BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
NYSE:BDX - New York Stock Exchange, Inc. - US0758871091 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BDX. BDX was compared to 190 industry peers in the Health Care Equipment & Supplies industry. While BDX has a great profitability rating, there are quite some 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.
In the past year BDX had a positive cash flow from operations.
Each year in the past 5 years BDX has been profitable.
BDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BDX (3.20%) is better than 77.66% of its industry peers.
With an excellent Return On Equity value of 6.94%, BDX belongs to the best of the industry, outperforming 80.32% of the companies in the same industry.
BDX has a better Return On Invested Capital (5.50%) than 79.26% 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 8.19%.
The last Return On Invested Capital (5.50%) for BDX is above the 3 year average (5.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.94% | ||
| ROIC | 5.5% |
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 8.47% is amongst the best of the industry. BDX outperforms 80.32% of its industry peers.
In the last couple of years the Profit Margin of BDX has grown nicely.
With an excellent Operating Margin value of 14.14%, BDX belongs to the best of the industry, outperforming 82.98% of the companies in the same industry.
BDX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.35%, BDX is doing worse than 62.23% of the companies in the same 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 | 14.14% | ||
| PM (TTM) | 8.47% | ||
| GM | 45.35% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BDX is destroying value.
BDX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BDX has more shares outstanding
Compared to 1 year ago, BDX has a worse debt to assets ratio.
2.2 Solvency
BDX has an Altman-Z score of 2.32. 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.
The Altman-Z score of BDX (2.32) is better than 63.30% of its industry peers.
The Debt to FCF ratio of BDX is 6.39, which is on the high side as it means it would take BDX, 6.39 years of fcf income to pay off all of its debts.
BDX's Debt to FCF ratio of 6.39 is fine compared to the rest of the industry. BDX outperforms 76.06% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that 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 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.39 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.66
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.13 indicates that BDX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, BDX is doing worse than 89.36% of the companies in the same industry.
BDX has a Quick Ratio of 1.13. This is a bad value and indicates that BDX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.63, BDX is not doing good in the industry: 90.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.69% over the past year.
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.
BDX shows a small growth in Revenue. In the last year, the Revenue has grown by 5.89%.
Measured over the past years, BDX shows a small growth in Revenue. The Revenue has been growing by 3.14% on average per year.
EPS 1Y (TTM)16.69%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%27.99%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%9.82%
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 Y10.71%
EPS Next 2Y9.62%
EPS Next 3Y9.24%
EPS Next 5Y6.89%
Revenue Next Year8.96%
Revenue Next 2Y6.88%
Revenue Next 3Y6.23%
Revenue Next 5Y5.46%
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
A Price/Earnings ratio of 16.35 indicates a correct valuation of BDX.
BDX's Price/Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 89.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of BDX to the average of the S&P500 Index (29.63), we can say BDX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.38, the valuation of BDX can be described as correct.
BDX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 89.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. BDX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 14.38 |
4.2 Price Multiples
82.45% 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 87.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.24 | ||
| EV/EBITDA | 15.89 |
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)1.53
PEG (5Y)6.77
EPS Next 2Y9.62%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.66, BDX pays a better dividend. On top of this BDX pays more dividend than 96.28% of the companies listed in the same industry.
BDX's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.75%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
64.47% 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.
DP64.47%
EPS Next 2Y9.62%
EPS Next 3Y9.24%
227.43
-0.5 (-0.22%)
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 Change1.26%
Ins Owners0.25%
Ins Owner Change5.36%
Market Cap65.30B
Analysts83.64
Price Target278.82 (22.6%)
Short Float %0.95%
Short Ratio1.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend3.8
Dividend Growth(5Y)0.75%
DP64.47%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.08%
Min EPS beat(2)0.11%
Max EPS beat(2)14.05%
EPS beat(4)4
Avg EPS beat(4)6.15%
Min EPS beat(4)0.11%
Max EPS beat(4)14.05%
EPS beat(8)7
Avg EPS beat(8)4.73%
EPS beat(12)10
Avg EPS beat(12)4.82%
EPS beat(16)14
Avg EPS beat(16)6.48%
Revenue beat(2)2
Avg Revenue beat(2)0.21%
Min Revenue beat(2)0.06%
Max Revenue beat(2)0.37%
Revenue beat(4)2
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)0.37%
Revenue beat(8)4
Avg Revenue beat(8)-0.15%
Revenue beat(12)6
Avg Revenue beat(12)-0.1%
Revenue beat(16)7
Avg Revenue beat(16)-0.99%
PT rev (1m)-1.3%
PT rev (3m)-1.89%
EPS NQ rev (1m)-4.73%
EPS NQ rev (3m)-4.98%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)-1.92%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 14.38 | ||
| P/S | 3.16 | ||
| P/FCF | 22.24 | ||
| P/OCF | 17.89 | ||
| P/B | 2.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.89 |
EPS(TTM)13.91
EY6.12%
EPS(NY)15.81
Fwd EY6.95%
FCF(TTM)10.23
FCFY4.5%
OCF(TTM)12.71
OCFY5.59%
SpS71.88
BVpS87.78
TBVpS-40.44
PEG (NY)1.53
PEG (5Y)6.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.94% | ||
| ROCE | 6.21% | ||
| ROIC | 5.5% | ||
| ROICexc | 5.59% | ||
| ROICexgc | 27.34% | ||
| OM | 14.14% | ||
| PM (TTM) | 8.47% | ||
| GM | 45.35% | ||
| FCFM | 14.22% |
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-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.39 | ||
| Debt/EBITDA | 3.32 | ||
| Cap/Depr | 30.62% | ||
| Cap/Sales | 3.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.51% | ||
| Profit Quality | 167.96% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 2.32 |
F-Score8
WACC8.35%
ROIC/WACC0.66
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)16.69%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%27.99%
EPS Next Y10.71%
EPS Next 2Y9.62%
EPS Next 3Y9.24%
EPS Next 5Y6.89%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%9.82%
Revenue Next Year8.96%
Revenue Next 2Y6.88%
Revenue Next 3Y6.23%
Revenue Next 5Y5.46%
EBIT growth 1Y7.95%
EBIT growth 3Y7.69%
EBIT growth 5Y5.82%
EBIT Next Year33%
EBIT Next 3Y14.75%
EBIT Next 5Y15%
FCF growth 1Y115.72%
FCF growth 3Y-3.8%
FCF growth 5Y5.31%
OCF growth 1Y54.73%
OCF growth 3Y-6.5%
OCF growth 5Y2.66%