BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BDX - US0758871091 - Common Stock
196.33 USD
+0.21 (+0.11%)
196.33 USD
0 (0%)
Taking everything into account, BDX scores 5 out of 10 in our fundamental rating. BDX was compared to 186 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BDX had positive earnings in the past year.
In the past year BDX had a positive cash flow from operations.
In the past 5 years BDX has always been profitable.
In the past 5 years BDX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BDX (3.03%) is better than 77.42% of its industry peers.
With an excellent Return On Equity value of 6.61%, BDX belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
BDX's Return On Invested Capital of 6.24% is fine compared to the rest of the industry. BDX outperforms 79.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BDX is below the industry average of 8.84%.
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's Profit Margin of 7.68% is fine compared to the rest of the industry. BDX outperforms 79.57% of its industry peers.
BDX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.70%, BDX belongs to the top of the industry, outperforming 84.95% of the companies in the same industry.
BDX's Operating Margin has improved in the last couple of years.
BDX has a worse Gross Margin (45.79%) than 61.29% of its industry peers.
In the last couple of years the Gross Margin of BDX has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BDX is destroying value.
The number of shares outstanding for BDX has been reduced compared to 1 year ago.
BDX has less shares outstanding than it did 5 years ago.
BDX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.16 indicates that BDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.16, BDX is in the better half of the industry, outperforming 61.83% of the companies in the same industry.
The Debt to FCF ratio of BDX is 7.18, which is on the high side as it means it would take BDX, 7.18 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.18, BDX is doing good in the industry, outperforming 75.27% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that BDX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, BDX is doing worse than 69.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.86
WACC7.22%
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.
With a Current ratio value of 1.11, BDX is not doing good in the industry: 86.56% of the companies in the same industry are doing better.
A Quick Ratio of 0.64 indicates that BDX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.64, BDX is doing worse than 89.78% of the companies in the same industry.
| 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.
BDX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.19% yearly.
Looking at the last year, BDX shows a quite strong growth in Revenue. The Revenue has grown by 8.24% in the last year.
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
The Earnings Per Share is expected to grow by 7.68% on average over the next years.
The Revenue is expected to grow by 3.70% on average over the next years.
EPS Next Y4.14%
EPS Next 2Y5.2%
EPS Next 3Y5.3%
EPS Next 5Y7.68%
Revenue Next Year2.92%
Revenue Next 2Y3.14%
Revenue Next 3Y3.18%
Revenue Next 5Y3.7%
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.
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
BDX is valuated correctly with a Price/Earnings ratio of 13.62.
Based on the Price/Earnings ratio, BDX is valued cheaper than 88.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of BDX to the average of the S&P500 Index (26.92), we can say BDX is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.07 indicates a correct valuation of BDX.
90.86% of the companies in the same industry are more expensive than BDX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.46. BDX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 13.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 86.02% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 87.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.99 | ||
| EV/EBITDA | 12.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BDX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BDX may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)1.89
EPS Next 2Y5.2%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.20, BDX pays a better dividend. On top of this BDX pays more dividend than 96.77% of the companies listed in the same industry.
BDX's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
The dividend of BDX has a limited annual growth rate of 3.22%.
BDX has been paying a dividend for at least 10 years, so it has a reliable track record.
