BRISTOL-MYERS SQUIBB CO (BMY) Stock Fundamental Analysis
NYSE:BMY - New York Stock Exchange, Inc. - US1101221083 - Common Stock - Currency: USD
Overall BMY gets a fundamental rating of 6 out of 10. We evaluated BMY against 192 industry peers in the Pharmaceuticals industry. BMY has an average financial health and profitability rating. 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.
In the past year BMY had a positive cash flow from operations.
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 (-9.66%) is better than 70.83% of its industry peers.
BMY has a Return On Equity (-54.78%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 13.21%, BMY belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BMY is significantly below the industry average of 44.15%.
The last Return On Invested Capital (13.21%) for BMY is above the 3 year average (12.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.66% | ||
| ROE | -54.78% | ||
| ROIC | 13.21% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)12.29%
ROIC(5y)10.36%
1.3 Margins
With an excellent Operating Margin value of 23.90%, BMY belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
In the last couple of years the Operating Margin of BMY has declined.
With an excellent Gross Margin value of 75.26%, BMY belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
BMY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.9% | ||
| PM (TTM) | N/A | ||
| GM | 75.26% |
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 just above the Cost of Capital (WACC), so BMY is still creating some value.
BMY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BMY has less shares outstanding
Compared to 1 year ago, BMY has a worse debt to assets ratio.
2.2 Solvency
BMY has an Altman-Z score of 2.21. 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.
BMY has a Altman-Z score of 2.21. This is in the better half of the industry: BMY outperforms 70.31% of its industry peers.
The Debt to FCF ratio of BMY is 3.56, which is a good value as it means it would take BMY, 3.56 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.56, BMY belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
A Debt/Equity ratio of 2.93 is on the high side and indicates that BMY has dependencies on debt financing.
The Debt to Equity ratio of BMY (2.93) is worse than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.45
WACC9.09%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BMY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.25, BMY is doing worse than 79.17% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that BMY should not have too much problems paying its short term obligations.
The Quick ratio of BMY (1.15) is worse than 73.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for BMY have decreased strongly by -84.80% in the last 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 7.32% 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)-84.8%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-1.76%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%7.54%
3.2 Future
The Earnings Per Share is expected to grow by 39.59% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -4.01% on average over the next years.
EPS Next Y498.05%
EPS Next 2Y133.71%
EPS Next 3Y75.69%
EPS Next 5Y39.59%
Revenue Next Year-4.64%
Revenue Next 2Y-5.27%
Revenue Next 3Y-3.69%
Revenue Next 5Y-4.01%
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 53.59 indicates a quite expensive valuation of BMY.
Based on the Price/Earnings ratio, BMY is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
BMY is valuated expensively when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.96, which indicates a very decent valuation of BMY.
Based on the Price/Forward Earnings ratio, BMY is valued cheaply inside the industry as 89.58% of the companies are valued more expensively.
BMY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.59 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
BMY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BMY is cheaper than 89.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BMY is valued cheaply inside the industry as 92.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.89 | ||
| EV/EBITDA | 7.66 |
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 75.69% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y133.71%
EPS Next 3Y75.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.12%, BMY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.32, BMY pays a better dividend. On top of this BMY pays more dividend than 96.35% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, BMY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of BMY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-54.35%
EPS Next 2Y133.71%
EPS Next 3Y75.69%
61.09
+0.91 (+1.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners80.77%
Inst Owner Change2.76%
Ins Owners0.07%
Ins Owner Change0.56%
Market Cap123.97B
Analysts68.39
Price Target60.92 (-0.28%)
Short Float %1.26%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend2.42
Dividend Growth(5Y)11.67%
DP-54.35%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.53%
Min EPS beat(2)13.54%
Max EPS beat(2)19.51%
EPS beat(4)4
Avg EPS beat(4)15.2%
Min EPS beat(4)1.78%
Max EPS beat(4)25.96%
EPS beat(8)7
Avg EPS beat(8)9.24%
EPS beat(12)11
Avg EPS beat(12)8.32%
EPS beat(16)14
Avg EPS beat(16)6.25%
Revenue beat(2)2
Avg Revenue beat(2)5.02%
Min Revenue beat(2)4.41%
Max Revenue beat(2)5.63%
Revenue beat(4)4
Avg Revenue beat(4)4.3%
Min Revenue beat(4)2.53%
Max Revenue beat(4)5.63%
Revenue beat(8)5
Avg Revenue beat(8)1.2%
Revenue beat(12)8
Avg Revenue beat(12)1.22%
Revenue beat(16)9
Avg Revenue beat(16)0.88%
PT rev (1m)0.06%
PT rev (3m)1.37%
EPS NQ rev (1m)-9.13%
EPS NQ rev (3m)-17.68%
EPS NY rev (1m)-2.97%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)-6.43%
Revenue NQ rev (3m)-7.9%
Revenue NY rev (1m)-3.65%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.59 | ||
| Fwd PE | 8.96 | ||
| P/S | 2.57 | ||
| P/FCF | 8.89 | ||
| P/OCF | 8.16 | ||
| P/B | 7.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.66 |
EPS(TTM)1.14
EY1.87%
EPS(NY)6.82
Fwd EY11.16%
FCF(TTM)6.87
FCFY11.25%
OCF(TTM)7.49
OCFY12.25%
SpS23.8
BVpS8.05
TBVpS-14.14
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.66% | ||
| ROE | -54.78% | ||
| ROCE | 16.77% | ||
| ROIC | 13.21% | ||
| ROICexc | 15.67% | ||
| ROICexgc | 69.29% | ||
| OM | 23.9% | ||
| PM (TTM) | N/A | ||
| GM | 75.26% | ||
| FCFM | 28.87% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)12.29%
ROIC(5y)10.36%
ROICexc(3y)14.46%
ROICexc(5y)12.32%
ROICexgc(3y)78.94%
ROICexgc(5y)80.02%
ROCE(3y)15.62%
ROCE(5y)13.15%
ROICexcg growth 3Y-15.94%
ROICexcg growth 5Y3.18%
ROICexc growth 3Y7.54%
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-Score3
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 3.56 | ||
| Debt/EBITDA | 2.26 | ||
| Cap/Depr | 13% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 6.41 | ||
| Cash Conversion | 71.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.21 |
F-Score3
WACC9.09%
ROIC/WACC1.45
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)-84.8%
EPS 3Y-46.63%
EPS 5Y-24.57%
EPS Q2Q%-1.76%
EPS Next Y498.05%
EPS Next 2Y133.71%
EPS Next 3Y75.69%
EPS Next 5Y39.59%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y1.36%
Revenue growth 5Y13.06%
Sales Q2Q%7.54%
Revenue Next Year-4.64%
Revenue Next 2Y-5.27%
Revenue Next 3Y-3.69%
Revenue Next 5Y-4.01%
EBIT growth 1Y6.4%
EBIT growth 3Y0.79%
EBIT growth 5Y8.21%
EBIT Next Year276.32%
EBIT Next 3Y53.27%
EBIT Next 5Y27.81%
FCF growth 1Y10.2%
FCF growth 3Y-2.91%
FCF growth 5Y14.03%
OCF growth 1Y9.6%
OCF growth 3Y-2.14%
OCF growth 5Y13.49%