are expected to grow with 74.89% in the coming years. This may justify a more expensive valuation.
BMY has a Yearly Dividend Yield of 5.28%, which is a nice return.
In the last 3 months the price of BMY has falen by -21.35%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.20. BMY pays more dividend than 97.46% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BMY pays a better dividend.
Industry Rank
Sector Rank
Dividend Yield
5.28%
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
BMY pays out 90.59% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BMY is growing, but earnings are growing more, so the dividend growth is sustainable.