BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BMY - US1101221083 - Common Stock
53.94 USD
-0.27 (-0.5%)
54.01 USD
+0.07 (+0.13%)
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. BMY may be a bit undervalued, certainly considering the very reasonable score on growth Finally BMY also has an excellent dividend rating. These ratings could make BMY a good candidate 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.
BMY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BMY (6.23%) is better than 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 Return On Invested Capital of 18.43%. This is amongst the best in the industry. BMY outperforms 95.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMY is in line with the industry average of 12.85%.
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
BMY has a better Profit Margin (12.57%) 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.
In the last couple of years the Operating Margin of BMY has declined.
BMY has a Gross Margin of 73.15%. This is amongst the best in 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BMY 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.
The debt/assets ratio for BMY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.23 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 2.23, BMY is in the better half of the industry, outperforming 60.21% 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.
With an excellent Debt to FCF ratio value of 3.20, BMY belongs to the best of the industry, outperforming 87.43% of the companies in the same industry.
BMY has a Debt/Equity ratio of 2.41. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.41, BMY is doing worse than 79.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.23 |
ROIC/WACC2.11
WACC8.73%
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.
BMY has a Current ratio of 1.27. This is in the lower half of the industry: BMY underperforms 78.53% of its industry peers.
BMY has a Quick Ratio of 1.17. This is a normal value and indicates that BMY is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BMY (1.17) is worse than 75.39% 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.
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 1.26%.
The Revenue has been growing by 13.06% on average over the past years. This is quite good.
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
Based on estimates for the next years, BMY will show a very strong growth in Earnings Per Share. The EPS will grow by 35.26% on average per year.
BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.97% yearly.
EPS Next Y478.44%
EPS Next 2Y130.59%
EPS Next 3Y73.3%
EPS Next 5Y35.26%
Revenue Next Year0.22%
Revenue Next 2Y-4%
Revenue Next 3Y-3.16%
Revenue Next 5Y-4.97%
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
With a Price/Earnings ratio of 8.22, the valuation of BMY can be described as very reasonable.
BMY's Price/Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 92.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. BMY is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.90, the valuation of BMY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BMY is valued cheaper than 89.53% of the companies in the same industry.
BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.22 | ||
| Fwd PE | 8.9 |
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 94.76% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMY indicates a rather cheap valuation: BMY is cheaper than 95.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.18 | ||
| EV/EBITDA | 6.75 |
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 73.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y130.59%
EPS Next 3Y73.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 39.80%, BMY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.61, BMY pays a better dividend. On top of this BMY pays more dividend than 100.00% 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 39.8% |
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
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 2Y130.59%
EPS Next 3Y73.3%
53.94
-0.27 (-0.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners81.74%
Inst Owner Change-1.83%
Ins Owners0.02%
Ins Owner Change-1.33%
Market Cap109.81B
Revenue(TTM)48.03B
Net Income(TTM)6.04B
Analysts67.65
Price Target55.28 (2.48%)
Short Float %1.74%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 39.8% |
Yearly Dividend2.42
Dividend Growth(5Y)11.67%
DP82.81%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.98%
Min EPS beat(2)6.92%
Max EPS beat(2)35.04%
EPS beat(4)4
Avg EPS beat(4)18.72%
Min EPS beat(4)6.92%
Max EPS beat(4)35.04%
EPS beat(8)8
Avg EPS beat(8)16.52%
EPS beat(12)11
Avg EPS beat(12)11.66%
EPS beat(16)15
Avg EPS beat(16)10.13%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)2.43%
Max Revenue beat(2)6.79%
Revenue beat(4)4
Avg Revenue beat(4)4.63%
Min Revenue beat(4)2.43%
Max Revenue beat(4)6.79%
Revenue beat(8)8
Avg Revenue beat(8)3.95%
Revenue beat(12)9
Avg Revenue beat(12)1.94%
Revenue beat(16)11
Avg Revenue beat(16)1.64%
PT rev (1m)4.26%
PT rev (3m)5.05%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)5.91%
EPS NY rev (1m)1.03%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)1.97%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.22 | ||
| Fwd PE | 8.9 | ||
| P/S | 2.29 | ||
| P/FCF | 7.18 | ||
| P/OCF | 6.61 | ||
| P/B | 5.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.75 |
EPS(TTM)6.56
EY12.16%
EPS(NY)6.06
Fwd EY11.24%
FCF(TTM)7.52
FCFY13.94%
OCF(TTM)8.16
OCFY15.14%
SpS23.6
BVpS9.11
TBVpS-11.62
PEG (NY)0.02
PEG (5Y)N/A
Graham Number36.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 32.55% | ||
| ROCE | 23.41% | ||
| ROIC | 18.43% | ||
| ROICexc | 24.22% | ||
| ROICexgc | 123.43% | ||
| OM | 33.51% | ||
| PM (TTM) | 12.57% | ||
| GM | 73.15% | ||
| FCFM | 31.86% |
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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 26.84% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 7.66 | ||
| Cash Conversion | 79.11% | ||
| Profit Quality | 253.39% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.23 |
F-Score6
WACC8.73%
ROIC/WACC2.11
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)460.68%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-9.44%
EPS Next Y478.44%
EPS Next 2Y130.59%
EPS Next 3Y73.3%
EPS Next 5Y35.26%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%2.77%
Revenue Next Year0.22%
Revenue Next 2Y-4%
Revenue Next 3Y-3.16%
Revenue Next 5Y-4.97%
EBIT growth 1Y44.7%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year263.97%
EBIT Next 3Y49.92%
EBIT Next 5Y23.19%
FCF growth 1Y30.91%
FCF growth 3Y-2.91%
FCF growth 5Y14.03%
OCF growth 1Y28.71%
OCF growth 3Y-2.14%
OCF growth 5Y13.49%
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 478.44% in the next year.