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 189 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on BDX.
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.
Each year in the past 5 years BDX had a positive operating cash flow.
1.2 Ratios
BDX's Return On Assets of 2.79% is fine compared to the rest of the industry. BDX outperforms 76.72% of its industry peers.
The Return On Equity of BDX (6.02%) is better than 80.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.16%, BDX is in the better half of the industry, outperforming 78.31% 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 7.87%.
| 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
With an excellent Profit Margin value of 7.28%, BDX belongs to the best of the industry, outperforming 80.42% of the companies in the same industry.
BDX's Profit Margin has improved in the last couple of years.
BDX has a Operating Margin of 13.06%. This is amongst the best in the industry. BDX outperforms 80.95% of its industry peers.
BDX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.64%, BDX is doing worse than 62.96% of the companies in the same industry.
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.
BDX has less shares outstanding than it did 1 year ago.
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 2.03 indicates that BDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BDX has a better Altman-Z score (2.03) than 61.90% 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.
Looking at the Debt to FCF ratio, with a value of 7.44, BDX is in the better half of the industry, outperforming 77.25% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that BDX is somewhat dependend on debt financing.
BDX's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. BDX is outperformed by 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.7
WACC7.33%
2.3 Liquidity
BDX has a Current Ratio of 1.13. 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 1.13, BDX is doing worse than 85.71% 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 89.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| 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 15.21%, which is quite good.
BDX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.41% yearly.
BDX shows a small growth in Revenue. In the last year, the Revenue has grown by 5.84%.
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
Based on estimates for the next years, BDX will show a small growth in Earnings Per Share. The EPS will grow by 6.95% on average per year.
The Revenue is expected to grow by 5.55% on average over the next years.
EPS Next Y8.86%
EPS Next 2Y6.35%
EPS Next 3Y7.31%
EPS Next 5Y6.95%
Revenue Next Year8.27%
Revenue Next 2Y6.58%
Revenue Next 3Y5.97%
Revenue Next 5Y5.55%
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
A Price/Earnings ratio of 12.40 indicates a correct valuation of BDX.
Based on the Price/Earnings ratio, BDX is valued cheaper than 91.53% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. BDX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.74, the valuation of BDX can be described as reasonable.
Based on the Price/Forward Earnings ratio, BDX is valued cheaper than 89.42% of the companies in the same industry.
BDX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 11.74 |
4.2 Price Multiples
BDX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BDX is cheaper than 82.54% of the companies in the same industry.
87.30% of the companies in the same industry are more expensive than BDX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.36 | ||
| EV/EBITDA | 13.6 |
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)1.4
PEG (5Y)5.13
EPS Next 2Y6.35%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 2.41%.
The stock price of BDX dropped by -22.32% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
BDX's Dividend Yield is rather good when compared to the industry average which is at 1.82. BDX pays more dividend than 97.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, BDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of BDX has a limited annual growth rate of 0.75%.
BDX has been paying a dividend for at least 10 years, so it has 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
75.71% of the earnings are spent on dividend by BDX. 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 2Y6.35%
EPS Next 3Y7.31%
NYSE:BDX (5/21/2025, 11:02:00 AM)
174.71
-1.96 (-1.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.61%
Inst Owner Change-0.16%
Ins Owners0.57%
Ins Owner Change4.57%
Market Cap50.17B
Analysts81.9
Price Target224.7 (28.61%)
Short Float %1.28%
Short Ratio1.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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)-19.34%
PT rev (3m)-19.41%
EPS NQ rev (1m)-3.91%
EPS NQ rev (3m)-5.02%
EPS NY rev (1m)-1.66%
EPS NY rev (3m)-1.67%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 11.74 | ||
| P/S | 2.4 | ||
| P/FCF | 19.36 | ||
| P/OCF | 15.2 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.6 |
EPS(TTM)14.09
EY8.06%
EPS(NY)14.88
Fwd EY8.52%
FCF(TTM)9.02
FCFY5.16%
OCF(TTM)11.49
OCFY6.58%
SpS72.67
BVpS87.9
TBVpS-39.49
PEG (NY)1.4
PEG (5Y)5.13
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 | 2.03 |
F-Score7
WACC7.33%
ROIC/WACC0.7
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 Y8.86%
EPS Next 2Y6.35%
EPS Next 3Y7.31%
EPS Next 5Y6.95%
Revenue 1Y (TTM)5.84%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%4.5%
Revenue Next Year8.27%
Revenue Next 2Y6.58%
Revenue Next 3Y5.97%
Revenue Next 5Y5.55%
EBIT growth 1Y-4.35%
EBIT growth 3Y7.69%
EBIT growth 5Y5.82%
EBIT Next Year33.47%
EBIT Next 3Y14.99%
EBIT Next 5Y15.14%
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%