New York Stock Exchange, Inc. / Health Care / Pharmaceuticals
Technical Analysis
Fundamental Analysis
Analyst Ratings, Profile & Chart
Fundamental Rating
We assign a fundamental rating of 6 out of 10 to BMY. BMY was compared to 198 industry peers in the Pharmaceuticals industry. While BMY has a great profitability rating, there are some minor concerns on its financial health. BMY may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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
BMY had positive earnings in the past year.
BMY had a positive operating cash flow in the past year.
In multiple years BMY reported negative net income over the last 5 years.
Each year in the past 5 years BMY had a positive operating cash flow.
1.2 Ratios
BMY has a better Return On Assets (5.86%) than 90.40% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for BMY is significantly below the industry average of 41.61%.
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
With an excellent Profit Margin value of 11.38%, BMY belongs to the best of the industry, outperforming 87.37% of the companies in the same industry.
BMY's Operating Margin of 27.11% is amongst the best of the industry. BMY outperforms 91.41% of its industry peers.
In the last couple of years the Operating Margin of BMY has declined.
BMY has a Gross Margin of 74.69%. This is amongst the best in the industry. BMY outperforms 80.30% 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.
Compared to 1 year ago, BMY has less shares outstanding
BMY has less shares outstanding than it did 5 years ago.
BMY has a worse debt/assets ratio than last year.
2.2 Solvency
BMY has an Altman-Z score of 2.08. 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 2.08, BMY is in the better half of the industry, outperforming 69.19% of the companies in the same industry.
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.
BMY's Debt to FCF ratio of 3.80 is amongst the best of the industry. BMY outperforms 86.87% 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.
The Debt to Equity ratio of BMY (2.67) is worse than 76.26% of its industry peers.
Industry Rank
Sector Rank
Debt/Equity
2.67
Debt/FCF
3.8
Altman-Z
2.08
ROIC/WACC1.65
WACC9.01%
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'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.
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 72.22% of its industry peers.
With a Price/Earnings ratio of 6.49, the valuation of BMY can be described as very cheap.
Based on the Price/Earnings ratio, BMY is valued cheaper than 94.44% of the companies in the same industry.
BMY is valuated cheaply when we compare the Price/Earnings ratio to 23.99, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.72, the valuation of BMY can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 90.91% of the companies listed in the same industry.
BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.35, which is the current average of the S&P500 Index.
Industry Rank
Sector Rank
PE
6.49
Fwd PE
7.72
4.2 Price Multiples
BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 90.91% 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 92.93% of the companies in the same industry.
Industry Rank
Sector Rank
P/FCF
7.41
EV/EBITDA
6.37
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.
A more expensive valuation may be justified as BMY's earnings are expected to grow with 75.28% in the coming years.
BMY has a Yearly Dividend Yield of 5.00%, which is a nice return.
Compared to an average industry Dividend Yield of 4.21, 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 2.44.
Industry Rank
Sector 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 been paying a dividend for at least 10 years, so it has 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.
BMY's earnings are growing more than its dividend. This makes the dividend growth sustainable.