BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BMY - US1101221083 - Common Stock
50.65 USD
-1.02 (-1.97%)
50.6428 USD
-0.01 (-0.01%)
Taking everything into account, BMY scores 6 out of 10 in our fundamental rating. BMY was compared to 191 industry peers in the Pharmaceuticals industry. While BMY belongs to the best of the industry regarding profitability, 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. With these ratings, BMY could be worth investigating further 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's Return On Assets of 6.23% is amongst the best of the industry. BMY outperforms 87.43% of its industry peers.
BMY's Return On Equity of 32.55% is amongst the best of the industry. BMY outperforms 94.76% of its industry peers.
BMY has a better Return On Invested Capital (18.43%) than 95.81% 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 12.85%.
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
The Profit Margin of BMY (12.57%) is better than 84.82% of its industry peers.
BMY has a better Operating Margin (33.51%) than 95.29% of its industry peers.
In the last couple of years the Operating Margin of BMY has declined.
BMY's Gross Margin of 73.15% is amongst the best of the industry. BMY outperforms 80.63% 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 | 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.
BMY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BMY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.17 indicates that BMY is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BMY (2.17) is better than 60.21% of its industry peers.
The Debt to FCF ratio of BMY is 3.20, which is a good value as it means it would take BMY, 3.20 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.20, BMY belongs to the top of the industry, outperforming 87.43% of the companies in the same industry.
A Debt/Equity ratio of 2.41 is on the high side and indicates that BMY has dependencies on debt financing.
With a Debt to Equity ratio value of 2.41, BMY is not doing good in the industry: 79.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.17 |
ROIC/WACC2.14
WACC8.59%
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.
The Current ratio of BMY (1.27) is worse than 77.49% 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.
BMY has a Quick ratio of 1.17. This is in the lower half of the industry: BMY underperforms 74.35% of its industry peers.
| 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.
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
The Earnings Per Share is expected to grow by 35.26% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -4.97% on average over the next years.
EPS Next Y479.55%
EPS Next 2Y131.22%
EPS Next 3Y73.98%
EPS Next 5Y35.26%
Revenue Next Year0.19%
Revenue Next 2Y-4.06%
Revenue Next 3Y-3.05%
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.
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
A Price/Earnings ratio of 7.72 indicates a rather cheap valuation of BMY.
BMY's Price/Earnings ratio is rather cheap when compared to the industry. BMY is cheaper than 93.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of BMY to the average of the S&P500 Index (26.28), we can say BMY is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.31, the valuation of BMY can be described as very reasonable.
90.05% of the companies in the same industry are more expensive than BMY, based on the Price/Forward Earnings ratio.
BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.72 | ||
| Fwd PE | 8.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMY is valued cheaply inside the industry as 95.29% of the companies are valued more expensively.
95.29% 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 | 6.74 | ||
| EV/EBITDA | 6.4 |
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.
A more expensive valuation may be justified as BMY's earnings are expected to grow with 73.98% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y131.22%
EPS Next 3Y73.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.77%, BMY is a good candidate for dividend investing.
BMY's Dividend Yield is rather good when compared to the industry average which is at 6.46. BMY pays more dividend than 97.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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 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 2Y131.22%
EPS Next 3Y73.98%
50.65
-1.02 (-1.97%)
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 Cap103.11B
Revenue(TTM)48.03B
Net Income(TTM)6.04B
Analysts67.65
Price Target53.67 (5.96%)
Short Float %1.56%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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)1.91%
PT rev (3m)2.16%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)4.49%
EPS NY rev (1m)1.22%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.72 | ||
| Fwd PE | 8.31 | ||
| P/S | 2.15 | ||
| P/FCF | 6.74 | ||
| P/OCF | 6.2 | ||
| P/B | 5.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.4 |
EPS(TTM)6.56
EY12.95%
EPS(NY)6.09
Fwd EY12.03%
FCF(TTM)7.52
FCFY14.84%
OCF(TTM)8.16
OCFY16.12%
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 | 2.17 |
F-Score6
WACC8.59%
ROIC/WACC2.14
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 Y479.55%
EPS Next 2Y131.22%
EPS Next 3Y73.98%
EPS Next 5Y35.26%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%2.77%
Revenue Next Year0.19%
Revenue Next 2Y-4.06%
Revenue Next 3Y-3.05%
Revenue Next 5Y-4.97%
EBIT growth 1Y44.7%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year262.1%
EBIT Next 3Y50.55%
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
Can you provide the ChartMill fundamental rating for BRISTOL-MYERS SQUIBB CO?
ChartMill assigns a fundamental rating of 6 / 10 to BMY.
What is the valuation status of BRISTOL-MYERS SQUIBB CO (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.
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 7.72 and the Price/Book (PB) ratio is 5.56.
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%.