BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BDX - US0758871091 - Common Stock
202.75 USD
-2.43 (-1.18%)
202.75 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BDX. BDX was compared to 185 industry peers in the Health Care Equipment & Supplies industry. BDX scores excellent on profitability, but there are some minor concerns on its financial health. BDX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BDX was profitable.
BDX had a positive operating cash flow in the past year.
In the past 5 years BDX has always been profitable.
BDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BDX (3.03%) is better than 77.30% of its industry peers.
BDX has a better Return On Equity (6.61%) than 80.54% of its industry peers.
BDX has a Return On Invested Capital of 6.24%. This is in the better half of the industry: BDX outperforms 79.46% of its industry peers.
BDX had an Average Return On Invested Capital over the past 3 years of 5.64%. This is below the industry average of 8.84%.
The 3 year average ROIC (5.64%) for BDX is below the current ROIC(6.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 6.61% | ||
| ROIC | 6.24% |
ROA(3y)2.9%
ROA(5y)3.12%
ROE(3y)6.24%
ROE(5y)6.77%
ROIC(3y)5.64%
ROIC(5y)5.24%
1.3 Margins
BDX has a better Profit Margin (7.68%) than 79.46% of its industry peers.
BDX's Profit Margin has improved in the last couple of years.
BDX has a better Operating Margin (15.70%) than 84.86% of its industry peers.
BDX's Operating Margin has improved in the last couple of years.
The Gross Margin of BDX (45.79%) is worse than 61.08% of its industry peers.
BDX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.7% | ||
| PM (TTM) | 7.68% | ||
| GM | 45.79% |
OM growth 3Y4.99%
OM growth 5Y10.71%
PM growth 3Y-4.96%
PM growth 5Y10%
GM growth 3Y0.22%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BDX is destroying value.
Compared to 1 year ago, BDX has less shares outstanding
The number of shares outstanding for BDX has been reduced compared to 5 years ago.
BDX has a better debt/assets ratio than last year.
2.2 Solvency
BDX has an Altman-Z score of 2.21. 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.
BDX has a Altman-Z score of 2.21. This is in the better half of the industry: BDX outperforms 61.62% of its industry peers.
BDX has a debt to FCF ratio of 7.18. This is a slightly negative value and a sign of low solvency as BDX would need 7.18 years to pay back of all of its debts.
BDX has a better Debt to FCF ratio (7.18) than 75.14% of its industry peers.
BDX has a Debt/Equity ratio of 0.73. This is a neutral value indicating BDX is somewhat dependend on debt financing.
BDX has a Debt to Equity ratio of 0.73. This is in the lower half of the industry: BDX underperforms 69.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.67
WACC9.27%
2.3 Liquidity
BDX has a Current Ratio of 1.11. This is a normal value and indicates that BDX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.11, BDX is doing worse than 85.41% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that BDX may have some problems paying its short term obligations.
BDX's Quick ratio of 0.64 is on the low side compared to the rest of the industry. BDX is outperformed by 88.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
BDX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.57%, which is quite good.
Measured over the past 5 years, BDX shows a small growth in Earnings Per Share. The EPS has been growing by 7.19% on average per year.
Looking at the last year, BDX shows a quite strong growth in Revenue. The Revenue has grown by 8.24% in the last year.
BDX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.32% yearly.
EPS 1Y (TTM)9.57%
EPS 3Y5.64%
EPS 5Y7.19%
EPS Q2Q%3.94%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y4.99%
Revenue growth 5Y6.32%
Sales Q2Q%8.33%
3.2 Future
Based on estimates for the next years, BDX will show a small growth in Earnings Per Share. The EPS will grow by 7.68% on average per year.
Based on estimates for the next years, BDX will show a small growth in Revenue. The Revenue will grow by 3.70% on average per year.
EPS Next Y4.14%
EPS Next 2Y5.2%
EPS Next 3Y5.3%
EPS Next 5Y7.68%
Revenue Next Year2.92%
Revenue Next 2Y3.14%
Revenue Next 3Y3.18%
Revenue Next 5Y3.7%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 14.06, which indicates a correct valuation of BDX.
Compared to the rest of the industry, the Price/Earnings ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 90.81% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, BDX is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.50 indicates a correct valuation of BDX.
Based on the Price/Forward Earnings ratio, BDX is valued cheaply inside the industry as 90.81% of the companies are valued more expensively.
BDX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 85.95% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BDX is valued cheaply inside the industry as 88.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.67 | ||
| EV/EBITDA | 12.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BDX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.39
PEG (5Y)1.96
EPS Next 2Y5.2%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.05%, 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 0.19. BDX pays more dividend than 96.76% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, BDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
The dividend of BDX has a limited annual growth rate of 3.22%.
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)3.22%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
71.28% 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.
