BRISTOL-MYERS SQUIBB CO (1BMY.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1BMY - US1101221083 - Common Stock
46.425 EUR
+0.38 (+0.83%)
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 an average financial health and profitability rating. 1BMY scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 1BMY also has an excellent dividend rating. With these ratings, 1BMY could be worth investigating further 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.
- 1BMY had a positive operating cash flow in each of the past 5 years.
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 81.82% of its industry peers.
- 1BMY's Return On Invested Capital of 17.49% is fine compared to the rest of the industry. 1BMY outperforms 80.00% 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 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
- Looking at the Profit Margin, with a value of 12.57%, 1BMY is in line with its industry, outperforming 50.91% of the companies in the same industry.
- 1BMY has a better Operating Margin (33.51%) than 83.64% of its industry peers.
- 1BMY's Operating Margin has declined in the last couple of years.
- The Gross Margin of 1BMY (73.15%) is comparable to the rest of the industry.
- 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
- 1BMY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, 1BMY has less shares outstanding
- Compared to 5 years ago, 1BMY has less shares outstanding
- The debt/assets ratio for 1BMY is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.23 indicates that 1BMY is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1BMY has a Altman-Z score (2.23) which is in line with its industry peers.
- 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.
- 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.
- A Debt/Equity ratio of 2.41 is on the high side and indicates that 1BMY has dependencies on debt financing.
- 1BMY's Debt to Equity ratio of 2.41 is on the low side compared to the rest of the industry. 1BMY is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.23 |
ROIC/WACC2.04
WACC8.57%
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.
- The Current ratio of 1BMY (1.27) 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.
- 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
- 1BMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 460.68%, which is quite impressive.
- Measured over the past years, 1BMY 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, 1BMY shows a small growth in Revenue. The Revenue has grown by 1.26% in the last year.
- 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 35.29% yearly.
- 1BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.06% yearly.
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 8.31, which indicates a very decent valuation of 1BMY.
- Compared to the rest of the industry, the Price/Earnings ratio of 1BMY indicates a rather cheap valuation: 1BMY is cheaper than 94.55% of the companies listed in the same industry.
- 1BMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 8.98, which indicates a very decent valuation of 1BMY.
- Based on the Price/Forward Earnings ratio, 1BMY is valued cheaply inside the industry as 94.55% of the companies are valued more expensively.
- 1BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1BMY is valued cheaply inside the industry as 92.73% of the companies are valued more expensively.
- 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 | 7.25 | ||
| EV/EBITDA | 6.78 |
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'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.
- Compared to an average industry Dividend Yield of 1.62, 1BMY pays a better dividend. On top of this 1BMY pays more dividend than 90.91% of the companies listed 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.
- The dividend of 1BMY is growing, but earnings are growing more, so the dividend growth is 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%.