Decent Value Stocks. Analyze the stocks with a good fundamental valuation, while still showing decent profitability, health and growth.


BRISTOL-MYERS SQUIBB CO

New York Stock Exchange, Inc. / Health Care / Pharmaceuticals

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to BMY. 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! Finally BMY also has an excellent dividend rating. This makes BMY very considerable for value and dividend investing!


Dividend Valuation Growth Profitability Health

7

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.
BMY Yearly Net Income VS EBIT VS OCF VS FCFBMY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B

1.2 Ratios

The Return On Assets of BMY (5.86%) is better than 90.40% of its industry peers.
BMY has a better Return On Equity (31.16%) than 95.45% of its industry peers.
BMY has a Return On Invested Capital of 14.88%. This is amongst the best in 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 41.57%.
The 3 year average ROIC (12.29%) for BMY is below the current ROIC(14.88%), indicating increased profibility in the last year.
Industry RankSector 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%
BMY Yearly ROA, ROE, ROICBMY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

BMY has a Profit Margin of 11.38%. This is amongst the best in the industry. BMY outperforms 87.37% of its industry peers.
BMY has a Operating Margin of 27.11%. This is amongst the best in the industry. BMY outperforms 91.41% of its industry peers.
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.
In the last couple of years the Gross Margin of BMY has remained more or less at the same level.
Industry RankSector Rank
OM 27.11%
PM (TTM) 11.38%
GM 74.69%
OM growth 3Y-0.56%
OM growth 5Y-4.29%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.73%
GM growth 5Y1.42%
BMY Yearly Profit, Operating, Gross MarginsBMY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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5

2. Health

2.1 Basic Checks

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
Compared to 5 years ago, BMY has less shares outstanding
The debt/assets ratio for BMY is higher compared to a year ago.
BMY Yearly Shares OutstandingBMY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
BMY Yearly Total Debt VS Total AssetsBMY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

An Altman-Z score of 2.09 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 2.09, BMY is in the better half of the industry, outperforming 69.19% of the companies in the same industry.
The Debt to FCF ratio of BMY is 3.80, which is a good value as it means it would take BMY, 3.80 years of fcf income to pay off all of its debts.
BMY's Debt to FCF ratio of 3.80 is amongst the best of the industry. BMY outperforms 87.37% 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 77.27% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.67
Debt/FCF 3.8
Altman-Z 2.09
ROIC/WACC1.64
WACC9.08%
BMY Yearly LT Debt VS Equity VS FCFBMY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

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.
With a Current ratio value of 1.28, BMY is not doing good in the industry: 79.29% of the companies in the same industry are doing better.
A Quick Ratio of 1.17 indicates that BMY should not have too much problems paying its short term obligations.
BMY has a worse Quick ratio (1.17) than 72.73% of its industry peers.
Industry RankSector Rank
Current Ratio 1.28
Quick Ratio 1.17
BMY Yearly Current Assets VS Current LiabilitesBMY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 599.05% over the past year.
Measured over the past years, BMY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.57% on average per year.
BMY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.62%.
BMY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
EPS 1Y (TTM)599.05%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%140.91%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%-5.6%

3.2 Future

Based on estimates for the next years, BMY will show a very strong growth in Earnings Per Share. The EPS will grow by 38.96% on average per year.
Based on estimates for the next years, BMY will show a decrease in Revenue. The Revenue will decrease by -4.38% on average per year.
EPS Next Y498.29%
EPS Next 2Y132.62%
EPS Next 3Y75.28%
EPS Next 5Y38.96%
Revenue Next Year-3.32%
Revenue Next 2Y-5.21%
Revenue Next 3Y-3.8%
Revenue Next 5Y-4.38%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
BMY Yearly Revenue VS EstimatesBMY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
BMY Yearly EPS VS EstimatesBMY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6

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10

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 6.40, which indicates a rather cheap valuation of BMY.
Based on the Price/Earnings ratio, BMY is valued cheaper than 94.95% of the companies in the same industry.
BMY is valuated cheaply when we compare the Price/Earnings ratio to 24.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.62, the valuation of BMY can be described as very cheap.
Based on the Price/Forward Earnings ratio, BMY is valued cheaply inside the industry as 90.40% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BMY to the average of the S&P500 Index (20.94), we can say BMY is valued rather cheaply.
Industry RankSector Rank
PE 6.4
Fwd PE 7.62
BMY Price Earnings VS Forward Price EarningsBMY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

90.91% of the companies in the same industry are more expensive than BMY, based on the Enterprise Value to EBITDA ratio.
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 RankSector Rank
P/FCF 7.31
EV/EBITDA 6.42
BMY Per share dataBMY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

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.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y132.62%
EPS Next 3Y75.28%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.29%, BMY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.22, 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 2.41.
Industry RankSector 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
BMY Yearly Dividends per shareBMY Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

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.
DP90.59%
EPS Next 2Y132.62%
EPS Next 3Y75.28%
BMY Yearly Income VS Free CF VS DividendBMY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B
BMY Dividend Payout.BMY Dividend Payout, showing the Payout Ratio.BMY Dividend Payout.PayoutRetained Earnings

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