BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - NYSE:BMY - US1101221083 - Common Stock
44.39 USD
-0.15 (-0.34%)
44.4015 USD
+0.01 (+0.03%)
Overall BMY gets a fundamental rating of 6 out of 10. We evaluated BMY against 191 industry peers in the Pharmaceuticals industry. BMY scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BMY. BMY also has an excellent dividend rating. With these ratings, BMY could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year BMY was profitable.
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.
Each year in the past 5 years BMY had a positive operating cash flow.
1.2 Ratios
BMY has a Return On Assets of 5.33%. This is amongst the best in the industry. BMY outperforms 89.01% of its industry peers.
With an excellent Return On Equity value of 28.96%, BMY belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.93%, BMY belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
BMY had an Average Return On Invested Capital over the past 3 years of 12.30%. This is below the industry average of 15.45%.
The 3 year average ROIC (12.30%) for BMY is below the current ROIC(16.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 28.96% | ||
| ROIC | 16.93% |
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
With an excellent Profit Margin value of 10.58%, BMY belongs to the best of the industry, outperforming 86.39% of the companies in the same industry.
BMY has a Operating Margin of 30.27%. This is amongst the best in the industry. BMY outperforms 94.24% of its industry peers.
BMY's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 73.92%, BMY belongs to the top of the industry, outperforming 80.63% of the companies in the same industry.
In the last couple of years the Gross Margin of BMY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.27% | ||
| PM (TTM) | 10.58% | ||
| GM | 73.92% |
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.
BMY has less shares outstanding than it did 1 year ago.
BMY has less shares outstanding than it did 5 years ago.
BMY has a worse debt/assets ratio than last year.
2.2 Solvency
BMY has an Altman-Z score of 2.02. 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.
Looking at the Altman-Z score, with a value of 2.02, BMY is in the better half of the industry, outperforming 64.40% of the companies in the same industry.
The Debt to FCF ratio of BMY is 3.37, which is a good value as it means it would take BMY, 3.37 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.37, BMY belongs to the top of the industry, outperforming 89.01% of the companies in the same industry.
BMY has a Debt/Equity ratio of 2.56. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.56, BMY is not doing good in the industry: 80.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.02 |
ROIC/WACC2.09
WACC8.11%
2.3 Liquidity
BMY has a Current Ratio of 1.21. This is a normal value and indicates that BMY is financially healthy and should not expect problems in meeting its short term obligations.
BMY's Current ratio of 1.21 is on the low side compared to the rest of the industry. BMY is outperformed by 78.01% of its industry peers.
A Quick Ratio of 1.11 indicates that BMY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, BMY is doing worse than 72.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
BMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 391.24%, which is quite impressive.
The earnings per share for BMY have been decreasing by -24.57% on average. This is quite bad
Looking at the last year, BMY shows a small growth in Revenue. The Revenue has grown by 2.57% in the last year.
Measured over the past years, BMY shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
EPS 1Y (TTM)391.24%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-29.47%
Revenue 1Y (TTM)2.57%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%0.56%
3.2 Future
The Earnings Per Share is expected to grow by 36.11% on average over the next years. This is a very strong growth
BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.99% yearly.
EPS Next Y477.64%
EPS Next 2Y131.04%
EPS Next 3Y73.61%
EPS Next 5Y36.11%
Revenue Next Year-1.12%
Revenue Next 2Y-4.71%
Revenue Next 3Y-3.48%
Revenue Next 5Y-4.99%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.60 indicates a rather cheap valuation of BMY.
Based on the Price/Earnings ratio, BMY is valued cheaper than 95.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of BMY to the average of the S&P500 Index (27.57), we can say BMY is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.29, the valuation of BMY can be described as very cheap.
89.53% of the companies in the same industry are more expensive than BMY, based on the Price/Forward Earnings ratio.
BMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 7.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMY is valued cheaply inside the industry as 95.81% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BMY is valued cheaply inside the industry as 94.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BMY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BMY's earnings are expected to grow with 73.61% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y131.04%
EPS Next 3Y73.61%
5. Dividend
5.1 Amount
BMY has a Yearly Dividend Yield of 5.72%, which is a nice return.
