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. While BMY belongs to the best of the industry regarding profitability, 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. These ratings could make BMY a good candidate for value and dividend investing.


Dividend Valuation Growth Profitability Health

7

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.
In the past 5 years BMY always reported a positive cash flow from operatings.
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

BMY has a better Return On Assets (5.86%) than 89.39% 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.
The Return On Invested Capital of BMY (14.88%) is better than 91.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMY is significantly below the industry average of 42.34%.
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 better Profit Margin (11.38%) than 87.37% of its industry peers.
BMY has a better Operating Margin (27.11%) than 91.92% of its industry peers.
BMY's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 74.69%, BMY belongs to the best of the industry, outperforming 82.32% of the companies in the same industry.
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

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BMY is still creating some value.
BMY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BMY has been reduced compared to 5 years ago.
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

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 Altman-Z score of 2.07. This is in the better half of the industry: BMY outperforms 70.71% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.80, BMY belongs to the top 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.
Looking at the Debt to Equity ratio, with a value of 2.67, BMY is doing worse than 78.28% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.67
Debt/FCF 3.8
Altman-Z 2.07
ROIC/WACC1.63
WACC9.13%
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.
BMY's Current ratio of 1.28 is on the low side compared to the rest of the industry. BMY is outperformed by 76.77% 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 70.20% 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.
BMY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.57% yearly.
BMY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.62%.
Measured over the past years, BMY shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
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 Y509.67%
EPS Next 2Y133.09%
EPS Next 3Y74.89%
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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

With a Price/Earnings ratio of 6.38, the valuation of BMY can be described as very cheap.
Based on the Price/Earnings ratio, BMY is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
BMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
A Price/Forward Earnings ratio of 7.56 indicates a rather cheap valuation of BMY.
BMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 90.91% of the companies in the same industry.
BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.38
Fwd PE 7.56
BMY Price Earnings VS Forward Price EarningsBMY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 92.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BMY is valued cheaper than 94.44% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.29
EV/EBITDA 6.31
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.
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 74.89% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y133.09%
EPS Next 3Y74.89%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.41%, BMY is a good candidate for dividend investing.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.24. BMY pays more dividend than 97.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, BMY pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.41%

5.2 History

On average, the dividend of BMY grows each year by 11.67%, which is quite nice.
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
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 2Y133.09%
EPS Next 3Y74.89%
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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