BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BMY - US1101221083 - Common Stock
54.64 USD
-0.07 (-0.13%)
54.7499 USD
+0.11 (+0.2%)
Taking everything into account, BMY scores 6 out of 10 in our fundamental rating. BMY was compared to 191 industry peers in the Pharmaceuticals industry. While BMY has a great profitability rating, 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. These ratings would make BMY suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year BMY was profitable.
BMY had a positive operating cash flow in the past year.
In multiple years BMY reported negative net income over the last 5 years.
Each year in the past 5 years BMY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BMY (6.23%) is better than 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 32.55%, BMY belongs to the top of the industry, outperforming 94.79% of the companies in the same industry.
BMY has a Return On Invested Capital of 18.43%. This is amongst the best in the industry. BMY outperforms 95.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BMY is in line with the industry average of 12.85%.
The 3 year average ROIC (12.30%) for BMY is below the current ROIC(18.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 32.55% | ||
| ROIC | 18.43% |
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 12.57%, BMY belongs to the best of the industry, outperforming 84.90% of the companies in the same industry.
The Operating Margin of BMY (33.51%) is better than 95.31% of its industry peers.
BMY's Operating Margin has declined in the last couple of years.
BMY's Gross Margin of 73.15% is amongst the best of the industry. BMY outperforms 80.21% 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 | 33.51% | ||
| PM (TTM) | 12.57% | ||
| GM | 73.15% |
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.
BMY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BMY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.24 indicates that BMY is not a great score, but indicates only limited risk for bankruptcy at the moment.
BMY has a Altman-Z score (2.24) which is comparable to the rest of the industry.
BMY has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as BMY would need 3.20 years to pay back of all of its debts.
BMY has a Debt to FCF ratio of 3.20. This is amongst the best in the industry. BMY outperforms 87.50% of its industry peers.
BMY has a Debt/Equity ratio of 2.41. This is a high value indicating a heavy dependency on external financing.
BMY has a Debt to Equity ratio of 2.41. This is in the lower half of the industry: BMY underperforms 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.24 |
ROIC/WACC2.1
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.27 indicates that BMY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.27, BMY is doing worse than 78.65% of the companies in the same industry.
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 worse Quick ratio (1.17) than 75.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| 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 460.68%, 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.
The Revenue has been growing slightly by 1.26% 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)460.68%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-9.44%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%2.77%
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 35.26% on average per year.
The Revenue is expected to decrease by -4.97% on average over the next years.
EPS Next Y478.44%
EPS Next 2Y130.59%
EPS Next 3Y73.3%
EPS Next 5Y35.26%
Revenue Next Year0.22%
Revenue Next 2Y-4%
Revenue Next 3Y-3.16%
Revenue Next 5Y-4.97%
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
Based on the Price/Earnings ratio of 8.33, the valuation of BMY can be described as reasonable.
Based on the Price/Earnings ratio, BMY is valued cheaper than 92.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. BMY is valued rather cheaply when compared to this.
BMY is valuated reasonably with a Price/Forward Earnings ratio of 9.01.
Based on the Price/Forward Earnings ratio, BMY is valued cheaply inside the industry as 90.10% of the companies are valued more expensively.
BMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 94.79% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 95.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | 6.79 |
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.
A more expensive valuation may be justified as BMY's earnings are expected to grow with 73.30% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y130.59%
EPS Next 3Y73.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 39.80%, BMY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.61, BMY pays a better dividend. On top of this BMY pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 39.8% |
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
82.81% 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.
DP82.81%
EPS Next 2Y130.59%
EPS Next 3Y73.3%
54.64
-0.07 (-0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners81.74%
Inst Owner Change-1.83%
Ins Owners0.02%
Ins Owner Change-1.33%
Market Cap111.23B
Revenue(TTM)48.03B
Net Income(TTM)6.04B
Analysts67.65
Price Target55.28 (1.17%)
Short Float %1.67%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 39.8% |
Yearly Dividend2.42
Dividend Growth(5Y)11.67%
DP82.81%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.98%
Min EPS beat(2)6.92%
Max EPS beat(2)35.04%
EPS beat(4)4
Avg EPS beat(4)18.72%
Min EPS beat(4)6.92%
Max EPS beat(4)35.04%
EPS beat(8)8
Avg EPS beat(8)16.52%
EPS beat(12)11
Avg EPS beat(12)11.66%
EPS beat(16)15
Avg EPS beat(16)10.13%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)2.43%
Max Revenue beat(2)6.79%
Revenue beat(4)4
Avg Revenue beat(4)4.63%
Min Revenue beat(4)2.43%
Max Revenue beat(4)6.79%
Revenue beat(8)8
Avg Revenue beat(8)3.95%
Revenue beat(12)9
Avg Revenue beat(12)1.94%
Revenue beat(16)11
Avg Revenue beat(16)1.64%
PT rev (1m)4.26%
PT rev (3m)5.05%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)5.91%
EPS NY rev (1m)1.03%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)1.97%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 9.01 | ||
| P/S | 2.32 | ||
| P/FCF | 7.27 | ||
| P/OCF | 6.69 | ||
| P/B | 6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.79 |
EPS(TTM)6.56
EY12.01%
EPS(NY)6.06
Fwd EY11.09%
FCF(TTM)7.52
FCFY13.76%
OCF(TTM)8.16
OCFY14.94%
SpS23.6
BVpS9.11
TBVpS-11.62
PEG (NY)0.02
PEG (5Y)N/A
Graham Number36.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 32.55% | ||
| ROCE | 23.41% | ||
| ROIC | 18.43% | ||
| ROICexc | 24.22% | ||
| ROICexgc | 123.43% | ||
| OM | 33.51% | ||
| PM (TTM) | 12.57% | ||
| GM | 73.15% | ||
| FCFM | 31.86% |
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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 26.84% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 7.66 | ||
| Cash Conversion | 79.11% | ||
| Profit Quality | 253.39% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.24 |
F-Score6
WACC8.78%
ROIC/WACC2.1
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)460.68%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-9.44%
EPS Next Y478.44%
EPS Next 2Y130.59%
EPS Next 3Y73.3%
EPS Next 5Y35.26%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%2.77%
Revenue Next Year0.22%
Revenue Next 2Y-4%
Revenue Next 3Y-3.16%
Revenue Next 5Y-4.97%
EBIT growth 1Y44.7%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year263.97%
EBIT Next 3Y49.92%
EBIT Next 5Y23.19%
FCF growth 1Y30.91%
FCF growth 3Y-2.91%
FCF growth 5Y14.03%
OCF growth 1Y28.71%
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 9 / 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 8.33 and the Price/Book (PB) ratio is 6.
Can you provide the dividend sustainability for BMY stock?
The dividend rating of BRISTOL-MYERS SQUIBB CO (BMY) is 8 / 10 and the dividend payout ratio is 82.81%.