Bristol-Myers Squibb Company
Bristol-Myers Squibb Company Fundamental Analysis
Bristol-Myers Squibb Company (BMY) shows moderate financial fundamentals with a PE ratio of 17.69, profit margin of 14.63%, and ROE of 39.27%. The company generates $48.1B in annual revenue with moderate year-over-year growth of 7.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BMY's fundamental strength across five key dimensions:
Efficiency Score
WeakBMY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBMY trades at attractive valuation levels.
Growth Score
ModerateBMY shows steady but slowing expansion.
Financial Health Score
ModerateBMY shows balanced financial health with some risks.
Profitability Score
ModerateBMY maintains healthy but balanced margins.
Key Financial Metrics
Is BMY Expensive or Cheap?
P/E Ratio
BMY trades at 17.69 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BMY's PEG of 1.07 indicates fair valuation.
Price to Book
The market values Bristol-Myers Squibb Company at 6.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.02 times EBITDA. This is generally considered low.
How Well Does BMY Make Money?
Net Profit Margin
For every $100 in sales, Bristol-Myers Squibb Company keeps $14.63 as profit after all expenses.
Operating Margin
Core operations generate 26.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.27 in profit for every $100 of shareholder equity.
ROA
Bristol-Myers Squibb Company generates $7.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bristol-Myers Squibb Company generates strong operating cash flow of $14.12B, reflecting robust business health.
Free Cash Flow
Bristol-Myers Squibb Company generates strong free cash flow of $12.82B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.29 in free cash annually.
FCF Yield
BMY converts 10.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.39
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How BMY Stacks Against Its Sector Peers
| Metric | BMY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.69 | 29.28 | Better (Cheaper) |
| ROE | 39.27% | 820.00% | Weak |
| Net Margin | 14.63% | -19743.00% (disorted) | Strong |
| Debt/Equity | 2.55 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.26 | 4.69 | Neutral |
| ROA | 7.83% | -17807.00% (disorted) | Weak |
BMY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bristol-Myers Squibb Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.39%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-318.86%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
55.63%
Industry Style: Defensive, Growth, Innovation
High Growth