BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BMY - US1101221083 - Common Stock
54.6 USD
-0.05 (-0.09%)
54.36 USD
-0.24 (-0.44%)
We assign a fundamental rating of 6 out of 10 to BMY. BMY was compared to 190 industry peers in the Pharmaceuticals industry. BMY has an excellent profitability rating, 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. 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.
- 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 better Return On Assets (6.23%) than 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.
- The Return On Invested Capital of BMY (18.43%) is better than 95.79% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BMY is in line with the industry average of 12.83%.
- 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
- BMY's Profit Margin of 12.57% is amongst the best of the industry. BMY outperforms 84.74% of its industry peers.
- BMY has a better Operating Margin (33.51%) than 95.26% of its industry peers.
- In the last couple of years the Operating Margin of BMY has declined.
- BMY has a better Gross Margin (73.15%) than 80.53% 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
- The debt/assets ratio for BMY is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.24 indicates that BMY is not a great score, but indicates only limited risk for bankruptcy at the moment.
- BMY has a better Altman-Z score (2.24) than 61.58% 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 87.89% 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.
- BMY's Debt to Equity ratio of 2.41 is on the low side compared to the rest of the industry. BMY is outperformed by 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.24 |
ROIC/WACC2.1
WACC8.76%
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 77.89% 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 75.79% 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.
- BMY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.57% yearly.
- The Revenue has been growing slightly by 1.26% in the past 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
- Based on estimates for the next years, BMY will show a decrease in Revenue. The Revenue will decrease by -5.06% on average per year.
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
- 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
- The Price/Earnings ratio is 8.32, which indicates a very decent valuation of BMY.
- Based on the Price/Earnings ratio, BMY is valued cheaply inside the industry as 92.11% of the companies are valued more expensively.
- BMY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- BMY is valuated reasonably with a Price/Forward Earnings ratio of 8.99.
- Based on the Price/Forward Earnings ratio, BMY is valued cheaply inside the industry as 88.95% of the companies are valued more expensively.
- BMY is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 8.99 |
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 93.16% of the companies listed in the same industry.
- 95.26% 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 | 7.26 | ||
| EV/EBITDA | 6.79 |
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.
- BMY has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as BMY's earnings are expected to grow with 73.18% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y130.77%
EPS Next 3Y73.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.59%, BMY is a good candidate for dividend investing.
- 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.
- BMY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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
- 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 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.