BRISTOL-MYERS SQUIBB CO (1BMY.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1BMY - US1101221083 - Common Stock
45.965 EUR
-0.46 (-0.99%)
1BMY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. 1BMY has only an average score on both its financial health and profitability. 1BMY is valued quite cheap, while showing a decent growth score. This is a good combination! 1BMY also has an excellent dividend rating. These ratings could make 1BMY a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
- 1BMY had positive earnings in the past year.
- 1BMY had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: 1BMY reported negative net income in multiple years.
- In the past 5 years 1BMY always reported a positive cash flow from operatings.
1.2 Ratios
- 1BMY has a Return On Assets (6.23%) which is in line with its industry peers.
- 1BMY has a Return On Equity of 32.55%. This is in the better half of the industry: 1BMY outperforms 80.00% of its industry peers.
- The Return On Invested Capital of 1BMY (17.49%) is better than 80.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1BMY is below the industry average of 14.00%.
- The 3 year average ROIC (11.67%) for 1BMY is below the current ROIC(17.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 32.55% | ||
| ROIC | 17.49% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)11.67%
ROIC(5y)9.83%
1.3 Margins
- 1BMY's Profit Margin of 12.57% is in line compared to the rest of the industry. 1BMY outperforms 49.09% of its industry peers.
- 1BMY has a Operating Margin of 33.51%. This is amongst the best in the industry. 1BMY outperforms 81.82% of its industry peers.
- 1BMY's Operating Margin has declined in the last couple of years.
- 1BMY's Gross Margin of 73.15% is in line compared to the rest of the industry. 1BMY outperforms 58.18% of its industry peers.
- 1BMY's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1BMY is creating value.
- 1BMY has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1BMY has been reduced compared to 5 years ago.
- Compared to 1 year ago, 1BMY has a worse debt to assets ratio.
2.2 Solvency
- 1BMY has an Altman-Z score of 2.23. This is not the best score and indicates that 1BMY is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.23, 1BMY perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- 1BMY has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as 1BMY would need 3.20 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 3.20, 1BMY is doing good in the industry, outperforming 67.27% of the companies in the same industry.
- 1BMY 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, 1BMY is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.23 |
ROIC/WACC2.04
WACC8.57%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that 1BMY should not have too much problems paying its short term obligations.
- 1BMY's Current ratio of 1.27 is in line compared to the rest of the industry. 1BMY outperforms 41.82% of its industry peers.
- A Quick Ratio of 1.17 indicates that 1BMY should not have too much problems paying its short term obligations.
- 1BMY has a Quick ratio of 1.17. This is in the better half of the industry: 1BMY outperforms 70.91% 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.
- The earnings per share for 1BMY have been decreasing by -24.57% on average. This is quite bad
- 1BMY shows a small growth in Revenue. In the last year, the Revenue has grown by 1.26%.
- The Revenue has been growing by 13.06% on average over the past years. This is quite good.
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
- 1BMY 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.
- 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 8.30, which indicates a very decent valuation of 1BMY.
- 92.73% of the companies in the same industry are more expensive than 1BMY, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.25. 1BMY is valued rather cheaply when compared to this.
- 1BMY is valuated reasonably with a Price/Forward Earnings ratio of 8.96.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1BMY indicates a rather cheap valuation: 1BMY is cheaper than 92.73% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1BMY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
- 1BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1BMY is cheaper than 90.91% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1BMY is valued cheaper than 98.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.24 | ||
| EV/EBITDA | 6.77 |
4.3 Compensation for Growth
- 1BMY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1BMY'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
- 1BMY has a Yearly Dividend Yield of 4.59%, which is a nice return.
- 1BMY's Dividend Yield is rather good when compared to the industry average which is at 1.62. 1BMY pays more dividend than 92.73% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
- On average, the dividend of 1BMY grows each year by 11.67%, which is quite nice.
Dividend Growth(5Y)11.67%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 82.81% of the earnings are spent on dividend by 1BMY. This is not a sustainable payout ratio.
- 1BMY'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 / 1BMY.MI FAQ
Can you provide the ChartMill fundamental rating for BRISTOL-MYERS SQUIBB CO?
ChartMill assigns a fundamental rating of 6 / 10 to 1BMY.MI.
Can you provide the valuation status for BRISTOL-MYERS SQUIBB CO?
ChartMill assigns a valuation rating of 9 / 10 to BRISTOL-MYERS SQUIBB CO (1BMY.MI). This can be considered as Undervalued.
Can you provide the profitability details for BRISTOL-MYERS SQUIBB CO?
BRISTOL-MYERS SQUIBB CO (1BMY.MI) has a profitability rating of 5 / 10.
Can you provide the financial health for 1BMY stock?
The financial health rating of BRISTOL-MYERS SQUIBB CO (1BMY.MI) is 5 / 10.
Is the dividend of BRISTOL-MYERS SQUIBB CO sustainable?
The dividend rating of BRISTOL-MYERS SQUIBB CO (1BMY.MI) is 8 / 10 and the dividend payout ratio is 82.81%.