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. BMY is valued quite cheap, while showing a decent growth score. This is a good combination! BMY also has an excellent dividend rating. These ratings could make BMY a good candidate 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.
The reported net income has been mixed in the past 5 years: BMY reported negative net income in multiple years.
In the past 5 years BMY always reported a positive cash flow from operatings.
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

The Return On Assets of BMY (5.86%) is better than 89.39% of its industry peers.
BMY has a better Return On Equity (31.16%) than 95.45% of its industry peers.
BMY has a Return On Invested Capital of 14.88%. This is amongst the best in the industry. BMY outperforms 91.92% 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

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.
BMY has a better Operating Margin (27.11%) than 91.92% of its industry peers.
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 82.83% of its industry peers.
BMY's Gross Margin has been stable in the last couple of years.
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

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BMY is creating some value.
BMY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BMY has less shares outstanding
Compared to 1 year ago, BMY has a worse debt to assets ratio.
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 has a Altman-Z score of 2.07. This is in the better half of the industry: BMY outperforms 70.20% 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.
The Debt to FCF ratio of BMY (3.80) is better than 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 Debt to Equity ratio of 2.67. This is in the lower half of the industry: BMY underperforms 77.78% 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

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 74.75% of its industry peers.
A Quick Ratio of 1.17 indicates that BMY should not have too much problems paying its short term obligations.
The Quick ratio of BMY (1.17) is worse than 68.18% 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.
The Revenue has been growing slightly by 4.62% in the past year.
BMY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
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.
Based on estimates for the next years, BMY will show a decrease in Revenue. The Revenue will decrease by -4.38% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

A Price/Earnings ratio of 6.38 indicates a rather cheap valuation of BMY.
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.
When comparing the Price/Earnings ratio of BMY to the average of the S&P500 Index (25.91), we can say BMY is valued rather cheaply.
The Price/Forward Earnings ratio is 7.56, which indicates a rather cheap valuation of BMY.
Based on the Price/Forward Earnings ratio, BMY is valued cheaply inside the industry as 89.39% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BMY to the average of the S&P500 Index (21.77), 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.
Based on the Price/Free Cash Flow ratio, BMY is valued cheaper than 94.95% of the companies in the same industry.
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%

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7

5. Dividend

5.1 Amount

BMY has a Yearly Dividend Yield of 5.28%, which is a nice return.
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 2.40, 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

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