BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - NYSE:BDX - US0758871091 - Common Stock
185.83 USD
-0.7 (-0.38%)
185.83 USD
0 (0%)
Overall BDX gets a fundamental rating of 5 out of 10. We evaluated BDX against 190 industry peers in the Health Care Equipment & Supplies industry. BDX scores excellent on profitability, but there are concerns on its financial health. BDX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year BDX was profitable.
In the past year BDX had a positive cash flow from operations.
Each year in the past 5 years BDX has been profitable.
In the past 5 years BDX always reported a positive cash flow from operatings.
1.2 Ratios
BDX has a Return On Assets of 2.93%. This is in the better half of the industry: BDX outperforms 76.84% of its industry peers.
With a decent Return On Equity value of 6.30%, BDX is doing good in the industry, outperforming 78.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.72%, BDX is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
BDX had an Average Return On Invested Capital over the past 3 years of 5.27%. This is below the industry average of 8.88%.
The last Return On Invested Capital (5.72%) for BDX is above the 3 year average (5.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 6.3% | ||
| ROIC | 5.72% |
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
Looking at the Profit Margin, with a value of 7.51%, BDX is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
BDX's Profit Margin has improved in the last couple of years.
BDX has a better Operating Margin (14.13%) than 82.63% of its industry peers.
In the last couple of years the Operating Margin of BDX has grown nicely.
BDX has a Gross Margin of 45.08%. This is in the lower half of the industry: BDX underperforms 61.58% of its industry peers.
BDX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.13% | ||
| PM (TTM) | 7.51% | ||
| GM | 45.08% |
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
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 less shares outstanding
Compared to 5 years ago, BDX has more shares outstanding
BDX has a worse debt/assets ratio than last year.
2.2 Solvency
BDX has an Altman-Z score of 2.09. 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.
With a decent Altman-Z score value of 2.09, BDX is doing good in the industry, outperforming 61.05% of the companies in the same industry.
The Debt to FCF ratio of BDX is 7.58, which is on the high side as it means it would take BDX, 7.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BDX (7.58) is better than 76.32% of its industry peers.
BDX has a Debt/Equity ratio of 0.69. This is a neutral value indicating BDX is somewhat dependend on debt financing.
BDX has a Debt to Equity ratio of 0.69. This is in the lower half of the industry: BDX underperforms 67.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.58 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.81
WACC7.06%
2.3 Liquidity
A Current Ratio of 1.10 indicates that BDX should not have too much problems paying its short term obligations.
BDX has a Current ratio of 1.10. This is amonst the worse of the industry: BDX underperforms 86.32% of its industry peers.
A Quick Ratio of 0.62 indicates that BDX may have some problems paying its short term obligations.
BDX's Quick ratio of 0.62 is on the low side compared to the rest of the industry. BDX is outperformed by 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
BDX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.75%, which is quite good.
The Earnings Per Share has been growing slightly by 2.41% on average over the past years.
The Revenue has been growing slightly by 7.86% in the past year.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)11.75%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%5.14%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%8.94%
3.2 Future
The Earnings Per Share is expected to grow by 8.32% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.36% on average over the next years.
EPS Next Y10.38%
EPS Next 2Y6.72%
EPS Next 3Y7.05%
EPS Next 5Y8.32%
Revenue Next Year8.4%
Revenue Next 2Y6.33%
Revenue Next 3Y5.68%
Revenue Next 5Y5.36%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BDX is valuated correctly with a Price/Earnings ratio of 13.02.
BDX's Price/Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 89.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, BDX is valued rather cheaply.
BDX is valuated correctly with a Price/Forward Earnings ratio of 12.40.
90.00% of the companies in the same industry are more expensive than BDX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, BDX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 12.4 |
4.2 Price Multiples
82.11% of the companies in the same industry are more expensive than BDX, based on the Enterprise Value to EBITDA ratio.
BDX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BDX is cheaper than 85.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.89 | ||
| EV/EBITDA | 13.2 |
4.3 Compensation for Growth
BDX's 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)1.25
PEG (5Y)5.39
EPS Next 2Y6.72%
EPS Next 3Y7.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, BDX has a reasonable but not impressive dividend return.
