BECTON DICKINSON AND CO (BDX)
US0758871091 - Common Stock
We assign a fundamental rating of 5 out of 10 to BDX. BDX was compared to 188 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 valuation in line with the averages, but it does not seem to be growing.
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.
Of the past 5 years BDX 4 years were profitable.
Of the past 5 years BDX 4 years had a positive operating cash flow.
1.2 Ratios
BDX has a better Return On Assets (3.01%) than 76.47% of its industry peers.
BDX has a Return On Equity of 6.66%. This is amongst the best in the industry. BDX outperforms 81.28% of its industry peers.
The Return On Invested Capital of BDX (4.72%) is better than 76.47% of its industry peers.
BDX had an Average Return On Invested Capital over the past 3 years of 4.42%. This is below the industry average of 8.23%.
The 3 year average ROIC (4.42%) for BDX is below the current ROIC(4.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 6.66% | ||
| ROIC | 4.72% |
ROA(3y)3.2%
ROA(5y)2.62%
ROE(3y)6.89%
ROE(5y)5.8%
ROIC(3y)4.42%
ROIC(5y)3.91%
1.3 Margins
With an excellent Profit Margin value of 8.55%, BDX belongs to the best of the industry, outperforming 80.75% of the companies in the same industry.
In the last couple of years the Profit Margin of BDX has grown nicely.
BDX has a better Operating Margin (14.32%) than 84.49% of its industry peers.
In the last couple of years the Operating Margin of BDX has grown nicely.
BDX's Gross Margin of 45.36% is on the low side compared to the rest of the industry. BDX is outperformed by 62.57% 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 | 14.32% | ||
| PM (TTM) | 8.55% | ||
| GM | 45.36% |
OM growth 3Y14.68%
OM growth 5Y1.91%
PM growth 3Y15.49%
PM growth 5Y49.18%
GM growth 3Y0.84%
GM growth 5Y0.03%
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.
BDX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
The Debt to FCF ratio of BDX is 9.51, which is on the high side as it means it would take BDX, 9.51 years of fcf income to pay off all of its debts.
BDX has a better Debt to FCF ratio (9.51) than 73.26% of its industry peers.
BDX has a Debt/Equity ratio of 0.69. This is a neutral value indicating BDX is somewhat dependend on debt financing.
BDX's Debt to Equity ratio of 0.69 is on the low side compared to the rest of the industry. BDX is outperformed by 71.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 9.51 | ||
| Altman-Z | N/A |
ROIC/WACC0.57
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.17 indicates that BDX should not have too much problems paying its short term obligations.
BDX has a Current ratio of 1.17. This is amonst the worse of the industry: BDX underperforms 89.30% of its industry peers.
BDX has a Quick Ratio of 1.17. This is a bad value and indicates that BDX is not financially healthy enough and could expect problems in meeting its short term obligations.
BDX's Quick ratio of 0.74 is on the low side compared to the rest of the industry. BDX is outperformed by 90.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
BDX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.69%.
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.
Looking at the last year, BDX shows a small growth in Revenue. The Revenue has grown by 4.16% in the last year.
EPS 1Y (TTM)7.69%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%11.4%
Revenue 1Y (TTM)4.16%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.88%
3.2 Future
Based on estimates for the next years, BDX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.69% on average per year.
BDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
EPS Next Y10.19%
EPS Next 2Y9.76%
EPS Next 3Y7.72%
EPS Next 5Y8.69%
Revenue Next Year8.06%
Revenue Next 2Y6.44%
Revenue Next 3Y6.15%
Revenue Next 5Y5.74%
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.
4. Valuation
4.1 Price/Earnings Ratio
BDX is valuated rather expensively with a Price/Earnings ratio of 17.13.
Compared to the rest of the industry, the Price/Earnings ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 89.84% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BDX to the average of the S&P500 Index (28.96), we can say BDX is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.55 indicates a correct valuation of BDX.
89.30% of the companies in the same industry are more expensive than BDX, based on the Price/Forward Earnings ratio.
BDX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 15.55 |
4.2 Price Multiples
BDX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BDX is cheaper than 85.03% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BDX indicates a rather cheap valuation: BDX is cheaper than 83.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.81 | ||
| EV/EBITDA | 15.97 |
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)1.68
PEG (5Y)7.09
EPS Next 2Y9.76%
EPS Next 3Y7.72%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 1.83%.
BDX's Dividend Yield is rather good when compared to the industry average which is at 1.68. BDX pays more dividend than 96.26% of the companies in the same industry.
BDX's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
The dividend of BDX has a limited annual growth rate of 0.78%.
BDX has paid a dividend for at least 10 years, which is a reliable track record.
BDX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.78%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
64.54% 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.
DP64.54%
EPS Next 2Y9.76%
EPS Next 3Y7.72%
BECTON DICKINSON AND CO
NYSE:BDX (11/21/2024, 8:14:33 PM)
After market: 225.45 0 (0%)225.45
+3.06 (+1.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap65.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 15.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.68
PEG (5Y)7.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 6.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.32% | ||
| PM (TTM) | 8.55% | ||
| GM | 45.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.69%
EPS 3Y0.23%
EPS 5Y
EPS Q2Q%
EPS Next Y10.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.16%
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y