BRISTOL-MYERS SQUIBB CO (1BMY.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1BMY - US1101221083 - Common Stock
46.425 EUR
+0.38 (+0.83%)
We assign a fundamental rating of 6 out of 10 to 1BMY. 1BMY was compared to 55 industry peers in the Pharmaceuticals industry. 1BMY has an average financial health and profitability rating. 1BMY may be a bit undervalued, certainly considering the very reasonable score on growth Finally 1BMY also has an excellent dividend rating. This makes 1BMY very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year 1BMY was profitable.
- In the past year 1BMY had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: 1BMY reported negative net income in multiple years.
- Each year in the past 5 years 1BMY had a positive operating cash flow.
1.2 Ratios
- 1BMY has a Return On Assets (6.23%) which is comparable to the rest of the industry.
- 1BMY has a better Return On Equity (32.55%) than 81.48% of its industry peers.
- 1BMY's Return On Invested Capital of 17.49% is fine compared to the rest of the industry. 1BMY outperforms 79.63% of its industry peers.
- 1BMY had an Average Return On Invested Capital over the past 3 years of 11.67%. This is below the industry average of 13.93%.
- 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
- The Profit Margin of 1BMY (12.57%) is comparable to the rest of the industry.
- 1BMY has a better Operating Margin (33.51%) than 83.33% of its industry peers.
- 1BMY's Operating Margin has declined in the last couple of years.
- 1BMY has a better Gross Margin (73.15%) than 61.11% of its industry peers.
- In the last couple of years the Gross Margin of 1BMY 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1BMY is creating value.
- Compared to 1 year ago, 1BMY has less shares outstanding
- The number of shares outstanding for 1BMY has been reduced compared to 5 years ago.
- The debt/assets ratio for 1BMY is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.22 indicates that 1BMY is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.22, 1BMY perfoms like the industry average, outperforming 42.59% of the companies in the same industry.
- The Debt to FCF ratio of 1BMY is 3.20, which is a good value as it means it would take 1BMY, 3.20 years of fcf income to pay off all of its debts.
- 1BMY's Debt to FCF ratio of 3.20 is fine compared to the rest of the industry. 1BMY outperforms 68.52% of its industry peers.
- 1BMY has a Debt/Equity ratio of 2.41. This is a high value indicating a heavy dependency on external financing.
- 1BMY has a Debt to Equity ratio of 2.41. This is in the lower half of the industry: 1BMY underperforms 79.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.22 |
ROIC/WACC2.04
WACC8.58%
2.3 Liquidity
- 1BMY has a Current Ratio of 1.27. This is a normal value and indicates that 1BMY is financially healthy and should not expect problems in meeting its short term obligations.
- 1BMY has a Current ratio (1.27) which is comparable to the rest of the industry.
- A Quick Ratio of 1.17 indicates that 1BMY should not have too much problems paying its short term obligations.
- The Quick ratio of 1BMY (1.17) is better than 68.52% 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.
- 1BMY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.57% yearly.
- 1BMY shows a small growth in Revenue. In the last year, the Revenue has grown by 1.26%.
- Measured over the past years, 1BMY shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
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 35.26% yearly.
- 1BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.97% yearly.
EPS Next Y479.55%
EPS Next 2Y131.22%
EPS Next 3Y73.98%
EPS Next 5Y35.26%
Revenue Next Year0.19%
Revenue Next 2Y-4.06%
Revenue Next 3Y-3.05%
Revenue Next 5Y-4.97%
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
- With a Price/Earnings ratio of 8.29, the valuation of 1BMY can be described as very reasonable.
- 94.44% of the companies in the same industry are more expensive than 1BMY, based on the Price/Earnings ratio.
- 1BMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- 1BMY is valuated reasonably with a Price/Forward Earnings ratio of 8.92.
- 92.59% of the companies in the same industry are more expensive than 1BMY, based on the Price/Forward Earnings ratio.
- 1BMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 8.92 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1BMY indicates a rather cheap valuation: 1BMY is cheaper than 94.44% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1BMY indicates a rather cheap valuation: 1BMY is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.23 | ||
| EV/EBITDA | 6.72 |
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.
- 1BMY has a very decent profitability rating, which may justify a higher PE ratio.
- 1BMY's earnings are expected to grow with 73.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y131.22%
EPS Next 3Y73.98%
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 1.61. 1BMY pays more dividend than 92.59% of the companies in the same industry.
- 1BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
- The dividend of 1BMY is nicely growing with an annual growth rate of 11.67%!
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 2Y131.22%
EPS Next 3Y73.98%
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 6 / 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%.