BRISTOL-MYERS SQUIBB CO (BMY)
US1101221083 - Common Stock
BMY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 198 industry peers in the Pharmaceuticals industry. While BMY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BMY has a bad growth rate and is valued cheaply. Finally BMY also has an excellent dividend rating.
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.
Of the past 5 years BMY 4 years were profitable.
Each year in the past 5 years BMY had a positive operating cash flow.
1.2 Ratios
BMY's Return On Assets of 8.43% is amongst the best of the industry. BMY outperforms 92.31% of its industry peers.
BMY has a better Return On Equity (27.27%) than 94.36% of its industry peers.
BMY's Return On Invested Capital of 13.17% is amongst the best of the industry. BMY outperforms 92.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BMY is below the industry average of 16.40%.
The last Return On Invested Capital (13.17%) for BMY is above the 3 year average (12.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.43% | ||
| ROE | 27.27% | ||
| ROIC | 13.17% |
ROA(3y)7.12%
ROA(5y)3.28%
ROE(3y)22.36%
ROE(5y)9.98%
ROIC(3y)12.66%
ROIC(5y)9.89%
1.3 Margins
The Profit Margin of BMY (17.83%) is better than 92.31% of its industry peers.
BMY's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 24.11%, BMY belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of BMY has declined.
Looking at the Gross Margin, with a value of 76.44%, BMY belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
BMY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.11% | ||
| PM (TTM) | 17.83% | ||
| GM | 76.44% |
OM growth 3Y19.63%
OM growth 5Y-7.09%
PM growth 3YN/A
PM growth 5Y-3.95%
GM growth 3Y1.17%
GM growth 5Y1.35%
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.
BMY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BMY has been increased compared to 5 years ago.
The debt/assets ratio for BMY is higher compared to a year ago.
2.2 Solvency
BMY has an Altman-Z score of 2.30. 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 (2.30) than 71.79% of its industry peers.
BMY has a debt to FCF ratio of 3.14. This is a good value and a sign of high solvency as BMY would need 3.14 years to pay back of all of its debts.
The Debt to FCF ratio of BMY (3.14) is better than 90.77% of its industry peers.
BMY has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.25, BMY is doing worse than 76.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 2.3 |
ROIC/WACC1.73
WACC7.61%
2.3 Liquidity
BMY has a Current Ratio of 1.43. This is a normal value and indicates that BMY is financially healthy and should not expect problems in meeting its short term obligations.
BMY has a worse Current ratio (1.43) than 76.92% of its industry peers.
A Quick Ratio of 1.31 indicates that BMY should not have too much problems paying its short term obligations.
The Quick ratio of BMY (1.31) is worse than 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
BMY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.86%.
Measured over the past years, BMY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.51% on average per year.
BMY shows a decrease in Revenue. In the last year, the revenue decreased by -2.50%.
Measured over the past years, BMY shows a quite strong growth in Revenue. The Revenue has been growing by 14.81% on average per year.
EPS 1Y (TTM)-3.86%
EPS 3Y5.21%
EPS 5Y13.51%
EPS growth Q2Q-6.59%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y1.91%
Revenue growth 5Y14.81%
Revenue growth Q2Q0.62%
3.2 Future
Based on estimates for the next years, BMY will show a decrease in Earnings Per Share. The EPS will decrease by -1.08% on average per year.
BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.43% yearly.
EPS Next Y-8%
EPS Next 2Y-2.22%
EPS Next 3Y-4.14%
EPS Next 5Y-1.08%
Revenue Next Year2.83%
Revenue Next 2Y1.88%
Revenue Next 3Y-0.3%
Revenue Next 5Y-1.43%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.53, which indicates a rather cheap valuation of BMY.
Compared to the rest of the industry, the Price/Earnings ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 94.87% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BMY to the average of the S&P500 Index (25.20), we can say BMY is valued rather cheaply.
A Price/Forward Earnings ratio of 7.10 indicates a rather cheap valuation of BMY.
Based on the Price/Forward Earnings ratio, BMY is valued cheaper than 95.38% of the companies in the same industry.
BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.53 | ||
| Fwd PE | 7.1 |
4.2 Price Multiples
95.38% of the companies in the same industry are more expensive than BMY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BMY is valued cheaply inside the industry as 92.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.85 | ||
| EV/EBITDA | 6.11 |
4.3 Compensation for Growth
BMY has a very decent profitability rating, which may justify a higher PE ratio.
BMY's earnings are expected to decrease with -4.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y-2.22%
EPS Next 3Y-4.14%
5. Dividend
5.1 Amount
BMY has a Yearly Dividend Yield of 4.97%, which is a nice return.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.46. BMY pays more dividend than 97.44% of the companies in the same industry.
BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
5.2 History
The dividend of BMY is nicely growing with an annual growth rate of 7.57%!
BMY has paid a dividend for at least 10 years, which is a reliable track record.
BMY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.57%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
BMY pays out 59.12% of its income as dividend. This is a bit on the high side, but may be sustainable.
BMY's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP59.12%
EPS Next 2Y-2.22%
EPS Next 3Y-4.14%
BRISTOL-MYERS SQUIBB CO
NYSE:BMY (4/23/2024, 7:04:00 PM)
After market: 48.98 -0.01 (-0.02%)48.99
-0.15 (-0.31%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap99.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.53 | ||
| Fwd PE | 7.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.43% | ||
| ROE | 27.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.11% | ||
| PM (TTM) | 17.83% | ||
| GM | 76.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.86%
EPS 3Y5.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y1.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y