BDX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
BDX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.28%
EPS Next 2Y5.2%
EPS Next 3Y5.3%
196.33
+0.21 (+0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.16%
Inst Owner Change4.07%
Ins Owners0.56%
Ins Owner Change5.24%
Market Cap56.04B
Revenue(TTM)21.84B
Net Income(TTM)1.68B
Analysts72.22
Price Target209.03 (6.47%)
Short Float %1.69%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend4.16
Dividend Growth(5Y)3.22%
DP71.28%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.54%
Min EPS beat(2)-0.05%
Max EPS beat(2)7.13%
EPS beat(4)3
Avg EPS beat(4)5.56%
Min EPS beat(4)-0.05%
Max EPS beat(4)14.05%
EPS beat(8)7
Avg EPS beat(8)5.42%
EPS beat(12)10
Avg EPS beat(12)4.67%
EPS beat(16)13
Avg EPS beat(16)5.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.22%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)0.37%
Revenue beat(8)2
Avg Revenue beat(8)-0.95%
Revenue beat(12)5
Avg Revenue beat(12)-0.43%
Revenue beat(16)6
Avg Revenue beat(16)-0.46%
PT rev (1m)-0.25%
PT rev (3m)-6.07%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-12.23%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-4.63%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 13.07 | ||
| P/S | 2.57 | ||
| P/FCF | 20.99 | ||
| P/OCF | 16.34 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.51 |
EPS(TTM)14.42
EY7.34%
EPS(NY)15.02
Fwd EY7.65%
FCF(TTM)9.35
FCFY4.76%
OCF(TTM)12.02
OCFY6.12%
SpS76.52
BVpS88.96
TBVpS-37.23
PEG (NY)3.28
PEG (5Y)1.89
Graham Number169.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 6.61% | ||
| ROCE | 7.29% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.33% | ||
| ROICexgc | 26.66% | ||
| OM | 15.7% | ||
| PM (TTM) | 7.68% | ||
| GM | 45.79% | ||
| FCFM | 12.23% |
ROA(3y)2.9%
ROA(5y)3.12%
ROE(3y)6.24%
ROE(5y)6.77%
ROIC(3y)5.64%
ROIC(5y)5.24%
ROICexc(3y)5.8%
ROICexc(5y)5.4%
ROICexgc(3y)27.15%
ROICexgc(5y)27.08%
ROCE(3y)6.53%
ROCE(5y)6.07%
ROICexgc growth 3Y-3.96%
ROICexgc growth 5Y9.78%
ROICexc growth 3Y7.94%
ROICexc growth 5Y16.75%
OM growth 3Y4.99%
OM growth 5Y10.71%
PM growth 3Y-4.96%
PM growth 5Y10%
GM growth 3Y0.22%
GM growth 5Y0.65%
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 30.87% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 5.46 | ||
| Cash Conversion | 58.23% | ||
| Profit Quality | 159.12% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.16 |
F-Score7
WACC7.22%
ROIC/WACC0.86
Cap/Depr(3y)33.59%
Cap/Depr(5y)39.6%
Cap/Sales(3y)3.86%
Cap/Sales(5y)4.6%
Profit Quality(3y)162.63%
Profit Quality(5y)151.73%
High Growth Momentum
Growth
EPS 1Y (TTM)9.57%
EPS 3Y5.64%
EPS 5Y7.19%
EPS Q2Q%3.94%
EPS Next Y4.14%
EPS Next 2Y5.2%
EPS Next 3Y5.3%
EPS Next 5Y7.68%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y4.99%
Revenue growth 5Y6.32%
Sales Q2Q%8.33%
Revenue Next Year2.92%
Revenue Next 2Y3.14%
Revenue Next 3Y3.18%
Revenue Next 5Y3.7%
EBIT growth 1Y18.62%
EBIT growth 3Y10.23%
EBIT growth 5Y17.71%
EBIT Next Year20.6%
EBIT Next 3Y11.99%
EBIT Next 5Y12.28%
FCF growth 1Y-13.11%
FCF growth 3Y17.14%
FCF growth 5Y-0.73%
OCF growth 1Y-9.69%
OCF growth 3Y9.2%
OCF growth 5Y-0.62%
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.
Can you provide the valuation status for BECTON DICKINSON AND CO?
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 financial health of BECTON DICKINSON AND CO (BDX) stock?
The financial health rating of BECTON DICKINSON AND CO (BDX) is 4 / 10.
What is the expected EPS growth for BECTON DICKINSON AND CO (BDX) stock?
The Earnings per Share (EPS) of BECTON DICKINSON AND CO (BDX) is expected to grow by 4.14% in the next year.