New York Stock Exchange, Inc. / Health Care / Pharmaceuticals
Technical Analysis
Fundamental Analysis
Analyst Ratings, Profile & Chart
Fundamental Rating
BMY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 may be a bit undervalued, certainly considering the very reasonable score on growth 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.
In the past year BMY had a positive cash flow from operations.
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
The Return On Assets of BMY (5.86%) is better 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.
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.
BMY had an Average Return On Invested Capital over the past 3 years of 12.29%. This is significantly below the industry average of 41.57%.
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
The Profit Margin of BMY (11.38%) is better than 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.
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.
The number of shares outstanding for BMY has been reduced compared to 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
BMY has an Altman-Z score of 2.06. 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.
The Altman-Z score of BMY (2.06) is better 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.
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
2.06
ROIC/WACC1.64
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.28 indicates that BMY should not have too much problems paying its short term obligations.
The Current ratio of BMY (1.28) is worse than 79.80% 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 72.73% of its industry peers.
The Price/Earnings ratio is 6.33, which indicates a rather cheap valuation of BMY.
BMY's Price/Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 94.95% of the companies in the same industry.
BMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.21.
A Price/Forward Earnings ratio of 7.53 indicates a rather cheap valuation of BMY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 91.41% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BMY to the average of the S&P500 Index (20.44), we can say BMY is valued rather cheaply.
Industry Rank
Sector Rank
PE
6.33
Fwd PE
7.53
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMY is valued cheaper than 91.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 92.93% of the companies listed in the same industry.
Industry Rank
Sector Rank
P/FCF
7.22
EV/EBITDA
6.26
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.
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 5.29%, which is a nice return.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.21. BMY pays more dividend than 97.98% of the companies in the same industry.
BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
Industry Rank
Sector Rank
Dividend Yield
5.29%
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
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.