BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - NYSE:BDX - US0758871091 - Common Stock
180.34 USD
-5.71 (-3.07%)
We assign a fundamental rating of 5 out of 10 to BDX. BDX was compared to 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.
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 (2.93%) is better than 77.37% of its industry peers.
With a decent Return On Equity value of 6.30%, BDX is doing good in the industry, outperforming 79.47% of the companies in the same industry.
BDX has a Return On Invested Capital of 5.72%. This is in the better half of the industry: BDX outperforms 78.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BDX is below the industry average of 8.43%.
The 3 year average ROIC (5.27%) for BDX is below the current ROIC(5.72%), indicating increased profibility in the last year.
| 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 78.42% of the companies in the same industry.
In the last couple of years the Profit Margin of BDX has grown nicely.
Looking at the Operating Margin, with a value of 14.13%, BDX belongs to the top of the industry, outperforming 82.11% 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 (45.08%) is worse than 62.63% 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 | 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
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 increased compared to 5 years ago.
The debt/assets ratio for BDX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.10 indicates that BDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BDX (2.10) is better than 63.16% of its industry peers.
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.
BDX has a better Debt to FCF ratio (7.58) than 76.84% 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.
The Debt to Equity ratio of BDX (0.69) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.58 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.8
WACC7.14%
2.3 Liquidity
A Current Ratio of 1.10 indicates that BDX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.10, BDX is doing worse than 86.84% of the companies in the same industry.
BDX has a Quick Ratio of 1.10. 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 worse Quick ratio (0.62) than 90.00% 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.
Measured over the past 5 years, BDX shows a small growth in Earnings Per Share. The EPS has been growing by 2.41% on average per year.
BDX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.86%.
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)7.86%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%8.94%
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 8.57% yearly.
BDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.59% yearly.
EPS Next Y10.39%
EPS Next 2Y6.78%
EPS Next 3Y7.2%
EPS Next 5Y8.57%
Revenue Next Year8.41%
Revenue Next 2Y6.54%
Revenue Next 3Y5.93%
Revenue Next 5Y5.59%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 12.64, the valuation of BDX can be described as correct.
Based on the Price/Earnings ratio, BDX is valued cheaper than 88.42% of the companies in the same industry.
BDX is valuated cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
BDX is valuated correctly with a Price/Forward Earnings ratio of 12.02.
Based on the Price/Forward Earnings ratio, BDX is valued cheaper than 90.53% of the companies in the same industry.
BDX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BDX is valued cheaper than 81.58% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 85.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.27 | ||
| EV/EBITDA | 13.21 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BDX may justify a higher PE ratio.
PEG (NY)1.22
PEG (5Y)5.23
EPS Next 2Y6.78%
EPS Next 3Y7.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, 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 1.74. BDX pays more dividend than 97.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, BDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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
BDX pays out 73.10% of its income as dividend. This is not a sustainable payout ratio.
BDX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP73.1%
EPS Next 2Y6.78%
EPS Next 3Y7.2%
NYSE:BDX (9/25/2025, 12:50:08 PM)
180.34
-5.71 (-3.07%)
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-3.67%
Ins Owners0.57%
Ins Owner Change0.95%
Market Cap51.69B
Analysts73.33
Price Target222.53 (23.39%)
Short Float %1.6%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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)-0.46%
PT rev (3m)0.9%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.71%
EPS NY rev (1m)0%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.02 | ||
| P/S | 2.42 | ||
| P/FCF | 20.27 | ||
| P/OCF | 15.89 | ||
| P/B | 2.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.21 |
EPS(TTM)14.27
EY7.91%
EPS(NY)15.01
Fwd EY8.32%
FCF(TTM)8.9
FCFY4.93%
OCF(TTM)11.35
OCFY6.3%
SpS74.61
BVpS88.87
TBVpS-38.07
PEG (NY)1.22
PEG (5Y)5.23
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%
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 Turnover0.39
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 | 2.1 |
F-Score7
WACC7.14%
ROIC/WACC0.8
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 Y10.39%
EPS Next 2Y6.78%
EPS Next 3Y7.2%
EPS Next 5Y8.57%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%8.94%
Revenue Next Year8.41%
Revenue Next 2Y6.54%
Revenue Next 3Y5.93%
Revenue Next 5Y5.59%
EBIT growth 1Y2.55%
EBIT growth 3Y7.69%
EBIT growth 5Y5.82%
EBIT Next Year33.14%
EBIT Next 3Y13.55%
EBIT Next 5Y13.35%
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%