BECTON DICKINSON AND CO (BDX)
US0758871091 - Common Stock
Overall BDX gets a fundamental rating of 5 out of 10. We evaluated BDX against 195 industry peers in the Health Care Equipment & Supplies industry. While BDX is still in line with the averages on profitability rating, there are concerns on its financial health. BDX has a correct valuation and a medium growth rate.
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
Looking at the Return On Assets, with a value of 2.33%, BDX is in the better half of the industry, outperforming 74.36% of the companies in the same industry.
BDX has a better Return On Equity (4.81%) than 76.92% of its industry peers.
BDX has a better Return On Invested Capital (3.62%) than 74.36% of its industry peers.
BDX had an Average Return On Invested Capital over the past 3 years of 4.42%. This is below the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 4.81% | ||
| ROIC | 3.62% |
ROA(3y)3.2%
ROA(5y)2.62%
ROE(3y)6.89%
ROE(5y)5.8%
ROIC(3y)4.42%
ROIC(5y)3.91%
1.3 Margins
BDX has a Profit Margin of 6.25%. This is in the better half of the industry: BDX outperforms 78.97% of its industry peers.
BDX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.52%, BDX is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BDX has grown nicely.
The Gross Margin of BDX (41.37%) is worse than 63.08% of its industry peers.
In the last couple of years the Gross Margin of BDX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.52% | ||
| PM (TTM) | 6.25% | ||
| GM | 41.37% |
OM growth 3Y14.68%
OM growth 5Y1.91%
PM growth 3Y15.49%
PM growth 5Y49.18%
GM growth 3Y0.84%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
BDX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BDX has more shares outstanding
BDX has more shares outstanding than it did 5 years ago.
BDX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.44 indicates that BDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.44, BDX is doing good in the industry, outperforming 64.62% of the companies in the same industry.
BDX has a debt to FCF ratio of 6.08. This is a slightly negative value and a sign of low solvency as BDX would need 6.08 years to pay back of all of its debts.
BDX has a Debt to FCF ratio of 6.08. This is in the better half of the industry: BDX outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that BDX is somewhat dependend on debt financing.
The Debt to Equity ratio of BDX (0.56) is worse than 67.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 6.08 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.39
WACC9.35%
2.3 Liquidity
BDX has a Current Ratio of 1.08. This is a normal value and indicates that BDX is financially healthy and should not expect problems in meeting its short term obligations.
BDX has a worse Current ratio (1.08) than 91.28% of its industry peers.
BDX has a Quick Ratio of 1.08. This is a bad value and indicates that BDX is not financially healthy enough and could expect problems in meeting its short term obligations.
BDX has a Quick ratio of 0.64. This is amonst the worse of the industry: BDX underperforms 94.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
BDX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.03%.
Measured over the past 5 years, BDX shows a small growth in Earnings Per Share. The EPS has been growing by 2.18% on average per year.
BDX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.02%.
Measured over the past years, BDX shows a small growth in Revenue. The Revenue has been growing by 3.92% on average per year.
EPS 1Y (TTM)3.03%
EPS 3Y6.24%
EPS 5Y2.18%
EPS growth Q2Q-10.07%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y6.42%
Revenue growth 5Y3.92%
Revenue growth Q2Q2.62%
3.2 Future
BDX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.65% yearly.
BDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.82% yearly.
EPS Next Y7.05%
EPS Next 2Y8.89%
EPS Next 3Y9.08%
EPS Next 5Y9.65%
Revenue Next Year5.18%
Revenue Next 2Y5.53%
Revenue Next 3Y5.52%
Revenue Next 5Y4.82%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.34, the valuation of BDX can be described as rather expensive.
Based on the Price/Earnings ratio, BDX is valued cheaper than 87.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.25, BDX is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.91 indicates a correct valuation of BDX.
Based on the Price/Forward Earnings ratio, BDX is valued cheaper than 90.26% of the companies in the same industry.
BDX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.34 | ||
| Fwd PE | 15.91 |
4.2 Price Multiples
BDX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BDX is cheaper than 82.05% of the companies in the same industry.
BDX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BDX is cheaper than 88.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.14 | ||
| EV/EBITDA | 19.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BDX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BDX may justify a higher PE ratio.
PEG (NY)2.74
PEG (5Y)8.86
EPS Next 2Y8.89%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.03, BDX pays a better dividend. On top of this BDX pays more dividend than 95.38% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.45, BDX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
The dividend of BDX has a limited annual growth rate of 0.78%.
BDX has been paying a dividend for at least 10 years, so it has a reliable track record.
BDX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.78%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
BDX pays out 90.89% 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.
DP90.89%
EPS Next 2Y8.89%
EPS Next 3Y9.08%
BECTON DICKINSON AND CO
NYSE:BDX (4/25/2024, 2:42:03 PM)
After market: 230.48 0 (0%)230.48
-3.35 (-1.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap66.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.34 | ||
| Fwd PE | 15.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.74
PEG (5Y)8.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 4.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.52% | ||
| PM (TTM) | 6.25% | ||
| GM | 41.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)3.03%
EPS 3Y6.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.02%
Revenue growth 3Y6.42%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y