New York Stock Exchange, Inc. / Health Care / Pharmaceuticals
Technical Analysis
Fundamental Analysis
Analyst Ratings, Profile & Chart
Fundamental Rating
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 has a great profitability rating, there are some minor concerns on its financial health. BMY scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally 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
In the past year BMY was profitable.
In the past year BMY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BMY reported negative net income in multiple years.
Each year in the past 5 years BMY had a positive operating cash flow.
1.2 Ratios
BMY has a better Return On Assets (5.86%) than 90.40% of its industry peers.
BMY has a better Return On Equity (31.16%) than 95.45% of its industry peers.
BMY's Return On Invested Capital of 14.88% is amongst the best of the industry. BMY outperforms 91.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMY is significantly below the industry average of 41.51%.
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 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
The Profit Margin of BMY (11.38%) is better than 87.37% of its industry peers.
With an excellent Operating Margin value of 27.11%, BMY belongs to the best 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.
BMY's Gross Margin of 74.69% is amongst the best of the industry. BMY outperforms 80.81% of its industry peers.
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
BMY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BMY is higher compared to a year ago.
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.
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.
BMY's Debt to FCF ratio of 3.80 is amongst the best of the industry. BMY outperforms 87.37% 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.
Looking at the Debt to Equity ratio, with a value of 2.67, BMY is doing worse than 77.27% of the companies in the same industry.
Industry Rank
Sector Rank
Debt/Equity
2.67
Debt/FCF
3.8
Altman-Z
2.09
ROIC/WACC1.63
WACC9.12%
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 79.29% 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.
Looking at the Quick ratio, with a value of 1.17, BMY is doing worse than 72.73% of the companies in the same industry.
BMY is valuated cheaply with a Price/Earnings ratio of 6.35.
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 24.95, BMY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.55, the valuation of BMY can be described as very cheap.
90.40% 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 20.99, BMY is valued rather cheaply.
Industry Rank
Sector Rank
PE
6.35
Fwd PE
7.55
4.2 Price Multiples
BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 90.91% of the companies 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 Rank
Sector Rank
P/FCF
7.25
EV/EBITDA
6.42
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.
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.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.19. BMY pays more dividend than 97.47% of the companies 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 paid a dividend for at least 10 years, which is 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
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.