BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
NYSE:BDX - US0758871091 - Common Stock
191.26 USD
+1.65 (+0.87%)
191.26 USD
0 (0%)
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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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 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.
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.
The Average Return On Invested Capital over the past 3 years for BDX is below the industry average of 8.46%.
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
BDX's Profit Margin of 7.51% is fine compared to the rest of the industry. BDX outperforms 78.42% of its industry peers.
BDX's Profit Margin has improved in the last couple of years.
BDX's Operating Margin of 14.13% is amongst the best of the industry. BDX outperforms 82.11% of its industry peers.
BDX's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 45.08%, BDX is not doing good in the industry: 62.63% of the companies in the same industry are doing better.
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.
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
Compared to 1 year ago, BDX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.12 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 2.12. This is in the better half of the industry: BDX outperforms 63.68% of its industry peers.
BDX has a debt to FCF ratio of 7.58. This is a slightly negative value and a sign of low solvency as BDX would need 7.58 years to pay back of all of its debts.
The Debt to FCF ratio of BDX (7.58) is better than 76.84% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that 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 | 2.12 |
ROIC/WACC0.79
WACC7.25%
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.
A Quick Ratio of 0.62 indicates that BDX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.62, BDX is doing worse than 90.00% of the companies in the same industry.
| 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.
Looking at the last year, BDX shows a small growth in Revenue. The Revenue has grown by 7.86% in the last year.
Measured over the past years, BDX shows a small growth in Revenue. The Revenue has been growing by 3.14% on average per year.
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
Based on estimates for the next years, BDX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.57% on average per year.
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 Year8.4%
Revenue Next 2Y6.56%
Revenue Next 3Y5.93%
Revenue Next 5Y5.59%
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.
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
With a Price/Earnings ratio of 13.40, BDX is valued correctly.
Based on the Price/Earnings ratio, BDX is valued cheaply inside the industry as 88.95% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.03, BDX is valued rather cheaply.
A Price/Forward Earnings ratio of 12.75 indicates a correct valuation of BDX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 89.47% of the companies listed in the same industry.
BDX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 12.75 |
4.2 Price Multiples
BDX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BDX is cheaper than 82.63% 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 85.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.5 | ||
| EV/EBITDA | 13.4 |
4.3 Compensation for Growth
BDX's 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)1.29
PEG (5Y)5.55
EPS Next 2Y6.78%
EPS Next 3Y7.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.18%, BDX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.73, BDX pays a better dividend. On top of this BDX pays more dividend than 97.37% of the companies listed 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 | 2.18% |
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 their dividend for at least 10 years, which is a reliable track record.
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%
191.26
+1.65 (+0.87%)
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 Change0.85%
Market Cap54.82B
Analysts74.29
Price Target226.96 (18.67%)
Short Float %1.82%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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)2.61%
PT rev (3m)1%
EPS NQ rev (1m)-1.67%
EPS NQ rev (3m)-5.26%
EPS NY rev (1m)1.42%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)1.81%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 12.75 | ||
| P/S | 2.56 | ||
| P/FCF | 21.5 | ||
| P/OCF | 16.85 | ||
| P/B | 2.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.4 |
EPS(TTM)14.27
EY7.46%
EPS(NY)15.01
Fwd EY7.85%
FCF(TTM)8.9
FCFY4.65%
OCF(TTM)11.35
OCFY5.94%
SpS74.61
BVpS88.87
TBVpS-38.07
PEG (NY)1.29
PEG (5Y)5.55
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 | 2.12 |
F-Score7
WACC7.25%
ROIC/WACC0.79
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 Year8.4%
Revenue Next 2Y6.56%
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%