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BDX

Becton Dickinson NYSE:BDX Stock Report

Last Price

US$263.71

Market Cap

US$75.2b

7D

1.7%

1Y

6.4%

Updated

18 Aug, 2022

Data

Company Financials +
BDX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends4/6

BDX Stock Overview

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide.

Becton Dickinson Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Becton Dickinson
Historical stock prices
Current Share PriceUS$263.71
52 Week HighUS$280.62
52 Week LowUS$231.46
Beta0.61
1 Month Change10.59%
3 Month Change4.52%
1 Year Change6.39%
3 Year Change3.34%
5 Year Change33.28%
Change since IPO3,268.75%

Recent News & Updates

Aug 15

Becton, Dickinson to market Accelerate Diagnostics' rapid tests for antibiotic resistance

Becton, Dickinson and Company (NYSE:BDX) signed an agreement to offer Accelerate Diagnostics' (NASDAQ:AXDX) rapid testing solution for antibiotic resistance and susceptibility. Under the agreement, BDX will market and sell the Accelerate Pheno system and Accelerate Arc module and associated test kits in territories where products have regulatory approval or registration. BDX said the test offer results in hours, compared to one to two days with some traditional laboratory methods. These solutions complement BDX's existing Clinical Microbiology, the companies said in an Aug. 15 press release. "Rapid testing can quickly determine if an antibiotic should be used for treatment, and if so, which one," said Brooke Story, president of Integrated Diagnostic Solutions for BDX.

Aug 09
If EPS Growth Is Important To You, Becton Dickinson (NYSE:BDX) Presents An Opportunity

If EPS Growth Is Important To You, Becton Dickinson (NYSE:BDX) Presents An Opportunity

