Becton, Dickinson and Company
Becton, Dickinson and Company Fundamental Analysis
Becton, Dickinson and Company (BDXA) shows weak financial fundamentals with a PE ratio of 30.00, profit margin of 8.01%, and ROE of 6.93%. The company generates $72.6B in annual revenue with moderate year-over-year growth of 4.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BDXA's fundamental strength across five key dimensions:
Efficiency Score
WeakBDXA struggles to generate sufficient returns from assets.
Valuation Score
WeakBDXA trades at a premium to fair value.
Growth Score
ModerateBDXA shows steady but slowing expansion.
Financial Health Score
ExcellentBDXA maintains a strong and stable balance sheet.
Profitability Score
WeakBDXA struggles to sustain strong margins.
Key Financial Metrics
Is BDXA Expensive or Cheap?
P/E Ratio
BDXA trades at 30.00 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BDXA's PEG of 6.04 indicates potential overvaluation.
Price to Book
The market values Becton, Dickinson and Company at 2.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.51 times EBITDA. This is generally considered low.
How Well Does BDXA Make Money?
Net Profit Margin
For every $100 in sales, Becton, Dickinson and Company keeps $8.01 as profit after all expenses.
Operating Margin
Core operations generate 12.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.93 in profit for every $100 of shareholder equity.
ROA
Becton, Dickinson and Company generates $3.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Becton, Dickinson and Company produces operating cash flow of $11.24B, showing steady but balanced cash generation.
Free Cash Flow
Becton, Dickinson and Company generates strong free cash flow of $8.71B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.23 in free cash annually.
FCF Yield
BDXA converts 3.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How BDXA Stacks Against Its Sector Peers
| Metric | BDXA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.00 | 29.28 | Neutral |
| ROE | 6.93% | 820.00% | Weak |
| Net Margin | 8.01% | -19743.00% (disorted) | Weak |
| Debt/Equity | 0.77 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.05 | 4.69 | Neutral |
| ROA | 3.20% | -17807.00% (disorted) | Weak |
BDXA outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Becton, Dickinson and Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
8.72%
Industry Style: Defensive, Growth, Innovation
GrowingEPS CAGR
30.19%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
7.54%
Industry Style: Defensive, Growth, Innovation
Growing