BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - NYSE:BMY - US1101221083 - Common Stock
42.82 USD
-0.57 (-1.31%)
42.89 USD
+0.07 (+0.16%)
Taking everything into account, BMY scores 6 out of 10 in our fundamental rating. BMY was compared to 192 industry peers in the Pharmaceuticals industry. BMY has an excellent profitability rating, but there are some minor concerns on its financial health. BMY may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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
The Return On Assets of BMY (5.33%) is better than 89.06% of its industry peers.
Looking at the Return On Equity, with a value of 28.96%, BMY belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.93%, BMY belongs to the top of the industry, outperforming 94.27% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BMY is below the industry average of 15.41%.
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
Looking at the Profit Margin, with a value of 10.58%, BMY belongs to the top of the industry, outperforming 86.46% 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 94.27% of the companies in the same industry.
In the last couple of years the Operating Margin of BMY has declined.
BMY's Gross Margin of 73.92% is amongst the best of the industry. BMY outperforms 80.73% 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BMY is creating value.
BMY has less shares outstanding than it did 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
BMY has an Altman-Z score of 2.00. 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 2.00, BMY is in the better half of the industry, outperforming 63.54% 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.
The Debt to FCF ratio of BMY (3.37) is better than 88.54% of its industry peers.
BMY has a Debt/Equity ratio of 2.56. This is a high value indicating a heavy dependency on external financing.
BMY has a Debt to Equity ratio of 2.56. This is in the lower half of the industry: BMY underperforms 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2 |
ROIC/WACC2.09
WACC8.12%
2.3 Liquidity
A Current Ratio of 1.21 indicates that BMY should not have too much problems paying its short term obligations.
BMY's Current ratio of 1.21 is on the low side compared to the rest of the industry. BMY is outperformed by 77.60% of its industry peers.
A Quick Ratio of 1.11 indicates that BMY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, BMY is doing worse than 72.40% of the companies in the same industry.
| 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.
The earnings per share for BMY have been decreasing by -24.57% on average. This is quite bad
The Revenue has been growing slightly by 2.57% in the past 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
The Earnings Per Share is expected to grow by 36.11% on average over the next years. This is a very strong growth
BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.99% yearly.
EPS Next Y467.96%
EPS Next 2Y131.17%
EPS Next 3Y73.61%
EPS Next 5Y36.11%
Revenue Next Year-1.07%
Revenue Next 2Y-4.7%
Revenue Next 3Y-3.54%
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
Based on the Price/Earnings ratio of 6.36, the valuation of BMY can be described as very cheap.
95.31% of the companies in the same industry are more expensive than BMY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BMY to the average of the S&P500 Index (26.83), we can say BMY is valued rather cheaply.
A Price/Forward Earnings ratio of 7.03 indicates a rather cheap valuation of BMY.
91.67% of the companies in the same industry are more expensive than BMY, based on the Price/Forward Earnings ratio.
BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 7.03 |
4.2 Price Multiples
BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 95.83% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BMY is valued cheaper than 94.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.98 | ||
| EV/EBITDA | 5.86 |
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 73.61% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y131.17%
EPS Next 3Y73.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.66%, BMY is a good candidate for dividend investing.
BMY's Dividend Yield is rather good when compared to the industry average which is at 6.29. BMY pays more dividend than 98.44% of the companies in the same industry.
BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.66% |
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
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 2Y131.17%
EPS Next 3Y73.61%
42.82
-0.57 (-1.31%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.84%
Inst Owner Change0.03%
Ins Owners0.02%
Ins Owner Change-3.25%
Market Cap87.16B
Revenue(TTM)47.70B
Net Income(TTM)5.05B
Analysts67.27
Price Target52.62 (22.89%)
Short Float %1.49%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.66% |
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%
PT rev (3m)-4.98%
EPS NQ rev (1m)-8.17%
EPS NQ rev (3m)-8.34%
EPS NY rev (1m)-1.68%
EPS NY rev (3m)-2.69%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 7.03 | ||
| P/S | 1.83 | ||
| P/FCF | 5.98 | ||
| P/OCF | 5.48 | ||
| P/B | 5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.86 |
EPS(TTM)6.73
EY15.72%
EPS(NY)6.09
Fwd EY14.23%
FCF(TTM)7.16
FCFY16.73%
OCF(TTM)7.81
OCFY18.24%
SpS23.44
BVpS8.57
TBVpS-12.64
PEG (NY)0.01
PEG (5Y)N/A
Graham Number36.01
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%
ROICexgc growth 3Y-16.88%
ROICexgc 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 |
F-Score7
WACC8.12%
ROIC/WACC2.09
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 Y467.96%
EPS Next 2Y131.17%
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-1.07%
Revenue Next 2Y-4.7%
Revenue Next 3Y-3.54%
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%
BRISTOL-MYERS SQUIBB CO / BMY FAQ
Can you provide the ChartMill fundamental rating for BRISTOL-MYERS SQUIBB CO?
ChartMill assigns a fundamental rating of 6 / 10 to BMY.
What is the valuation status of BRISTOL-MYERS SQUIBB CO (BMY) stock?
ChartMill assigns a valuation rating of 10 / 10 to BRISTOL-MYERS SQUIBB CO (BMY). This can be considered as Undervalued.
What is the profitability of BMY stock?
BRISTOL-MYERS SQUIBB CO (BMY) has a profitability rating of 7 / 10.
What are the PE and PB ratios of BRISTOL-MYERS SQUIBB CO (BMY) stock?
The Price/Earnings (PE) ratio for BRISTOL-MYERS SQUIBB CO (BMY) is 6.36 and the Price/Book (PB) ratio is 5.
Can you provide the dividend sustainability for BMY stock?
The dividend rating of BRISTOL-MYERS SQUIBB CO (BMY) is 7 / 10 and the dividend payout ratio is 98.12%.