BRISTOL-MYERS SQUIBB CO (1BMY.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1BMY - US1101221083 - Common Stock
45.965 EUR
-0.46 (-0.99%)
1BMY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. 1BMY has an average financial health and profitability rating. 1BMY may be a bit undervalued, certainly considering the very reasonable score on growth 1BMY also has an excellent dividend rating. This makes 1BMY very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- 1BMY had positive earnings in the past year.
- In the past year 1BMY had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: 1BMY reported negative net income in multiple years.
- 1BMY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of 1BMY (6.23%) is comparable to the rest of the industry.
- The Return On Equity of 1BMY (32.55%) is better than 80.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 17.49%, 1BMY is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1BMY is below the industry average of 14.00%.
- The last Return On Invested Capital (17.49%) for 1BMY is above the 3 year average (11.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 32.55% | ||
| ROIC | 17.49% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)11.67%
ROIC(5y)9.83%
1.3 Margins
- 1BMY has a Profit Margin (12.57%) which is in line with its industry peers.
- 1BMY has a better Operating Margin (33.51%) than 81.82% of its industry peers.
- 1BMY's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 73.15%, 1BMY perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1BMY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.51% | ||
| PM (TTM) | 12.57% | ||
| GM | 73.15% |
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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1BMY is creating value.
- Compared to 1 year ago, 1BMY has less shares outstanding
- The number of shares outstanding for 1BMY has been reduced compared to 5 years ago.
- 1BMY has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.23 indicates that 1BMY is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1BMY has a Altman-Z score of 2.23. This is comparable to the rest of the industry: 1BMY outperforms 45.45% of its industry peers.
- 1BMY has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as 1BMY would need 3.20 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.20, 1BMY is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
- 1BMY has a Debt/Equity ratio of 2.41. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of 1BMY (2.41) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.23 |
ROIC/WACC2.04
WACC8.58%
2.3 Liquidity
- 1BMY has a Current Ratio of 1.27. This is a normal value and indicates that 1BMY is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.27, 1BMY is in line with its industry, outperforming 41.82% of the companies in the same industry.
- 1BMY has a Quick Ratio of 1.17. This is a normal value and indicates that 1BMY is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of 1BMY (1.17) is better than 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- 1BMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 460.68%, which is quite impressive.
- 1BMY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.57% yearly.
- 1BMY shows a small growth in Revenue. In the last year, the Revenue has grown by 1.26%.
- The Revenue has been growing by 13.06% on average over the past years. This is quite good.
EPS 1Y (TTM)460.68%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-9.44%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%2.77%
3.2 Future
- The Earnings Per Share is expected to grow by 35.29% on average over the next years. This is a very strong growth
- 1BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.06% yearly.
EPS Next Y471.99%
EPS Next 2Y130.77%
EPS Next 3Y73.18%
EPS Next 5Y35.29%
Revenue Next Year0.22%
Revenue Next 2Y-4.02%
Revenue Next 3Y-3.34%
Revenue Next 5Y-5.06%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.30, which indicates a very decent valuation of 1BMY.
- 1BMY's Price/Earnings ratio is rather cheap when compared to the industry. 1BMY is cheaper than 92.73% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, 1BMY is valued rather cheaply.
- With a Price/Forward Earnings ratio of 8.96, the valuation of 1BMY can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, 1BMY is valued cheaply inside the industry as 92.73% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. 1BMY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1BMY is valued cheaper than 90.91% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1BMY is valued cheaper than 98.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.24 | ||
| EV/EBITDA | 6.77 |
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.
- A more expensive valuation may be justified as 1BMY's earnings are expected to grow with 73.18% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y130.77%
EPS Next 3Y73.18%
5. Dividend
5.1 Amount
- 1BMY has a Yearly Dividend Yield of 4.59%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.62, 1BMY pays a better dividend. On top of this 1BMY pays more dividend than 92.73% of the companies listed in the same industry.
- 1BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
- On average, the dividend of 1BMY grows each year by 11.67%, which is quite nice.
Dividend Growth(5Y)11.67%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1BMY pays out 82.81% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of 1BMY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP82.81%
EPS Next 2Y130.77%
EPS Next 3Y73.18%
BRISTOL-MYERS SQUIBB CO / 1BMY.MI FAQ
Can you provide the ChartMill fundamental rating for BRISTOL-MYERS SQUIBB CO?
ChartMill assigns a fundamental rating of 6 / 10 to 1BMY.MI.
Can you provide the valuation status for BRISTOL-MYERS SQUIBB CO?
ChartMill assigns a valuation rating of 9 / 10 to BRISTOL-MYERS SQUIBB CO (1BMY.MI). This can be considered as Undervalued.
Can you provide the profitability details for BRISTOL-MYERS SQUIBB CO?
BRISTOL-MYERS SQUIBB CO (1BMY.MI) has a profitability rating of 5 / 10.
Can you provide the financial health for 1BMY stock?
The financial health rating of BRISTOL-MYERS SQUIBB CO (1BMY.MI) is 5 / 10.
Is the dividend of BRISTOL-MYERS SQUIBB CO sustainable?
The dividend rating of BRISTOL-MYERS SQUIBB CO (1BMY.MI) is 8 / 10 and the dividend payout ratio is 82.81%.