BRISTOL-MYERS SQUIBB CO (NYSE:BMY): good value for what you're paying.

Uncover the hidden value in BRISTOL-MYERS SQUIBB CO (NYSE:BMY) as our stock screening tool recommends it as an undervalued choice. BMY maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

A Closer Look at Valuation for BMY

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. BMY has received a 8 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 80.21% of the companies listed in the same industry.
• BMY is valuated reasonably with a Price/Forward Earnings ratio of 8.96.
• 90.10% of the companies in the same industry are more expensive than BMY, based on the Price/Forward Earnings ratio.
• BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.72, which is the current average of the S&P500 Index.
• 88.02% of the companies in the same industry are more expensive than BMY, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 93.23% of the companies listed in the same industry.
• 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.
• BMY's earnings are expected to grow with 75.69% in the coming years. This may justify a more expensive valuation.

Profitability Assessment of BMY

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For BMY, the assigned 6 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of -9.66%, BMY is in the better half of the industry, outperforming 69.27% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 13.21%, BMY belongs to the best of the industry, outperforming 90.10% of the companies in the same industry.
• The last Return On Invested Capital (13.21%) for BMY is above the 3 year average (12.29%), which is a sign of increasing profitability.
• BMY has a better Operating Margin (23.90%) than 89.58% of its industry peers.
• Looking at the Gross Margin, with a value of 75.26%, BMY belongs to the top of the industry, outperforming 81.77% of the companies in the same industry.

Analyzing Health Metrics

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. BMY has achieved a 5 out of 10:

• Looking at the Altman-Z score, with a value of 2.21, BMY is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
• BMY has a debt to FCF ratio of 3.56. This is a good value and a sign of high solvency as BMY would need 3.56 years to pay back of all of its debts.
• BMY's Debt to FCF ratio of 3.56 is amongst the best of the industry. BMY outperforms 89.06% of its industry peers.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of BMY, the assigned 4 reflects its growth potential:

• The Revenue has been growing by 13.06% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 38.53% on average over the next years. This is a very strong growth
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of BMY

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.