BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - NYSE:BDX - US0758871091 - Common Stock
187.04 USD
-1.33 (-0.71%)
187.04 USD
0 (0%)
Taking everything into account, BDX scores 5 out of 10 in our fundamental rating. BDX was compared to 191 industry peers in the Health Care Equipment & Supplies industry. While BDX belongs to the best of the industry regarding profitability, there are concerns on its financial health. BDX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
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 77.49% of its industry peers.
BDX's Return On Equity of 6.30% is fine compared to the rest of the industry. BDX outperforms 79.58% of its industry peers.
The Return On Invested Capital of BDX (5.72%) is better than 79.06% of its industry peers.
BDX had an Average Return On Invested Capital over the past 3 years of 5.27%. This is below the industry average of 8.46%.
The last Return On Invested Capital (5.72%) for BDX is above the 3 year average (5.27%), which is a sign of increasing profitability.
| 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 78.53% 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 82.20% of its industry peers.
In the last couple of years the Operating Margin of BDX has grown nicely.
The Gross Margin of BDX (45.08%) is worse than 62.30% of its industry peers.
BDX's Gross Margin has been stable in the last couple of years.
| 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
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 more shares outstanding
BDX has a worse debt/assets ratio than last year.
2.2 Solvency
BDX has an Altman-Z score of 2.11. 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 better Altman-Z score (2.11) than 63.35% of its industry peers.
BDX has a debt to FCF ratio of 7.58. This is a slightly negative value and a sign of low solvency as BDX would need 7.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.58, BDX is doing good in the industry, outperforming 76.96% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that BDX is somewhat dependend on debt financing.
The Debt to Equity ratio of BDX (0.69) is worse than 69.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7.58 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.8
WACC7.11%
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.
Looking at the Current ratio, with a value of 1.10, BDX is doing worse than 86.39% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.62, BDX is doing worse than 89.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
BDX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.75%, which is quite good.
BDX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.41% yearly.
Looking at the last year, BDX shows a small growth in Revenue. The Revenue has grown by 7.86% in the last year.
The Revenue has been growing slightly by 3.14% on average over the past years.
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
Based on estimates for the next years, BDX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.57% on average per year.
BDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.59% yearly.
EPS Next Y10.39%
EPS Next 2Y6.78%
EPS Next 3Y7.2%
EPS Next 5Y8.57%
Revenue Next Year8.41%
Revenue Next 2Y6.54%
Revenue Next 3Y5.93%
Revenue Next 5Y5.59%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BDX is valuated correctly with a Price/Earnings ratio of 13.11.
Based on the Price/Earnings ratio, BDX is valued cheaply inside the industry as 89.53% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BDX to the average of the S&P500 Index (27.41), we can say BDX is valued rather cheaply.
BDX is valuated correctly with a Price/Forward Earnings ratio of 12.47.
BDX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 89.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, BDX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
82.20% of the companies in the same industry are more expensive than BDX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BDX is valued cheaper than 85.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.02 | ||
| EV/EBITDA | 13.34 |
4.3 Compensation for Growth
BDX's 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)1.26
PEG (5Y)5.43
EPS Next 2Y6.78%
EPS Next 3Y7.2%
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.
BDX's Dividend Yield is rather good when compared to the industry average which is at 1.69. BDX pays more dividend than 97.38% 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 | 2.18% |
5.2 History
The dividend of BDX has a limited annual growth rate of 0.75%.
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)0.75%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
73.10% 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.
DP73.1%
EPS Next 2Y6.78%
EPS Next 3Y7.2%
187.04
-1.33 (-0.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.08%
Inst Owner Change-3.67%
Ins Owners0.57%
Ins Owner Change0.91%
Market Cap53.61B
Analysts73.33
Price Target222.53 (18.97%)
Short Float %1.6%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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)-0.46%
PT rev (3m)0.25%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-1.71%
EPS NY rev (1m)1.42%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 12.47 | ||
| P/S | 2.51 | ||
| P/FCF | 21.02 | ||
| P/OCF | 16.48 | ||
| P/B | 2.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.34 |
EPS(TTM)14.27
EY7.63%
EPS(NY)15.01
Fwd EY8.02%
FCF(TTM)8.9
FCFY4.76%
OCF(TTM)11.35
OCFY6.07%
SpS74.61
BVpS88.87
TBVpS-38.07
PEG (NY)1.26
PEG (5Y)5.43
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%
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-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 | 2.11 |
F-Score7
WACC7.11%
ROIC/WACC0.8
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 Y10.39%
EPS Next 2Y6.78%
EPS Next 3Y7.2%
EPS Next 5Y8.57%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%8.94%
Revenue Next Year8.41%
Revenue Next 2Y6.54%
Revenue Next 3Y5.93%
Revenue Next 5Y5.59%
EBIT growth 1Y2.55%
EBIT growth 3Y7.69%
EBIT growth 5Y5.82%
EBIT Next Year33.14%
EBIT Next 3Y13.55%
EBIT Next 5Y13.35%
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%