BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - NYSE:BMY - US1101221083 - Common Stock
46.15 USD
-0.19 (-0.41%)
46.29 USD
+0.14 (+0.3%)
Overall BMY gets a fundamental rating of 6 out of 10. We evaluated BMY against 196 industry peers in the Pharmaceuticals industry. BMY has an excellent profitability rating, but there are some minor concerns on its financial health. BMY scores decently on growth, while it is valued quite cheap. This could make an interesting combination. BMY also has an excellent dividend rating. With these ratings, BMY could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year BMY was profitable.
BMY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BMY reported negative net income in multiple years.
Each year in the past 5 years BMY had a positive operating cash flow.
1.2 Ratios
BMY has a Return On Assets of 5.33%. This is amongst the best in the industry. BMY outperforms 88.78% of its industry peers.
BMY has a Return On Equity of 28.96%. This is amongst the best in the industry. BMY outperforms 94.90% of its industry peers.
BMY has a Return On Invested Capital of 16.93%. This is amongst the best in the industry. BMY outperforms 94.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMY is below the industry average of 15.28%.
The 3 year average ROIC (12.30%) for BMY is below the current ROIC(16.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 28.96% | ||
| ROIC | 16.93% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)12.3%
ROIC(5y)10.36%
1.3 Margins
BMY has a Profit Margin of 10.58%. This is amongst the best in the industry. BMY outperforms 86.22% of its industry peers.
With an excellent Operating Margin value of 30.27%, BMY belongs to the best of the industry, outperforming 94.39% 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 73.92%, BMY belongs to the top of the industry, outperforming 80.61% 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 | 30.27% | ||
| PM (TTM) | 10.58% | ||
| GM | 73.92% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BMY is creating value.
Compared to 1 year ago, BMY has less shares outstanding
BMY has less shares outstanding than it did 5 years ago.
BMY has a worse debt/assets ratio than last year.
2.2 Solvency
BMY has an Altman-Z score of 2.05. 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.
With a decent Altman-Z score value of 2.05, BMY is doing good in the industry, outperforming 65.82% of the companies in the same industry.
The Debt to FCF ratio of BMY is 3.37, which is a good value as it means it would take BMY, 3.37 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.37, BMY belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
BMY has a Debt/Equity ratio of 2.56. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BMY (2.56) is worse than 78.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.86
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.21 indicates that BMY should not have too much problems paying its short term obligations.
The Current ratio of BMY (1.21) is worse than 76.53% of its industry peers.
BMY has a Quick Ratio of 1.11. 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 Quick ratio of 1.11. This is in the lower half of the industry: BMY underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
BMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 391.24%, 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.
BMY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.57%.
Measured over the past years, BMY shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
EPS 1Y (TTM)391.24%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-29.47%
Revenue 1Y (TTM)2.57%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%0.56%
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 36.14% on average per year.
BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.00% yearly.
EPS Next Y477.2%
EPS Next 2Y130.91%
EPS Next 3Y73.4%
EPS Next 5Y36.14%
Revenue Next Year-1.22%
Revenue Next 2Y-4.7%
Revenue Next 3Y-3.48%
Revenue Next 5Y-5%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.86, the valuation of BMY can be described as very cheap.
94.90% of the companies in the same industry are more expensive than BMY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.20, BMY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.59, the valuation of BMY can be described as very cheap.
Based on the Price/Forward Earnings ratio, BMY is valued cheaper than 91.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, BMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 7.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMY is valued cheaply inside the industry as 95.92% of the companies are valued more expensively.
BMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMY is cheaper than 94.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.44 | ||
| EV/EBITDA | 6.15 |
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 73.40% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y130.91%
EPS Next 3Y73.4%
5. Dividend
5.1 Amount
BMY has a Yearly Dividend Yield of 5.22%, which is a nice return.
