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 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! 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
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.
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.
The Return On Equity of BMY (31.16%) is better than 95.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.88%, BMY belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
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
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 better Operating Margin (27.11%) than 91.41% of its industry peers.
In the last couple of years the Operating Margin of BMY has declined.
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.
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BMY is creating some value.
BMY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BMY has less shares outstanding
BMY has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 2.07, BMY is in the better half of the industry, outperforming 68.69% 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.
The Debt to FCF ratio of BMY (3.80) is better than 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.
BMY has a worse Debt to Equity ratio (2.67) than 76.77% of its industry peers.
Industry Rank
Sector Rank
Debt/Equity
2.67
Debt/FCF
3.8
Altman-Z
2.07
ROIC/WACC1.66
WACC8.97%
2.3 Liquidity
A Current Ratio of 1.28 indicates that BMY should not have too much problems paying 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.
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.
Based on the Price/Earnings ratio of 6.36, the valuation of BMY can be described as very cheap.
Based on the Price/Earnings ratio, BMY is valued cheaply inside the industry as 94.95% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BMY to the average of the S&P500 Index (24.12), we can say BMY is valued rather cheaply.
BMY is valuated cheaply with a Price/Forward Earnings ratio of 7.57.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, BMY is valued rather cheaply.
Industry Rank
Sector Rank
PE
6.36
Fwd PE
7.57
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMY is valued cheaper than 90.91% 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
7.26
EV/EBITDA
6.3
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.
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 4.24, 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 2.44, 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.