BDX's Dividend Yield is rather good when compared to the industry average which is at 1.80. BDX pays more dividend than 97.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, BDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.75%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
73.10% of the earnings are spent on dividend by BDX. This is not a sustainable payout ratio.
The dividend of BDX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.1%
EPS Next 2Y6.72%
EPS Next 3Y7.05%
185.83
-0.7 (-0.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners92.24%
Inst Owner Change-0.24%
Ins Owners0.57%
Ins Owner Change1.07%
Market Cap53.26B
Revenue(TTM)21.39B
Net Income(TTM)1.61B
Analysts73.33
Price Target221.8 (19.36%)
Short Float %1.35%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend3.8
Dividend Growth(5Y)0.75%
DP73.1%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.11%
Min EPS beat(2)1.1%
Max EPS beat(2)7.13%
EPS beat(4)4
Avg EPS beat(4)5.6%
Min EPS beat(4)0.11%
Max EPS beat(4)14.05%
EPS beat(8)7
Avg EPS beat(8)5.28%
EPS beat(12)10
Avg EPS beat(12)4.61%
EPS beat(16)14
Avg EPS beat(16)6.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-0.58%
Revenue beat(4)2
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)0.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.76%
Revenue beat(12)5
Avg Revenue beat(12)-0.34%
Revenue beat(16)6
Avg Revenue beat(16)-0.52%
PT rev (1m)-0.33%
PT rev (3m)0.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.68%
EPS NY rev (1m)0%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 12.4 | ||
| P/S | 2.49 | ||
| P/FCF | 20.89 | ||
| P/OCF | 16.37 | ||
| P/B | 2.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.2 |
EPS(TTM)14.27
EY7.68%
EPS(NY)14.99
Fwd EY8.07%
FCF(TTM)8.9
FCFY4.79%
OCF(TTM)11.35
OCFY6.11%
SpS74.61
BVpS88.87
TBVpS-38.07
PEG (NY)1.25
PEG (5Y)5.39
Graham Number168.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 6.3% | ||
| ROCE | 6.46% | ||
| ROIC | 5.72% | ||
| ROICexc | 5.82% | ||
| ROICexgc | 27.86% | ||
| OM | 14.13% | ||
| PM (TTM) | 7.51% | ||
| GM | 45.08% | ||
| FCFM | 11.92% |
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%
ROICexgc growth 3Y6%
ROICexgc 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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.58 | ||
| Debt/EBITDA | 3.22 | ||
| Cap/Depr | 29.1% | ||
| Cap/Sales | 3.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.82% | ||
| Profit Quality | 158.78% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.09 |
F-Score7
WACC7.06%
ROIC/WACC0.81
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 Y10.38%
EPS Next 2Y6.72%
EPS Next 3Y7.05%
EPS Next 5Y8.32%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%8.94%
Revenue Next Year8.4%
Revenue Next 2Y6.33%
Revenue Next 3Y5.68%
Revenue Next 5Y5.36%
EBIT growth 1Y2.55%
EBIT growth 3Y7.69%
EBIT growth 5Y5.82%
EBIT Next Year32.89%
EBIT Next 3Y13.13%
EBIT Next 5Y13.97%
FCF growth 1Y46.38%
FCF growth 3Y-3.8%
FCF growth 5Y5.31%
OCF growth 1Y23.4%
OCF growth 3Y-6.5%
OCF growth 5Y2.66%
BECTON DICKINSON AND CO / BDX FAQ
Can you provide the ChartMill fundamental rating for BECTON DICKINSON AND CO?
ChartMill assigns a fundamental rating of 5 / 10 to BDX.
Can you provide the valuation status for BECTON DICKINSON AND CO?
ChartMill assigns a valuation rating of 7 / 10 to BECTON DICKINSON AND CO (BDX). This can be considered as Undervalued.
How profitable is BECTON DICKINSON AND CO (BDX) stock?
BECTON DICKINSON AND CO (BDX) has a profitability rating of 7 / 10.
What is the financial health of BECTON DICKINSON AND CO (BDX) stock?
The financial health rating of BECTON DICKINSON AND CO (BDX) is 3 / 10.
What is the expected EPS growth for BECTON DICKINSON AND CO (BDX) stock?
The Earnings per Share (EPS) of BECTON DICKINSON AND CO (BDX) is expected to grow by 10.38% in the next year.