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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. BMY also has an excellent dividend rating. These ratings would make BMY suitable 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
BMY has a better Return On Assets (5.86%) than 89.69% of its industry peers.
With an excellent Return On Equity value of 31.16%, BMY belongs to the best of the industry, outperforming 95.88% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.88%, BMY belongs to the best of the industry, outperforming 93.30% of the companies in the same industry.
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 3 year average ROIC (12.29%) for BMY is below the current ROIC(14.88%), indicating increased profibility in the last year.
| 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
BMY's Profit Margin of 11.38% is amongst the best of the industry. BMY outperforms 87.63% of its industry peers.
BMY has a better Operating Margin (27.11%) than 92.78% of its industry peers.
In the last couple of years the Operating Margin of BMY has declined.
The Gross Margin of BMY (74.69%) is better than 84.02% of its industry peers.
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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BMY is still creating some value.
The number of shares outstanding for BMY has been reduced compared to 1 year ago.
Compared to 5 years ago, BMY has less shares outstanding
BMY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.07 indicates that BMY is not a great score, but indicates only limited risk for bankruptcy at the moment.
BMY has a better Altman-Z score (2.07) than 65.98% of its industry peers.
BMY has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as BMY would need 3.80 years to pay back of 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.
A Debt/Equity ratio of 2.67 is on the high side and indicates that BMY has dependencies on debt financing.
BMY has a worse Debt to Equity ratio (2.67) than 79.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.07 |
ROIC/WACC1.6
WACC9.32%
2.3 Liquidity
BMY has a Current Ratio of 1.28. This is a normal value and indicates that BMY is financially healthy and should not expect problems in meeting its short term obligations.
BMY's Current ratio of 1.28 is on the low side compared to the rest of the industry. BMY is outperformed by 76.80% of its industry peers.
A Quick Ratio of 1.17 indicates that BMY should not have too much problems paying its short term obligations.
BMY's Quick ratio of 1.17 is on the low side compared to the rest of the industry. BMY is outperformed by 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%.
BMY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
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
BMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.74% yearly.
BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.02% yearly.
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
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
The Price/Earnings ratio is 6.54, which indicates a rather cheap valuation of BMY.
Based on the Price/Earnings ratio, BMY is valued cheaply inside the industry as 94.85% of the companies are valued more expensively.
BMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.53.
The Price/Forward Earnings ratio is 7.81, which indicates a rather cheap valuation of BMY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 89.18% of the companies listed 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 36.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.54 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
94.33% of the companies in the same industry are more expensive than BMY, based on the Enterprise Value to EBITDA ratio.
BMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMY is cheaper than 94.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.47 | ||
| EV/EBITDA | 6.28 |
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.
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 74.73% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y132.24%
EPS Next 3Y74.73%
5. Dividend
5.1 Amount
BMY has a Yearly Dividend Yield of 5.16%, which is a nice return.
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.
Compared to an average S&P500 Dividend Yield of 2.34, BMY pays a better dividend.
| 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
90.59% 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.
DP90.59%
EPS Next 2Y132.24%
EPS Next 3Y74.73%
48.02
+1.33 (+2.85%)
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 Cap97.72B
Analysts67.5
Price Target55.38 (15.33%)
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 | 6.54 | ||
| Fwd PE | 7.81 | ||
| P/S | 2.05 | ||
| P/FCF | 7.47 | ||
| P/OCF | 6.83 | ||
| P/B | 5.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.28 |
EPS(TTM)7.34
EY15.29%
EPS(NY)6.15
Fwd EY12.8%
FCF(TTM)6.43
FCFY13.39%
OCF(TTM)7.03
OCFY14.64%
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 | 2.07 |
F-Score7
WACC9.32%
ROIC/WACC1.6
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%