BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
NYSE:BMY - New York Stock Exchange, Inc. - US1101221083 - Common Stock - Currency: USD
Taking everything into account, BMY scores 6 out of 10 in our fundamental rating. BMY was compared to 194 industry peers in the Pharmaceuticals industry. BMY has an excellent profitability rating, but there are some minor concerns on its financial health. BMY is valued quite cheap, while showing a decent growth score. This is a good combination! Finally BMY also has an excellent dividend rating. These ratings could make BMY a good candidate 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.
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
BMY's Return On Assets of 5.86% is amongst the best of the industry. BMY outperforms 89.69% of its industry peers.
BMY's Return On Equity of 31.16% is amongst the best of the industry. BMY outperforms 95.88% of its industry peers.
BMY has a Return On Invested Capital of 14.88%. This is amongst the best in the industry. BMY outperforms 93.30% of its industry peers.
BMY had an Average Return On Invested Capital over the past 3 years of 12.29%. This is below the industry average of 14.87%.
The last Return On Invested Capital (14.88%) for BMY is above the 3 year average (12.29%), which is a sign of increasing profitability.
| 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
The Profit Margin of BMY (11.38%) is better than 87.63% of its industry peers.
BMY's Operating Margin of 27.11% is amongst the best of the industry. BMY outperforms 92.78% 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 84.02% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BMY is creating some value.
BMY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BMY has been reduced 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 2.10. 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 2.10, BMY is in the better half of the industry, outperforming 65.46% of the companies in the same industry.
The Debt to FCF ratio of BMY is 3.80, which is a good value as it means it would take BMY, 3.80 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.80, BMY belongs to the best of the industry, outperforming 88.14% of the companies in the same industry.
BMY has a Debt/Equity ratio of 2.67. This is a high value indicating a heavy dependency on external financing.
BMY has a Debt to Equity ratio of 2.67. This is in the lower half of the industry: BMY underperforms 79.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.59
WACC9.37%
2.3 Liquidity
A Current Ratio of 1.28 indicates that BMY should not have too much problems paying its short term obligations.
BMY has a worse Current ratio (1.28) than 76.80% 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.
BMY has a Quick ratio of 1.17. This is in the lower half of the industry: BMY underperforms 69.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 599.05% over the past year.
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 4.62%.
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 36.74% on average per year.
Based on estimates for the next years, BMY will show a decrease in Revenue. The Revenue will decrease by -5.02% on average per year.
EPS Next Y483.63%
EPS Next 2Y132.24%
EPS Next 3Y74.73%
EPS Next 5Y36.74%
Revenue Next Year-3.32%
Revenue Next 2Y-5.19%
Revenue Next 3Y-3.73%
Revenue Next 5Y-5.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 6.60, which indicates a rather cheap valuation of BMY.
BMY's Price/Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 94.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.04, BMY is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.88, the valuation of BMY can be described as very cheap.
BMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 89.18% of the companies in the same industry.
BMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 93.81% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BMY is valued cheaply inside the industry as 94.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.53 | ||
| EV/EBITDA | 6.5 |
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.
BMY's earnings are expected to grow with 74.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y132.24%
EPS Next 3Y74.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.16%, BMY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.08, BMY pays a better dividend. On top of this BMY pays more dividend than 97.42% 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
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.
The dividend of BMY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP90.59%
EPS Next 2Y132.24%
EPS Next 3Y74.73%
48.43
-0.51 (-1.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.11%
Inst Owner Change0.06%
Ins Owners0.03%
Ins Owner Change2.36%
Market Cap98.56B
Analysts67.5
Price Target55.38 (14.35%)
Short Float %1.94%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
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)16.45%
Min EPS beat(2)13.54%
Max EPS beat(2)19.36%
EPS beat(4)4
Avg EPS beat(4)19.59%
Min EPS beat(4)13.54%
Max EPS beat(4)25.96%
EPS beat(8)7
Avg EPS beat(8)11.3%
EPS beat(12)11
Avg EPS beat(12)9.38%
EPS beat(16)15
Avg EPS beat(16)7.79%
Revenue beat(2)2
Avg Revenue beat(2)4.66%
Min Revenue beat(2)3.68%
Max Revenue beat(2)5.63%
Revenue beat(4)4
Avg Revenue beat(4)4.59%
Min Revenue beat(4)3.68%
Max Revenue beat(4)5.63%
Revenue beat(8)6
Avg Revenue beat(8)1.95%
Revenue beat(12)8
Avg Revenue beat(12)1.4%
Revenue beat(16)10
Avg Revenue beat(16)1.19%
PT rev (1m)-0.78%
PT rev (3m)-9.09%
EPS NQ rev (1m)-14.44%
EPS NQ rev (3m)-18.85%
EPS NY rev (1m)-2.59%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 7.88 | ||
| P/S | 2.07 | ||
| P/FCF | 7.53 | ||
| P/OCF | 6.89 | ||
| P/B | 5.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.5 |
EPS(TTM)7.34
EY15.16%
EPS(NY)6.15
Fwd EY12.7%
FCF(TTM)6.43
FCFY13.28%
OCF(TTM)7.03
OCFY14.52%
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 | 2.1 |
F-Score7
WACC9.37%
ROIC/WACC1.59
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 Y483.63%
EPS Next 2Y132.24%
EPS Next 3Y74.73%
EPS Next 5Y36.74%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%-5.6%
Revenue Next Year-3.32%
Revenue Next 2Y-5.19%
Revenue Next 3Y-3.73%
Revenue Next 5Y-5.02%
EBIT growth 1Y22.52%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year282.44%
EBIT Next 3Y50.39%
EBIT Next 5Y24.24%
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%