When you look at NYSE:BMY, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Our stock screener has spotted BRISTOL-MYERS SQUIBB CO (NYSE:BMY) as an undervalued stock with solid fundamentals. NYSE:BMY shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Understanding NYSE:BMY's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:BMY has earned a 8 for valuation:

• BMY is valuated cheaply with a Price/Earnings ratio of 7.39.
• BMY's Price/Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 91.43% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 25.71, BMY is valued rather cheaply.
• The Price/Forward Earnings ratio is 7.07, which indicates a rather cheap valuation of BMY.
• Based on the Price/Forward Earnings ratio, BMY is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of BMY to the average of the S&P500 Index (18.80), we can say BMY is valued rather cheaply.
• 93.33% of the companies in the same industry are more expensive than BMY, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, BMY is valued cheaper than 91.90% of the companies in the same industry.
• The excellent profitability rating of BMY may justify a higher PE ratio.

A Closer Look at Profitability for NYSE:BMY

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:BMY was assigned a score of 8 for profitability:

• BMY has a Return On Assets of 8.52%. This is amongst the best in the industry. BMY outperforms 90.48% of its industry peers.
• BMY's Return On Equity of 24.91% is amongst the best of the industry. BMY outperforms 93.33% of its industry peers.
• BMY's Return On Invested Capital of 12.34% is amongst the best of the industry. BMY outperforms 90.48% of its industry peers.
• The 3 year average ROIC (9.56%) for BMY is below the current ROIC(12.34%), indicating increased profibility in the last year.
• BMY has a Profit Margin of 17.62%. This is amongst the best in the industry. BMY outperforms 90.48% of its industry peers.
• BMY's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 23.92%, BMY belongs to the best of the industry, outperforming 91.90% of the companies in the same industry.
• With an excellent Gross Margin value of 77.14%, BMY belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
• BMY's Gross Margin has improved in the last couple of years.

Health Insights: NYSE:BMY

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:BMY scores a 5 out of 10:

• BMY has a Altman-Z score of 2.52. This is in the better half of the industry: BMY outperforms 70.48% of its industry peers.
• BMY has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as BMY would need 3.51 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 3.51, BMY belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.

Growth Analysis for NYSE:BMY

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:BMY was assigned a score of 4 for growth:

• Measured over the past years, BMY shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.98% on average per year.
• The Revenue has been growing by 17.31% on average over the past years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of BMY contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.