BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - NYSE:BMY - US1101221083 - Common Stock
44.66 USD
-0.48 (-1.06%)
44.66 USD
0 (0%)
BMY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 196 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on BMY. BMY also has an excellent dividend rating. This makes BMY very considerable 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 has a better Return On Assets (5.33%) than 89.29% of its industry peers.
The Return On Equity of BMY (28.96%) is better than 95.41% of its industry peers.
The Return On Invested Capital of BMY (16.93%) is better than 94.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BMY is below the industry average of 15.30%.
The last Return On Invested Capital (16.93%) for BMY is above the 3 year average (12.30%), which is a sign of increasing profitability.
| 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 86.73% 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 94.39% of the companies in the same industry.
BMY's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 73.92%, BMY is doing good in the industry, outperforming 79.59% of the companies in the same industry.
In the last couple of years the Gross Margin of BMY has remained more or less at the same level.
| 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
BMY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
BMY has less shares outstanding than it did 1 year ago.
BMY has less shares outstanding than it did 5 years ago.
BMY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.03 indicates that BMY is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.03, BMY is doing good in the industry, outperforming 64.29% of the companies in the same industry.
BMY has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as BMY would need 3.37 years to pay back of all of its debts.
BMY's Debt to FCF ratio of 3.37 is amongst the best of the industry. BMY outperforms 89.29% 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.
The Debt to Equity ratio of BMY (2.56) is worse than 79.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.03 |
ROIC/WACC2.12
WACC8%
2.3 Liquidity
A Current Ratio of 1.21 indicates that BMY should not have too much problems paying its short term obligations.
BMY has a Current ratio of 1.21. This is in the lower half of the industry: BMY underperforms 77.04% of its industry peers.
A Quick Ratio of 1.11 indicates that BMY should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.11, BMY is not doing good in the industry: 72.45% 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
The Earnings Per Share has grown by an impressive 391.24% over the past year.
BMY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.57% yearly.
Looking at the last year, BMY shows a small growth in Revenue. The Revenue has grown by 2.57% 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)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
BMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.11% yearly.
The Revenue is expected to decrease by -4.99% on average over the next years.
EPS Next Y477.64%
EPS Next 2Y131.04%
EPS Next 3Y73.61%
EPS Next 5Y36.11%
Revenue Next Year-1.12%
Revenue Next 2Y-4.71%
Revenue Next 3Y-3.48%
Revenue Next 5Y-4.99%
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
The Price/Earnings ratio is 6.64, 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 95.41% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.76, BMY is valued rather cheaply.
BMY is valuated cheaply with a Price/Forward Earnings ratio of 7.34.
BMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 89.80% 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 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.64 | ||
| Fwd PE | 7.34 |
4.2 Price Multiples
BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 95.92% of the companies in the same industry.
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 | 6.24 | ||
| EV/EBITDA | 6.03 |
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 73.61% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y131.04%
EPS Next 3Y73.61%
5. Dividend
5.1 Amount
BMY has a Yearly Dividend Yield of 5.42%, which is a nice return.
BMY's Dividend Yield is rather good when compared to the industry average which is at 6.27. BMY pays more dividend than 97.45% of the companies in the same industry.
BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
5.2 History
The dividend of BMY is nicely growing with an annual growth rate of 11.67%!
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 2Y131.04%
EPS Next 3Y73.61%
44.66
-0.48 (-1.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.84%
Inst Owner Change0.01%
Ins Owners0.02%
Ins Owner Change-3.19%
Market Cap90.90B
Analysts67.27
Price Target52.62 (17.82%)
Short Float %1.45%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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)0.15%
PT rev (3m)-5.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.32%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-3.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.64 | ||
| Fwd PE | 7.34 | ||
| P/S | 1.91 | ||
| P/FCF | 6.24 | ||
| P/OCF | 5.72 | ||
| P/B | 5.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.03 |
EPS(TTM)6.73
EY15.07%
EPS(NY)6.09
Fwd EY13.63%
FCF(TTM)7.16
FCFY16.04%
OCF(TTM)7.81
OCFY17.49%
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 | 2.03 |
F-Score7
WACC8%
ROIC/WACC2.12
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 Y477.64%
EPS Next 2Y131.04%
EPS Next 3Y73.61%
EPS Next 5Y36.11%
Revenue 1Y (TTM)2.57%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%0.56%
Revenue Next Year-1.12%
Revenue Next 2Y-4.71%
Revenue Next 3Y-3.48%
Revenue Next 5Y-4.99%
EBIT growth 1Y30.41%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year263.82%
EBIT Next 3Y49.42%
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%