BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - NYSE:BMY - US1101221083 - Common Stock
46.65 USD
-1.98 (-4.07%)
46.6998 USD
+0.05 (+0.11%)
We assign a fundamental rating of 7 out of 10 to BMY. BMY was compared to 192 industry peers in the Pharmaceuticals industry. BMY has an excellent profitability rating, but there are some minor concerns on its financial health. BMY may be a bit undervalued, certainly considering the very reasonable score on growth 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
BMY had positive earnings in the past year.
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.
In the past 5 years BMY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BMY (6.23%) is better than 87.50% of its industry peers.
The Return On Equity of BMY (32.55%) is better than 95.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.43%, BMY belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BMY is in line with the industry average of 13.75%.
The 3 year average ROIC (12.30%) for BMY is below the current ROIC(18.43%), indicating increased profibility in the last year.
| 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
The Profit Margin of BMY (12.57%) is better than 85.42% of its industry peers.
BMY has a Operating Margin of 33.51%. This is amongst the best in the industry. BMY outperforms 95.31% of its industry peers.
BMY's Operating Margin has declined in the last couple of years.
BMY's Gross Margin of 73.15% is fine compared to the rest of the industry. BMY outperforms 79.69% 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.
BMY has less shares outstanding than it did 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
An Altman-Z score of 2.11 indicates that BMY is not a great score, but indicates only limited risk for bankruptcy at the moment.
BMY's Altman-Z score of 2.11 is fine compared to the rest of the industry. BMY outperforms 64.06% of its industry peers.
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 better Debt to FCF ratio (3.20) than 87.50% of its industry peers.
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 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.11 |
ROIC/WACC2.23
WACC8.26%
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.
With a Current ratio value of 1.27, BMY is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
A Quick Ratio of 1.17 indicates that BMY should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.17, BMY is not doing good in the industry: 72.40% 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
BMY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 460.68%, which is quite impressive.
BMY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.57% yearly.
Looking at the last year, BMY shows a small growth in Revenue. The Revenue has grown by 1.26% in the last year.
Measured over the past years, BMY shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
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
BMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.26% yearly.
The Revenue is expected to decrease by -5.17% on average over the next years.
EPS Next Y472.54%
EPS Next 2Y131.12%
EPS Next 3Y73.23%
EPS Next 5Y35.26%
Revenue Next Year-0.35%
Revenue Next 2Y-4.29%
Revenue Next 3Y-3.28%
Revenue Next 5Y-5.17%
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
BMY is valuated cheaply with a Price/Earnings ratio of 7.11.
Based on the Price/Earnings ratio, BMY is valued cheaper than 94.27% of the companies in the same industry.
BMY is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.66, the valuation of BMY can be described as very cheap.
Based on the Price/Forward Earnings ratio, BMY is valued cheaply inside the industry as 91.15% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BMY to the average of the S&P500 Index (34.59), we can say BMY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 7.66 |
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 95.83% of the companies listed in the same industry.
BMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMY is cheaper than 94.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| EV/EBITDA | 6.02 |
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 73.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y131.12%
EPS Next 3Y73.23%
5. Dividend
5.1 Amount
BMY has a Yearly Dividend Yield of 5.10%, which is a nice return.
Compared to an average industry Dividend Yield of 7.07, BMY pays a better dividend. On top of this BMY pays more dividend than 97.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
5.2 History
The dividend of BMY is nicely growing with an annual growth rate of 11.67%!
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.
The dividend of BMY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP82.81%
EPS Next 2Y131.12%
EPS Next 3Y73.23%
46.65
-1.98 (-4.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.84%
Inst Owner Change-1.93%
Ins Owners0.02%
Ins Owner Change-7.62%
Market Cap94.95B
Revenue(TTM)48.03B
Net Income(TTM)6.04B
Analysts67.88
Price Target52.67 (12.9%)
Short Float %1.49%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
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)0.08%
PT rev (3m)-1.54%
EPS NQ rev (1m)5.81%
EPS NQ rev (3m)5.11%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-1.9%
Revenue NQ rev (1m)2.23%
Revenue NQ rev (3m)2.46%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 7.66 | ||
| P/S | 1.98 | ||
| P/FCF | 6.21 | ||
| P/OCF | 5.71 | ||
| P/B | 5.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.02 |
EPS(TTM)6.56
EY14.06%
EPS(NY)6.09
Fwd EY13.05%
FCF(TTM)7.52
FCFY16.12%
OCF(TTM)8.17
OCFY17.5%
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 | 2.11 |
F-Score6
WACC8.26%
ROIC/WACC2.23
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 Y472.54%
EPS Next 2Y131.12%
EPS Next 3Y73.23%
EPS Next 5Y35.26%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%2.77%
Revenue Next Year-0.35%
Revenue Next 2Y-4.29%
Revenue Next 3Y-3.28%
Revenue Next 5Y-5.17%
EBIT growth 1Y44.7%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year263.82%
EBIT Next 3Y49.42%
EBIT Next 5Y23.49%
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
Can you provide the ChartMill fundamental rating for BRISTOL-MYERS SQUIBB CO?
ChartMill assigns a fundamental rating of 7 / 10 to BMY.
What is the valuation status of BRISTOL-MYERS SQUIBB CO (BMY) stock?
ChartMill assigns a valuation rating of 10 / 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.
What are the PE and PB ratios of BRISTOL-MYERS SQUIBB CO (BMY) stock?
The Price/Earnings (PE) ratio for BRISTOL-MYERS SQUIBB CO (BMY) is 7.11 and the Price/Book (PB) ratio is 5.12.
Can you provide the dividend sustainability for BMY stock?
The dividend rating of BRISTOL-MYERS SQUIBB CO (BMY) is 8 / 10 and the dividend payout ratio is 82.81%.