Compared to an average industry Dividend Yield of 6.88, BMY pays a better dividend. On top of this BMY pays more dividend than 98.43% of the companies listed in the same industry.
BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
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
98.12% of the earnings are spent on dividend by BMY. This is not a sustainable payout ratio.
The dividend of BMY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.12%
EPS Next 2Y131.04%
EPS Next 3Y73.61%
44.39
-0.15 (-0.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.84%
Inst Owner Change-0.25%
Ins Owners0.02%
Ins Owner Change-3.12%
Market Cap90.35B
Revenue(TTM)47.70B
Net Income(TTM)5.05B
Analysts67.27
Price Target52.62 (18.54%)
Short Float %1.45%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
Yearly Dividend2.42
Dividend Growth(5Y)11.67%
DP98.12%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.2%
Min EPS beat(2)19.36%
Max EPS beat(2)35.04%
EPS beat(4)4
Avg EPS beat(4)21.86%
Min EPS beat(4)13.54%
Max EPS beat(4)35.04%
EPS beat(8)8
Avg EPS beat(8)17.22%
EPS beat(12)11
Avg EPS beat(12)11.73%
EPS beat(16)15
Avg EPS beat(16)9.9%
Revenue beat(2)2
Avg Revenue beat(2)5.24%
Min Revenue beat(2)3.68%
Max Revenue beat(2)6.79%
Revenue beat(4)4
Avg Revenue beat(4)5.13%
Min Revenue beat(4)3.68%
Max Revenue beat(4)6.79%
Revenue beat(8)7
Avg Revenue beat(8)3.53%
Revenue beat(12)8
Avg Revenue beat(12)1.72%
Revenue beat(16)10
Avg Revenue beat(16)1.44%
PT rev (1m)0%
PT rev (3m)-4.98%
EPS NQ rev (1m)-5.08%
EPS NQ rev (3m)-6.48%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-1.03%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.6 | ||
| Fwd PE | 7.29 | ||
| P/S | 1.89 | ||
| P/FCF | 6.2 | ||
| P/OCF | 5.68 | ||
| P/B | 5.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.96 |
EPS(TTM)6.73
EY15.16%
EPS(NY)6.09
Fwd EY13.71%
FCF(TTM)7.16
FCFY16.13%
OCF(TTM)7.81
OCFY17.6%
SpS23.44
BVpS8.57
TBVpS-12.64
PEG (NY)0.01
PEG (5Y)N/A
Graham Number36.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 28.96% | ||
| ROCE | 21.51% | ||
| ROIC | 16.93% | ||
| ROICexc | 21.21% | ||
| ROICexgc | 107.32% | ||
| OM | 30.27% | ||
| PM (TTM) | 10.58% | ||
| GM | 73.92% | ||
| FCFM | 30.56% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)12.3%
ROIC(5y)10.36%
ROICexc(3y)14.46%
ROICexc(5y)12.33%
ROICexgc(3y)78.95%
ROICexgc(5y)80.83%
ROCE(3y)15.62%
ROCE(5y)13.15%
ROICexgc growth 3Y-16.88%
ROICexgc growth 5Y3.18%
ROICexc growth 3Y7.41%
ROICexc growth 5Y19.82%
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%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 3.37 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 20.37% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 6.99 | ||
| Cash Conversion | 75.95% | ||
| Profit Quality | 288.73% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.02 |
F-Score7
WACC8.11%
ROIC/WACC2.09
Cap/Depr(3y)12.09%
Cap/Depr(5y)10.53%
Cap/Sales(3y)2.56%
Cap/Sales(5y)2.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)391.24%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-29.47%
EPS Next Y477.64%
EPS Next 2Y131.04%
EPS Next 3Y73.61%
EPS Next 5Y36.11%
Revenue 1Y (TTM)2.57%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%0.56%
Revenue Next Year-1.12%
Revenue Next 2Y-4.71%
Revenue Next 3Y-3.48%
Revenue Next 5Y-4.99%
EBIT growth 1Y30.41%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year263.82%
EBIT Next 3Y49.42%
EBIT Next 5Y23.71%
FCF growth 1Y35.99%
FCF growth 3Y-2.91%
FCF growth 5Y14.03%
OCF growth 1Y34.19%
OCF growth 3Y-2.14%
OCF growth 5Y13.49%