BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BMY • US1101221083
55.05 USD
+0.77 (+1.42%)
At close: Jan 30, 2026
54.99 USD
-0.06 (-0.11%)
After Hours: 1/30/2026, 8:04:00 PM
We assign a fundamental rating of 6 out of 10 to BMY. BMY was compared to 191 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. 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.
- In the past year BMY had a positive cash flow from operations.
- In multiple years BMY reported negative net income over the last 5 years.
- BMY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BMY has a Return On Assets of 6.23%. This is amongst the best in the industry. BMY outperforms 87.43% of its industry peers.
- Looking at the Return On Equity, with a value of 32.55%, BMY belongs to the top of the industry, outperforming 94.76% of the companies in the same industry.
- BMY has a better Return On Invested Capital (18.43%) than 95.81% 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 12.82%.
- The last Return On Invested Capital (18.43%) for BMY is above the 3 year average (12.30%), which is a sign of increasing profitability.
| 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
- The Profit Margin of BMY (12.57%) is better than 84.82% of its industry peers.
- Looking at the Operating Margin, with a value of 33.51%, BMY belongs to the top of the industry, outperforming 95.29% of the companies in the same industry.
- BMY's Operating Margin has declined in the last couple of years.
- BMY's Gross Margin of 73.15% is amongst the best of the industry. BMY outperforms 80.63% of its industry peers.
- 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
- BMY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- Compared to 1 year ago, BMY has a worse debt to assets ratio.
2.2 Solvency
- BMY has an Altman-Z score of 2.24. 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 2.24, BMY is doing good in the industry, outperforming 62.30% 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.
- Looking at the Debt to FCF ratio, with a value of 3.20, BMY belongs to the top of the industry, outperforming 87.96% of the companies in the same industry.
- A Debt/Equity ratio of 2.41 is on the high side and indicates that BMY has dependencies on debt financing.
- BMY has a worse Debt to Equity ratio (2.41) than 79.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.24 |
ROIC/WACC2.09
WACC8.8%
2.3 Liquidity
- BMY has a Current Ratio of 1.27. This is a normal value and indicates that BMY is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.27, BMY is doing worse than 78.01% of the companies in the same industry.
- A Quick Ratio of 1.17 indicates that BMY should not have too much problems paying its short term obligations.
- BMY has a Quick ratio of 1.17. This is in the lower half of the industry: BMY underperforms 75.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 460.68% over the past year.
- 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 1.26% in the last 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
- The Earnings Per Share is expected to grow by 35.29% on average over the next years. This is a very strong growth
- 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
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.39, the valuation of BMY can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 91.62% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. BMY is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 9.07, the valuation of BMY can be described as reasonable.
- BMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 89.01% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of BMY to the average of the S&P500 Index (25.57), we can say BMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 9.07 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 93.72% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, BMY is valued cheaply inside the industry as 94.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| EV/EBITDA | 6.83 |
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 73.18% 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 4.64%, which is a nice return.
- Compared to an average industry Dividend Yield of 0.62, BMY pays a better dividend. On top of this BMY pays more dividend than 96.86% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
5.2 History
- The dividend of BMY is nicely growing with an annual growth rate of 11.67%!
- 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
- 82.81% of the earnings are spent on dividend by BMY. 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.