BECTON DICKINSON AND CO (BDX)
US0758871091 - Common Stock
Overall BDX gets a fundamental rating of 5 out of 10. We evaluated BDX against 187 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 decent growth rate and is not valued too expensively.
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.
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
BDX has a better Return On Assets (3.01%) than 75.94% of its industry peers.
BDX has a better Return On Equity (6.66%) than 81.28% of its industry peers.
BDX's Return On Invested Capital of 5.29% is fine compared to the rest of the industry. BDX outperforms 78.61% of its industry peers.
BDX had an Average Return On Invested Capital over the past 3 years of 5.27%. This is below the industry average of 8.19%.
The last Return On Invested Capital (5.29%) for BDX is above the 3 year average (5.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 6.66% | ||
| ROIC | 5.29% |
ROA(3y)2.96%
ROA(5y)2.8%
ROE(3y)6.26%
ROE(5y)6.09%
ROIC(3y)5.27%
ROIC(5y)4.6%
1.3 Margins
The Profit Margin of BDX (8.55%) is better than 80.75% 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 14.32%, BDX belongs to the top of the industry, outperforming 83.42% of the companies in the same industry.
In the last couple of years the Operating Margin of BDX has grown nicely.
The Gross Margin of BDX (45.36%) is worse than 62.03% of its industry peers.
BDX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.32% | ||
| PM (TTM) | 8.55% | ||
| GM | 45.36% |
OM growth 3Y5.79%
OM growth 5Y2.6%
PM growth 3Y-6.88%
PM growth 5Y6.19%
GM growth 3Y0%
GM growth 5Y-1.08%
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 more shares outstanding
BDX has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BDX is 6.54, which is on the high side as it means it would take BDX, 6.54 years of fcf income to pay off all of its debts.
BDX has a better Debt to FCF ratio (6.54) than 74.87% 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 has a Debt to Equity ratio of 0.69. This is in the lower half of the industry: BDX underperforms 70.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.54 | ||
| Altman-Z | N/A |
ROIC/WACC0.62
WACC8.48%
2.3 Liquidity
BDX has a Current Ratio of 1.17. This is a normal value and indicates that BDX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BDX (1.17) is worse than 88.77% of its industry peers.
A Quick Ratio of 0.74 indicates that BDX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, BDX is doing worse than 90.37% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 2.41% on average over the past years.
BDX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.16%.
BDX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.14% yearly.
EPS 1Y (TTM)7.69%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%11.4%
Revenue 1Y (TTM)4.16%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%6.88%
3.2 Future
BDX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.89% yearly.
The Revenue is expected to grow by 5.21% on average over the next years.
EPS Next Y10.61%
EPS Next 2Y9.8%
EPS Next 3Y8.16%
EPS Next 5Y6.89%
Revenue Next Year9.09%
Revenue Next 2Y7.02%
Revenue Next 3Y6.31%
Revenue Next 5Y5.21%
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.
When comparing the Revenue 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
Based on the Price/Earnings ratio of 17.30, the valuation of BDX can be described as rather expensive.
Based on the Price/Earnings ratio, BDX is valued cheaper than 89.84% of the companies in the same industry.
When comparing the Price/Earnings ratio of BDX to the average of the S&P500 Index (27.73), we can say BDX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.64, the valuation of BDX can be described as correct.
Based on the Price/Forward Earnings ratio, BDX is valued cheaply inside the industry as 88.77% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, BDX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.3 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BDX is valued cheaply inside the industry as 83.96% 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 88.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.42 | ||
| EV/EBITDA | 16.1 |
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)1.63
PEG (5Y)7.16
EPS Next 2Y9.8%
EPS Next 3Y8.16%
5. Dividend
5.1 Amount
BDX has a Yearly Dividend Yield of 1.86%.
BDX's Dividend Yield is rather good when compared to the industry average which is at 1.68. BDX pays more dividend than 95.72% of the companies in the same industry.
BDX's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of BDX has a limited annual growth rate of 0.75%.
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)0.75%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
BDX pays out 63.73% 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.
