BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
NYSE:BMY - New York Stock Exchange, Inc. - US1101221083 - Common Stock - Currency: USD
BMY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 195 industry peers in the Pharmaceuticals industry. BMY scores excellent on profitability, 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.
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.
Each year in the past 5 years BMY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BMY (5.86%) is better than 89.74% of its industry peers.
BMY has a better Return On Equity (31.16%) than 95.90% of its industry peers.
The Return On Invested Capital of BMY (14.88%) is better than 93.33% of its industry peers.
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 last Return On Invested Capital (14.88%) for BMY is above the 3 year average (12.29%), which is a sign of increasing profitability.
| 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
The Profit Margin of BMY (11.38%) is better than 87.69% of its industry peers.
BMY has a better Operating Margin (27.11%) than 92.82% of its industry peers.
BMY's Operating Margin has declined in the last couple of years.
BMY's Gross Margin of 74.69% is amongst the best of the industry. BMY outperforms 84.10% 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.
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
BMY has an Altman-Z score of 2.06. 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.
BMY has a better Altman-Z score (2.06) than 67.69% 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.
BMY has a better Debt to FCF ratio (3.80) than 88.21% of its industry peers.
BMY has a Debt/Equity ratio of 2.67. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BMY (2.67) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.06 |
ROIC/WACC1.65
WACC9.03%
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 76.41% of its industry peers.
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 Quick ratio of 1.17. This is in the lower half of the industry: BMY underperforms 69.74% 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.
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
The Earnings Per Share is expected to grow by 36.74% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -5.02% on average over the next years.
EPS Next Y499.13%
EPS Next 2Y132.22%
EPS Next 3Y74.72%
EPS Next 5Y36.74%
Revenue Next Year-3.38%
Revenue Next 2Y-5.21%
Revenue Next 3Y-3.73%
Revenue Next 5Y-5.02%
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
The Price/Earnings ratio is 6.31, which indicates a rather cheap valuation of BMY.
Compared to the rest of the industry, the Price/Earnings ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 95.90% of the companies listed in the same industry.
BMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
BMY is valuated cheaply with a Price/Forward Earnings ratio of 7.53.
BMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 89.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, BMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 7.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMY is valued cheaper than 93.33% 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 94.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.2 | ||
| EV/EBITDA | 6.25 |
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.
BMY has a very decent profitability rating, which may justify a higher PE ratio.
BMY's earnings are expected to grow with 74.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y132.22%
EPS Next 3Y74.72%
5. Dividend
5.1 Amount
BMY has a Yearly Dividend Yield of 5.32%, which is a nice return.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.12. BMY pays more dividend than 97.95% of the companies in the same industry.
BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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 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 2Y132.22%
EPS Next 3Y74.72%
46.29
-0.06 (-0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.11%
Inst Owner Change2.52%
Ins Owners0.03%
Ins Owner Change2.36%
Market Cap94.20B
Analysts67.5
Price Target55.96 (20.89%)
Short Float %1.6%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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)-0.2%
PT rev (3m)-8.13%
EPS NQ rev (1m)-2.94%
EPS NQ rev (3m)-4.8%
EPS NY rev (1m)-1.73%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 7.53 | ||
| P/S | 1.98 | ||
| P/FCF | 7.2 | ||
| P/OCF | 6.58 | ||
| P/B | 5.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.25 |
EPS(TTM)7.34
EY15.86%
EPS(NY)6.15
Fwd EY13.28%
FCF(TTM)6.43
FCFY13.89%
OCF(TTM)7.03
OCFY15.19%
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 | 2.06 |
F-Score7
WACC9.03%
ROIC/WACC1.65
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 Y499.13%
EPS Next 2Y132.22%
EPS Next 3Y74.72%
EPS Next 5Y36.74%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%-5.6%
Revenue Next Year-3.38%
Revenue Next 2Y-5.21%
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%