BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
NYSE:BMY - New York Stock Exchange, Inc. - US1101221083 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BMY. BMY was compared to 198 industry peers in the Pharmaceuticals industry. BMY has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BMY. Finally BMY also has an excellent dividend rating. These ratings would make BMY suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
BMY had positive earnings in the past year.
In the past year BMY had a positive cash flow from operations.
In multiple years BMY reported negative net income over the last 5 years.
In the past 5 years BMY always reported a positive cash flow from operatings.
1.2 Ratios
BMY's Return On Assets of 5.86% is amongst the best of the industry. BMY outperforms 89.90% of its industry peers.
BMY's Return On Equity of 31.16% is amongst the best of the industry. BMY outperforms 95.45% of its industry peers.
BMY's Return On Invested Capital of 14.88% is amongst the best of the industry. BMY outperforms 90.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BMY is significantly below the industry average of 41.67%.
The 3 year average ROIC (12.29%) for BMY is below the current ROIC(14.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 31.16% | ||
| ROIC | 14.88% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)12.29%
ROIC(5y)10.36%
1.3 Margins
Looking at the Profit Margin, with a value of 11.38%, BMY belongs to the top of the industry, outperforming 87.37% of the companies in the same industry.
BMY's Operating Margin of 27.11% is amongst the best of the industry. BMY outperforms 91.92% of its industry peers.
BMY's Operating Margin has declined in the last couple of years.
BMY's Gross Margin of 74.69% is amongst the best of the industry. BMY outperforms 80.30% of its industry peers.
BMY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.11% | ||
| PM (TTM) | 11.38% | ||
| GM | 74.69% |
OM growth 3Y-0.56%
OM growth 5Y-4.29%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.73%
GM growth 5Y1.42%
2. Health
2.1 Basic Checks
BMY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BMY has less shares outstanding
The number of shares outstanding for BMY has been reduced compared to 5 years ago.
BMY has a worse debt/assets ratio than last year.
2.2 Solvency
BMY has an Altman-Z score of 2.11. This is not the best score and indicates that BMY is in the grey zone with still only limited risk for bankruptcy at the moment.
BMY has a better Altman-Z score (2.11) than 70.20% of its industry peers.
BMY has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as BMY would need 3.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.80, BMY belongs to the top of the industry, outperforming 86.87% of the companies in the same industry.
A Debt/Equity ratio of 2.67 is on the high side and indicates that BMY has dependencies on debt financing.
With a Debt to Equity ratio value of 2.67, BMY is not doing good in the industry: 76.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.11 |
ROIC/WACC1.66
WACC8.95%
2.3 Liquidity
A Current Ratio of 1.28 indicates that BMY should not have too much problems paying its short term obligations.
BMY's Current ratio of 1.28 is on the low side compared to the rest of the industry. BMY is outperformed by 78.28% of its industry peers.
BMY has a Quick Ratio of 1.17. This is a normal value and indicates that BMY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.17, BMY is doing worse than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
BMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 599.05%, which is quite impressive.
Measured over the past years, BMY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.57% on average per year.
Looking at the last year, BMY shows a small growth in Revenue. The Revenue has grown by 4.62% in the last year.
The Revenue has been growing by 13.06% on average over the past years. This is quite good.
EPS 1Y (TTM)599.05%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%140.91%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%-5.6%
3.2 Future
Based on estimates for the next years, BMY will show a very strong growth in Earnings Per Share. The EPS will grow by 38.96% on average per year.
The Revenue is expected to decrease by -4.38% on average over the next years.
EPS Next Y498.29%
EPS Next 2Y132.62%
EPS Next 3Y75.28%
EPS Next 5Y38.96%
Revenue Next Year-4.37%
Revenue Next 2Y-5.38%
Revenue Next 3Y-3.84%
Revenue Next 5Y-4.38%
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 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 6.89, the valuation of BMY can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 93.43% of the companies listed in the same industry.
BMY is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.20 indicates a reasonable valuation of BMY.
BMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 91.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, BMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.89 | ||
| Fwd PE | 8.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 90.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BMY is valued cheaply inside the industry as 92.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.86 | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
BMY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BMY may justify a higher PE ratio.
A more expensive valuation may be justified as BMY's earnings are expected to grow with 75.28% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y132.62%
EPS Next 3Y75.28%
5. Dividend
5.1 Amount
BMY has a Yearly Dividend Yield of 5.00%, which is a nice return.
