BRISTOL-MYERS SQUIBB CO (BRM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BRM - US1101221083 - Common Stock
46.01 EUR
-0.18 (-0.39%)
BRM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. BRM has an average financial health and profitability rating. BRM may be a bit undervalued, certainly considering the very reasonable score on growth Finally BRM also has an excellent dividend rating. This makes BRM very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year BRM was profitable.
- BRM had a positive operating cash flow in the past year.
- In multiple years BRM reported negative net income over the last 5 years.
- Each year in the past 5 years BRM had a positive operating cash flow.
1.2 Ratios
- BRM's Return On Assets of 6.23% is in line compared to the rest of the industry. BRM outperforms 52.73% of its industry peers.
- BRM has a better Return On Equity (32.55%) than 80.00% of its industry peers.
- With a decent Return On Invested Capital value of 16.42%, BRM is doing good in the industry, outperforming 76.36% of the companies in the same industry.
- BRM had an Average Return On Invested Capital over the past 3 years of 10.96%. This is below the industry average of 14.00%.
- The last Return On Invested Capital (16.42%) for BRM is above the 3 year average (10.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 32.55% | ||
| ROIC | 16.42% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)10.96%
ROIC(5y)9.23%
1.3 Margins
- With a Profit Margin value of 12.57%, BRM perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
- BRM's Operating Margin of 33.51% is amongst the best of the industry. BRM outperforms 81.82% of its industry peers.
- BRM's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 73.15%, BRM perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
- In the last couple of years the Gross Margin of BRM 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
- BRM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- BRM has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for BRM has been reduced compared to 5 years ago.
- Compared to 1 year ago, BRM has a worse debt to assets ratio.
2.2 Solvency
- BRM has an Altman-Z score of 2.25. This is not the best score and indicates that BRM is in the grey zone with still only limited risk for bankruptcy at the moment.
- BRM has a Altman-Z score of 2.25. This is comparable to the rest of the industry: BRM outperforms 45.45% of its industry peers.
- BRM has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as BRM would need 3.20 years to pay back of all of its debts.
- BRM has a better Debt to FCF ratio (3.20) than 65.45% of its industry peers.
- BRM has a Debt/Equity ratio of 2.41. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.41, BRM is doing worse than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.95
WACC8.43%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that BRM should not have too much problems paying its short term obligations.
- BRM's Current ratio of 1.27 is on the low side compared to the rest of the industry. BRM is outperformed by 60.00% of its industry peers.
- A Quick Ratio of 1.17 indicates that BRM should not have too much problems paying its short term obligations.
- BRM's Quick ratio of 1.17 is fine compared to the rest of the industry. BRM outperforms 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 460.68% over the past year.
- Measured over the past years, BRM 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, BRM shows a small growth in Revenue. The Revenue has grown by 1.26% in the last year.
- BRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
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
- BRM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.29% yearly.
- The Revenue is expected to decrease by -5.06% on average over the next years.
EPS Next Y471.99%
EPS Next 2Y130.77%
EPS Next 3Y73.18%
EPS Next 5Y35.29%
Revenue Next Year0.22%
Revenue Next 2Y-4.02%
Revenue Next 3Y-3.34%
Revenue Next 5Y-5.06%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.40, which indicates a very decent valuation of BRM.
- 92.73% of the companies in the same industry are more expensive than BRM, based on the Price/Earnings ratio.
- BRM is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 9.07, the valuation of BRM can be described as reasonable.
- BRM's Price/Forward Earnings ratio is rather cheap when compared to the industry. BRM is cheaper than 92.73% of the companies in the same industry.
- BRM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 9.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BRM is valued cheaper than 90.91% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRM indicates a rather cheap valuation: BRM is cheaper than 98.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.33 | ||
| EV/EBITDA | 6.86 |
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.
- BRM's earnings are expected to grow with 73.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y130.77%
EPS Next 3Y73.18%
5. Dividend
5.1 Amount
- BRM has a Yearly Dividend Yield of 4.59%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.62, BRM pays a better dividend. On top of this BRM pays more dividend than 92.73% of the companies listed in the same industry.
- BRM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
- The dividend of BRM is nicely growing with an annual growth rate of 11.67%!
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 BRM. This is not a sustainable payout ratio.
- BRM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.81%
EPS Next 2Y130.77%
EPS Next 3Y73.18%
BRISTOL-MYERS SQUIBB CO / BRM.DE FAQ
What is the fundamental rating for BRM stock?
ChartMill assigns a fundamental rating of 6 / 10 to BRM.DE.
What is the valuation status of BRISTOL-MYERS SQUIBB CO (BRM.DE) stock?
ChartMill assigns a valuation rating of 9 / 10 to BRISTOL-MYERS SQUIBB CO (BRM.DE). This can be considered as Undervalued.
How profitable is BRISTOL-MYERS SQUIBB CO (BRM.DE) stock?
BRISTOL-MYERS SQUIBB CO (BRM.DE) has a profitability rating of 5 / 10.
What is the expected EPS growth for BRISTOL-MYERS SQUIBB CO (BRM.DE) stock?
The Earnings per Share (EPS) of BRISTOL-MYERS SQUIBB CO (BRM.DE) is expected to grow by 471.99% in the next year.
Is the dividend of BRISTOL-MYERS SQUIBB CO sustainable?
The dividend rating of BRISTOL-MYERS SQUIBB CO (BRM.DE) is 8 / 10 and the dividend payout ratio is 82.81%.