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 198 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. 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
In the past year BMY was profitable.
In the past year BMY had a positive cash flow from operations.
In multiple years BMY reported negative net income over the last 5 years.
In the past 5 years BMY always reported a positive cash flow from operatings.
1.2 Ratios
BMY's Return On Assets of 5.86% is amongst the best of the industry. BMY outperforms 89.39% of its industry peers.
BMY has a Return On Equity of 31.16%. This is amongst the best in the industry. BMY outperforms 95.45% of its industry peers.
With an excellent Return On Invested Capital value of 14.88%, BMY belongs to the best of the industry, outperforming 91.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BMY is significantly below the industry average of 42.34%.
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
Looking at the Profit Margin, with a value of 11.38%, BMY belongs to the top of the industry, outperforming 87.37% of the companies in the same industry.
The Operating Margin of BMY (27.11%) is better than 91.92% of its industry peers.
BMY's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 74.69%, BMY belongs to the best of the industry, outperforming 82.32% of the companies in the same industry.
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 2.07. 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.
The Altman-Z score of BMY (2.07) is better than 70.71% of its industry peers.
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.
The Debt to FCF ratio of BMY (3.80) is better than 87.37% of its industry peers.
A Debt/Equity ratio of 2.67 is on the high side and indicates that BMY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.67, BMY is doing worse than 78.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.07 |
ROIC/WACC1.63
WACC9.11%
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.
With a Current ratio value of 1.28, BMY is not doing good in the industry: 76.77% of the companies in the same industry are doing better.
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 70.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
BMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 599.05%, which is quite impressive.
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.
Looking at the last year, BMY shows a small growth in Revenue. The Revenue has grown by 4.62% in the last year.
Measured over the past years, BMY shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
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 38.96% on average per year.
BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.38% yearly.
EPS Next Y509.67%
EPS Next 2Y133.09%
EPS Next 3Y74.89%
EPS Next 5Y38.96%
Revenue Next Year-3.32%
Revenue Next 2Y-5.21%
Revenue Next 3Y-3.8%
Revenue Next 5Y-4.38%
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
BMY is valuated cheaply with a Price/Earnings ratio of 6.38.
Based on the Price/Earnings ratio, BMY is valued cheaper than 95.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, BMY is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.56, 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 90.91% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMY is valued cheaply inside the industry as 92.42% of the companies are valued more expensively.
BMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMY is cheaper than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 6.31 |
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.
BMY's earnings are expected to grow with 74.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y133.09%
EPS Next 3Y74.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.28%, BMY is a good candidate for dividend investing.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.20. BMY pays more dividend than 97.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.28% |
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 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 2Y133.09%
EPS Next 3Y74.89%
46.85
-0.18 (-0.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.77%
Inst Owner Change2.5%
Ins Owners0.07%
Ins Owner Change3.97%
Market Cap95.34B
Analysts67.5
Price Target56.08 (19.7%)
Short Float %1.83%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.28% |
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)-7.95%
PT rev (3m)-7.9%
EPS NQ rev (1m)-2.29%
EPS NQ rev (3m)-1.4%
EPS NY rev (1m)1.9%
EPS NY rev (3m)2.17%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)-2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 7.56 | ||
| P/S | 2 | ||
| P/FCF | 7.29 | ||
| P/OCF | 6.66 | ||
| P/B | 5.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.31 |
EPS(TTM)7.34
EY15.67%
EPS(NY)6.19
Fwd EY13.22%
FCF(TTM)6.43
FCFY13.73%
OCF(TTM)7.03
OCFY15.01%
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
WACC9.11%
ROIC/WACC1.63
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 Y509.67%
EPS Next 2Y133.09%
EPS Next 3Y74.89%
EPS Next 5Y38.96%
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-5.21%
Revenue Next 3Y-3.8%
Revenue Next 5Y-4.38%
EBIT growth 1Y22.52%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year280.12%
EBIT Next 3Y50.48%
EBIT Next 5Y27.12%
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%