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Aug 02

Becton, Dickinson and Company Is A Hold At The Current Valuation

Becton, Dickinson and Company is one of my favorite dividend growth investments. I am constantly looking for opportunities to add to my position. Despite the market volatility and the challenging environment, Becton, Dickinson and Company is not attractively valued. Introduction As a dividend growth investor, I constantly seek additional opportunities to increase my future income. I acquire income-producing assets monthly to supplement the dividend income. I add to existing positions within my dividend growth portfolio and add to new positions whenever I seek to diversify myself further. I lack some exposure to the healthcare sector in my dividend growth portfolio. I have several investments in drug distributors, health insurers, pharmaceuticals, and medical device companies. The latter is one of my favorite segments as it is often overlooked as investors focus on the more lucrative segments, mainly pharmaceuticals. In this article, I will analyze Becton, Dickinson and Company (BDX), one of my favorites. I will analyze the company using my methodology for analyzing dividend growth stocks. I am using the same method to make it easier to compare researched companies. I will examine the company's fundamentals, valuation, growth opportunities, and risks. I will then try to determine if it's a good investment. Seeking Alpha's company overview shows that: Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, the pharmaceutical industry, and the general public worldwide. The company was founded in 1897 and is based in Franklin Lakes, New Jersey. Fundamentals The revenues have more than doubled over the last decade. Becton, Dickinson and Company increase its sales through organic growth and acquisitions. In 2022, the company will see a decline in its revenues, as it sees fewer revenues from COVID tests and due to the spin-off of Embecta (EMBC), its diabetes care unit. In the future, analysts' consensus, as seen on Seeking Alpha, expects Becton, Dickinson and Company to keep growing sales at an annual rate of ~1% in the medium term. BDX Revenue ((TTM)) data by YCharts The EPS (earnings per share) of Becton, Dickinson and Company may be a bit confusing. The company GAAP earnings increased by only 13%, but the non-GAAP EPS increased by more than 140%. EPS increase is attributed to the sales growth. Despite higher share count and lower margins, Becton, Dickinson and Company managed to maintain significant growth. In the future, analysts' consensus, as seen on Seeking Alpha, expects Becton, Dickinson and Company to keep growing EPS at an annual rate of ~2% in the medium term. BDX EPS Diluted ((TTM)) data by YCharts Becton, Dickinson and Company is a dividend aristocrat that will become a dividend king in December as it increases its annual dividend for the 50th year in a row. The company offers a 1.4% dividend yield, which is safe and unlikely to be cut as the payout ratio is 5% based on GAAP earnings, and 25% based on non-GAAP earnings. Investors should expect additional mid-single digits increases in the medium term as the company usually maintains a 30% payout ratio. BDX Dividend data by YCharts In addition to dividends, companies reward their shareholders with buybacks to return capital to shareholders. Buybacks support EPS growth and are effective when companies are growing. Over the last decade, the number of shares of Becton, Dickinson and Company increased by 45%. The increase is attributed to stock-based compensation and shares issued to fund the company's acquisitions. BDX Shares Outstanding data by YCharts Valuation The current P/E (price to earnings) ratio of Becton, Dickinson and Company is 39 using the GAAP EPS of 2021 and 21.74 when using the forecasted non-GAAP EPS for 2022. It is, in my opinion, a high valuation for a company that is growing at a low single digits rate. The company aims to achieve more significant growth, but in the meantime, the valuation should suit the current growth rate and the one expected in the medium term. BDX PE Ratio (Forward) data by YCharts The graph below from Fastgraphs.com emphasizes how Becton, Dickinson and Company is now detached from the historical trend. In the last two decades, the average P/E was 19.24, and the growth rate was 10% annually. We now see a P/E ratio of 21.7 and a lower growth rate. The company will have to either grow faster or become more attractively valued to be an attractive investment at the moment. Fastgraphs To conclude, Becton, Dickinson and Company is a reliable company that offers investors steady top and bottom line growth. It uses its excess cash flow to acquire peers and reward shareholders with dividends. However, this package comes at a great price, and I believe that when the company grows slowly, it cannot justify the current forward P/E ratio of almost 22. Opportunities Diversification is a key growth opportunity for Becton, Dickinson and Company. Despite being an American company, only 56% of its sales come from the United States. Having 44% of the revenues coming from the international markets is negative in the short term as the USD is strengthening. Still, it allows the company to capitalize on crucial business opportunities around the globe and not rely solely on the American market. Another growth opportunity for the company is M&A activity. Following the decline in the market, it may be even a more attractive path. The company has a budget of $2B annually for acquisitions. The latest acquisition was the acquisition of Parata Systems for $1.5B in July 2022. This company is leading in the pharmacy automation business, and the purchase is part of the company's strategy of developing and acquiring higher-margin products. The company is constantly investing in its pipeline for new products. The company targets spending 6% of its revenues on R&D, equating to $1.2B annually in addition to the $2B it allocates for growth through M&A. The company has several promising products in its pipeline, including BD Libertas, a prefilled wearable injector that enables self-administration of larger doses for chronic diseases. Risks The company is suffering from a declining operating margin. The margin declined from 20% in 2012 to 17% in 2021. The company aims to improve the operating margins to 25% by 2025, but the combination of inflation and higher labor cost may make it harder to achieve. It is a crucial milestone for the company's strategy, and failing to execute it may hinder growth in the medium term.

Shareholder Returns

BDXUS Medical EquipmentUS Market
7D1.7%-0.4%1.4%
1Y6.4%-21.3%-8.4%

Return vs Industry: BDX exceeded the US Medical Equipment industry which returned -21.1% over the past year.

Return vs Market: BDX exceeded the US Market which returned -9% over the past year.

Price Volatility

Is BDX's price volatile compared to industry and market?
BDX volatility
BDX Average Weekly Movement3.2%
Medical Equipment Industry Average Movement9.5%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: BDX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BDX's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189775,000Tom Polenhttps://www.bd.com

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide. The company’s BD Medical segment offers peripheral intravenous (IV) and advanced peripheral catheters, central lines, acute dialysis catheters, vascular care and preparation products, needle-free IV connectors and extensions sets, closed-system drug transfer devices, hazardous drug detections, hypodermic syringes and needles, anesthesia needles and trays, enteral syringes, and sharps disposal systems; IV medication and infusion therapy delivery systems, medication compounding workflow systems, automated medication dispensing and supply management systems, and medication inventory optimization and tracking systems; syringes, pen needles, and other products for diabetes; and prefillable drug delivery systems. Its BD Life Sciences segment provides specimen and blood collection products; 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 single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers.

