BRISTOL-MYERS SQUIBB CO (BMY)
US1101221083 - Common Stock
BMY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 198 industry peers in the Pharmaceuticals industry. While BMY is still in line with the averages on profitability rating, there are concerns on its financial health. BMY is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BMY has reported negative net income.
BMY had a positive operating cash flow in the past year.
BMY had positive earnings in 4 of the past 5 years.
In the past 5 years BMY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BMY (-6.21%) is better than 77.44% of its industry peers.
BMY's Return On Equity of -37.28% is fine compared to the rest of the industry. BMY outperforms 62.05% of its industry peers.
BMY has a better Return On Invested Capital (12.18%) than 91.28% of its industry peers.
BMY had an Average Return On Invested Capital over the past 3 years of 12.66%. This is below the industry average of 16.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.21% | ||
| ROE | -37.28% | ||
| ROIC | 12.18% |
ROA(3y)7.12%
ROA(5y)3.28%
ROE(3y)22.36%
ROE(5y)9.98%
ROIC(3y)12.66%
ROIC(5y)9.89%
1.3 Margins
In the last couple of years the Profit Margin of BMY has declined.
The Operating Margin of BMY (23.07%) is better than 90.77% of its industry peers.
In the last couple of years the Operating Margin of BMY has declined.
The Gross Margin of BMY (75.94%) is better than 81.54% 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 | 23.07% | ||
| PM (TTM) | N/A | ||
| GM | 75.94% |
OM growth 3Y19.63%
OM growth 5Y-7.09%
PM growth 3YN/A
PM growth 5Y-3.95%
GM growth 3Y1.17%
GM growth 5Y1.35%
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.
The number of shares outstanding for BMY has been increased compared to 5 years ago.
BMY has a worse debt/assets ratio than last year.
2.2 Solvency
BMY has an Altman-Z score of 1.71. This is a bad value and indicates that BMY is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.71, BMY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
BMY has a debt to FCF ratio of 4.45. This is a neutral value as BMY would need 4.45 years to pay back of all of its debts.
BMY's Debt to FCF ratio of 4.45 is amongst the best of the industry. BMY outperforms 86.67% of its industry peers.
A Debt/Equity ratio of 3.20 is on the high side and indicates that BMY has dependencies on debt financing.
BMY has a Debt to Equity ratio of 3.20. This is amonst the worse of the industry: BMY underperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.2 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.51
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.11 indicates that BMY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, BMY is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
BMY has a Quick Ratio of 1.11. This is a bad value and indicates that BMY is not financially healthy enough and could expect problems in meeting its short term obligations.
BMY has a worse Quick ratio (0.99) than 80.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
BMY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -105.65%.
The Earnings Per Share has been growing by 13.51% on average over the past years. This is quite good.
The Revenue has decreased by -0.68% in the past year.
The Revenue has been growing by 14.81% on average over the past years. This is quite good.
EPS 1Y (TTM)-105.65%
EPS 3Y5.21%
EPS 5Y13.51%
EPS growth Q2Q-387.32%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y1.91%
Revenue growth 5Y14.81%
Revenue growth Q2Q4.66%
3.2 Future
Based on estimates for the next years, BMY will show a decrease in Earnings Per Share. The EPS will decrease by -3.19% on average per year.
Based on estimates for the next years, BMY will show a decrease in Revenue. The Revenue will decrease by -1.35% on average per year.
EPS Next Y-8%
EPS Next 2Y-2.22%
EPS Next 3Y-4.14%
EPS Next 5Y-3.19%
Revenue Next Year2.83%
Revenue Next 2Y1.88%
Revenue Next 3Y-0.3%
Revenue Next 5Y-1.35%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 negative for BMY. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 6.13, 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 95.90% of the companies in the same industry.
BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.13 |
4.2 Price Multiples
95.90% 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 94.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.13 | ||
| EV/EBITDA | 6.46 |
4.3 Compensation for Growth
BMY's earnings are expected to decrease with -4.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.22%
EPS Next 3Y-4.14%
5. Dividend
5.1 Amount
BMY has a Yearly Dividend Yield of 5.49%, which is a nice return.
Compared to an average industry Dividend Yield of 4.21, BMY pays a better dividend. On top of this BMY pays more dividend than 97.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
5.2 History
The dividend of BMY is nicely growing with an annual growth rate of 7.57%!
BMY has paid a dividend for at least 10 years, which is a reliable track record.
BMY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.57%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
BMY has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-77.42%
EPS Next 2Y-2.22%
EPS Next 3Y-4.14%
BRISTOL-MYERS SQUIBB CO
NYSE:BMY (5/3/2024, 9:35:37 PM)
After market: 43.99 0 (0%)43.99
+0.29 (+0.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap89.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.13 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.21% | ||
| ROE | -37.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.07% | ||
| PM (TTM) | N/A | ||
| GM | 75.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-105.65%
EPS 3Y5.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y1.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y