BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
NYSE:BMY - US1101221083 - Common Stock
47.92 USD
-0.51 (-1.05%)
47.9 USD
-0.02 (-0.04%)
BMY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 193 industry peers in the Pharmaceuticals industry. BMY scores excellent on profitability, 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.
In the past year BMY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BMY reported negative net income in multiple years.
BMY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.33%, BMY belongs to the best of the industry, outperforming 88.60% of the companies in the same industry.
BMY has a Return On Equity of 28.96%. This is amongst the best in the industry. BMY outperforms 94.82% of its industry peers.
The Return On Invested Capital of BMY (16.93%) is better than 93.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMY is below the industry average of 15.38%.
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
With an excellent Profit Margin value of 10.58%, BMY belongs to the best of the industry, outperforming 86.01% of the companies in the same industry.
With an excellent Operating Margin value of 30.27%, BMY belongs to the best of the industry, outperforming 94.30% of the companies in the same industry.
BMY's Operating Margin has declined in the last couple of years.
BMY has a better Gross Margin (73.92%) than 81.35% of its industry peers.
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 2.08. 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.
Looking at the Altman-Z score, with a value of 2.08, BMY is in the better half of the industry, outperforming 65.80% 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.
BMY has a better Debt to FCF ratio (3.37) than 88.60% of its industry peers.
A Debt/Equity ratio of 2.56 is on the high side and indicates that BMY has dependencies on debt financing.
BMY's Debt to Equity ratio of 2.56 is on the low side compared to the rest of the industry. BMY is outperformed by 78.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.08 |
ROIC/WACC1.84
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.21 indicates that BMY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.21, BMY is not doing good in the industry: 76.68% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 1.11, BMY is not doing good in the industry: 71.50% of the companies in the same industry are doing better.
| 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.
BMY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.57% yearly.
BMY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.57%.
The Revenue has been growing by 13.06% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 36.14% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -5.00% on average over the next years.
EPS Next Y477.2%
EPS Next 2Y130.91%
EPS Next 3Y73.4%
EPS Next 5Y36.14%
Revenue Next Year-1.27%
Revenue Next 2Y-4.75%
Revenue Next 3Y-3.56%
Revenue Next 5Y-5%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.12, which indicates a rather cheap valuation of BMY.
94.30% of the companies in the same industry are more expensive than BMY, based on the Price/Earnings ratio.
BMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
The Price/Forward Earnings ratio is 7.88, which indicates a rather cheap valuation of BMY.
BMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 90.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, BMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMY is valued cheaper than 96.37% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 94.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.69 | ||
| EV/EBITDA | 6.3 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BMY has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 5.12%, BMY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.83, BMY pays a better dividend. On top of this BMY pays more dividend than 97.93% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
5.2 History
On average, the dividend of BMY grows each year by 11.67%, which is quite nice.
BMY has been paying a dividend for at least 10 years, so it has 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 98.12% 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.
DP98.12%
EPS Next 2Y130.91%
EPS Next 3Y73.4%
47.92
-0.51 (-1.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.14%
Inst Owner Change0.17%
Ins Owners0.03%
Ins Owner Change2.04%
Market Cap97.54B
Analysts67.5
Price Target52.54 (9.64%)
Short Float %1.52%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
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)-5.13%
PT rev (3m)-6.31%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)-5.33%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)2.12%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 7.88 | ||
| P/S | 2.04 | ||
| P/FCF | 6.69 | ||
| P/OCF | 6.13 | ||
| P/B | 5.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.3 |
EPS(TTM)6.73
EY14.04%
EPS(NY)6.08
Fwd EY12.68%
FCF(TTM)7.16
FCFY14.95%
OCF(TTM)7.81
OCFY16.3%
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 | 2.08 |
F-Score7
WACC9.22%
ROIC/WACC1.84
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-1.27%
Revenue Next 2Y-4.75%
Revenue Next 3Y-3.56%
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%