BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - NYSE:BMY - US1101221083 - Common Stock
45.6 USD
-0.55 (-1.19%)
45.6394 USD
+0.04 (+0.09%)
Overall BMY gets a fundamental rating of 6 out of 10. We evaluated BMY against 196 industry peers in the Pharmaceuticals industry. BMY has an excellent profitability rating, 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. 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
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 better Return On Assets (5.33%) than 88.78% of its industry peers.
BMY's Return On Equity of 28.96% is amongst the best of the industry. BMY outperforms 94.90% of its industry peers.
With an excellent Return On Invested Capital value of 16.93%, BMY belongs to the best of the industry, outperforming 94.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BMY is below the industry average of 15.28%.
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 86.22% of the companies in the same industry.
The Operating Margin of BMY (30.27%) is better than 94.39% of its industry peers.
BMY's Operating Margin has declined in the last couple of years.
The Gross Margin of BMY (73.92%) is better than 80.61% 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 | 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
BMY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for BMY has been reduced compared to 1 year ago.
The number of shares outstanding for BMY has been reduced compared to 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 2.05. 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's Altman-Z score of 2.05 is fine compared to the rest of the industry. BMY outperforms 65.82% of its industry peers.
BMY has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as BMY would need 3.37 years to pay back of all of its debts.
BMY has a better Debt to FCF ratio (3.37) than 89.29% of its industry peers.
A Debt/Equity ratio of 2.56 is on the high side and indicates that BMY has dependencies on debt financing.
BMY has a Debt to Equity ratio of 2.56. This is in the lower half of the industry: BMY underperforms 78.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.85
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.21 indicates that BMY should not have too much problems paying its short term obligations.
BMY has a Current ratio of 1.21. This is in the lower half of the industry: BMY underperforms 76.53% of its industry peers.
A Quick Ratio of 1.11 indicates that BMY should not have too much problems paying its short term obligations.
BMY has a worse Quick ratio (1.11) than 71.94% of its industry peers.
| 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.
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.
BMY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.57%.
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)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 36.14% 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 -5.00% yearly.
EPS Next Y477.2%
EPS Next 2Y130.91%
EPS Next 3Y73.4%
EPS Next 5Y36.14%
Revenue Next Year-1.22%
Revenue Next 2Y-4.7%
Revenue Next 3Y-3.48%
Revenue Next 5Y-5%
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
BMY is valuated cheaply with a Price/Earnings ratio of 6.78.
Based on the Price/Earnings ratio, BMY is valued cheaper than 94.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of BMY to the average of the S&P500 Index (27.41), we can say BMY is valued rather cheaply.
A Price/Forward Earnings ratio of 7.50 indicates a rather cheap valuation of BMY.
Based on the Price/Forward Earnings ratio, BMY is valued cheaper than 92.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BMY to the average of the S&P500 Index (22.88), we can say BMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.78 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMY is valued cheaply inside the industry as 95.92% of the companies are valued more expensively.
BMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMY is cheaper than 94.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.37 | ||
| EV/EBITDA | 6.13 |
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.
BMY's earnings are expected to grow with 73.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y130.91%
EPS Next 3Y73.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.22%, BMY is a good candidate for dividend investing.
BMY's Dividend Yield is rather good when compared to the industry average which is at 5.04. BMY pays more dividend than 97.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
5.2 History
The dividend of BMY is nicely growing with an annual growth rate of 11.67%!
BMY has been paying a dividend for at least 10 years, so it has 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 98.12% 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.
DP98.12%
EPS Next 2Y130.91%
EPS Next 3Y73.4%
45.6
-0.55 (-1.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.14%
Inst Owner Change0.18%
Ins Owners0.03%
Ins Owner Change-3.14%
Market Cap92.82B
Analysts67.27
Price Target52.62 (15.39%)
Short Float %1.53%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.22% |
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)-1.62%
PT rev (3m)-5.73%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-2.05%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)-5.33%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)2.16%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.78 | ||
| Fwd PE | 7.5 | ||
| P/S | 1.95 | ||
| P/FCF | 6.37 | ||
| P/OCF | 5.84 | ||
| P/B | 5.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.13 |
EPS(TTM)6.73
EY14.76%
EPS(NY)6.08
Fwd EY13.33%
FCF(TTM)7.16
FCFY15.71%
OCF(TTM)7.81
OCFY17.13%
SpS23.44
BVpS8.57
TBVpS-12.64
PEG (NY)0.01
PEG (5Y)N/A
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%
ROICexcg growth 3Y-16.88%
ROICexcg 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 | 2.05 |
F-Score7
WACC9.13%
ROIC/WACC1.85
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 Y477.2%
EPS Next 2Y130.91%
EPS Next 3Y73.4%
EPS Next 5Y36.14%
Revenue 1Y (TTM)2.57%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%0.56%
Revenue Next Year-1.22%
Revenue Next 2Y-4.7%
Revenue Next 3Y-3.48%
Revenue Next 5Y-5%
EBIT growth 1Y30.41%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year268.01%
EBIT Next 3Y49.33%
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%