Compared to an average industry Dividend Yield of 4.25, BMY pays a better dividend. On top of this BMY pays more dividend than 97.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
5.2 History
The dividend of BMY is nicely growing with an annual growth rate of 11.67%!
BMY has paid a dividend for at least 10 years, which is a reliable track record.
BMY has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.67%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BMY pays out 90.59% of its income as dividend. This is not a sustainable payout ratio.
BMY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP90.59%
EPS Next 2Y132.62%
EPS Next 3Y75.28%
50.57
+0.96 (+1.94%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.77%
Inst Owner Change0.26%
Ins Owners0.07%
Ins Owner Change3.93%
Market Cap102.91B
Analysts67.5
Price Target58.03 (14.75%)
Short Float %1.48%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
Yearly Dividend2.42
Dividend Growth(5Y)11.67%
DP90.59%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.3%
Min EPS beat(2)13.54%
Max EPS beat(2)17.07%
EPS beat(4)4
Avg EPS beat(4)19.02%
Min EPS beat(4)13.54%
Max EPS beat(4)25.96%
EPS beat(8)7
Avg EPS beat(8)11.01%
EPS beat(12)11
Avg EPS beat(12)9.18%
EPS beat(16)15
Avg EPS beat(16)7.65%
Revenue beat(2)2
Avg Revenue beat(2)4.42%
Min Revenue beat(2)3.21%
Max Revenue beat(2)5.63%
Revenue beat(4)4
Avg Revenue beat(4)4.47%
Min Revenue beat(4)3.21%
Max Revenue beat(4)5.63%
Revenue beat(8)6
Avg Revenue beat(8)1.89%
Revenue beat(12)8
Avg Revenue beat(12)1.36%
Revenue beat(16)10
Avg Revenue beat(16)1.16%
PT rev (1m)-4.75%
PT rev (3m)-4.19%
EPS NQ rev (1m)-0.65%
EPS NQ rev (3m)-17.49%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-4.18%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-7.22%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)-4.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.89 | ||
| Fwd PE | 8.2 | ||
| P/S | 2.16 | ||
| P/FCF | 7.86 | ||
| P/OCF | 7.19 | ||
| P/B | 5.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.56 |
EPS(TTM)7.34
EY14.51%
EPS(NY)6.17
Fwd EY12.2%
FCF(TTM)6.43
FCFY12.72%
OCF(TTM)7.03
OCFY13.9%
SpS23.41
BVpS8.54
TBVpS-13.19
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 31.16% | ||
| ROCE | 18.89% | ||
| ROIC | 14.88% | ||
| ROICexc | 17.97% | ||
| ROICexgc | 81.26% | ||
| OM | 27.11% | ||
| PM (TTM) | 11.38% | ||
| GM | 74.69% | ||
| FCFM | 27.47% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)12.29%
ROIC(5y)10.36%
ROICexc(3y)14.46%
ROICexc(5y)12.32%
ROICexgc(3y)78.94%
ROICexgc(5y)80.02%
ROCE(3y)15.62%
ROCE(5y)13.15%
ROICexcg growth 3Y-15.94%
ROICexcg growth 5Y3.18%
ROICexc growth 3Y7.54%
ROICexc growth 5Y19.82%
OM growth 3Y-0.56%
OM growth 5Y-4.29%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.73%
GM growth 5Y1.42%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 3.8 | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 15.15% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 6.1 | ||
| Cash Conversion | 68.16% | ||
| Profit Quality | 241.48% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.11 |
F-Score7
WACC8.95%
ROIC/WACC1.66
Cap/Depr(3y)12.09%
Cap/Depr(5y)10.53%
Cap/Sales(3y)2.56%
Cap/Sales(5y)2.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)599.05%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%140.91%
EPS Next Y498.29%
EPS Next 2Y132.62%
EPS Next 3Y75.28%
EPS Next 5Y38.96%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%-5.6%
Revenue Next Year-4.37%
Revenue Next 2Y-5.38%
Revenue Next 3Y-3.84%
Revenue Next 5Y-4.38%
EBIT growth 1Y22.52%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year280.12%
EBIT Next 3Y50.48%
EBIT Next 5Y27.12%
FCF growth 1Y18.09%
FCF growth 3Y-2.91%
FCF growth 5Y14.03%
OCF growth 1Y17.06%
OCF growth 3Y-2.14%
OCF growth 5Y13.49%