Decent Value Stocks. Analyze the stocks with a good fundamental valuation, while still showing decent profitability, health and growth.


BRISTOL-MYERS SQUIBB CO

New York Stock Exchange, Inc. / Health Care / Pharmaceuticals

Fundamental Rating

6

BMY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 198 industry peers in the Pharmaceuticals industry. BMY has an excellent profitability rating, but 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. These ratings would make BMY suitable for value and dividend investing!


Dividend Valuation Growth Profitability Health

7

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.
BMY Yearly Net Income VS EBIT VS OCF VS FCFBMY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B

1.2 Ratios

Looking at the Return On Assets, with a value of 5.86%, BMY belongs to the top of the industry, outperforming 90.40% 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 95.45% of the companies in the same industry.
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 RankSector 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%
BMY Yearly ROA, ROE, ROICBMY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

Looking at the Profit Margin, with a value of 11.38%, BMY belongs to the top of the industry, outperforming 87.37% of the companies in the same industry.
BMY has a Operating Margin of 27.11%. This is amongst the best in the industry. BMY outperforms 91.41% of its industry peers.
BMY's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 74.69%, BMY belongs to the best of the industry, outperforming 80.30% of the companies in the same industry.
BMY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 27.11%
PM (TTM) 11.38%
GM 74.69%
OM growth 3Y-0.56%
OM growth 5Y-4.29%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.73%
GM growth 5Y1.42%
BMY Yearly Profit, Operating, Gross MarginsBMY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BMY is creating some value.
The number of shares outstanding for BMY has been reduced compared to 1 year ago.
BMY has less shares outstanding than it did 5 years ago.
BMY has a worse debt/assets ratio than last year.
BMY Yearly Shares OutstandingBMY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
BMY Yearly Total Debt VS Total AssetsBMY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

An Altman-Z score of 2.08 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 (2.08) than 69.19% of its industry peers.
BMY has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as BMY would need 3.80 years to pay back of 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.
A Debt/Equity ratio of 2.67 is on the high side and indicates that BMY has dependencies on debt financing.
BMY's Debt to Equity ratio of 2.67 is on the low side compared to the rest of the industry. BMY is outperformed by 76.26% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.67
Debt/FCF 3.8
Altman-Z 2.08
ROIC/WACC1.64
WACC9.05%
BMY Yearly LT Debt VS Equity VS FCFBMY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.3 Liquidity

A Current Ratio of 1.28 indicates that BMY should not have too much problems paying its short term obligations.
BMY's Current ratio of 1.28 is on the low side compared to the rest of the industry. BMY is outperformed by 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.
Looking at the Quick ratio, with a value of 1.17, BMY is doing worse than 72.22% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.28
Quick Ratio 1.17
BMY Yearly Current Assets VS Current LiabilitesBMY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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5

3. Growth

3.1 Past

BMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 599.05%, which is quite impressive.
Measured over the past years, BMY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.57% on average per year.
Looking at the last year, BMY shows a small growth in Revenue. The Revenue has grown by 4.62% in the last year.
BMY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
EPS 1Y (TTM)599.05%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%140.91%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%-5.6%

3.2 Future

BMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.96% yearly.
The Revenue is expected to decrease by -4.38% on average over the next years.
EPS Next Y498.29%
EPS Next 2Y132.62%
EPS Next 3Y75.28%
EPS Next 5Y38.96%
Revenue Next Year-4.37%
Revenue Next 2Y-5.38%
Revenue Next 3Y-3.84%
Revenue Next 5Y-4.38%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
BMY Yearly Revenue VS EstimatesBMY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
BMY Yearly EPS VS EstimatesBMY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6

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10

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 6.47, the valuation of BMY can be described as very cheap.
Based on the Price/Earnings ratio, BMY is valued cheaper than 93.94% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.29, BMY is valued rather cheaply.
A Price/Forward Earnings ratio of 7.70 indicates a rather cheap valuation of BMY.
Based on the Price/Forward Earnings ratio, BMY is valued cheaper than 90.91% 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 RankSector Rank
PE 6.47
Fwd PE 7.7
BMY Price Earnings VS Forward Price EarningsBMY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 91.92% of the companies listed in the same industry.
BMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMY is cheaper than 92.93% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.39
EV/EBITDA 6.36
BMY Per share dataBMY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

BMY's 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.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y132.62%
EPS Next 3Y75.28%

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7

5. Dividend

5.1 Amount

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.
BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
Industry RankSector Rank
Dividend Yield 5%

5.2 History

On average, the dividend of BMY grows each year by 11.67%, which is quite nice.
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
BMY Yearly Dividends per shareBMY Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

BMY pays out 90.59% of its income as dividend. This is not a sustainable payout ratio.
BMY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP90.59%
EPS Next 2Y132.62%
EPS Next 3Y75.28%
BMY Yearly Income VS Free CF VS DividendBMY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B
BMY Dividend Payout.BMY Dividend Payout, showing the Payout Ratio.BMY Dividend Payout.PayoutRetained Earnings

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