BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
NYSE:BMY - New York Stock Exchange, Inc. - US1101221083 - Common Stock - Currency: USD
Taking everything into account, BMY scores 5 out of 10 in our fundamental rating. BMY was compared to 195 industry peers in the Pharmaceuticals industry. BMY has an average financial health and profitability rating. BMY is valued correctly, but it does not seem to be growing.
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.
BMY had positive earnings in 4 of the past 5 years.
Each year in the past 5 years BMY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -7.75%, BMY is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
BMY has a Return On Equity of -42.34%. This is in the better half of the industry: BMY outperforms 61.29% of its industry peers.
BMY's Return On Invested Capital of 13.86% is amongst the best of the industry. BMY outperforms 91.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMY is significantly below the industry average of 44.00%.
The 3 year average ROIC (12.67%) for BMY is below the current ROIC(13.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.75% | ||
| ROE | -42.34% | ||
| ROIC | 13.86% |
ROA(3y)7.12%
ROA(5y)3.28%
ROE(3y)22.36%
ROE(5y)9.98%
ROIC(3y)12.67%
ROIC(5y)9.9%
1.3 Margins
In the last couple of years the Profit Margin of BMY has declined.
The Operating Margin of BMY (23.45%) is better than 90.86% 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 75.87%, BMY belongs to the top of the industry, outperforming 82.26% 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 | 23.45% | ||
| PM (TTM) | N/A | ||
| GM | 75.87% |
OM growth 3Y19.76%
OM growth 5Y-7.02%
PM growth 3YN/A
PM growth 5Y-3.95%
GM growth 3Y1.17%
GM growth 5Y1.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BMY is still creating some value.
Compared to 1 year ago, BMY has less shares outstanding
BMY has more shares outstanding than it did 5 years ago.
BMY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.16 indicates that BMY is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.16, BMY is in the better half of the industry, outperforming 69.89% of the companies in the same industry.
BMY has a debt to FCF ratio of 3.60. This is a good value and a sign of high solvency as BMY would need 3.60 years to pay back of all of its debts.
The Debt to FCF ratio of BMY (3.60) is better than 89.25% of its industry peers.
BMY has a Debt/Equity ratio of 2.85. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BMY (2.85) is worse than 82.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.55
WACC8.97%
2.3 Liquidity
BMY has a Current Ratio of 1.24. 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 Current ratio (1.24) than 81.72% of its industry peers.
BMY has a Quick Ratio of 1.09. 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 Quick ratio of 1.09. This is in the lower half of the industry: BMY underperforms 76.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
BMY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -84.65%.
BMY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.51% yearly.
The Revenue has been growing slightly by 5.56% in the past year.
BMY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.81% yearly.
EPS 1Y (TTM)-84.65%
EPS 3Y5.21%
EPS 5Y13.51%
EPS Q2Q%-10%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y1.91%
Revenue growth 5Y14.81%
Sales Q2Q%8.44%
3.2 Future
BMY is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.03% yearly.
Based on estimates for the next years, BMY will show a decrease in Revenue. The Revenue will decrease by -1.68% on average per year.
EPS Next Y-87.65%
EPS Next 2Y-3.21%
EPS Next 3Y-5.47%
EPS Next 5Y-4.03%
Revenue Next Year6.98%
Revenue Next 2Y3.29%
Revenue Next 3Y-0.64%
Revenue Next 5Y-1.68%
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 decreasing.
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
The Price/Earnings ratio is 50.53, which means the current valuation is very expensive for BMY.
Based on the Price/Earnings ratio, BMY is valued cheaper than 80.65% of the companies in the same industry.
BMY is valuated expensively when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.41, the valuation of BMY can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 91.40% of the companies listed in the same industry.
BMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.53 | ||
| Fwd PE | 8.41 |
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 91.40% of the companies listed in the same industry.
93.55% 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 | 8.69 | ||
| EV/EBITDA | 7.64 |
4.3 Compensation for Growth
The decent profitability rating of BMY may justify a higher PE ratio.
A cheap valuation may be justified as BMY's earnings are expected to decrease with -5.47% in the coming years.
PEG (NY)N/A
PEG (5Y)3.74
EPS Next 2Y-3.21%
EPS Next 3Y-5.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, BMY is a good candidate for dividend investing.
BMY's Dividend Yield is rather good when compared to the industry average which is at 4.30. BMY pays more dividend than 95.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
On average, the dividend of BMY grows each year by 7.57%, 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)7.57%
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.
