New York Stock Exchange, Inc. / Health Care / Pharmaceuticals
Technical Analysis
Fundamental Analysis
Analyst Ratings, Profile & Chart
Fundamental Rating
Taking everything into account, BMY scores 6 out of 10 in our fundamental rating. 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. 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!
1. Profitability
1.1 Basic Checks
BMY had positive earnings in the past year.
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.
1.2 Ratios
BMY has a better Return On Assets (5.86%) than 90.40% of its industry peers.
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.
With an excellent Return On Invested Capital value of 14.88%, BMY belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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 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
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.
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 80.81% of the companies in the same industry.
BMY's Gross Margin has been stable in the last couple of years.
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
Compared to 1 year ago, BMY has a worse debt to assets ratio.
2.2 Solvency
BMY has an Altman-Z score of 2.06. 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 (2.06) 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.
BMY has a Debt to FCF ratio of 3.80. This is amongst the best in the industry. BMY outperforms 86.87% 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 Debt to Equity ratio of 2.67. This is in the lower half of the industry: BMY underperforms 77.27% of its industry peers.
Industry Rank
Sector Rank
Debt/Equity
2.67
Debt/FCF
3.8
Altman-Z
2.06
ROIC/WACC1.64
WACC9.05%
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 has a worse Current ratio (1.28) than 79.80% 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 72.73% of its industry peers.
The Price/Earnings ratio is 6.33, which indicates a rather cheap valuation of BMY.
94.95% of the companies in the same industry are more expensive than BMY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.21, BMY is valued rather cheaply.
BMY is valuated cheaply with a Price/Forward Earnings ratio of 7.53.
91.41% of the companies in the same industry are more expensive than BMY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, BMY is valued rather cheaply.
Industry Rank
Sector Rank
PE
6.33
Fwd PE
7.53
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 91.41% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BMY is valued cheaply inside the industry as 92.93% of the companies are valued more expensively.
Industry Rank
Sector Rank
P/FCF
7.22
EV/EBITDA
6.26
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.
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.
BMY has a Yearly Dividend Yield of 5.29%, which is a nice return.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.21. BMY pays more dividend than 97.98% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, BMY pays a better dividend.
Industry Rank
Sector 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 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.
The dividend of BMY is growing, but earnings are growing more, so the dividend growth is sustainable.