BDX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 184 industry peers in the Health Care Equipment & Supplies industry. While BDX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BDX has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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

Looking at the Return On Assets, with a value of 3.03%, BDX is in the better half of the industry, outperforming 77.72% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.61%, BDX belongs to the top of the industry, outperforming 80.98% 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 79.35% 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 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

Looking at the Profit Margin, with a value of 7.68%, BDX is in the better half of the industry, outperforming 79.89% 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 (15.70%) than 84.78% of its industry peers.
In the last couple of years the Operating Margin of BDX has grown nicely.
BDX has a Gross Margin of 45.79%. This is in the lower half of the industry: BDX underperforms 61.41% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
BDX has less shares outstanding than it did 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 2.20. 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.
The Altman-Z score of BDX (2.20) is better than 63.04% 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.
BDX's Debt to FCF ratio of 7.18 is fine compared to the rest of the industry. BDX outperforms 75.00% 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.
The Debt to Equity ratio of BDX (0.73) is worse than 69.02% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.73
Debt/FCF	7.18
Altman-Z	2.2

ROIC/WACC0.66

WACC9.45%

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 84.78% 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.
Looking at the Quick ratio, with a value of 0.64, BDX is doing worse than 88.59% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.11
Quick Ratio	0.64

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
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

Based on estimates for the next years, BDX will show a small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
The Revenue is expected to grow by 3.38% on average over the next years.

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

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

BDX is valuated correctly with a Price/Earnings ratio of 14.11.
Based on the Price/Earnings ratio, BDX is valued cheaper than 90.76% of the companies in the same industry.
When comparing the Price/Earnings ratio of BDX to the average of the S&P500 Index (28.87), we can say BDX is valued rather cheaply.
The Price/Forward Earnings ratio is 13.54, which indicates a correct valuation of BDX.
91.30% 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 25.96.

		Industry Rank	Sector Rank
PE	14.11
Fwd PE	13.54

4.2 Price Multiples

85.87% of the companies in the same industry are more expensive than BDX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BDX is valued cheaply inside the industry as 88.04% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	21.74
EV/EBITDA	12.86

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)3.38

PEG (5Y)1.96

EPS Next 2Y5.22%

EPS Next 3Y5.36%

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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 96.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.82, BDX has a dividend comparable with the average S&P500 company.

		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

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 2Y5.22%

EPS Next 3Y5.36%

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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 14.11 and the Price/Book (PB) ratio is 2.29.

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.