NYSE:BDX

Stock Analysis Report

Executive Summary

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products worldwide.


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has Becton Dickinson's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BDX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

BDX

-1.3%

US Medical Equipment

-1.1%

US Market


1 Year Return

3.1%

BDX

19.4%

US Medical Equipment

17.8%

US Market

Return vs Industry: BDX underperformed the US Medical Equipment industry which returned 19.4% over the past year.

Return vs Market: BDX underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

BDXIndustryMarket
7 Day-1.1%-1.3%-1.1%
30 Day-7.5%0.02%1.5%
90 Day1.4%5.5%6.6%
1 Year4.4%3.1%20.3%19.4%20.2%17.8%
3 Year46.0%40.3%79.2%74.2%47.5%38.1%
5 Year88.8%75.4%114.6%92.0%71.2%52.4%

Price Volatility Vs. Market

How volatile is Becton Dickinson's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Becton Dickinson undervalued compared to its fair value and its price relative to the market?

9.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BDX ($257.35) is trading below our estimate of fair value ($285.12)

Significantly Below Fair Value: BDX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BDX is poor value based on its PE Ratio (91.6x) compared to the Medical Equipment industry average (46.6x).

PE vs Market: BDX is poor value based on its PE Ratio (91.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BDX is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: BDX is good value based on its PB Ratio (3.3x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

How is Becton Dickinson forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

43.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDX's forecast earnings growth (43.5% per year) is above the savings rate (1.7%).

Earnings vs Market: BDX's earnings (43.5% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BDX's revenue (5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BDX's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BDX's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has Becton Dickinson performed over the past 5 years?

-7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BDX has a large one-off loss of $1.5B impacting its December 31 2019 financial results.

Growing Profit Margin: BDX's current net profit margins (4.4%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: BDX's earnings have declined by -7.6% per year over the past 5 years.

Accelerating Growth: BDX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BDX had negative earnings growth (-15%) over the past year, making it difficult to compare to the Medical Equipment industry average (1.7%).


Return on Equity

High ROE: BDX's Return on Equity (4.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Becton Dickinson's financial position?


Financial Position Analysis

Short Term Liabilities: BDX's short term assets ($6.4B) do not cover its short term liabilities ($6.7B).

Long Term Liabilities: BDX's short term assets ($6.4B) do not cover its long term liabilities ($24.0B).


Debt to Equity History and Analysis

Debt Level: BDX's debt to equity ratio (91.5%) is considered high.

Reducing Debt: BDX's debt to equity ratio has reduced from 200% to 91.5% over the past 5 years.

Debt Coverage: BDX's debt is not well covered by operating cash flow (19.6%).

Interest Coverage: BDX's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

Inventory Level: BDX has a low level of unsold assets or inventory.

Debt Coverage by Assets: BDX's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Becton Dickinson's current dividend yield, its reliability and sustainability?

1.23%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Becton Dickinson before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: BDX's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BDX's dividend (1.23%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: BDX's dividends per share have been stable in the past 10 years.

Growing Dividend: BDX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (110.3%), BDX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BDX's dividends in 3 years are forecast to be well covered by earnings (25.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Tom Polen (46yo)

0.08yrs

Tenure

US$6,029,971

Compensation

Mr. Thomas E. Polen, Jr., also known as Tom, serves as Chief Executive Officer at Becton, Dickinson and Company since January 28, 2020. Mr. Polen has been President of Becton, Dickinson and Company since A ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD6.03M) is below average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vincent Forlenza
Executive Chairman7.6yrsUS$16.01m0.091% $63.2m
Thomas Polen
President0.08yrsUS$6.03m0.0051% $3.6m
Christopher Reidy
Executive VP6.6yrsUS$4.74m0.0091% $6.3m
Alberto Mas
Executive VP & President of the Medical Segment3.3yrsUS$4.24mno data
Patrick Kaltenbach
Executive VP & President of the Life Sciences Segment1.8yrsUS$7.05m0.0056% $3.9m
Thomas Spoerel
VP, Controller & Chief Accounting Officer0.3yrsno data0.00040% $279.1k
Charles Bodner
Senior VP of Corporate Finance1.6yrsno data0.00078% $544.3k
John DeFord
Executive VP of Research & Development and CTO1.7yrsno datano data
Jerry Flasz
Executive VP of Global Services & Chief Information Officer0yrsno datano data
Monique Dolecki
Vice President of Investor Relations0yrsno datano data

1.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: BDX's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Vincent Forlenza
Executive Chairman7.6yrsUS$16.01m0.091% $63.2m
Thomas Polen
President0.08yrsUS$6.03m0.0051% $3.6m
Marshall Larsen
Lead Director5.1yrsUS$389.68k0.0081% $5.6m
Robert Eckert
Independent Director3.4yrsUS$327.77k0.0014% $977.0k
Christopher Ian Jones
Independent Director9.6yrsUS$350.03k0.0061% $4.3m
Bertram Scott
Independent Director17.4yrsUS$351.22k0.011% $7.6m
Claire Pomeroy
Independent Director5.9yrsUS$332.77k0.0030% $2.1m
Rebecca Rimel
Independent Director7.6yrsUS$327.77k0.0041% $2.9m
Catherine Burzik
Independent Director7.1yrsUS$349.68k0.0040% $2.8m
Claire Fraser-Liggett
Independent Director13.3yrsUS$351.22k0.0077% $5.4m

7.3yrs

Average Tenure

65yo

Average Age

Experienced Board: BDX's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BDX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Becton, Dickinson and Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Becton, Dickinson and Company
  • Ticker: BDX
  • Exchange: NYSE
  • Founded: 1897
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$69.786b
  • Shares outstanding: 271.17m
  • Website: https://www.bd.com

Number of Employees


Location

  • Becton, Dickinson and Company
  • 1 Becton Drive
  • Franklin Lakes
  • New Jersey
  • 7417
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BDXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
BOXDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
BDXSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
0R19LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
BDX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
BDXWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
BOXETLX (Eurotlx)YesCommon StockITEURJan 1968
BDXANYSE (New York Stock Exchange)PFD SHS CONV AUSUSDMay 2017
B1DX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 5 REPR 1 COMBRBRLJan 2020

Biography

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products worldwide. The company’s BD Medical segment offers peripheral IV and advanced peripheral catheters, central lines, acute dialysis catheters, vascular care and preparation products, needle-free IV connectors and extensions sets, IV fluids, closed-system drug transfer devices, hazardous drug detection, hypodermic syringes and needles, anesthesia needles and trays, enteral syringes, sharps disposal systems; infusion pumps and dedicated disposables, medication compounding workflow systems, automated medication dispensing, automated supply management systems, medication inventory optimization and tracking systems; syringes, pen needles, and other products for diabetes care; and prefillable drug delivery systems. Its BD Life Sciences segment provides specimen and blood collection products and systems; automated blood and tuberculosis culturing, molecular testing, microorganism identification and drug susceptibility, and liquid-based cytology systems, as well as rapid diagnostic assays, microbiology laboratory automation products, and plated media products; and fluorescence-activated cell sorters and analyzers, antibodies and kits, reagent systems, and solutions for high-throughput single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers. The company’s BD Interventional segment offers hernia and soft tissue repair, biological and bioresorbable grafts, biosurgery, and other surgical products; surgical infection prevention, surgical and laparoscopic instrumentation products; peripheral intervention products; and urology and critical care products. Becton, Dickinson and Company was founded in 1897 and is based in Franklin Lakes, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:43
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.