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. A decent growth rate in combination with a cheap valuation! Better keep an eye on BMY. 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.
In multiple years BMY reported negative net income over the last 5 years.
In the past 5 years BMY always reported a positive cash flow from operatings.
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.
BMY has a Return On Equity of 31.16%. This is amongst the best in the industry. BMY outperforms 95.45% of its industry peers.
BMY's Return On Invested Capital of 14.88% is amongst the best of the industry. BMY outperforms 91.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMY is significantly below the industry average of 41.51%.
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's Profit Margin of 11.38% is amongst the best of the industry. BMY outperforms 87.37% of its industry peers.
Looking at the Operating Margin, with a value of 27.11%, BMY belongs to the top of the industry, outperforming 91.41% 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 80.81% of its industry peers.
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.
Compared to 1 year ago, BMY has less shares outstanding
Compared to 5 years ago, BMY has less shares outstanding
Compared to 1 year ago, BMY has a worse debt to assets ratio.
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 has a better Altman-Z score (2.07) than 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.
With an excellent Debt to FCF ratio value of 3.80, BMY belongs to the best of the industry, outperforming 87.37% 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.
The Debt to Equity ratio of BMY (2.67) is worse 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
WACC9.07%
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.
A Quick Ratio of 1.17 indicates that BMY should not have too much problems paying its short term obligations.
BMY's Quick ratio of 1.17 is on the low side compared to the rest of the industry. BMY is outperformed by 72.73% of its industry peers.
The Price/Earnings ratio is 6.01, which indicates a rather cheap valuation of BMY.
Compared to the rest of the industry, the Price/Earnings ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 94.95% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BMY to the average of the S&P500 Index (24.85), we can say 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.
The average S&P500 Price/Forward Earnings ratio is at 20.89. BMY is valued rather cheaply when compared to this.
Industry Rank
Sector Rank
PE
6.01
Fwd PE
7.15
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 91.41% of the companies listed 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
6.86
EV/EBITDA
6.27
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.
With a Yearly Dividend Yield of 5.29%, BMY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.19, 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 2.40.
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 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.