BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
NYSE:BDX - New York Stock Exchange, Inc. - US0758871091 - Common Stock - Currency: USD
Overall BDX gets a fundamental rating of 5 out of 10. We evaluated BDX against 187 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of BDX while its profitability can be described as average. BDX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BDX had positive earnings in the past year.
In the past year BDX had a positive cash flow from operations.
In the past 5 years BDX has always been profitable.
Each year in the past 5 years BDX had a positive operating cash flow.
1.2 Ratios
BDX's Return On Assets of 2.79% is fine compared to the rest of the industry. BDX outperforms 76.47% of its industry peers.
With a decent Return On Equity value of 6.02%, BDX is doing good in the industry, outperforming 79.14% of the companies in the same industry.
BDX's Return On Invested Capital of 5.16% is fine compared to the rest of the industry. BDX outperforms 78.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BDX is below the industry average of 8.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 6.02% | ||
| ROIC | 5.16% |
ROA(3y)2.96%
ROA(5y)2.8%
ROE(3y)6.26%
ROE(5y)6.09%
ROIC(3y)5.27%
ROIC(5y)4.6%
1.3 Margins
BDX has a Profit Margin of 7.28%. This is in the better half of the industry: BDX outperforms 78.61% of its industry peers.
BDX's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.06%, BDX is doing good in the industry, outperforming 79.68% of the companies in the same industry.
In the last couple of years the Operating Margin of BDX has grown nicely.
Looking at the Gross Margin, with a value of 44.64%, BDX is doing worse than 62.57% of the companies in the same industry.
BDX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.06% | ||
| PM (TTM) | 7.28% | ||
| GM | 44.64% |
OM growth 3Y5.79%
OM growth 5Y2.6%
PM growth 3Y-6.88%
PM growth 5Y6.19%
GM growth 3Y0%
GM growth 5Y-1.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BDX is destroying value.
Compared to 1 year ago, BDX has less shares outstanding
The number of shares outstanding for BDX has been increased compared to 5 years ago.
The debt/assets ratio for BDX is higher compared to a year ago.
2.2 Solvency
BDX has an Altman-Z score of 2.12. This is not the best score and indicates that BDX is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of BDX (2.12) is better than 60.96% of its industry peers.
BDX has a debt to FCF ratio of 7.44. This is a slightly negative value and a sign of low solvency as BDX would need 7.44 years to pay back of all of its debts.
BDX has a Debt to FCF ratio of 7.44. This is in the better half of the industry: BDX outperforms 76.47% of its industry peers.
BDX has a Debt/Equity ratio of 0.70. This is a neutral value indicating BDX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, BDX is doing worse than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.71
WACC7.3%
2.3 Liquidity
BDX has a Current Ratio of 1.13. This is a normal value and indicates that BDX is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.13, BDX is not doing good in the industry: 86.10% of the companies in the same industry are doing better.
BDX has a Quick Ratio of 1.13. This is a bad value and indicates that BDX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.64, BDX is doing worse than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.75% over the past year.
BDX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.41% yearly.
Looking at the last year, BDX shows a small growth in Revenue. The Revenue has grown by 4.16% in the last year.
BDX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.14% yearly.
EPS 1Y (TTM)11.75%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%5.14%
Revenue 1Y (TTM)4.16%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%8.94%
3.2 Future
BDX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.08% yearly.
Based on estimates for the next years, BDX will show a small growth in Revenue. The Revenue will grow by 5.57% on average per year.
EPS Next Y8.85%
EPS Next 2Y6.03%
EPS Next 3Y6.35%
EPS Next 5Y6.08%
Revenue Next Year8.24%
Revenue Next 2Y6.55%
Revenue Next 3Y5.97%
Revenue Next 5Y5.57%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.56, the valuation of BDX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 87.70% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. BDX is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.08, BDX is valued correctly.
BDX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 87.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.09, BDX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 13.08 |
4.2 Price Multiples
BDX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BDX is cheaper than 79.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BDX is valued cheaply inside the industry as 85.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.4 | ||
| EV/EBITDA | 14.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BDX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)5.62
EPS Next 2Y6.03%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 2.15%.
BDX's Dividend Yield is rather good when compared to the industry average which is at 1.85. BDX pays more dividend than 96.79% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
The dividend of BDX has a limited annual growth rate of 0.75%.
