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 scores excellent on profitability, but 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. This makes BMY very considerable for value and dividend investing!


Dividend Valuation Growth Profitability Health

7

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.
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

With an excellent Return On Assets value of 5.86%, BMY belongs to the best of the industry, outperforming 89.39% of the companies in the same industry.
BMY's Return On Equity of 31.16% is amongst the best of the industry. BMY outperforms 95.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.88%, BMY belongs to the top of the industry, outperforming 91.92% 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 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 87.37% of its industry peers.
BMY has a better Operating Margin (27.11%) than 91.92% of its industry peers.
In the last couple of years the Operating Margin of BMY has declined.
BMY has a better Gross Margin (74.69%) than 82.32% 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

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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.
The number of shares outstanding for BMY has been reduced compared to 1 year ago.
The number of shares outstanding for BMY has been reduced compared to 5 years ago.
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.
The Altman-Z score of BMY (2.07) is better than 70.71% 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 87.37% of its industry peers.
BMY has a Debt/Equity ratio of 2.67. This is a high value indicating a heavy dependency on external financing.
BMY has a worse Debt to Equity ratio (2.67) than 78.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.67
Debt/FCF 3.8
Altman-Z 2.07
ROIC/WACC1.63
WACC9.11%
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.
BMY has a worse Current ratio (1.28) than 76.77% 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.
The Quick ratio of BMY (1.17) is worse than 70.20% 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

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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

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

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

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10

4. Valuation

4.1 Price/Earnings Ratio

BMY is valuated cheaply with a Price/Earnings ratio of 6.38.
BMY's Price/Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 95.45% of the companies in the same industry.
BMY is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
BMY is valuated cheaply with a Price/Forward Earnings ratio of 7.56.
90.91% of the companies in the same industry are more expensive than BMY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BMY to the average of the S&P500 Index (21.76), we can say BMY is valued rather cheaply.
Industry RankSector Rank
PE 6.38
Fwd PE 7.56
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 cheaper than 92.42% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 94.44% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 7.29
EV/EBITDA 6.31
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.
BMY has a very decent profitability rating, which 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%

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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 97.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, BMY pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.28%

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

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.
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

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