BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BMY • US1101221083
54.985 USD
+0.7 (+1.3%)
Last: Jan 30, 2026, 11:20 AM
Taking everything into account, BMY scores 6 out of 10 in our fundamental rating. BMY was compared to 190 industry peers in the Pharmaceuticals industry. BMY has an excellent profitability rating, but there are some minor concerns on its financial health. BMY scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally BMY also has an excellent dividend rating. These ratings would make BMY suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- BMY had positive earnings in the past year.
- BMY had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: BMY reported negative net income in multiple years.
- BMY 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 6.23%, BMY belongs to the top of the industry, outperforming 87.37% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 32.55%, BMY belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
- BMY has a better Return On Invested Capital (18.43%) than 95.79% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BMY is in line with the industry average of 12.83%.
- The 3 year average ROIC (12.30%) for BMY is below the current ROIC(18.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 32.55% | ||
| ROIC | 18.43% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)12.3%
ROIC(5y)10.36%
1.3 Margins
- BMY has a Profit Margin of 12.57%. This is amongst the best in the industry. BMY outperforms 84.74% of its industry peers.
- BMY's Operating Margin of 33.51% is amongst the best of the industry. BMY outperforms 95.26% of its industry peers.
- In the last couple of years the Operating Margin of BMY has declined.
- Looking at the Gross Margin, with a value of 73.15%, BMY belongs to the top of the industry, outperforming 80.53% of the companies in the same industry.
- BMY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.51% | ||
| PM (TTM) | 12.57% | ||
| GM | 73.15% |
OM growth 3Y-0.56%
OM growth 5Y-4.29%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.73%
GM growth 5Y1.42%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BMY is creating value.
- Compared to 1 year ago, BMY has less shares outstanding
- BMY has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BMY has a worse debt to assets ratio.
2.2 Solvency
- BMY has an Altman-Z score of 2.23. This is not the best score and indicates that BMY is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.23, BMY is doing good in the industry, outperforming 62.11% of the companies in the same industry.
- BMY has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as BMY would need 3.20 years to pay back of all of its debts.
- BMY's Debt to FCF ratio of 3.20 is amongst the best of the industry. BMY outperforms 87.89% of its industry peers.
- A Debt/Equity ratio of 2.41 is on the high side and indicates that BMY has dependencies on debt financing.
- BMY has a Debt to Equity ratio of 2.41. This is in the lower half of the industry: BMY underperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.23 |
ROIC/WACC2.09
WACC8.8%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that BMY should not have too much problems paying its short term obligations.
- BMY has a worse Current ratio (1.27) than 77.89% of its industry peers.
- BMY has a Quick Ratio of 1.17. This is a normal value and indicates that BMY is financially healthy and should not expect problems in meeting its short term obligations.
- BMY has a worse Quick ratio (1.17) than 75.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- BMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 460.68%, which is quite impressive.
- Measured over the past years, BMY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.57% on average per year.
- The Revenue has been growing slightly by 1.26% in the past year.
- BMY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
EPS 1Y (TTM)460.68%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-9.44%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%2.77%
3.2 Future
- Based on estimates for the next years, BMY will show a very strong growth in Earnings Per Share. The EPS will grow by 35.29% on average per year.
- The Revenue is expected to decrease by -5.06% on average over the next years.
EPS Next Y471.99%
EPS Next 2Y130.77%
EPS Next 3Y73.18%
EPS Next 5Y35.29%
Revenue Next Year0.22%
Revenue Next 2Y-4.02%
Revenue Next 3Y-3.34%
Revenue Next 5Y-5.06%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.38, the valuation of BMY can be described as very reasonable.
- BMY's Price/Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 91.58% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. BMY is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 9.06 indicates a reasonable valuation of BMY.
- BMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 89.47% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, BMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
- BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 93.16% of the companies in the same industry.
- 94.74% of the companies in the same industry are more expensive than BMY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| EV/EBITDA | 6.76 |
4.3 Compensation for Growth
- BMY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of BMY may justify a higher PE ratio.
- A more expensive valuation may be justified as BMY's earnings are expected to grow with 73.18% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y130.77%
EPS Next 3Y73.18%
5. Dividend
5.1 Amount
- BMY has a Yearly Dividend Yield of 4.59%, which is a nice return.
- BMY's Dividend Yield is rather good when compared to the industry average which is at 0.46. BMY pays more dividend than 96.84% of the companies in the same industry.
- BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
- On average, the dividend of BMY grows each year by 11.67%, which is quite nice.
- BMY has paid a dividend for at least 10 years, which is a reliable track record.
- BMY has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.67%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- BMY pays out 82.81% of its income as dividend. This is not a sustainable payout ratio.
- BMY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.81%
EPS Next 2Y130.77%
EPS Next 3Y73.18%
BRISTOL-MYERS SQUIBB CO / BMY FAQ
What is the ChartMill fundamental rating of BRISTOL-MYERS SQUIBB CO (BMY) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BMY.
What is the valuation status for BMY stock?
ChartMill assigns a valuation rating of 9 / 10 to BRISTOL-MYERS SQUIBB CO (BMY). This can be considered as Undervalued.
What is the profitability of BMY stock?
BRISTOL-MYERS SQUIBB CO (BMY) has a profitability rating of 7 / 10.
Can you provide the financial health for BMY stock?
The financial health rating of BRISTOL-MYERS SQUIBB CO (BMY) is 5 / 10.
What is the expected EPS growth for BRISTOL-MYERS SQUIBB CO (BMY) stock?
The Earnings per Share (EPS) of BRISTOL-MYERS SQUIBB CO (BMY) is expected to grow by 471.99% in the next year.