Compared to an average industry Dividend Yield of 5.04, BMY pays a better dividend. On top of this BMY pays more dividend than 97.45% of the companies listed in the same industry.
BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
5.2 History
On average, the dividend of BMY grows each year by 11.67%, which is quite nice.
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
98.12% of the earnings are spent on dividend by BMY. This is not a sustainable payout ratio.
BMY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.12%
EPS Next 2Y130.91%
EPS Next 3Y73.4%
46.15
-0.19 (-0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.14%
Inst Owner Change0.18%
Ins Owners0.03%
Ins Owner Change-3.14%
Market Cap93.94B
Analysts67.27
Price Target52.62 (14.02%)
Short Float %1.53%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
Yearly Dividend2.42
Dividend Growth(5Y)11.67%
DP98.12%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.2%
Min EPS beat(2)19.36%
Max EPS beat(2)35.04%
EPS beat(4)4
Avg EPS beat(4)21.86%
Min EPS beat(4)13.54%
Max EPS beat(4)35.04%
EPS beat(8)8
Avg EPS beat(8)17.22%
EPS beat(12)11
Avg EPS beat(12)11.73%
EPS beat(16)15
Avg EPS beat(16)9.9%
Revenue beat(2)2
Avg Revenue beat(2)5.24%
Min Revenue beat(2)3.68%
Max Revenue beat(2)6.79%
Revenue beat(4)4
Avg Revenue beat(4)5.13%
Min Revenue beat(4)3.68%
Max Revenue beat(4)6.79%
Revenue beat(8)7
Avg Revenue beat(8)3.53%
Revenue beat(12)8
Avg Revenue beat(12)1.72%
Revenue beat(16)10
Avg Revenue beat(16)1.44%
PT rev (1m)-1.62%
PT rev (3m)-5.73%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-2.05%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)-5.33%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)2.16%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 7.59 | ||
| P/S | 1.97 | ||
| P/FCF | 6.44 | ||
| P/OCF | 5.91 | ||
| P/B | 5.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.15 |
EPS(TTM)6.73
EY14.58%
EPS(NY)6.08
Fwd EY13.17%
FCF(TTM)7.16
FCFY15.52%
OCF(TTM)7.81
OCFY16.93%
SpS23.44
BVpS8.57
TBVpS-12.64
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 28.96% | ||
| ROCE | 21.51% | ||
| ROIC | 16.93% | ||
| ROICexc | 21.21% | ||
| ROICexgc | 107.32% | ||
| OM | 30.27% | ||
| PM (TTM) | 10.58% | ||
| GM | 73.92% | ||
| FCFM | 30.56% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)12.3%
ROIC(5y)10.36%
ROICexc(3y)14.46%
ROICexc(5y)12.33%
ROICexgc(3y)78.95%
ROICexgc(5y)80.83%
ROCE(3y)15.62%
ROCE(5y)13.15%
ROICexcg growth 3Y-16.88%
ROICexcg growth 5Y3.18%
ROICexc growth 3Y7.41%
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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 3.37 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 20.37% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 6.99 | ||
| Cash Conversion | 75.95% | ||
| Profit Quality | 288.73% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.05 |
F-Score7
WACC9.12%
ROIC/WACC1.86
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)391.24%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-29.47%
EPS Next Y477.2%
EPS Next 2Y130.91%
EPS Next 3Y73.4%
EPS Next 5Y36.14%
Revenue 1Y (TTM)2.57%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%0.56%
Revenue Next Year-1.22%
Revenue Next 2Y-4.7%
Revenue Next 3Y-3.48%
Revenue Next 5Y-5%
EBIT growth 1Y30.41%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year268.01%
EBIT Next 3Y49.33%
EBIT Next 5Y23.71%
FCF growth 1Y35.99%
FCF growth 3Y-2.91%
FCF growth 5Y14.03%
OCF growth 1Y34.19%
OCF growth 3Y-2.14%
OCF growth 5Y13.49%