BDX has paid a dividend for at least 10 years, which is a reliable track record.
BDX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.75%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
BDX pays out 75.71% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BDX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.71%
EPS Next 2Y6.03%
EPS Next 3Y6.35%
193.5
+5.82 (+3.1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.08%
Inst Owner Change-2.03%
Ins Owners0.57%
Ins Owner Change0.44%
Market Cap55.46B
Analysts74.29
Price Target223.56 (15.53%)
Short Float %1.64%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend3.8
Dividend Growth(5Y)0.75%
DP75.71%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.57%
Min EPS beat(2)1.1%
Max EPS beat(2)14.05%
EPS beat(4)4
Avg EPS beat(4)5%
Min EPS beat(4)0.11%
Max EPS beat(4)14.05%
EPS beat(8)7
Avg EPS beat(8)4.46%
EPS beat(12)10
Avg EPS beat(12)4.47%
EPS beat(16)14
Avg EPS beat(16)6.3%
Revenue beat(2)1
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)0.37%
Revenue beat(4)2
Avg Revenue beat(4)-0.86%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)0.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.7%
Revenue beat(12)6
Avg Revenue beat(12)-0.06%
Revenue beat(16)7
Avg Revenue beat(16)-0.41%
PT rev (1m)1.37%
PT rev (3m)-0.51%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.68%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 13.08 | ||
| P/S | 2.66 | ||
| P/FCF | 21.4 | ||
| P/OCF | 16.81 | ||
| P/B | 2.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.53 |
EPS(TTM)14.27
EY7.37%
EPS(NY)14.79
Fwd EY7.65%
FCF(TTM)9.04
FCFY4.67%
OCF(TTM)11.51
OCFY5.95%
SpS72.81
BVpS88.07
TBVpS-39.56
PEG (NY)1.53
PEG (5Y)5.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 6.02% | ||
| ROCE | 5.83% | ||
| ROIC | 5.16% | ||
| ROICexc | 5.24% | ||
| ROICexgc | 25.37% | ||
| OM | 13.06% | ||
| PM (TTM) | 7.28% | ||
| GM | 44.64% | ||
| FCFM | 12.42% |
ROA(3y)2.96%
ROA(5y)2.8%
ROE(3y)6.26%
ROE(5y)6.09%
ROIC(3y)5.27%
ROIC(5y)4.6%
ROICexc(3y)5.45%
ROICexc(5y)4.78%
ROICexgc(3y)28.79%
ROICexgc(5y)25.46%
ROCE(3y)5.98%
ROCE(5y)5.22%
ROICexcg growth 3Y6%
ROICexcg growth 5Y0.79%
ROICexc growth 3Y6.82%
ROICexc growth 5Y5.36%
OM growth 3Y5.79%
OM growth 5Y2.6%
PM growth 3Y-6.88%
PM growth 5Y6.19%
GM growth 3Y0%
GM growth 5Y-1.08%
F-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 7.44 | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 29.93% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.77% | ||
| Profit Quality | 170.57% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.12 |
F-Score7
WACC7.3%
ROIC/WACC0.71
Cap/Depr(3y)37.86%
Cap/Depr(5y)40.69%
Cap/Sales(3y)4.42%
Cap/Sales(5y)4.86%
Profit Quality(3y)142.37%
Profit Quality(5y)192.14%
High Growth Momentum
Growth
EPS 1Y (TTM)11.75%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%5.14%
EPS Next Y8.85%
EPS Next 2Y6.03%
EPS Next 3Y6.35%
EPS Next 5Y6.08%
Revenue 1Y (TTM)4.16%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%8.94%
Revenue Next Year8.24%
Revenue Next 2Y6.55%
Revenue Next 3Y5.97%
Revenue Next 5Y5.57%
EBIT growth 1Y-4.35%
EBIT growth 3Y7.69%
EBIT growth 5Y5.82%
EBIT Next Year33.14%
EBIT Next 3Y13.55%
EBIT Next 5Y13.84%
FCF growth 1Y126.68%
FCF growth 3Y-3.8%
FCF growth 5Y5.31%
OCF growth 1Y57.14%
OCF growth 3Y-6.5%
OCF growth 5Y2.66%