BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - NYSE:BDX - US0758871091 - Common Stock
179.04 USD
+1.74 (+0.98%)
179.04 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BDX. BDX was compared to 189 industry peers in the Health Care Equipment & Supplies industry. BDX has an excellent profitability rating, but there are concerns on its financial health. BDX may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In the past 5 years BDX always reported a positive cash flow from operatings.
1.2 Ratios
BDX has a better Return On Assets (2.93%) than 76.72% of its industry peers.
BDX has a better Return On Equity (6.30%) than 78.84% of its industry peers.
BDX's Return On Invested Capital of 5.72% is fine compared to the rest of the industry. BDX outperforms 78.84% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BDX is below the industry average of 9.08%.
The 3 year average ROIC (5.27%) for BDX is below the current ROIC(5.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 6.3% | ||
| ROIC | 5.72% |
ROA(3y)2.96%
ROA(5y)2.8%
ROE(3y)6.26%
ROE(5y)6.09%
ROIC(3y)5.27%
ROIC(5y)4.6%
1.3 Margins
BDX's Profit Margin of 7.51% is fine compared to the rest of the industry. BDX outperforms 78.84% of its industry peers.
In the last couple of years the Profit Margin of BDX has grown nicely.
The Operating Margin of BDX (14.13%) is better than 82.54% of its industry peers.
In the last couple of years the Operating Margin of BDX has grown nicely.
BDX has a worse Gross Margin (45.08%) than 61.38% 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 | 14.13% | ||
| PM (TTM) | 7.51% | ||
| GM | 45.08% |
OM growth 3Y5.79%
OM growth 5Y2.6%
PM growth 3Y-6.88%
PM growth 5Y6.19%
GM growth 3Y0%
GM growth 5Y-1.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BDX is destroying value.
The number of shares outstanding for BDX has been reduced compared to 1 year ago.
BDX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BDX is higher compared to a year ago.
2.2 Solvency
BDX has an Altman-Z score of 2.05. This is not the best score and indicates that BDX is in the grey zone with still only limited risk for bankruptcy at the moment.
BDX has a Altman-Z score of 2.05. This is in the better half of the industry: BDX outperforms 61.90% of its industry peers.
The Debt to FCF ratio of BDX is 7.58, which is on the high side as it means it would take BDX, 7.58 years of fcf income to pay off all of its debts.
BDX's Debt to FCF ratio of 7.58 is fine compared to the rest of the industry. BDX outperforms 75.66% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that BDX is somewhat dependend on debt financing.
BDX's Debt to Equity ratio of 0.69 is on the low side compared to the rest of the industry. BDX is outperformed by 68.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.58 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.81
WACC7.1%
2.3 Liquidity
BDX has a Current Ratio of 1.10. This is a normal value and indicates that BDX is financially healthy and should not expect problems in meeting its short term obligations.
BDX has a worse Current ratio (1.10) than 86.24% of its industry peers.
BDX has a Quick Ratio of 1.10. This is a bad value and indicates that BDX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.62, BDX is not doing good in the industry: 89.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.75% over the past year.
Measured over the past 5 years, BDX shows a small growth in Earnings Per Share. The EPS has been growing by 2.41% on average per year.
BDX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.86%.
Measured over the past years, BDX shows a small growth in Revenue. The Revenue has been growing by 3.14% on average per year.
EPS 1Y (TTM)11.75%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%5.14%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%8.94%
3.2 Future
BDX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.32% yearly.
BDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.36% yearly.
EPS Next Y10.38%
EPS Next 2Y6.72%
EPS Next 3Y7.05%
EPS Next 5Y8.32%
Revenue Next Year8.4%
Revenue Next 2Y6.33%
Revenue Next 3Y5.68%
Revenue Next 5Y5.36%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.55, which indicates a correct valuation of BDX.
Compared to the rest of the industry, the Price/Earnings ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 88.89% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. BDX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.95, the valuation of BDX can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 91.01% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BDX to the average of the S&P500 Index (22.27), we can say BDX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 11.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BDX is valued cheaply inside the industry as 83.07% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BDX is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.12 | ||
| EV/EBITDA | 12.85 |
4.3 Compensation for Growth
BDX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BDX may justify a higher PE ratio.
PEG (NY)1.21
PEG (5Y)5.2
EPS Next 2Y6.72%
EPS Next 3Y7.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.32%, BDX has a reasonable but not impressive dividend return.
BDX's Dividend Yield is rather good when compared to the industry average which is at 1.90. BDX pays more dividend than 97.35% of the companies in the same industry.