DP63.73%
EPS Next 2Y9.8%
EPS Next 3Y8.16%
BECTON DICKINSON AND CO
NYSE:BDX (12/20/2024, 8:04:00 PM)
After market: 227.68 0 (0%)227.68
+3.85 (+1.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.15%
Inst Owner Change1.13%
Ins Owners0.25%
Ins Owner Change4.84%
Market Cap65.83B
Analysts83.64
Price Target283.73 (24.62%)
Short Float %0.66%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Dividend Growth(5Y)0.75%
DP63.73%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.43%
Min EPS beat(2)0.11%
Max EPS beat(2)4.75%
EPS beat(4)4
Avg EPS beat(4)5.28%
Min EPS beat(4)0.11%
Max EPS beat(4)10.55%
EPS beat(8)7
Avg EPS beat(8)4.22%
EPS beat(12)10
Avg EPS beat(12)5.85%
EPS beat(16)14
Avg EPS beat(16)8.4%
Revenue beat(2)1
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)0.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)0.06%
Revenue beat(8)4
Avg Revenue beat(8)-0.15%
Revenue beat(12)5
Avg Revenue beat(12)-0.29%
Revenue beat(16)7
Avg Revenue beat(16)-0.52%
PT rev (1m)-0.16%
PT rev (3m)1.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)0.38%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.3 | ||
| Fwd PE | 15.64 | ||
| P/S | 3.26 | ||
| P/FCF | 21.42 | ||
| P/OCF | 17.33 | ||
| P/B | 2.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.1 |
EPS(TTM)13.16
EY5.78%
EPS(NY)14.56
Fwd EY6.39%
FCF(TTM)10.63
FCFY4.67%
OCF(TTM)13.14
OCFY5.77%
SpS69.79
BVpS89.62
TBVpS-39.68
PEG (NY)1.63
PEG (5Y)7.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 6.66% | ||
| ROCE | 5.98% | ||
| ROIC | 5.29% | ||
| ROICexc | 5.54% | ||
| ROICexgc | 29.1% | ||
| OM | 14.32% | ||
| PM (TTM) | 8.55% | ||
| GM | 45.36% | ||
| FCFM | 15.23% |
ROA(3y)2.96%
ROA(5y)2.8%
ROE(3y)6.26%
ROE(5y)6.09%
ROIC(3y)5.27%
ROIC(5y)4.6%
ROICexc(3y)5.45%
ROICexc(5y)4.78%
ROICexgc(3y)28.79%
ROICexgc(5y)25.46%
ROCE(3y)5.98%
ROCE(5y)5.22%
ROICexcg growth 3Y6%
ROICexcg growth 5Y0.79%
ROICexc growth 3Y6.82%
ROICexc growth 5Y5.36%
OM growth 3Y5.79%
OM growth 5Y2.6%
PM growth 3Y-6.88%
PM growth 5Y6.19%
GM growth 3Y0%
GM growth 5Y-1.08%
F-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.54 | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 31.71% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 6.11 | ||
| Cash Conversion | 73.38% | ||
| Profit Quality | 178.04% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | N/A |
F-Score5
WACC8.48%
ROIC/WACC0.62
Cap/Depr(3y)37.86%
Cap/Depr(5y)40.69%
Cap/Sales(3y)4.42%
Cap/Sales(5y)4.86%
Profit Quality(3y)142.37%
Profit Quality(5y)192.14%
High Growth Momentum
Growth
EPS 1Y (TTM)7.69%
EPS 3Y0.23%
EPS 5Y2.41%
EPS Q2Q%11.4%
EPS Next Y10.61%
EPS Next 2Y9.8%
EPS Next 3Y8.16%
EPS Next 5Y6.89%
Revenue 1Y (TTM)4.16%
Revenue growth 3Y1.79%
Revenue growth 5Y3.14%
Sales Q2Q%6.88%
Revenue Next Year9.09%
Revenue Next 2Y7.02%
Revenue Next 3Y6.31%
Revenue Next 5Y5.21%
EBIT growth 1Y2.37%
EBIT growth 3Y7.69%
EBIT growth 5Y5.82%
EBIT Next Year34.32%
EBIT Next 3Y16.68%
EBIT Next 5Y15%
FCF growth 1Y45.3%
FCF growth 3Y-3.8%
FCF growth 5Y5.31%
OCF growth 1Y27.07%
OCF growth 3Y-6.5%
OCF growth 5Y2.66%