BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - NYSE:BDX - US0758871091 - Common Stock
193.04 USD
0 (0%)
193.04 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BDX. BDX was compared to 188 industry peers in the Health Care Equipment & Supplies industry. While BDX belongs to the best of the industry regarding profitability, there are 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
BDX had positive earnings in the past year.
BDX had a positive operating cash flow in the past year.
Each year in the past 5 years BDX has 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 76.19% of its industry peers.
Looking at the Return On Equity, with a value of 6.61%, BDX is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
BDX has a better Return On Invested Capital (5.61%) than 78.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BDX is below the industry average of 8.98%.
The last Return On Invested Capital (5.61%) for BDX is above the 3 year average (5.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 6.61% | ||
| ROIC | 5.61% |
ROA(3y)2.9%
ROA(5y)3.12%
ROE(3y)6.24%
ROE(5y)6.77%
ROIC(3y)5.35%
ROIC(5y)5.07%
1.3 Margins
Looking at the Profit Margin, with a value of 7.68%, BDX is in the better half of the industry, outperforming 78.31% of the companies in the same industry.
In the last couple of years the Profit Margin of BDX has grown nicely.
BDX's Operating Margin of 13.86% is amongst the best of the industry. BDX outperforms 82.54% of its industry peers.
BDX's Operating Margin has improved in the last couple of years.
BDX has a Gross Margin (45.44%) which is comparable to the rest of the industry.
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 | 13.86% | ||
| PM (TTM) | 7.68% | ||
| GM | 45.44% |
OM growth 3Y-0.5%
OM growth 5Y7.2%
PM growth 3Y-4.96%
PM growth 5Y10%
GM growth 3Y-0.11%
GM growth 5Y0.46%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BDX is destroying value.
Compared to 1 year ago, BDX has less shares outstanding
BDX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BDX has been reduced compared to a year ago.
2.2 Solvency
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.
With a decent Debt to FCF ratio value of 7.18, BDX is doing good in the industry, outperforming 75.13% of the companies in the same industry.
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 69.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.74
WACC7.62%
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.
BDX has a Current ratio of 1.11. This is amonst the worse of the industry: BDX underperforms 86.24% of its industry peers.
BDX has a Quick Ratio of 1.11. 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's Quick ratio of 0.64 is on the low side compared to the rest of the industry. BDX is outperformed by 89.42% 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.
The Earnings Per Share has been growing slightly by 7.19% on average over the past years.
BDX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.23%.
The Revenue has been growing slightly by 6.32% on average over the past years.
EPS 1Y (TTM)9.57%
EPS 3Y5.64%
EPS 5Y7.19%
EPS Q2Q%3.94%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y4.99%
Revenue growth 5Y6.32%
Sales Q2Q%8.33%
3.2 Future
The Earnings Per Share is expected to grow by 7.66% on average over the next years.
BDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y3.94%
EPS Next 2Y5.8%
EPS Next 3Y6.96%
EPS Next 5Y7.66%
Revenue Next Year4.3%
Revenue Next 2Y4.35%
Revenue Next 3Y4.14%
Revenue Next 5Y4%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.39, BDX is valued correctly.
BDX's Price/Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 87.30% of the companies in the same industry.
When comparing the Price/Earnings ratio of BDX to the average of the S&P500 Index (25.89), we can say BDX is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.88, which indicates a correct valuation of BDX.
88.89% of the companies in the same industry are more expensive than BDX, based on the Price/Forward Earnings ratio.
BDX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BDX is valued cheaper than 83.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BDX is valued cheaply inside the industry as 84.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.72 | ||
| EV/EBITDA | 13.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BDX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BDX may justify a higher PE ratio.
PEG (NY)3.4
PEG (5Y)1.86
EPS Next 2Y5.8%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 2.18%. Purely for dividend investing, there may be better candidates out there.
BDX's Dividend Yield is rather good when compared to the industry average which is at 1.69. BDX pays more dividend than 96.83% of the companies in the same industry.
BDX's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
The dividend of BDX has a limited annual growth rate of 3.17%.
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)3.17%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
BDX pays out 71.28% 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.
DP71.28%
EPS Next 2Y5.8%
EPS Next 3Y6.96%
193.04
0 (0%)
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 Change3.98%
Ins Owners0.57%
Ins Owner Change2.22%
Market Cap55.33B
Revenue(TTM)21.84B
Net Income(TTM)1.68B
Analysts72.63
Price Target221.8 (14.9%)
Short Float %1.15%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Yearly Dividend4.15
Dividend Growth(5Y)3.17%
DP71.28%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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%
PT rev (3m)-0.79%
EPS NQ rev (1m)-11.94%
EPS NQ rev (3m)-12.83%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-4.35%
Revenue NQ rev (3m)-4.76%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.88 | ||
| P/S | 2.53 | ||
| P/FCF | 20.72 | ||
| P/OCF | 16.13 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.46 |
EPS(TTM)14.42
EY7.47%
EPS(NY)14.99
Fwd EY7.76%
FCF(TTM)9.32
FCFY4.83%
OCF(TTM)11.97
OCFY6.2%
SpS76.19
BVpS88.58
TBVpS-37.08
PEG (NY)3.4
PEG (5Y)1.86
Graham Number169.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 6.61% | ||
| ROCE | 6.44% | ||
| ROIC | 5.61% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 25.49% | ||
| OM | 13.86% | ||
| PM (TTM) | 7.68% | ||
| GM | 45.44% | ||
| FCFM | 12.23% |
ROA(3y)2.9%
ROA(5y)3.12%
ROE(3y)6.24%
ROE(5y)6.77%
ROIC(3y)5.35%
ROIC(5y)5.07%
ROICexc(3y)5.52%
ROICexc(5y)5.23%
ROICexgc(3y)26.44%
ROICexgc(5y)26.65%
ROCE(3y)6.16%
ROCE(5y)5.84%
ROICexgc growth 3Y-6.54%
ROICexgc growth 5Y8%
ROICexc growth 3Y2.92%
ROICexc growth 5Y13.47%
OM growth 3Y-0.5%
OM growth 5Y7.2%
PM growth 3Y-4.96%
PM growth 5Y10%
GM growth 3Y-0.11%
GM growth 5Y0.46%
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.18 | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 30.87% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.49% | ||
| Profit Quality | 159.12% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | N/A |
F-Score7
WACC7.62%
ROIC/WACC0.74
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 Y3.94%
EPS Next 2Y5.8%
EPS Next 3Y6.96%
EPS Next 5Y7.66%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y4.99%
Revenue growth 5Y6.32%
Sales Q2Q%8.33%
Revenue Next Year4.3%
Revenue Next 2Y4.35%
Revenue Next 3Y4.14%
Revenue Next 5Y4%
EBIT growth 1Y4.74%
EBIT growth 3Y4.47%
EBIT growth 5Y13.98%
EBIT Next Year22.48%
EBIT Next 3Y13.08%
EBIT Next 5Y12.3%
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.
Can you provide the valuation status for BECTON DICKINSON AND CO?
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 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 3.94% in the next year.