New York Stock Exchange, Inc. / Health Care / Pharmaceuticals
Technical Analysis
Fundamental Analysis
Analyst Ratings, Profile & Chart
Fundamental Rating
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! 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
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.
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.
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.
Measured over the past 3 years, the Average Return On Invested Capital for BMY is significantly below the industry average of 41.51%.
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
BMY has a Profit Margin of 11.38%. This is amongst the best in the industry. BMY outperforms 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.
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 80.81% 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.
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BMY is creating some value.
The number of shares outstanding for BMY has been reduced compared to 1 year ago.
BMY has less shares outstanding than it did 5 years ago.
BMY has a worse debt/assets ratio than last year.
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.
The Altman-Z score of BMY (2.09) 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 87.37% 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.
With a Debt to Equity ratio value of 2.67, BMY is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
Industry Rank
Sector Rank
Debt/Equity
2.67
Debt/FCF
3.8
Altman-Z
2.09
ROIC/WACC1.63
WACC9.11%
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's Quick ratio of 1.17 is on the low side compared to the rest of the industry. BMY is outperformed by 72.73% of its industry peers.
Based on the Price/Earnings ratio of 6.35, the valuation of BMY can be described as very cheap.
Based on the Price/Earnings ratio, BMY is valued cheaply inside the industry as 94.95% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.95, BMY is valued rather cheaply.
A Price/Forward Earnings ratio of 7.55 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 90.40% of the companies listed in the same industry.
BMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.99.
Industry Rank
Sector Rank
PE
6.35
Fwd PE
7.55
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.
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
7.25
EV/EBITDA
6.42
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.
BMY's earnings are expected to grow with 75.28% in the coming years. This may justify a more expensive valuation.
BMY has a Yearly Dividend Yield of 5.29%, which is a nice return.
Compared to an average industry Dividend Yield of 4.19, 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 Rank
Sector Rank
Dividend Yield
5.29%
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
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.