BECTON DICKINSON AND CO (BDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BDX - US0758871091 - Common Stock
201.52 USD
-1.22 (-0.6%)
201.52 USD
0 (0%)
Overall BDX gets a fundamental rating of 5 out of 10. We evaluated BDX against 185 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
BDX had positive earnings in the past year.
BDX had a positive operating cash flow in the past year.
In the past 5 years BDX has always been profitable.
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 77.30% 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 80.54% 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 79.46% 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 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
With a decent Profit Margin value of 7.68%, BDX is doing good in the industry, outperforming 79.46% of the companies in the same industry.
In the last couple of years the Profit Margin of BDX has grown nicely.
BDX's Operating Margin of 15.70% is amongst the best of the industry. BDX outperforms 84.86% of its industry peers.
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 61.08% 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
BDX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BDX has less shares outstanding
Compared to 5 years ago, BDX has less shares outstanding
The debt/assets ratio for BDX has been reduced compared to a year ago.
2.2 Solvency
BDX has an Altman-Z score of 2.20. 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.
With a decent Altman-Z score value of 2.20, BDX is doing good in the industry, outperforming 62.16% 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.
The Debt to FCF ratio of BDX (7.18) is better than 75.68% of its industry peers.
BDX has a Debt/Equity ratio of 0.73. This is a neutral value indicating BDX is somewhat dependend on debt financing.
BDX has a worse Debt to Equity ratio (0.73) than 69.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.66
WACC9.41%
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 worse Current ratio (1.11) than 85.41% of its industry peers.
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.
With a Quick ratio value of 0.64, BDX is not doing good in the industry: 88.65% of the companies in the same industry are doing better.
| 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%.
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.
Based on estimates for the next years, BDX will show a small growth in Revenue. The Revenue will grow by 3.38% on average per year.
EPS Next Y4.14%
EPS Next 2Y5.2%
EPS Next 3Y5.3%
EPS Next 5Y6.59%
Revenue Next Year2.92%
Revenue Next 2Y3.14%
Revenue Next 3Y3.18%
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.
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 13.98, the valuation of BDX can be described as correct.
Based on the Price/Earnings ratio, BDX is valued cheaper than 90.81% of the companies in the same industry.
BDX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.42, BDX is valued correctly.
Based on the Price/Forward Earnings ratio, BDX is valued cheaper than 90.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.04. BDX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 13.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BDX is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
88.11% 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 | 21.54 | ||
| EV/EBITDA | 12.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BDX may justify a higher PE ratio.
PEG (NY)3.37
PEG (5Y)1.94
EPS Next 2Y5.2%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.19, BDX pays a better dividend. On top of this BDX pays more dividend than 96.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, BDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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
BDX pays out 71.28% of its income as dividend. 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%
201.52
-1.22 (-0.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.4%
Inst Owner Change0.02%
Ins Owners0.36%
Ins Owner Change4.25%
Market Cap57.52B
Revenue(TTM)21.84B
Net Income(TTM)1.68B
Analysts72.22
Price Target209.03 (3.73%)
Short Float %1.7%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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)0.58%
PT rev (3m)-5.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.34%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-4.53%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 13.42 | ||
| P/S | 2.63 | ||
| P/FCF | 21.54 | ||
| P/OCF | 16.77 | ||
| P/B | 2.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.82 |
EPS(TTM)14.42
EY7.16%
EPS(NY)15.02
Fwd EY7.45%
FCF(TTM)9.35
FCFY4.64%
OCF(TTM)12.02
OCFY5.96%
SpS76.52
BVpS88.96
TBVpS-37.23
PEG (NY)3.37
PEG (5Y)1.94
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 | 2.2 |
F-Score7
WACC9.41%
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 5Y6.59%
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 5Y3.38%
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 13.98 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.