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. 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 could make BMY a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
BMY had positive earnings in the past year.
In the past year BMY had a positive cash flow from operations.
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
BMY has a Return On Assets of 5.86%. This is amongst the best in the industry. BMY outperforms 90.40% of its industry peers.
Looking at the Return On Equity, with a value of 31.16%, BMY belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
BMY has a better Return On Invested Capital (14.88%) than 91.41% of its industry peers.
BMY had an Average Return On Invested Capital over the past 3 years of 12.29%. This is significantly below the industry average of 41.51%.
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.
The Operating Margin of BMY (27.11%) is better 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 80.81% of the companies in the same industry.
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.
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 2.07. 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.
BMY's Altman-Z score of 2.07 is fine compared to the rest of the industry. BMY outperforms 68.18% 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.
BMY has a better Debt to FCF ratio (3.80) than 87.37% of its industry peers.
BMY has a Debt/Equity ratio of 2.67. This is a high value indicating a heavy dependency on external financing.
BMY has a worse Debt to Equity ratio (2.67) than 77.27% of its industry peers.
Industry Rank
Sector Rank
Debt/Equity
2.67
Debt/FCF
3.8
Altman-Z
2.07
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 79.29% 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.
BMY has a worse Quick ratio (1.17) than 72.73% of its industry peers.
With a Price/Earnings ratio of 6.01, 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.
Compared to an average S&P500 Price/Earnings ratio of 24.85, BMY is valued rather cheaply.
BMY is valuated cheaply with a Price/Forward Earnings ratio of 7.15.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 90.40% of the companies listed in the same industry.
BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.89, which is the current average of the S&P500 Index.
Industry Rank
Sector Rank
PE
6.01
Fwd PE
7.15
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMY is valued cheaply inside the industry as 91.41% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BMY is valued cheaply inside the industry as 92.93% of the companies are valued more expensively.
Industry Rank
Sector Rank
P/FCF
6.86
EV/EBITDA
6.27
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.
With a Yearly Dividend Yield of 5.29%, BMY is a good candidate for dividend investing.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.19. BMY pays more dividend than 97.47% 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
5.29%
5.2 History
The dividend of BMY is nicely growing with an annual growth rate of 11.67%!
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
90.59% of the earnings are spent on dividend by BMY. This is not a sustainable payout ratio.
BMY's earnings are growing more than its dividend. This makes the dividend growth sustainable.