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. While BDX has a great profitability rating, there are some minor 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.
- Each year in the past 5 years BDX had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BDX (3.03%) is better than 77.42% of its industry peers.
- Looking at the Return On Equity, with a value of 6.61%, BDX belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
- BDX's Return On Invested Capital of 6.24% is fine compared to the rest of the industry. BDX outperforms 79.57% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BDX 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
- The Profit Margin of BDX (7.68%) is better than 79.57% of its industry peers.
- In the last couple of years the Profit Margin of BDX has grown nicely.
- Looking at the Operating Margin, with a value of 15.70%, BDX belongs to the top of the industry, outperforming 84.95% of the companies in the same industry.
- BDX's Operating Margin has improved in the last couple of years.
- BDX has a Gross Margin of 45.79%. This is in the lower half of the industry: BDX underperforms 61.29% of its industry peers.
- 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 | 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.
- The debt/assets ratio for BDX has been reduced compared to a year ago.
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.
- BDX has a better Altman-Z score (2.19) than 62.90% of its industry peers.
- The Debt to FCF ratio of BDX is 7.18, which is on the high side as it means it would take BDX, 7.18 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.18, BDX is in the better half of the industry, outperforming 75.27% of the companies in the same industry.
- BDX has a Debt/Equity ratio of 0.73. This is a neutral value indicating BDX is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.73, BDX is doing worse than 69.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.66
WACC9.44%
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 84.95% of the companies in the same industry.
- BDX has a Quick Ratio of 1.11. 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 0.64, BDX is doing worse than 88.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- BDX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.57%, which is quite good.
- BDX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.19% yearly.
- Looking at the last year, BDX shows a quite strong growth in Revenue. The Revenue has grown by 8.24% in the last year.
- 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
- The Earnings Per Share is expected to grow by 6.59% on average over the next years.
- BDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.38% yearly.
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
- The Price/Earnings ratio is 13.99, which indicates a correct valuation of BDX.
- Compared to the rest of the industry, the Price/Earnings ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 89.78% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BDX to the average of the S&P500 Index (27.21), we can say BDX is valued slightly cheaper.
- The Price/Forward Earnings ratio is 13.43, which indicates a correct valuation of BDX.
- BDX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BDX is cheaper than 90.86% of the companies in the same industry.
- BDX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| 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 86.02% of the companies listed in the same industry.
- 88.71% of the companies in the same industry are more expensive than BDX, based on the Price/Free Cash Flow ratio.
| 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 BDX does not grow enough to justify the current Price/Earnings ratio.
- 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%.
- Compared to an average industry Dividend Yield of 0.20, BDX pays a better dividend. On top of this BDX pays more dividend than 96.77% of the companies listed 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.
- BDX's earnings are growing more than its dividend. This makes the dividend growth 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.