BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
NYSE:BMY - New York Stock Exchange, Inc. - US1101221083 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BMY. BMY was compared to 197 industry peers in the Pharmaceuticals industry. BMY has an average financial health and profitability rating. 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.
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.
In the past 5 years BMY always reported a positive cash flow from operatings.
1.2 Ratios
BMY's Return On Assets of -9.66% is fine compared to the rest of the industry. BMY outperforms 69.04% of its industry peers.
BMY has a Return On Equity (-54.78%) which is in line with its industry peers.
BMY's Return On Invested Capital of 13.21% is amongst the best of the industry. BMY outperforms 89.85% of its industry peers.
BMY had an Average Return On Invested Capital over the past 3 years of 12.29%. This is significantly below the industry average of 40.40%.
The 3 year average ROIC (12.29%) for BMY is below the current ROIC(13.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.66% | ||
| ROE | -54.78% | ||
| ROIC | 13.21% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)12.29%
ROIC(5y)10.36%
1.3 Margins
With an excellent Operating Margin value of 23.90%, BMY belongs to the best of the industry, outperforming 89.85% of the companies in the same industry.
BMY's Operating Margin has declined in the last couple of years.
BMY has a Gross Margin of 75.26%. This is amongst the best in the industry. BMY outperforms 81.73% of its industry peers.
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 | 23.9% | ||
| PM (TTM) | N/A | ||
| GM | 75.26% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BMY is creating some value.
BMY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BMY has less shares outstanding
Compared to 1 year ago, BMY has a worse debt to assets ratio.
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.
BMY has a Altman-Z score of 2.02. This is in the better half of the industry: BMY outperforms 71.07% of its industry peers.
The Debt to FCF ratio of BMY is 3.56, which is a good value as it means it would take BMY, 3.56 years of fcf income to pay off all of its debts.
BMY has a better Debt to FCF ratio (3.56) than 88.32% of its industry peers.
BMY has a Debt/Equity ratio of 2.93. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BMY (2.93) is worse than 78.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 2.02 |
ROIC/WACC1.47
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BMY should not have too much problems paying its short term obligations.
The Current ratio of BMY (1.25) is worse than 78.68% of its industry peers.
A Quick Ratio of 1.15 indicates that BMY should not have too much problems paying its short term obligations.
The Quick ratio of BMY (1.15) is worse than 73.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
BMY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -84.80%.
The earnings per share for BMY have been decreasing by -24.57% on average. This is quite bad
BMY shows a small growth in Revenue. In the last year, the Revenue has grown by 7.32%.
The Revenue has been growing by 13.06% on average over the past years. This is quite good.
EPS 1Y (TTM)-84.8%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-1.76%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%7.54%
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 38.96% on average per year.
The Revenue is expected to decrease by -4.38% on average over the next years.
EPS Next Y497.55%
EPS Next 2Y133.63%
EPS Next 3Y75.96%
EPS Next 5Y38.96%
Revenue Next Year-4.5%
Revenue Next 2Y-5.28%
Revenue Next 3Y-3.65%
Revenue Next 5Y-4.38%
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
Based on the Price/Earnings ratio of 43.18, the valuation of BMY can be described as expensive.
Based on the Price/Earnings ratio, BMY is valued cheaper than 80.20% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. BMY is valued rather expensively when compared to this.
BMY is valuated cheaply with a Price/Forward Earnings ratio of 7.23.
BMY's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 93.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, BMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.18 | ||
| Fwd PE | 7.23 |
4.2 Price Multiples
90.36% of the companies in the same industry are more expensive than BMY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 92.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.18 | ||
| EV/EBITDA | 6.54 |
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.
The decent profitability rating of BMY may justify a higher PE ratio.
BMY's earnings are expected to grow with 75.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y133.63%
EPS Next 3Y75.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.04%, BMY is a good candidate for dividend investing.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.50. BMY pays more dividend than 97.46% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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
The earnings of BMY are negative and hence is the payout ratio. BMY will probably not be able to sustain this dividend level.
BMY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-54.35%
EPS Next 2Y133.63%
EPS Next 3Y75.96%
49.23
-0.13 (-0.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.77%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change3.89%
Market Cap100.17B
Analysts68.39
Price Target60.92 (23.75%)
Short Float %1.51%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
Yearly Dividend2.42
Dividend Growth(5Y)11.67%
DP-54.35%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.53%
Min EPS beat(2)13.54%
Max EPS beat(2)19.51%
EPS beat(4)4
Avg EPS beat(4)15.2%
Min EPS beat(4)1.78%
Max EPS beat(4)25.96%
EPS beat(8)7
Avg EPS beat(8)9.24%
EPS beat(12)11
Avg EPS beat(12)8.32%
EPS beat(16)14
Avg EPS beat(16)6.25%
Revenue beat(2)2
Avg Revenue beat(2)5.02%
Min Revenue beat(2)4.41%
Max Revenue beat(2)5.63%
Revenue beat(4)4
Avg Revenue beat(4)4.3%
Min Revenue beat(4)2.53%
Max Revenue beat(4)5.63%
Revenue beat(8)5
Avg Revenue beat(8)1.2%
Revenue beat(12)8
Avg Revenue beat(12)1.22%
Revenue beat(16)9
Avg Revenue beat(16)0.88%
PT rev (1m)0%
PT rev (3m)0.59%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-17.33%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-4.3%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-7.54%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-4.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.18 | ||
| Fwd PE | 7.23 | ||
| P/S | 2.07 | ||
| P/FCF | 7.18 | ||
| P/OCF | 6.59 | ||
| P/B | 6.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.54 |
EPS(TTM)1.14
EY2.32%
EPS(NY)6.81
Fwd EY13.84%
FCF(TTM)6.85
FCFY13.92%
OCF(TTM)7.47
OCFY15.16%
SpS23.74
BVpS8.03
TBVpS-14.1
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.66% | ||
| ROE | -54.78% | ||
| ROCE | 16.77% | ||
| ROIC | 13.21% | ||
| ROICexc | 15.67% | ||
| ROICexgc | 69.29% | ||
| OM | 23.9% | ||
| PM (TTM) | N/A | ||
| GM | 75.26% | ||
| FCFM | 28.87% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)12.29%
ROIC(5y)10.36%
ROICexc(3y)14.46%
ROICexc(5y)12.32%
ROICexgc(3y)78.94%
ROICexgc(5y)80.02%
ROCE(3y)15.62%
ROCE(5y)13.15%
ROICexcg growth 3Y-15.94%
ROICexcg growth 5Y3.18%
ROICexc growth 3Y7.54%
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-Score3
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 3.56 | ||
| Debt/EBITDA | 2.26 | ||
| Cap/Depr | 13% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 6.41 | ||
| Cash Conversion | 71.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.02 |
F-Score3
WACC8.98%
ROIC/WACC1.47
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)-84.8%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-1.76%
EPS Next Y497.55%
EPS Next 2Y133.63%
EPS Next 3Y75.96%
EPS Next 5Y38.96%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%7.54%
Revenue Next Year-4.5%
Revenue Next 2Y-5.28%
Revenue Next 3Y-3.65%
Revenue Next 5Y-4.38%
EBIT growth 1Y6.4%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year280.12%
EBIT Next 3Y50.48%
EBIT Next 5Y27.12%
FCF growth 1Y10.2%
FCF growth 3Y-2.91%
FCF growth 5Y14.03%
OCF growth 1Y9.6%
OCF growth 3Y-2.14%
OCF growth 5Y13.49%