BRISTOL-MYERS SQUIBB CO (BRM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BRM - US1101221083 - Common Stock
46.19 EUR
-0.28 (-0.59%)
BRM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. BRM has an average financial health and profitability rating. BRM may be a bit undervalued, certainly considering the very reasonable score on growth BRM also has an excellent dividend rating. These ratings would make BRM suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year BRM was profitable.
- In the past year BRM had a positive cash flow from operations.
- In multiple years BRM reported negative net income over the last 5 years.
- Each year in the past 5 years BRM had a positive operating cash flow.
1.2 Ratios
- BRM has a Return On Assets (6.23%) which is comparable to the rest of the industry.
- BRM has a Return On Equity of 32.55%. This is in the better half of the industry: BRM outperforms 80.00% of its industry peers.
- The Return On Invested Capital of BRM (16.42%) is better than 76.36% of its industry peers.
- 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.
- BRM has a Operating Margin of 33.51%. This is amongst the best in the industry. BRM outperforms 81.82% of its industry peers.
- In the last couple of years the Operating Margin of BRM has declined.
- The Gross Margin of BRM (73.15%) is comparable to the rest of the industry.
- BRM's Gross Margin has been stable in the last couple of years.
| 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.
- The number of shares outstanding for BRM has been reduced compared to 1 year ago.
- Compared to 5 years ago, BRM has less shares outstanding
- The debt/assets ratio for BRM is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.25 indicates that BRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- BRM has a Altman-Z score of 2.25. This is comparable to the rest of the industry: BRM outperforms 45.45% of its industry peers.
- BRM has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as BRM would need 3.20 years to pay back of all of its debts.
- BRM has a Debt to FCF ratio of 3.20. This is in the better half of the industry: BRM outperforms 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's Debt to Equity ratio of 2.41 is on the low side compared to the rest of the industry. BRM is outperformed by 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.95
WACC8.43%
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.
- Looking at the Current ratio, with a value of 1.27, BRM is doing worse than 60.00% of the companies in the same industry.
- A Quick Ratio of 1.17 indicates that BRM should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.17, BRM is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- BRM 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 BRM have been decreasing by -24.57% on average. This is quite bad
- The Revenue has been growing slightly by 1.26% in the past 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
- BRM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.29% yearly.
- Based on estimates for the next years, BRM 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 8.40, which indicates a very decent valuation of BRM.
- BRM's Price/Earnings ratio is rather cheap when compared to the industry. BRM is cheaper than 92.73% of the companies in the same industry.
- When comparing the Price/Earnings ratio of BRM to the average of the S&P500 Index (28.60), we can say BRM is valued rather cheaply.
- The Price/Forward Earnings ratio is 9.08, which indicates a very decent valuation of BRM.
- Based on the Price/Forward Earnings ratio, BRM is valued cheaper than 92.73% of the companies in the same industry.
- BRM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| 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.
- BRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BRM is cheaper than 98.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.33 | ||
| EV/EBITDA | 6.87 |
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
- BRM has a Yearly Dividend Yield of 4.59%, which is a nice return.
- 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.
- BRM'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 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
- BRM pays out 82.81% of its income as dividend. This is not a sustainable payout ratio.
- BRM's earnings are growing more than its dividend. This makes the dividend growth 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%.