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

BMY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 197 industry peers in the Pharmaceuticals industry. While BMY has a great profitability rating, 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. Finally BMY also has an excellent dividend rating. With these ratings, BMY could be worth investigating further 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.
In multiple years BMY reported negative net income over the last 5 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

BMY has a better Return On Assets (5.86%) than 89.34% of its industry peers.
With an excellent Return On Equity value of 31.16%, BMY belongs to the best of the industry, outperforming 95.43% of the companies in the same industry.
BMY has a better Return On Invested Capital (14.88%) than 91.88% 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 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

The Profit Margin of BMY (11.38%) is better than 87.31% of its industry peers.
BMY has a better Operating Margin (27.11%) than 91.88% of its industry peers.
In the last couple of years the Operating Margin of BMY has declined.
Looking at the Gross Margin, with a value of 74.69%, BMY belongs to the top of the industry, outperforming 82.74% 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

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
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's Altman-Z score of 2.07 is fine compared to the rest of the industry. BMY outperforms 70.05% 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 87.31% 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.
BMY's Debt to Equity ratio of 2.67 is on the low side compared to the rest of the industry. BMY is outperformed by 78.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.67
Debt/FCF 3.8
Altman-Z 2.07
ROIC/WACC1.63
WACC9.15%
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.
The Current ratio of BMY (1.28) is worse than 75.13% 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.
BMY has a Quick ratio of 1.17. This is in the lower half of the industry: BMY underperforms 68.53% 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

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%.
The Revenue has been growing by 13.06% on average over the past years. This is quite good.
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

BMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.96% yearly.
BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.38% yearly.
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

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

More info and screens

10

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.39, the valuation of BMY can be described as very cheap.
Based on the Price/Earnings ratio, BMY is valued cheaply inside the industry as 95.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.91, BMY is valued rather cheaply.
The Price/Forward Earnings ratio is 7.57, which 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 89.34% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.77, BMY is valued rather cheaply.
Industry RankSector Rank
PE 6.39
Fwd PE 7.57
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

Based on the Enterprise Value to EBITDA ratio, BMY is valued cheaply inside the industry as 92.39% of the companies are valued more expensively.
94.92% 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 7.29
EV/EBITDA 6.29
BMY Per share dataBMY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

The 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.
BMY's earnings are expected to grow with 74.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y133.09%
EPS Next 3Y74.89%

More info and screens

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.28%, BMY is a good candidate for dividend investing.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.20. BMY pays more dividend than 97.46% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BMY pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.28%

5.2 History

The dividend of BMY is nicely growing with an annual growth rate of 11.67%!
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

More info and screens