BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
NYSE:BDX - New York Stock Exchange, Inc. - US0758871091 - Common Stock - Currency: USD
Taking everything into account, BDX scores 5 out of 10 in our fundamental rating. BDX was compared to 187 industry peers in the Health Care Equipment & Supplies industry. While BDX has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BDX.
1. Profitability
1.1 Basic Checks
In the past year BDX was profitable.
BDX had a positive operating cash flow in the past year.
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
The Return On Assets of BDX (2.79%) is better than 77.54% of its industry peers.
BDX has a Return On Equity of 6.02%. This is amongst the best in the industry. BDX outperforms 80.21% of its industry peers.
BDX has a Return On Invested Capital of 5.16%. This is in the better half of the industry: BDX outperforms 78.61% of its industry peers.
BDX had an Average Return On Invested Capital over the past 3 years of 5.27%. This is below the industry average of 7.91%.
| 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 amongst the best in the industry. BDX outperforms 80.21% of its industry peers.
In the last couple of years the Profit Margin of BDX has grown nicely.
With an excellent Operating Margin value of 13.06%, BDX belongs to the best of the industry, outperforming 80.75% of the companies in the same industry.
BDX's Operating Margin has improved in the last couple of years.
BDX has a worse Gross Margin (44.64%) than 62.03% of its industry peers.
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
BDX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BDX has been reduced compared to 1 year ago.
Compared to 5 years ago, BDX has more shares outstanding
The debt/assets ratio for BDX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.04 indicates that BDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BDX has a Altman-Z score of 2.04. This is comparable to the rest of the industry: BDX outperforms 59.89% 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 70.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.71
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.13 indicates that BDX should not have too much problems paying its short term obligations.
BDX has a worse Current ratio (1.13) than 86.10% of its industry peers.
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.
The Quick ratio of BDX (0.64) is worse than 91.98% of its industry peers.
| 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 15.21% over the past year.
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.
The Revenue has been growing slightly by 5.84% in the past year.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)15.21%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%5.68%
Revenue 1Y (TTM)5.84%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%4.5%
3.2 Future
The Earnings Per Share is expected to grow by 6.08% on average over the next years.
The Revenue is expected to grow by 5.57% on average over the next years.
EPS Next Y8.85%
EPS Next 2Y6.03%
EPS Next 3Y6.35%
EPS Next 5Y6.08%
Revenue Next Year8.24%
Revenue Next 2Y6.53%
Revenue Next 3Y5.94%
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.
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 12.44.
Based on the Price/Earnings ratio, BDX is valued cheaper than 88.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.46, BDX is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.85, the valuation of BDX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BDX is valued cheaper than 87.70% of the companies in the same industry.
BDX is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
BDX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BDX is cheaper than 80.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BDX is valued cheaper than 87.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.39 | ||
| EV/EBITDA | 13.71 |
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)1.41
PEG (5Y)5.15
EPS Next 2Y6.03%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 2.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.91, BDX pays a better dividend. On top of this BDX pays more dividend than 96.79% of the companies listed in the same industry.
BDX's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 75.71% 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.
DP75.71%
EPS Next 2Y6.03%
EPS Next 3Y6.35%
175.33
-3.52 (-1.97%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners92.78%
Inst Owner Change-0.07%
Ins Owners0.57%
Ins Owner Change1.28%
Market Cap50.25B
Analysts74.29
Price Target221.19 (26.16%)
Short Float %1.37%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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)-0.35%
PT rev (3m)-20.6%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-4.4%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-1.68%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 11.85 | ||
| P/S | 2.41 | ||
| P/FCF | 19.39 | ||
| P/OCF | 15.23 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.71 |
EPS(TTM)14.09
EY8.04%
EPS(NY)14.79
Fwd EY8.44%
FCF(TTM)9.04
FCFY5.16%
OCF(TTM)11.51
OCFY6.57%
SpS72.81
BVpS88.07
TBVpS-39.56
PEG (NY)1.41
PEG (5Y)5.15
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 | 2.04 |
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)15.21%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%5.68%
EPS Next Y8.85%
EPS Next 2Y6.03%
EPS Next 3Y6.35%
EPS Next 5Y6.08%
Revenue 1Y (TTM)5.84%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%4.5%
Revenue Next Year8.24%
Revenue Next 2Y6.53%
Revenue Next 3Y5.94%
Revenue Next 5Y5.57%
EBIT growth 1Y-4.35%
EBIT growth 3Y7.69%
EBIT growth 5Y5.82%
EBIT Next Year33.02%
EBIT Next 3Y13.37%
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%