BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BDX - US0758871091 - Common Stock
201.79 USD
-4.25 (-2.06%)
201.79 USD
0 (0%)
Taking everything into account, BDX scores 5 out of 10 in our fundamental rating. BDX was compared to 184 industry peers in the Health Care Equipment & Supplies industry. BDX scores excellent on profitability, but there are some minor 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.
- In the past year BDX had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 3.03%, BDX is in the better half of the industry, outperforming 77.72% of the companies in the same industry.
- BDX has a better Return On Equity (6.61%) than 80.98% of its industry peers.
- With a decent Return On Invested Capital value of 6.24%, BDX is doing good in the industry, outperforming 79.35% of the companies in the same industry.
- BDX had an Average Return On Invested Capital over the past 3 years of 5.64%. This is below the industry average of 8.84%.
- The 3 year average ROIC (5.64%) for BDX is below the current ROIC(6.24%), indicating increased profibility in the last year.
| 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's Profit Margin of 7.68% is fine compared to the rest of the industry. BDX outperforms 79.89% of its industry peers.
- In the last couple of years the Profit Margin of BDX has grown nicely.
- BDX has a Operating Margin of 15.70%. This is amongst the best in the industry. BDX outperforms 84.78% of its industry peers.
- BDX's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 45.79%, BDX is doing worse than 61.41% of the companies in the same industry.
- 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
- 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.
- Compared to 5 years ago, BDX has less shares outstanding
- BDX has a better debt/assets ratio than last year.
2.2 Solvency
- BDX has an Altman-Z score of 2.19. 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.
- Looking at the Altman-Z score, with a value of 2.19, BDX is in the better half of the industry, outperforming 63.04% 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.
- BDX's Debt to FCF ratio of 7.18 is fine compared to the rest of the industry. BDX outperforms 75.00% of its industry peers.
- A Debt/Equity ratio of 0.73 indicates that BDX is somewhat dependend on debt financing.
- BDX's Debt to Equity ratio of 0.73 is on the low side compared to the rest of the industry. BDX is outperformed by 69.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.66
WACC9.47%
2.3 Liquidity
- A Current Ratio of 1.11 indicates that BDX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.11, BDX is doing worse than 84.78% of the companies in the same industry.
- A Quick Ratio of 0.64 indicates that BDX may have some problems paying its short term obligations.
- The Quick ratio of BDX (0.64) is worse than 88.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.57% over the past year.
- The Earnings Per Share has been growing slightly by 7.19% on average over the past years.
- BDX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.24%.
- 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
- Based on estimates for the next years, BDX will show a small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
- The Revenue is expected to grow by 3.38% on average over the next years.
EPS Next Y4.17%
EPS Next 2Y5.22%
EPS Next 3Y5.36%
EPS Next 5Y6.59%
Revenue Next Year2.91%
Revenue Next 2Y3.14%
Revenue Next 3Y3.19%
Revenue Next 5Y3.38%
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
- Based on the Price/Earnings ratio of 13.99, the valuation of BDX can be described as correct.
- 90.22% of the companies in the same industry are more expensive than BDX, based on the Price/Earnings ratio.
- BDX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 13.43, BDX is valued correctly.
- BDX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 90.76% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. BDX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 13.43 |
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 85.87% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, BDX is valued cheaply inside the industry as 88.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.57 | ||
| EV/EBITDA | 12.78 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- BDX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.36
PEG (5Y)1.95
EPS Next 2Y5.22%
EPS Next 3Y5.36%
5. Dividend
5.1 Amount
- BDX has a Yearly Dividend Yield of 2.04%.
- BDX's Dividend Yield is rather good when compared to the industry average which is at 0.20. BDX pays more dividend than 96.74% of the companies in the same industry.
- BDX's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.22%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 71.28% of the earnings are spent on dividend by BDX. 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 2Y5.22%
EPS Next 3Y5.36%
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 13.99 and the Price/Book (PB) ratio is 2.27.
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.