BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BDX - US0758871091 - Common Stock
194.94 USD
+0.87 (+0.45%)
194.94 USD
0 (0%)
Overall BDX gets a fundamental rating of 5 out of 10. We evaluated BDX against 186 industry peers in the Health Care Equipment & Supplies industry. BDX has an excellent profitability rating, 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
In the past year BDX was profitable.
BDX had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 3.03%, BDX is doing good in the industry, outperforming 77.42% of the companies in the same industry.
With an excellent Return On Equity value of 6.61%, BDX belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.24%, BDX is doing good in the industry, outperforming 79.57% 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
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.
BDX has a Operating Margin of 15.70%. This is amongst the best in the industry. BDX outperforms 84.95% of its industry peers.
BDX's Operating Margin has improved in the last couple of years.
The Gross Margin of BDX (45.79%) is worse than 61.29% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BDX is destroying value.
The number of shares outstanding for BDX has been reduced compared to 1 year ago.
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
An Altman-Z score of 2.15 indicates that BDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.15, BDX is doing good in the industry, outperforming 63.44% 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 has a better Debt to FCF ratio (7.18) than 75.27% 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 68.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.66
WACC9.46%
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.
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 88.17% 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.
Measured over the past 5 years, BDX shows a small growth in Earnings Per Share. The EPS has been growing by 7.19% on average per year.
The Revenue has grown by 8.24% in the past year. This is quite good.
Measured over the past years, BDX shows a small growth in Revenue. The Revenue has been growing by 6.32% on average per year.
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 7.68% on average per year.
The Revenue is expected to grow by 3.70% on average over the next years.
EPS Next Y4.14%
EPS Next 2Y5.2%
EPS Next 3Y5.3%
EPS Next 5Y7.68%
Revenue Next Year2.92%
Revenue Next 2Y3.14%
Revenue Next 3Y3.18%
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
With a Price/Earnings ratio of 13.52, BDX is valued correctly.
Based on the Price/Earnings ratio, BDX is valued cheaper than 88.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. BDX is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.98, BDX is valued correctly.
90.86% of the companies in the same industry are more expensive than BDX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.23. BDX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BDX is valued cheaply inside the industry as 86.02% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 87.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.84 | ||
| EV/EBITDA | 12.4 |
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)3.26
PEG (5Y)1.88
EPS Next 2Y5.2%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.14%, BDX has a reasonable but not impressive dividend return.
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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
The dividend of BDX has a limited annual growth rate of 3.22%.
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)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 2Y5.2%
EPS Next 3Y5.3%
194.94
+0.87 (+0.45%)
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 Change5.24%
Market Cap55.64B
Revenue(TTM)21.84B
Net Income(TTM)1.68B
Analysts72.22
Price Target209.03 (7.23%)
Short Float %1.7%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend4.16
Dividend Growth(5Y)3.22%
DP71.28%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)-0.25%
PT rev (3m)-6.07%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-12.23%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-4.63%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 12.98 | ||
| P/S | 2.55 | ||
| P/FCF | 20.84 | ||
| P/OCF | 16.22 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.4 |
EPS(TTM)14.42
EY7.4%
EPS(NY)15.02
Fwd EY7.7%
FCF(TTM)9.35
FCFY4.8%
OCF(TTM)12.02
OCFY6.16%
SpS76.52
BVpS88.96
TBVpS-37.23
PEG (NY)3.26
PEG (5Y)1.88
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 | 2.15 |
F-Score7
WACC9.46%
ROIC/WACC0.66
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 Y4.14%
EPS Next 2Y5.2%
EPS Next 3Y5.3%
EPS Next 5Y7.68%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y4.99%
Revenue growth 5Y6.32%
Sales Q2Q%8.33%
Revenue Next Year2.92%
Revenue Next 2Y3.14%
Revenue Next 3Y3.18%
Revenue Next 5Y3.7%
EBIT growth 1Y18.62%
EBIT growth 3Y10.23%
EBIT growth 5Y17.71%
EBIT Next Year20.6%
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.
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 13.52 and the Price/Book (PB) ratio is 2.19.
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.