DP71.28%
EPS Next 2Y5.2%
EPS Next 3Y5.3%
202.75
-2.43 (-1.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.4%
Inst Owner Change0%
Ins Owners0.36%
Ins Owner Change4.27%
Market Cap57.87B
Revenue(TTM)21.84B
Net Income(TTM)1.68B
Analysts72.22
Price Target209.03 (3.1%)
Short Float %1.7%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend4.16
Dividend Growth(5Y)3.22%
DP71.28%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.54%
Min EPS beat(2)-0.05%
Max EPS beat(2)7.13%
EPS beat(4)3
Avg EPS beat(4)5.56%
Min EPS beat(4)-0.05%
Max EPS beat(4)14.05%
EPS beat(8)7
Avg EPS beat(8)5.42%
EPS beat(12)10
Avg EPS beat(12)4.67%
EPS beat(16)13
Avg EPS beat(16)5.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.22%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)0.37%
Revenue beat(8)2
Avg Revenue beat(8)-0.95%
Revenue beat(12)5
Avg Revenue beat(12)-0.43%
Revenue beat(16)6
Avg Revenue beat(16)-0.46%
PT rev (1m)-0.25%
PT rev (3m)-5.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.34%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-4.53%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 13.5 | ||
| P/S | 2.65 | ||
| P/FCF | 21.67 | ||
| P/OCF | 16.87 | ||
| P/B | 2.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.94 |
EPS(TTM)14.42
EY7.11%
EPS(NY)15.02
Fwd EY7.41%
FCF(TTM)9.35
FCFY4.61%
OCF(TTM)12.02
OCFY5.93%
SpS76.52
BVpS88.96
TBVpS-37.23
PEG (NY)3.39
PEG (5Y)1.96
Graham Number169.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 6.61% | ||
| ROCE | 7.29% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.33% | ||
| ROICexgc | 26.66% | ||
| OM | 15.7% | ||
| PM (TTM) | 7.68% | ||
| GM | 45.79% | ||
| FCFM | 12.23% |
ROA(3y)2.9%
ROA(5y)3.12%
ROE(3y)6.24%
ROE(5y)6.77%
ROIC(3y)5.64%
ROIC(5y)5.24%
ROICexc(3y)5.8%
ROICexc(5y)5.4%
ROICexgc(3y)27.15%
ROICexgc(5y)27.08%
ROCE(3y)6.53%
ROCE(5y)6.07%
ROICexgc growth 3Y-3.96%
ROICexgc growth 5Y9.78%
ROICexc growth 3Y7.94%
ROICexc growth 5Y16.75%
OM growth 3Y4.99%
OM growth 5Y10.71%
PM growth 3Y-4.96%
PM growth 5Y10%
GM growth 3Y0.22%
GM growth 5Y0.65%
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 30.87% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 5.46 | ||
| Cash Conversion | 58.23% | ||
| Profit Quality | 159.12% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.21 |
F-Score7
WACC9.27%
ROIC/WACC0.67
Cap/Depr(3y)33.59%
Cap/Depr(5y)39.6%
Cap/Sales(3y)3.86%
Cap/Sales(5y)4.6%
Profit Quality(3y)162.63%
Profit Quality(5y)151.73%
High Growth Momentum
Growth
EPS 1Y (TTM)9.57%
EPS 3Y5.64%
EPS 5Y7.19%
EPS Q2Q%3.94%
EPS Next Y4.14%
EPS Next 2Y5.2%
EPS Next 3Y5.3%
EPS Next 5Y7.68%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y4.99%
Revenue growth 5Y6.32%
Sales Q2Q%8.33%
Revenue Next Year2.92%
Revenue Next 2Y3.14%
Revenue Next 3Y3.18%
Revenue Next 5Y3.7%
EBIT growth 1Y18.62%
EBIT growth 3Y10.23%
EBIT growth 5Y17.71%
EBIT Next Year20.6%
EBIT Next 3Y11.99%
EBIT Next 5Y12.28%
FCF growth 1Y-13.11%
FCF growth 3Y17.14%
FCF growth 5Y-0.73%
OCF growth 1Y-9.69%
OCF growth 3Y9.2%
OCF growth 5Y-0.62%
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.
What is the valuation status for BDX stock?
ChartMill assigns a valuation rating of 6 / 10 to BECTON DICKINSON AND CO (BDX). This can be considered as Fairly Valued.
How profitable is BECTON DICKINSON AND CO (BDX) stock?
BECTON DICKINSON AND CO (BDX) has a profitability rating of 7 / 10.
What is the valuation of BECTON DICKINSON AND CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BECTON DICKINSON AND CO (BDX) is 14.06 and the Price/Book (PB) ratio is 2.28.
What is the financial health of BECTON DICKINSON AND CO (BDX) stock?
The financial health rating of BECTON DICKINSON AND CO (BDX) is 4 / 10.