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

Overall BMY gets a fundamental rating of 6 out of 10. We evaluated BMY against 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. 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.
BMY had a positive operating cash flow in each of the past 5 years.
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

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.
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's Return On Invested Capital of 14.88% is amongst the best of the industry. BMY outperforms 90.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BMY is significantly below the industry average of 41.61%.
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 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

Looking at the Profit Margin, with a value of 11.38%, BMY belongs to the top of the industry, outperforming 87.37% of the companies in the same industry.
The Operating Margin of BMY (27.11%) is better than 91.41% of its industry peers.
BMY's Operating Margin has declined in the last couple of years.
BMY has a better Gross Margin (74.69%) than 80.30% 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

More info and screens

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
BMY has a worse debt/assets ratio than last year.
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 2.08. 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 (2.08) than 69.19% 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 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.
The Debt to Equity ratio of BMY (2.67) is worse than 76.26% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.67
Debt/FCF 3.8
Altman-Z 2.08
ROIC/WACC1.64
WACC9.05%
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

A Current Ratio of 1.28 indicates that BMY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.28, BMY is not doing good in the industry: 78.79% 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.
Looking at the Quick ratio, with a value of 1.17, BMY is doing worse than 72.22% of the companies in the same industry.
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

More info and screens

5

3. Growth

3.1 Past

BMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 599.05%, which is quite impressive.
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

The Earnings Per Share is expected to grow by 38.96% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -4.38% on average over the next years.
EPS Next Y498.29%
EPS Next 2Y132.62%
EPS Next 3Y75.28%
EPS Next 5Y38.96%
Revenue Next Year-4.37%
Revenue Next 2Y-5.38%
Revenue Next 3Y-3.84%
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.
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

More info and screens

10

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.48, the valuation of BMY can be described as very cheap.
Based on the Price/Earnings ratio, BMY is valued cheaper than 93.94% 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 24.29.
A Price/Forward Earnings ratio of 7.71 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.
The average S&P500 Price/Forward Earnings ratio is at 20.42. BMY is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 6.48
Fwd PE 7.71
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 91.92% of the companies listed in the same industry.
92.93% of the companies in the same industry are more expensive than BMY, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.4
EV/EBITDA 6.36
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.
BMY's earnings are expected to grow with 75.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y132.62%
EPS Next 3Y75.28%

More info and screens

7

5. Dividend

5.1 Amount

BMY has a Yearly Dividend Yield of 5.00%, which is a nice return.
Compared to an average industry Dividend Yield of 4.20, 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 2.43.
Industry RankSector Rank
Dividend Yield 5%

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

BMY pays out 90.59% of its income as dividend. 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

More info and screens