BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BDX - US0758871091 - Common Stock
193.57 USD
+3.1 (+1.63%)
193.57 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BDX. BDX was compared to 188 industry peers in the Health Care Equipment & Supplies industry. While BDX has a great profitability rating, there are quite some 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
In the past year BDX was profitable.
BDX had a positive operating cash flow in the past year.
In the past 5 years BDX has always been profitable.
BDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BDX has a better Return On Assets (3.03%) than 76.60% of its industry peers.
The Return On Equity of BDX (6.61%) is better than 80.32% of its industry peers.
BDX has a better Return On Invested Capital (5.61%) than 78.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BDX is below the industry average of 8.78%.
The 3 year average ROIC (5.35%) for BDX is below the current ROIC(5.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 6.61% | ||
| ROIC | 5.61% |
ROA(3y)2.9%
ROA(5y)3.12%
ROE(3y)6.24%
ROE(5y)6.77%
ROIC(3y)5.35%
ROIC(5y)5.07%
1.3 Margins
BDX has a better Profit Margin (7.68%) than 78.72% of its industry peers.
BDX's Profit Margin has improved in the last couple of years.
BDX has a Operating Margin of 13.86%. This is amongst the best in the industry. BDX outperforms 82.98% of its industry peers.
In the last couple of years the Operating Margin of BDX has grown nicely.
With a Gross Margin value of 45.44%, BDX is not doing good in the industry: 61.17% of the companies in the same industry are doing better.
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 | 13.86% | ||
| PM (TTM) | 7.68% | ||
| GM | 45.44% |
OM growth 3Y-0.5%
OM growth 5Y7.2%
PM growth 3Y-4.96%
PM growth 5Y10%
GM growth 3Y-0.11%
GM growth 5Y0.46%
2. Health
2.1 Basic Checks
BDX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BDX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BDX has been reduced compared to 5 years ago.
Compared to 1 year ago, BDX has an improved debt to assets ratio.
2.2 Solvency
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.
Looking at the Debt to FCF ratio, with a value of 7.18, BDX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that BDX is somewhat dependend on debt financing.
BDX has a worse Debt to Equity ratio (0.69) than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.74
WACC7.59%
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.
BDX's Current ratio of 1.11 is on the low side compared to the rest of the industry. BDX is outperformed by 86.70% of its industry peers.
A Quick Ratio of 0.64 indicates that BDX may have some problems paying its short term obligations.
With a Quick ratio value of 0.64, BDX is not doing good in the industry: 90.43% of the companies in the same industry are doing better.
| 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 8.23% 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)8.23%
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 7.68% on average per year.
The Revenue is expected to grow by 3.70% on average over the next years.
EPS Next Y3.94%
EPS Next 2Y5.8%
EPS Next 3Y6.36%
EPS Next 5Y7.68%
Revenue Next Year4.3%
Revenue Next 2Y4.35%
Revenue Next 3Y2.61%
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.
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
BDX is valuated correctly with a Price/Earnings ratio of 13.42.
BDX's Price/Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 89.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.37, BDX is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.91, which indicates a correct valuation of BDX.
89.89% of the companies in the same industry are more expensive than BDX, based on the Price/Forward Earnings ratio.
BDX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 12.91 |
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 84.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BDX is valued cheaply inside the industry as 86.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.78 | ||
| EV/EBITDA | 13.48 |
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)3.41
PEG (5Y)1.87
EPS Next 2Y5.8%
EPS Next 3Y6.36%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
BDX's Dividend Yield is rather good when compared to the industry average which is at 1.71. BDX pays more dividend than 96.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, BDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of BDX has a limited annual growth rate of 3.17%.
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)3.17%
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 2Y5.8%
EPS Next 3Y6.36%
193.57
+3.1 (+1.63%)
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 Change4.06%
Ins Owners0.57%
Ins Owner Change1.05%
Market Cap55.48B
Revenue(TTM)21.84B
Net Income(TTM)1.68B
Analysts72.63
Price Target209.55 (8.26%)
Short Float %1.47%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend4.15
Dividend Growth(5Y)3.17%
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)-5.52%
PT rev (3m)-7.67%
EPS NQ rev (1m)-12.27%
EPS NQ rev (3m)-12.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)-4.21%
Revenue NQ rev (3m)-4.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 12.91 | ||
| P/S | 2.54 | ||
| P/FCF | 20.78 | ||
| P/OCF | 16.18 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.48 |
EPS(TTM)14.42
EY7.45%
EPS(NY)14.99
Fwd EY7.74%
FCF(TTM)9.32
FCFY4.81%
OCF(TTM)11.97
OCFY6.18%
SpS76.19
BVpS88.58
TBVpS-37.08
PEG (NY)3.41
PEG (5Y)1.87
Graham Number169.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 6.61% | ||
| ROCE | 6.44% | ||
| ROIC | 5.61% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 25.49% | ||
| OM | 13.86% | ||
| PM (TTM) | 7.68% | ||
| GM | 45.44% | ||
| FCFM | 12.23% |
ROA(3y)2.9%
ROA(5y)3.12%
ROE(3y)6.24%
ROE(5y)6.77%
ROIC(3y)5.35%
ROIC(5y)5.07%
ROICexc(3y)5.52%
ROICexc(5y)5.23%
ROICexgc(3y)26.44%
ROICexgc(5y)26.65%
ROCE(3y)6.16%
ROCE(5y)5.84%
ROICexgc growth 3Y-6.54%
ROICexgc growth 5Y8%
ROICexc growth 3Y2.92%
ROICexc growth 5Y13.47%
OM growth 3Y-0.5%
OM growth 5Y7.2%
PM growth 3Y-4.96%
PM growth 5Y10%
GM growth 3Y-0.11%
GM growth 5Y0.46%
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.18 | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 30.87% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.49% | ||
| Profit Quality | 159.12% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | N/A |
F-Score7
WACC7.59%
ROIC/WACC0.74
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 Y3.94%
EPS Next 2Y5.8%
EPS Next 3Y6.36%
EPS Next 5Y7.68%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y4.99%
Revenue growth 5Y6.32%
Sales Q2Q%8.33%
Revenue Next Year4.3%
Revenue Next 2Y4.35%
Revenue Next 3Y2.61%
Revenue Next 5Y3.7%
EBIT growth 1Y4.74%
EBIT growth 3Y4.47%
EBIT growth 5Y13.98%
EBIT Next Year22.48%
EBIT Next 3Y11.06%
EBIT Next 5Y12.3%
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 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 3.94% in the next year.