BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - NYSE:BMY - US1101221083 - Common Stock
46.69 USD
+0.06 (+0.13%)
46.72 USD
+0.03 (+0.06%)
We assign a fundamental rating of 7 out of 10 to BMY. BMY was compared to 192 industry peers in the Pharmaceuticals industry. BMY scores excellent on profitability, but there are some minor concerns on its financial health. BMY is valued quite cheap, while showing a decent growth score. This is a good combination! Finally BMY also has an excellent dividend rating. This makes BMY very considerable 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.
In multiple years BMY reported negative net income over the last 5 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 (6.23%) than 90.10% of its industry peers.
BMY has a Return On Equity of 32.55%. This is amongst the best in the industry. BMY outperforms 95.31% of its industry peers.
BMY has a better Return On Invested Capital (18.43%) than 95.83% of its industry peers.
BMY had an Average Return On Invested Capital over the past 3 years of 12.30%. This is below the industry average of 15.37%.
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
With an excellent Profit Margin value of 12.57%, BMY belongs to the best of the industry, outperforming 86.98% of the companies in the same industry.
BMY's Operating Margin of 33.51% is amongst the best of the industry. BMY outperforms 95.31% of its industry peers.
In the last couple of years the Operating Margin of BMY has declined.
Looking at the Gross Margin, with a value of 73.15%, BMY belongs to the top of the industry, outperforming 80.73% 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.
BMY has less shares outstanding than it did 1 year ago.
BMY has less shares outstanding than it did 5 years ago.
BMY has a worse debt/assets ratio than last year.
2.2 Solvency
BMY has an Altman-Z score of 2.11. 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.
The Altman-Z score of BMY (2.11) is better than 64.06% 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.
With an excellent Debt to FCF ratio value of 3.20, BMY belongs to the best of the industry, outperforming 88.54% 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.
With a Debt to Equity ratio value of 2.41, BMY is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.11 |
ROIC/WACC2.26
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.27 indicates that BMY should not have too much problems paying its short term obligations.
BMY's Current ratio of 1.27 is on the low side compared to the rest of the industry. BMY is outperformed by 77.08% of its industry peers.
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: 71.35% 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.
The earnings per share for BMY have been decreasing by -24.57% on average. This is quite bad
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
BMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.26% yearly.
BMY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.17% yearly.
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
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 7.12, the valuation of BMY can be described as very cheap.
93.75% of the companies in the same industry are more expensive than BMY, based on the Price/Earnings ratio.
BMY is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.67, the valuation of BMY can be described as very cheap.
Based on the Price/Forward Earnings ratio, BMY is valued cheaper than 90.63% of the companies in the same industry.
BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 95.31% of the companies in the same industry.
BMY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BMY is cheaper than 95.31% 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 5.32%, which is a nice return.
BMY's Dividend Yield is rather good when compared to the industry average which is at 6.99. BMY pays more dividend than 97.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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.
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%
46.69
+0.06 (+0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners82.84%
Inst Owner Change-0.23%
Ins Owners0.02%
Ins Owner Change-3.25%
Market Cap95.03B
Revenue(TTM)48.03B
Net Income(TTM)6.04B
Analysts67.88
Price Target52.67 (12.81%)
Short Float %1.49%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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)4.98%
EPS NQ rev (3m)4.24%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-1.9%
Revenue NQ rev (1m)2.44%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 7.67 | ||
| P/S | 1.98 | ||
| P/FCF | 6.21 | ||
| P/OCF | 5.72 | ||
| P/B | 5.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.02 |
EPS(TTM)6.56
EY14.05%
EPS(NY)6.09
Fwd EY13.04%
FCF(TTM)7.52
FCFY16.1%
OCF(TTM)8.17
OCFY17.49%
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
WACC8.16%
ROIC/WACC2.26
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 7.12 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%.