DP-66.2%
EPS Next 2Y-3.21%
EPS Next 3Y-5.47%
BRISTOL-MYERS SQUIBB CO
NYSE:BMY (2/4/2025, 8:04:00 PM)
After market: 59.2 +0.08 (+0.14%)59.12
-0.83 (-1.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change-0.77%
Ins Owners0.07%
Ins Owner Change0.16%
Market Cap119.91B
Analysts68.75
Price Target60.89 (2.99%)
Short Float %1.36%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend2.32
Dividend Growth(5Y)7.57%
DP-66.2%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.74%
Min EPS beat(2)19.51%
Max EPS beat(2)25.96%
EPS beat(4)4
Avg EPS beat(4)14.32%
Min EPS beat(4)1.78%
Max EPS beat(4)25.96%
EPS beat(8)7
Avg EPS beat(8)8.13%
EPS beat(12)11
Avg EPS beat(12)7.27%
EPS beat(16)14
Avg EPS beat(16)5.54%
Revenue beat(2)2
Avg Revenue beat(2)4.51%
Min Revenue beat(2)4.41%
Max Revenue beat(2)4.62%
Revenue beat(4)4
Avg Revenue beat(4)3.27%
Min Revenue beat(4)1.53%
Max Revenue beat(4)4.62%
Revenue beat(8)5
Avg Revenue beat(8)0.6%
Revenue beat(12)7
Avg Revenue beat(12)0.64%
Revenue beat(16)9
Avg Revenue beat(16)0.66%
PT rev (1m)0.54%
PT rev (3m)12.51%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-12.7%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)29.77%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.53 | ||
| Fwd PE | 8.41 | ||
| P/S | 2.53 | ||
| P/FCF | 8.69 | ||
| P/OCF | 7.99 | ||
| P/B | 6.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.64 |
EPS(TTM)1.17
EY1.98%
EPS(NY)7.03
Fwd EY11.89%
FCF(TTM)6.81
FCFY11.51%
OCF(TTM)7.4
OCFY12.51%
SpS23.39
BVpS8.45
TBVpS-15.57
PEG (NY)N/A
PEG (5Y)3.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.75% | ||
| ROE | -42.34% | ||
| ROCE | 15.66% | ||
| ROIC | 13.86% | ||
| ROICexc | 15.64% | ||
| ROICexgc | 68.44% | ||
| OM | 23.45% | ||
| PM (TTM) | N/A | ||
| GM | 75.87% | ||
| FCFM | 29.1% |
ROA(3y)7.12%
ROA(5y)3.28%
ROE(3y)22.36%
ROE(5y)9.98%
ROIC(3y)12.67%
ROIC(5y)9.9%
ROICexc(3y)15.1%
ROICexc(5y)11.75%
ROICexgc(3y)106.43%
ROICexgc(5y)87.65%
ROCE(3y)14.33%
ROCE(5y)11.19%
ROICexcg growth 3Y13.39%
ROICexcg growth 5Y-1.9%
ROICexc growth 3Y35.84%
ROICexc growth 5Y-18.39%
OM growth 3Y19.76%
OM growth 5Y-7.02%
PM growth 3YN/A
PM growth 5Y-3.95%
GM growth 3Y1.17%
GM growth 5Y1.35%
F-Score4
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 3.6 | ||
| Debt/EBITDA | 2.29 | ||
| Cap/Depr | 11.78% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 2.16 |
F-Score4
WACC8.97%
ROIC/WACC1.55
Cap/Depr(3y)10.79%
Cap/Depr(5y)17.5%
Cap/Sales(3y)2.4%
Cap/Sales(5y)2.43%
Profit Quality(3y)188.1%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-84.65%
EPS 3Y5.21%
EPS 5Y13.51%
EPS Q2Q%-10%
EPS Next Y-87.65%
EPS Next 2Y-3.21%
EPS Next 3Y-5.47%
EPS Next 5Y-4.03%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y1.91%
Revenue growth 5Y14.81%
Sales Q2Q%8.44%
Revenue Next Year6.98%
Revenue Next 2Y3.29%
Revenue Next 3Y-0.64%
Revenue Next 5Y-1.68%
EBIT growth 1Y3.13%
EBIT growth 3Y22.06%
EBIT growth 5Y6.75%
EBIT Next Year-67.69%
EBIT Next 3Y-2.02%
EBIT Next 5Y-1.35%
FCF growth 1Y8.47%
FCF growth 3Y-1.65%
FCF growth 5Y20.45%
OCF growth 1Y8.58%
OCF growth 3Y-0.46%
OCF growth 5Y18.47%