BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BDX - US0758871091 - Common Stock
198.4 USD
+9.58 (+5.07%)
198.4 USD
0 (0%)
BDX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 187 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 has a decent growth rate and is not valued too expensively.
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
BDX's Return On Assets of 3.03% is fine compared to the rest of the industry. BDX outperforms 77.01% of its industry peers.
The Return On Equity of BDX (6.61%) is better than 80.75% of its industry peers.
The Return On Invested Capital of BDX (6.24%) is better than 79.68% of its industry peers.
BDX had an Average Return On Invested Capital over the past 3 years of 5.64%. This is below the industry average of 8.81%.
The last Return On Invested Capital (6.24%) for BDX is above the 3 year average (5.64%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (7.68%) than 79.14% of its industry peers.
BDX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.70%, BDX belongs to the top of the industry, outperforming 85.03% of the companies in the same industry.
In the last couple of years the Operating Margin of BDX has grown nicely.
BDX's Gross Margin of 45.79% is on the low side compared to the rest of the industry. BDX is outperformed by 61.50% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BDX is destroying value.
Compared to 1 year ago, BDX has less shares outstanding
The number of shares outstanding for BDX has been reduced compared to 5 years ago.
Compared to 1 year ago, BDX has an improved debt to assets ratio.
2.2 Solvency
BDX has an Altman-Z score of 2.12. 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 2.12, BDX is in the better half of the industry, outperforming 62.57% 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 75.40% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that BDX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, BDX is doing worse than 67.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.86
WACC7.27%
2.3 Liquidity
A Current Ratio of 1.11 indicates that BDX should not have too much problems paying its short term obligations.
BDX has a Current ratio of 1.11. This is amonst the worse of the industry: BDX underperforms 86.10% of its industry peers.
A Quick Ratio of 0.64 indicates that BDX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.64, BDX is doing worse than 89.84% of the companies in the same industry.
| 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.
BDX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.19% yearly.
The Revenue has grown by 8.24% in the past year. This is quite good.
BDX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.32% yearly.
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
BDX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.68% yearly.
Based on estimates for the next years, BDX will show a small growth in Revenue. The Revenue will grow by 3.70% on average per year.
EPS Next Y4.05%
EPS Next 2Y4.84%
EPS Next 3Y5.85%
EPS Next 5Y7.68%
Revenue Next Year2.9%
Revenue Next 2Y3.15%
Revenue Next 3Y3.22%
Revenue Next 5Y3.7%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.76, the valuation of BDX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 89.30% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. BDX is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.22 indicates a correct valuation of BDX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 90.37% of the companies listed in the same industry.
BDX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 13.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BDX is valued cheaper than 86.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BDX is valued cheaper than 88.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.21 | ||
| EV/EBITDA | 12.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BDX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BDX may justify a higher PE ratio.
PEG (NY)3.4
PEG (5Y)1.91
EPS Next 2Y4.84%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 2.17%. 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 1.74. BDX pays more dividend than 96.79% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, BDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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 2Y4.84%
EPS Next 3Y5.85%
198.4
+9.58 (+5.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.16%
Inst Owner Change4.07%
Ins Owners0.56%
Ins Owner Change5.22%
Market Cap56.63B
Revenue(TTM)21.84B
Net Income(TTM)1.68B
Analysts72.22
Price Target207.83 (4.75%)
Short Float %1.47%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend4.16
Dividend Growth(5Y)3.22%
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)-6.3%
PT rev (3m)-6.61%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-12.86%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.76%
Revenue NY rev (1m)-1.34%
Revenue NY rev (3m)-1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 13.22 | ||
| P/S | 2.59 | ||
| P/FCF | 21.21 | ||
| P/OCF | 16.51 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.15 |
EPS(TTM)14.42
EY7.27%
EPS(NY)15
Fwd EY7.56%
FCF(TTM)9.35
FCFY4.72%
OCF(TTM)12.02
OCFY6.06%
SpS76.52
BVpS88.96
TBVpS-37.23
PEG (NY)3.4
PEG (5Y)1.91
Graham Number169.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 6.61% | ||
| ROCE | 7.29% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.33% | ||
| ROICexgc | 26.66% | ||
| OM | 15.7% | ||
| PM (TTM) | 7.68% | ||
| GM | 45.79% | ||
| FCFM | 12.23% |
ROA(3y)2.9%
ROA(5y)3.12%
ROE(3y)6.24%
ROE(5y)6.77%
ROIC(3y)5.64%
ROIC(5y)5.24%
ROICexc(3y)5.8%
ROICexc(5y)5.4%
ROICexgc(3y)27.15%
ROICexgc(5y)27.08%
ROCE(3y)6.53%
ROCE(5y)6.07%
ROICexgc growth 3Y-3.96%
ROICexgc growth 5Y9.78%
ROICexc growth 3Y7.94%
ROICexc growth 5Y16.75%
OM growth 3Y4.99%
OM growth 5Y10.71%
PM growth 3Y-4.96%
PM growth 5Y10%
GM growth 3Y0.22%
GM growth 5Y0.65%
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 30.87% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 5.46 | ||
| Cash Conversion | 58.23% | ||
| Profit Quality | 159.12% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.12 |
F-Score7
WACC7.27%
ROIC/WACC0.86
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 Y4.05%
EPS Next 2Y4.84%
EPS Next 3Y5.85%
EPS Next 5Y7.68%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y4.99%
Revenue growth 5Y6.32%
Sales Q2Q%8.33%
Revenue Next Year2.9%
Revenue Next 2Y3.15%
Revenue Next 3Y3.22%
Revenue Next 5Y3.7%
EBIT growth 1Y18.62%
EBIT growth 3Y10.23%
EBIT growth 5Y17.71%
EBIT Next Year20.57%
EBIT Next 3Y11.99%
EBIT Next 5Y12.28%
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 4 / 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 4.05% in the next year.