BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BDX - US0758871091 - Common Stock
203.42 USD
+1.63 (+0.81%)
202.853 USD
-0.57 (-0.28%)
We assign a fundamental rating of 5 out of 10 to BDX. BDX was compared to 184 industry peers in the Health Care Equipment & Supplies industry. BDX scores excellent on profitability, but there are some minor concerns on its financial health. BDX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- BDX had positive earnings in the past year.
- BDX had a positive operating cash flow in the past year.
- BDX had positive earnings in each of the past 5 years.
- BDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 3.03%, BDX is doing good in the industry, outperforming 77.72% of the companies in the same industry.
- BDX has a Return On Equity of 6.61%. This is amongst the best in the industry. BDX outperforms 80.98% of its industry peers.
- BDX has a better Return On Invested Capital (6.24%) than 79.35% of its industry peers.
- BDX had an Average Return On Invested Capital over the past 3 years of 5.64%. This is below the industry average of 8.81%.
- The 3 year average ROIC (5.64%) for BDX is below the current ROIC(6.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 6.61% | ||
| ROIC | 6.24% |
ROA(3y)2.9%
ROA(5y)3.12%
ROE(3y)6.24%
ROE(5y)6.77%
ROIC(3y)5.64%
ROIC(5y)5.24%
1.3 Margins
- BDX has a better Profit Margin (7.68%) than 79.89% of its industry peers.
- In the last couple of years the Profit Margin of BDX has grown nicely.
- Looking at the Operating Margin, with a value of 15.70%, BDX belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
- In the last couple of years the Operating Margin of BDX has grown nicely.
- BDX has a worse Gross Margin (45.79%) than 61.41% of its industry peers.
- BDX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.7% | ||
| PM (TTM) | 7.68% | ||
| GM | 45.79% |
OM growth 3Y4.99%
OM growth 5Y10.71%
PM growth 3Y-4.96%
PM growth 5Y10%
GM growth 3Y0.22%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BDX is destroying value.
- BDX has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, BDX has less shares outstanding
- BDX has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.19 indicates that BDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- BDX's Altman-Z score of 2.19 is fine compared to the rest of the industry. BDX outperforms 63.04% of its industry peers.
- BDX has a debt to FCF ratio of 7.18. This is a slightly negative value and a sign of low solvency as BDX would need 7.18 years to pay back of all of its debts.
- The Debt to FCF ratio of BDX (7.18) is better than 75.00% of its industry peers.
- BDX has a Debt/Equity ratio of 0.73. This is a neutral value indicating BDX is somewhat dependend on debt financing.
- BDX has a worse Debt to Equity ratio (0.73) than 69.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.66
WACC9.47%
2.3 Liquidity
- BDX has a Current Ratio of 1.11. This is a normal value and indicates that BDX is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of BDX (1.11) is worse than 84.78% of its industry peers.
- A Quick Ratio of 0.64 indicates that BDX may have some problems paying its short term obligations.
- BDX has a Quick ratio of 0.64. This is amonst the worse of the industry: BDX underperforms 88.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- BDX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.57%, which is quite good.
- Measured over the past 5 years, BDX shows a small growth in Earnings Per Share. The EPS has been growing by 7.19% on average per year.
- The Revenue has grown by 8.24% in the past year. This is quite good.
- The Revenue has been growing slightly by 6.32% on average over the past years.
EPS 1Y (TTM)9.57%
EPS 3Y5.64%
EPS 5Y7.19%
EPS Q2Q%3.94%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y4.99%
Revenue growth 5Y6.32%
Sales Q2Q%8.33%
3.2 Future
- Based on estimates for the next years, BDX will show a small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
- The Revenue is expected to grow by 3.38% on average over the next years.
EPS Next Y4.17%
EPS Next 2Y5.22%
EPS Next 3Y5.36%
EPS Next 5Y6.59%
Revenue Next Year2.91%
Revenue Next 2Y3.14%
Revenue Next 3Y3.19%
Revenue Next 5Y3.38%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- Based on the Price/Earnings ratio of 14.11, the valuation of BDX can be described as correct.
- Based on the Price/Earnings ratio, BDX is valued cheaper than 90.22% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. BDX is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 13.54, which indicates a correct valuation of BDX.
- BDX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 90.76% of the companies in the same industry.
- BDX is valuated rather 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 | 14.11 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BDX is valued cheaper than 85.87% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BDX is valued cheaply inside the industry as 88.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.75 | ||
| EV/EBITDA | 12.78 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- BDX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.38
PEG (5Y)1.96
EPS Next 2Y5.22%
EPS Next 3Y5.36%
5. Dividend
5.1 Amount
- BDX has a Yearly Dividend Yield of 2.04%.
- BDX's Dividend Yield is rather good when compared to the industry average which is at 0.20. BDX pays more dividend than 96.74% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
- The dividend of BDX has a limited annual growth rate of 3.22%.
- BDX has paid a dividend for at least 10 years, which is a reliable track record.
- BDX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.22%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- BDX pays out 71.28% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of BDX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.28%
EPS Next 2Y5.22%
EPS Next 3Y5.36%
BECTON DICKINSON AND CO / BDX FAQ
Can you provide the ChartMill fundamental rating for BECTON DICKINSON AND CO?
ChartMill assigns a fundamental rating of 5 / 10 to BDX.
What is the valuation status for BDX stock?
ChartMill assigns a valuation rating of 6 / 10 to BECTON DICKINSON AND CO (BDX). This can be considered as Fairly Valued.
How profitable is BECTON DICKINSON AND CO (BDX) stock?
BECTON DICKINSON AND CO (BDX) has a profitability rating of 7 / 10.
What is the valuation of BECTON DICKINSON AND CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BECTON DICKINSON AND CO (BDX) is 14.11 and the Price/Book (PB) ratio is 2.29.
What is the financial health of BECTON DICKINSON AND CO (BDX) stock?
The financial health rating of BECTON DICKINSON AND CO (BDX) is 4 / 10.