BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BMY - US1101221083 - Common Stock
54.62 USD
-0.94 (-1.69%)
54.6 USD
-0.02 (-0.04%)
Overall BMY gets a fundamental rating of 6 out of 10. We evaluated BMY against 190 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. 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.
- 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 has a Return On Assets of 6.23%. This is amongst the best in the industry. BMY outperforms 87.37% of its industry peers.
- BMY's Return On Equity of 32.55% is amongst the best of the industry. BMY outperforms 94.74% of its industry peers.
- BMY has a better Return On Invested Capital (18.43%) than 95.79% of its industry peers.
- BMY had an Average Return On Invested Capital over the past 3 years of 12.30%. This is in line with the industry average of 12.83%.
- 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
- With an excellent Profit Margin value of 12.57%, BMY belongs to the best of the industry, outperforming 84.74% of the companies in the same industry.
- BMY's Operating Margin of 33.51% is amongst the best of the industry. BMY outperforms 95.26% of its industry peers.
- In the last couple of years the Operating Margin of BMY has declined.
- With an excellent Gross Margin value of 73.15%, BMY belongs to the best of the industry, outperforming 80.53% of the companies in the same industry.
- 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 | 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.
- 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
- BMY has an Altman-Z score of 2.25. 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 2.25, BMY is doing good in the industry, outperforming 62.11% 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.
- BMY has a Debt to FCF ratio of 3.20. This is amongst the best in the industry. BMY outperforms 87.89% of its industry peers.
- A Debt/Equity ratio of 2.41 is on the high side and indicates that BMY has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.41, BMY is doing worse than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.25 |
ROIC/WACC2.1
WACC8.76%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that BMY should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.27, BMY is not doing good in the industry: 77.89% of the companies in the same industry are doing better.
- 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.
- With a Quick ratio value of 1.17, BMY is not doing good in the industry: 75.79% of the companies in the same industry are doing better.
| 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.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 8.33, which indicates a very decent valuation of BMY.
- Based on the Price/Earnings ratio, BMY is valued cheaper than 92.11% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, BMY is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.00 indicates a reasonable valuation of BMY.
- Based on the Price/Forward Earnings ratio, BMY is valued cheaper than 88.95% of the companies in the same industry.
- BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 9 |
4.2 Price Multiples
- BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 93.16% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BMY is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | 6.88 |
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 73.18% in the coming years. This may justify a more expensive valuation.
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 4.59%, which is a nice return.
- BMY's Dividend Yield is rather good when compared to the industry average which is at 0.46. BMY pays more dividend than 97.37% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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
- BMY pays out 82.81% 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.
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.