BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
NYSE:BDX - New York Stock Exchange, Inc. - US0758871091 - Common Stock
Overall BDX gets a fundamental rating of 5 out of 10. We evaluated BDX against 191 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 correct valuation and a medium 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.
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
With a decent Return On Assets value of 3.01%, BDX is doing good in the industry, outperforming 76.32% of the companies in the same industry.
With an excellent Return On Equity value of 6.66%, BDX belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
BDX has a Return On Invested Capital of 5.29%. This is in the better half of the industry: BDX outperforms 78.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BDX is below the industry average of 8.08%.
The last Return On Invested Capital (5.29%) for BDX is above the 3 year average (5.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 6.66% | ||
| ROIC | 5.29% |
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 8.55% is amongst the best of the industry. BDX outperforms 81.05% of its industry peers.
BDX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.32%, BDX belongs to the best of the industry, outperforming 83.68% of the companies in the same industry.
BDX's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 45.36%, BDX is not doing good in the industry: 61.05% of the companies in the same industry are doing better.
BDX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.32% | ||
| PM (TTM) | 8.55% | ||
| GM | 45.36% |
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%
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 more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BDX has a worse debt to assets ratio.
2.2 Solvency
BDX has a debt to FCF ratio of 6.54. This is a slightly negative value and a sign of low solvency as BDX would need 6.54 years to pay back of all of its debts.
BDX has a better Debt to FCF ratio (6.54) than 74.74% 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.
Looking at the Debt to Equity ratio, with a value of 0.69, BDX is doing worse than 68.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.54 | ||
| Altman-Z | N/A |
ROIC/WACC0.64
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.17 indicates that BDX should not have too much problems paying its short term obligations.
BDX's Current ratio of 1.17 is on the low side compared to the rest of the industry. BDX is outperformed by 86.32% of its industry peers.
BDX has a Quick Ratio of 1.17. 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 0.74. This is amonst the worse of the industry: BDX underperforms 88.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
BDX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.69%.
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.
Looking at the last year, BDX shows a small growth in Revenue. The Revenue has grown by 4.16% in the last year.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)7.69%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%11.4%
Revenue 1Y (TTM)4.16%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%6.88%
3.2 Future
BDX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.89% yearly.
The Revenue is expected to grow by 5.46% on average over the next years.
EPS Next Y10.61%
EPS Next 2Y9.8%
EPS Next 3Y8.16%
EPS Next 5Y6.89%
Revenue Next Year9.11%
Revenue Next 2Y7.05%
Revenue Next 3Y6.34%
Revenue Next 5Y5.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.27 indicates a rather expensive valuation of BDX.
BDX's Price/Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 89.47% of the companies in the same industry.
BDX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.51 indicates a correct valuation of BDX.
BDX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 87.37% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BDX to the average of the S&P500 Index (24.44), we can say BDX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 16.51 |
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 82.63% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BDX is valued cheaply inside the industry as 88.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.68 | ||
| EV/EBITDA | 16.85 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BDX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)7.56
EPS Next 2Y9.8%
EPS Next 3Y8.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.76%, 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 1.64. BDX pays more dividend than 95.79% of the companies in the same industry.
BDX's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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
63.73% of the earnings are spent on dividend by BDX. This is not a sustainable payout ratio.
BDX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.73%
EPS Next 2Y9.8%
EPS Next 3Y8.16%
BECTON DICKINSON AND CO
NYSE:BDX (1/21/2025, 8:04:00 PM)
After market: 240.37 0 (0%)240.37
+2.99 (+1.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.15%
Inst Owner Change0.22%
Ins Owners0.25%
Ins Owner Change4.78%
Market Cap69.71B
Analysts83.64
Price Target282.48 (17.52%)
Short Float %1.29%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend3.8
Dividend Growth(5Y)0.75%
DP63.73%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.43%
Min EPS beat(2)0.11%
Max EPS beat(2)4.75%
EPS beat(4)4
Avg EPS beat(4)5.28%
Min EPS beat(4)0.11%
Max EPS beat(4)10.55%
EPS beat(8)7
Avg EPS beat(8)4.22%
EPS beat(12)10
Avg EPS beat(12)5.85%
EPS beat(16)14
Avg EPS beat(16)8.4%
Revenue beat(2)1
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)0.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)0.06%
Revenue beat(8)4
Avg Revenue beat(8)-0.15%
Revenue beat(12)5
Avg Revenue beat(12)-0.29%
Revenue beat(16)7
Avg Revenue beat(16)-0.52%
PT rev (1m)-0.44%
PT rev (3m)0.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)0%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 16.51 | ||
| P/S | 3.45 | ||
| P/FCF | 22.68 | ||
| P/OCF | 18.35 | ||
| P/B | 2.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.85 |
EPS(TTM)13.16
EY5.47%
EPS(NY)14.56
Fwd EY6.06%
FCF(TTM)10.6
FCFY4.41%
OCF(TTM)13.1
OCFY5.45%
SpS69.58
BVpS89.35
TBVpS-39.56
PEG (NY)1.72
PEG (5Y)7.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 6.66% | ||
| ROCE | 5.98% | ||
| ROIC | 5.29% | ||
| ROICexc | 5.54% | ||
| ROICexgc | 29.1% | ||
| OM | 14.32% | ||
| PM (TTM) | 8.55% | ||
| GM | 45.36% | ||
| FCFM | 15.23% |
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%
ROICexcg growth 3Y6%
ROICexcg 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-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.54 | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 31.71% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 6.11 | ||
| Cash Conversion | 73.38% | ||
| Profit Quality | 178.04% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | N/A |
F-Score5
WACC8.24%
ROIC/WACC0.64
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)7.69%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%11.4%
EPS Next Y10.61%
EPS Next 2Y9.8%
EPS Next 3Y8.16%
EPS Next 5Y6.89%
Revenue 1Y (TTM)4.16%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%6.88%
Revenue Next Year9.11%
Revenue Next 2Y7.05%
Revenue Next 3Y6.34%
Revenue Next 5Y5.46%
EBIT growth 1Y2.37%
EBIT growth 3Y7.69%
EBIT growth 5Y5.82%
EBIT Next Year33%
EBIT Next 3Y14.68%
EBIT Next 5Y15%
FCF growth 1Y45.3%
FCF growth 3Y-3.8%
FCF growth 5Y5.31%
OCF growth 1Y27.07%
OCF growth 3Y-6.5%
OCF growth 5Y2.66%