BDX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
The dividend of BDX has a limited annual growth rate of 0.75%.
BDX has been paying a dividend for at least 10 years, so it has a reliable track record.
BDX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.75%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
BDX pays out 73.10% 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.
DP73.1%
EPS Next 2Y6.72%
EPS Next 3Y7.05%
179.04
+1.74 (+0.98%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners92.24%
Inst Owner Change-0.04%
Ins Owners0.57%
Ins Owner Change1.06%
Market Cap51.32B
Revenue(TTM)21.39B
Net Income(TTM)1.61B
Analysts73.33
Price Target221.8 (23.88%)
Short Float %1.15%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend3.8
Dividend Growth(5Y)0.75%
DP73.1%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.11%
Min EPS beat(2)1.1%
Max EPS beat(2)7.13%
EPS beat(4)4
Avg EPS beat(4)5.6%
Min EPS beat(4)0.11%
Max EPS beat(4)14.05%
EPS beat(8)7
Avg EPS beat(8)5.28%
EPS beat(12)10
Avg EPS beat(12)4.61%
EPS beat(16)14
Avg EPS beat(16)6.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-0.58%
Revenue beat(4)2
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)0.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.76%
Revenue beat(12)5
Avg Revenue beat(12)-0.34%
Revenue beat(16)6
Avg Revenue beat(16)-0.52%
PT rev (1m)-0.33%
PT rev (3m)0.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.68%
EPS NY rev (1m)0%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 11.95 | ||
| P/S | 2.4 | ||
| P/FCF | 20.12 | ||
| P/OCF | 15.77 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.85 |
EPS(TTM)14.27
EY7.97%
EPS(NY)14.99
Fwd EY8.37%
FCF(TTM)8.9
FCFY4.97%
OCF(TTM)11.35
OCFY6.34%
SpS74.61
BVpS88.87
TBVpS-38.07
PEG (NY)1.21
PEG (5Y)5.2
Graham Number168.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 6.3% | ||
| ROCE | 6.46% | ||
| ROIC | 5.72% | ||
| ROICexc | 5.82% | ||
| ROICexgc | 27.86% | ||
| OM | 14.13% | ||
| PM (TTM) | 7.51% | ||
| GM | 45.08% | ||
| FCFM | 11.92% |
ROA(3y)2.96%
ROA(5y)2.8%
ROE(3y)6.26%
ROE(5y)6.09%
ROIC(3y)5.27%
ROIC(5y)4.6%
ROICexc(3y)5.45%
ROICexc(5y)4.78%
ROICexgc(3y)28.79%
ROICexgc(5y)25.46%
ROCE(3y)5.98%
ROCE(5y)5.22%
ROICexgc growth 3Y6%
ROICexgc growth 5Y0.79%
ROICexc growth 3Y6.82%
ROICexc growth 5Y5.36%
OM growth 3Y5.79%
OM growth 5Y2.6%
PM growth 3Y-6.88%
PM growth 5Y6.19%
GM growth 3Y0%
GM growth 5Y-1.08%
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.58 | ||
| Debt/EBITDA | 3.22 | ||
| Cap/Depr | 29.1% | ||
| Cap/Sales | 3.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.82% | ||
| Profit Quality | 158.78% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.05 |
F-Score7
WACC7.1%
ROIC/WACC0.81
Cap/Depr(3y)37.86%
Cap/Depr(5y)40.69%
Cap/Sales(3y)4.42%
Cap/Sales(5y)4.86%
Profit Quality(3y)142.37%
Profit Quality(5y)192.14%
High Growth Momentum
Growth
EPS 1Y (TTM)11.75%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%5.14%
EPS Next Y10.38%
EPS Next 2Y6.72%
EPS Next 3Y7.05%
EPS Next 5Y8.32%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%8.94%
Revenue Next Year8.4%
Revenue Next 2Y6.33%
Revenue Next 3Y5.68%
Revenue Next 5Y5.36%
EBIT growth 1Y2.55%
EBIT growth 3Y7.69%
EBIT growth 5Y5.82%
EBIT Next Year32.89%
EBIT Next 3Y13.13%
EBIT Next 5Y13.97%
FCF growth 1Y46.38%
FCF growth 3Y-3.8%
FCF growth 5Y5.31%
OCF growth 1Y23.4%
OCF growth 3Y-6.5%
OCF growth 5Y2.66%
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 7 / 10 to BECTON DICKINSON AND CO (BDX). This can be considered as Undervalued.
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 3 / 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 10.38% in the next year.