BECTON DICKINSON AND CO (BOX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BOX - US0758871091 - Common Stock
169 EUR
-7.05 (-4%)
Overall BOX gets a fundamental rating of 4 out of 10. We evaluated BOX against 63 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of BOX while its profitability can be described as average. BOX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- BOX had positive earnings in the past year.
- BOX had a positive operating cash flow in the past year.
- BOX had positive earnings in each of the past 5 years.
- BOX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BOX's Return On Assets of 3.03% is in line compared to the rest of the industry. BOX outperforms 46.27% of its industry peers.
- BOX has a Return On Equity (6.61%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.24%, BOX is in line with its industry, outperforming 55.22% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BOX is below the industry average of 9.95%.
- The 3 year average ROIC (5.64%) for BOX is below the current ROIC(6.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 6.61% | ||
| ROIC | 6.24% |
ROA(3y)2.9%
ROA(5y)3.12%
ROE(3y)6.24%
ROE(5y)6.77%
ROIC(3y)5.64%
ROIC(5y)5.24%
1.3 Margins
- BOX has a Profit Margin (7.68%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of BOX has grown nicely.
- The Operating Margin of BOX (15.70%) is better than 71.64% of its industry peers.
- BOX's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 45.79%, BOX is doing worse than 65.67% of the companies in the same industry.
- In the last couple of years the Gross Margin of BOX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.7% | ||
| PM (TTM) | 7.68% | ||
| GM | 45.79% |
OM growth 3Y4.99%
OM growth 5Y10.71%
PM growth 3Y-4.96%
PM growth 5Y10%
GM growth 3Y0.22%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BOX is destroying value.
- BOX has less shares outstanding than it did 1 year ago.
- BOX has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BOX has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.18 indicates that BOX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of BOX (2.18) is comparable to the rest of the industry.
- BOX has a debt to FCF ratio of 7.18. This is a slightly negative value and a sign of low solvency as BOX would need 7.18 years to pay back of all of its debts.
- BOX has a Debt to FCF ratio (7.18) which is in line with its industry peers.
- BOX has a Debt/Equity ratio of 0.73. This is a neutral value indicating BOX is somewhat dependend on debt financing.
- BOX has a Debt to Equity ratio of 0.73. This is in the lower half of the industry: BOX underperforms 74.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.67
WACC9.36%
2.3 Liquidity
- BOX has a Current Ratio of 1.11. This is a normal value and indicates that BOX is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of BOX (1.11) is worse than 73.13% of its industry peers.
- BOX has a Quick Ratio of 1.11. This is a bad value and indicates that BOX is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.64, BOX is not doing good in the industry: 80.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- BOX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.57%, which is quite good.
- Measured over the past 5 years, BOX shows a small growth in Earnings Per Share. The EPS has been growing by 7.19% on average per year.
- The Revenue has grown by 8.24% in the past year. This is quite good.
- The Revenue has been growing slightly by 6.32% on average over the past years.
EPS 1Y (TTM)9.57%
EPS 3Y5.64%
EPS 5Y7.19%
EPS Q2Q%3.94%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y4.99%
Revenue growth 5Y6.32%
Sales Q2Q%8.33%
3.2 Future
- BOX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.59% yearly.
- The Revenue is expected to grow by 3.38% on average over the next years.
EPS Next Y4.17%
EPS Next 2Y5.22%
EPS Next 3Y5.36%
EPS Next 5Y6.59%
Revenue Next Year2.91%
Revenue Next 2Y3.14%
Revenue Next 3Y3.19%
Revenue Next 5Y3.38%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- A Price/Earnings ratio of 13.76 indicates a correct valuation of BOX.
- 95.52% of the companies in the same industry are more expensive than BOX, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. BOX is valued slightly cheaper when compared to this.
- BOX is valuated correctly with a Price/Forward Earnings ratio of 13.21.
- BOX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BOX is cheaper than 86.57% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, BOX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 13.21 |
4.2 Price Multiples
- BOX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BOX is cheaper than 73.13% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BOX is valued a bit cheaper than the industry average as 77.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.21 | ||
| EV/EBITDA | 12.62 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BOX does not grow enough to justify the current Price/Earnings ratio.
- BOX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.3
PEG (5Y)1.91
EPS Next 2Y5.22%
EPS Next 3Y5.36%
5. Dividend
5.1 Amount
- BOX has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
- BOX's Dividend Yield is a higher than the industry average which is at 0.96.
- BOX's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
- The dividend of BOX has a limited annual growth rate of 3.22%.
Dividend Growth(5Y)3.22%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 71.28% of the earnings are spent on dividend by BOX. This is not a sustainable payout ratio.
- The dividend of BOX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.28%
EPS Next 2Y5.22%
EPS Next 3Y5.36%
BECTON DICKINSON AND CO / BOX.DE FAQ
What is the fundamental rating for BOX stock?
ChartMill assigns a fundamental rating of 4 / 10 to BOX.DE.
What is the valuation status for BOX stock?
ChartMill assigns a valuation rating of 5 / 10 to BECTON DICKINSON AND CO (BOX.DE). This can be considered as Fairly Valued.
What is the profitability of BOX stock?
BECTON DICKINSON AND CO (BOX.DE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of BECTON DICKINSON AND CO (BOX.DE) stock?
The Price/Earnings (PE) ratio for BECTON DICKINSON AND CO (BOX.DE) is 13.76 and the Price/Book (PB) ratio is 2.23.
What is the financial health of BECTON DICKINSON AND CO (BOX.DE) stock?
The financial health rating of BECTON DICKINSON AND CO (BOX.DE) is 3 / 10.