BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BDX - US0758871091 - Common Stock
194.94 USD
+0.87 (+0.45%)
194.94 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BDX. BDX was compared to 186 industry peers in the Health Care Equipment & Supplies industry. While BDX has a great profitability rating, there are some minor concerns on its financial health. BDX has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years BDX has been profitable.
Each year in the past 5 years BDX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.03%, BDX is doing good in the industry, outperforming 77.42% of the companies in the same industry.
BDX has a better Return On Equity (6.61%) than 80.65% of its industry peers.
With a decent Return On Invested Capital value of 6.24%, BDX is doing good in the industry, outperforming 79.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BDX is below the industry average of 8.84%.
The last Return On Invested Capital (6.24%) for BDX is above the 3 year average (5.64%), which is a sign of increasing profitability.
| 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 Profit Margin of 7.68%. This is in the better half of the industry: BDX outperforms 79.57% of its industry peers.
BDX's Profit Margin has improved in the last couple of years.
BDX has a better Operating Margin (15.70%) than 84.95% of its industry peers.
In the last couple of years the Operating Margin of BDX has grown nicely.
BDX has a Gross Margin of 45.79%. This is in the lower half of the industry: BDX underperforms 61.29% 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
BDX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BDX has been reduced compared to 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 2.15 indicates that BDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.15, BDX is doing good in the industry, outperforming 63.44% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 7.18, BDX is in the better half of the industry, outperforming 75.27% of the companies in the same industry.
BDX has a Debt/Equity ratio of 0.73. This is a neutral value indicating BDX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.73, BDX is not doing good in the industry: 68.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.66
WACC9.46%
2.3 Liquidity
A Current Ratio of 1.11 indicates that BDX should not have too much problems paying its short term obligations.
The Current ratio of BDX (1.11) is worse than 84.95% of its industry peers.
BDX has a Quick Ratio of 1.11. This is a bad value and indicates that BDX is not financially healthy enough and could expect problems in meeting its short term obligations.
BDX has a Quick ratio of 0.64. This is amonst the worse of the industry: BDX underperforms 88.17% 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.
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.
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
A Price/Earnings ratio of 13.52 indicates a correct valuation of BDX.
Based on the Price/Earnings ratio, BDX is valued cheaper than 88.71% of the companies in the same industry.
BDX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.98, BDX is valued correctly.
Based on the Price/Forward Earnings ratio, BDX is valued cheaper than 90.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. BDX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 12.98 |
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.
Based on the Price/Free Cash Flow ratio, BDX is valued cheaper than 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.84 | ||
| EV/EBITDA | 12.4 |
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)3.26
PEG (5Y)1.88
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.
Compared to an average S&P500 Dividend Yield of 2.00, BDX has a dividend comparable with the average S&P500 company.
| 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 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.
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%
194.94
+0.87 (+0.45%)
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 Cap55.64B
Revenue(TTM)21.84B
Net Income(TTM)1.68B
Analysts72.22
Price Target209.03 (7.23%)
Short Float %1.7%
Short Ratio2.04
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-DateN/A
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 | 13.52 | ||
| Fwd PE | 12.98 | ||
| P/S | 2.55 | ||
| P/FCF | 20.84 | ||
| P/OCF | 16.22 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.4 |
EPS(TTM)14.42
EY7.4%
EPS(NY)15.02
Fwd EY7.7%
FCF(TTM)9.35
FCFY4.8%
OCF(TTM)12.02
OCFY6.16%
SpS76.52
BVpS88.96
TBVpS-37.23
PEG (NY)3.26
PEG (5Y)1.88
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 | 2.15 |
F-Score7
WACC9.46%
ROIC/WACC0.66
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.
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 13.52 and the Price/Book (PB) ratio is 2.19.
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.