BRISTOL-MYERS SQUIBB CO (BRM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BRM - US1101221083 - Common Stock
46.06 EUR
-0.13 (-0.28%)
We assign a fundamental rating of 6 out of 10 to BRM. BRM was compared to 55 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of BRM get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on BRM. BRM also has an excellent dividend rating. These ratings could make BRM a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
- BRM had positive earnings in the past year.
- BRM had a positive operating cash flow in the past year.
- In multiple years BRM reported negative net income over the last 5 years.
- BRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.23%, BRM is in line with its industry, outperforming 52.73% of the companies in the same industry.
- BRM's Return On Equity of 32.55% is fine compared to the rest of the industry. BRM outperforms 80.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 16.42%, BRM is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BRM is below the industry average of 14.00%.
- The last Return On Invested Capital (16.42%) for BRM is above the 3 year average (10.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 32.55% | ||
| ROIC | 16.42% |
ROA(3y)1.77%
ROA(5y)0.82%
ROE(3y)-2.38%
ROE(5y)-2.3%
ROIC(3y)10.96%
ROIC(5y)9.23%
1.3 Margins
- BRM's Profit Margin of 12.57% is in line compared to the rest of the industry. BRM outperforms 49.09% of its industry peers.
- Looking at the Operating Margin, with a value of 33.51%, BRM belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- BRM's Operating Margin has declined in the last couple of years.
- BRM has a Gross Margin of 73.15%. This is comparable to the rest of the industry: BRM outperforms 58.18% of its industry peers.
- In the last couple of years the Gross Margin of BRM 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), BRM is creating value.
- BRM has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, BRM has less shares outstanding
- BRM has a worse debt/assets ratio than last year.
2.2 Solvency
- BRM has an Altman-Z score of 2.25. This is not the best score and indicates that BRM is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.25, BRM is in line with its industry, outperforming 45.45% of the companies in the same industry.
- The Debt to FCF ratio of BRM is 3.20, which is a good value as it means it would take BRM, 3.20 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of BRM (3.20) is better than 65.45% of its industry peers.
- A Debt/Equity ratio of 2.41 is on the high side and indicates that BRM has dependencies on debt financing.
- BRM has a Debt to Equity ratio of 2.41. This is amonst the worse of the industry: BRM underperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.94
WACC8.47%
2.3 Liquidity
- BRM has a Current Ratio of 1.27. This is a normal value and indicates that BRM is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.27, BRM is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- A Quick Ratio of 1.17 indicates that BRM should not have too much problems paying its short term obligations.
- The Quick ratio of BRM (1.17) is better than 69.09% 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.
- The earnings per share for BRM have been decreasing by -24.57% on average. This is quite bad
- Looking at the last year, BRM shows a small growth in Revenue. The Revenue has grown by 1.26% in the last year.
- BRM 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
- The Revenue is expected to decrease by -5.06% on average over the next years.
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
- With a Price/Earnings ratio of 8.41, the valuation of BRM can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of BRM indicates a rather cheap valuation: BRM is cheaper than 92.73% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BRM to the average of the S&P500 Index (28.39), we can say BRM is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.08, the valuation of BRM can be described as very reasonable.
- BRM's Price/Forward Earnings ratio is rather cheap when compared to the industry. BRM is cheaper than 92.73% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, BRM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.41 | ||
| Fwd PE | 9.08 |
4.2 Price Multiples
- BRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BRM is cheaper than 90.91% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BRM is valued cheaper than 98.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 6.86 |
4.3 Compensation for Growth
- BRM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as BRM'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%, BRM is a good candidate for dividend investing.
- BRM's Dividend Yield is rather good when compared to the industry average which is at 1.62. BRM pays more dividend than 92.73% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BRM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
- The dividend of BRM is nicely growing with an annual growth rate of 11.67%!
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 BRM. This is not a sustainable payout ratio.
- The dividend of BRM 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 / BRM.DE FAQ
What is the fundamental rating for BRM stock?
ChartMill assigns a fundamental rating of 6 / 10 to BRM.DE.
What is the valuation status of BRISTOL-MYERS SQUIBB CO (BRM.DE) stock?
ChartMill assigns a valuation rating of 9 / 10 to BRISTOL-MYERS SQUIBB CO (BRM.DE). This can be considered as Undervalued.
How profitable is BRISTOL-MYERS SQUIBB CO (BRM.DE) stock?
BRISTOL-MYERS SQUIBB CO (BRM.DE) has a profitability rating of 5 / 10.
What is the expected EPS growth for BRISTOL-MYERS SQUIBB CO (BRM.DE) stock?
The Earnings per Share (EPS) of BRISTOL-MYERS SQUIBB CO (BRM.DE) is expected to grow by 471.99% in the next year.
Is the dividend of BRISTOL-MYERS SQUIBB CO sustainable?
The dividend rating of BRISTOL-MYERS SQUIBB CO (BRM.DE) is 8 / 10 and the dividend payout ratio is 82.81%.