BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - NYSE:BDX - US0758871091 - Common Stock
192.33 USD
+1.35 (+0.71%)
194.33 USD
+2 (+1.04%)
BDX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 188 industry peers in the Health Care Equipment & Supplies industry. BDX has an excellent profitability rating, but there are concerns on its financial health. BDX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BDX was profitable.
BDX had a positive operating cash flow in the past year.
BDX had positive earnings in each of the past 5 years.
Each year in the past 5 years BDX had a positive operating cash flow.
1.2 Ratios
BDX has a Return On Assets of 3.03%. This is in the better half of the industry: BDX outperforms 76.06% of its industry peers.
BDX has a better Return On Equity (6.61%) than 79.26% of its industry peers.
With a decent Return On Invested Capital value of 5.61%, BDX is doing good in the industry, outperforming 78.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BDX is below the industry average of 8.98%.
The last Return On Invested Capital (5.61%) for BDX is above the 3 year average (5.35%), which is a sign of increasing profitability.
| 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's Profit Margin of 7.68% is fine compared to the rest of the industry. BDX outperforms 78.19% of its industry peers.
BDX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 13.86%, BDX belongs to the best of the industry, outperforming 82.45% of the companies in the same industry.
BDX's Operating Margin has improved in the last couple of years.
BDX has a Gross Margin (45.44%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BDX 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.
The debt/assets ratio for BDX has been reduced compared to a year ago.
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.
BDX has a better Debt to FCF ratio (7.18) than 75.00% of its industry peers.
BDX has a Debt/Equity ratio of 0.69. This is a neutral value indicating 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 69.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | N/A |
ROIC/WACC0.74
WACC7.61%
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.
Looking at the Current ratio, with a value of 1.11, BDX is doing worse than 86.70% of the companies in the same industry.
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.
The Quick ratio of BDX (0.64) is worse than 89.89% 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.
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
The Earnings Per Share is expected to grow by 7.66% on average over the next years.
The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y3.94%
EPS Next 2Y5.8%
EPS Next 3Y6.96%
EPS Next 5Y7.66%
Revenue Next Year4.3%
Revenue Next 2Y4.35%
Revenue Next 3Y4.14%
Revenue Next 5Y4%
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 stable.
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
The Price/Earnings ratio is 13.34, which indicates a correct valuation of BDX.
87.77% of the companies in the same industry are more expensive than BDX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.51, BDX is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.83, BDX is valued correctly.
88.30% of the companies in the same industry are more expensive than BDX, based on the Price/Forward Earnings ratio.
BDX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
82.98% of the companies in the same industry are more expensive than BDX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 84.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.65 | ||
| EV/EBITDA | 13.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BDX may justify a higher PE ratio.
PEG (NY)3.38
PEG (5Y)1.85
EPS Next 2Y5.8%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 2.18%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.70, BDX pays a better dividend. On top of this BDX pays more dividend than 96.81% of the companies listed in the same industry.
BDX's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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.
BDX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.28%
EPS Next 2Y5.8%
EPS Next 3Y6.96%
192.33
+1.35 (+0.71%)
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 Change3.98%
Ins Owners0.57%
Ins Owner Change2.22%
Market Cap55.13B
Revenue(TTM)21.84B
Net Income(TTM)1.68B
Analysts72.63
Price Target221.8 (15.32%)
Short Float %1.09%
Short Ratio1.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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)0%
PT rev (3m)-0.79%
EPS NQ rev (1m)-11.94%
EPS NQ rev (3m)-12.83%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-4.35%
Revenue NQ rev (3m)-4.76%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.83 | ||
| P/S | 2.52 | ||
| P/FCF | 20.65 | ||
| P/OCF | 16.07 | ||
| P/B | 2.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.42 |
EPS(TTM)14.42
EY7.5%
EPS(NY)14.99
Fwd EY7.79%
FCF(TTM)9.32
FCFY4.84%
OCF(TTM)11.97
OCFY6.22%
SpS76.19
BVpS88.58
TBVpS-37.08
PEG (NY)3.38
PEG (5Y)1.85
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
WACC7.61%
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 3Y6.96%
EPS Next 5Y7.66%
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 3Y4.14%
Revenue Next 5Y4%
EBIT growth 1Y4.74%
EBIT growth 3Y4.47%
EBIT growth 5Y13.98%
EBIT Next Year22.48%
EBIT Next 3Y13.08%
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.