Becton Dickinson Fundamentals Summary

How do Becton Dickinson's earnings and revenue compare to its market cap?
BDX fundamental statistics
Market CapUS$75.21b
Earnings (TTM)US$1.90b
Revenue (TTM)US$20.08b

39.6x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BDX income statement (TTM)
RevenueUS$20.08b
Cost of RevenueUS$10.59b
Gross ProfitUS$9.49b
Other ExpensesUS$7.59b
EarningsUS$1.90b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.66
Gross Margin47.25%
Net Profit Margin9.46%
Debt/Equity Ratio64.2%

How did BDX perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

52%

Payout Ratio

Does BDX pay a reliable dividends?

See BDX dividend history and benchmarks
When do you need to buy BDX by to receive an upcoming dividend?
Becton Dickinson dividend dates
Ex Dividend DateSep 08 2022
Dividend Pay DateSep 30 2022
Days until Ex dividend19 days
Days until Dividend pay date41 days

Does BDX pay a reliable dividends?

See BDX dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is BDX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BDX?

Other financial metrics that can be useful for relative valuation.

BDX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.4x
Enterprise Value/EBITDA16.3x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

How does BDX's PE Ratio compare to its peers?

BDX PE Ratio vs Peers
The above table shows the PE ratio for BDX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average53.3x
SYK Stryker
40.2x14.8%US$83.5b
EW Edwards Lifesciences
42.4x9.9%US$61.7b
BSX Boston Scientific
73.6x24.8%US$61.0b
ISRG Intuitive Surgical
57.2x17.2%US$82.0b
BDX Becton Dickinson
39.6x16.2%US$75.2b

Price-To-Earnings vs Peers: BDX is good value based on its Price-To-Earnings Ratio (39.6x) compared to the peer average (53.3x).


Price to Earnings Ratio vs Industry

How does BDX's PE Ratio compare vs other companies in the US Medical Equipment Industry?

Price-To-Earnings vs Industry: BDX is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the US Medical Equipment industry average (34.9x)


Price to Earnings Ratio vs Fair Ratio

What is BDX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BDX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.6x
Fair PE Ratio39.7x

Price-To-Earnings vs Fair Ratio: BDX is good value based on its Price-To-Earnings Ratio (39.6x) compared to the estimated Fair Price-To-Earnings Ratio (39.7x).


Share Price vs Fair Value

What is the Fair Price of BDX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BDX ($263.71) is trading below our estimate of fair value ($301)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Becton Dickinson forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDX's forecast earnings growth (16.2% per year) is above the savings rate (1.9%).

Earnings vs Market: BDX's earnings (16.2% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: BDX's earnings are forecast to grow, but not significantly.

Revenue vs Market: BDX's revenue (4.4% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: BDX's revenue (4.4% 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 (15.1%).


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Past Performance

How has Becton Dickinson performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


29.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BDX has a large one-off loss of $546.0M impacting its June 30 2022 financial results.

Growing Profit Margin: BDX's current net profit margins (9.5%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: BDX's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: BDX's earnings growth over the past year (27.9%) is below its 5-year average (29.2% per year).

Earnings vs Industry: BDX earnings growth over the past year (27.9%) exceeded the Medical Equipment industry -0.2%.


Return on Equity

High ROE: BDX's Return on Equity (7.8%) is considered low.


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Financial Health

How is Becton Dickinson's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BDX's short term assets ($9.5B) exceed its short term liabilities ($7.1B).

Long Term Liabilities: BDX's short term assets ($9.5B) do not cover its long term liabilities ($20.6B).


Debt to Equity History and Analysis

Debt Level: BDX's net debt to equity ratio (54.1%) is considered high.

Reducing Debt: BDX's debt to equity ratio has reduced from 151% to 64.2% over the past 5 years.

Debt Coverage: BDX's debt is not well covered by operating cash flow (16%).

Interest Coverage: BDX's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.32%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 19 2022Ex Dividend DateSep 08 2022Dividend Pay DateSep 30 202222 days from Ex DividendBuy in the next 19 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BDX's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: BDX's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (3.99%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (51.7%), BDX's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (67.7%), BDX's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure


CEO

Tom Polen (49 yo)

5.33yrs

Tenure

US$14,189,333

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD14.19M) is about average for companies of similar size in the US market ($USD12.88M).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BDX's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: BDX's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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
  • Implied Market Cap: US$75.209b
  • Shares outstanding: 285.20m
  • Website: https://www.bd.com

Number of Employees


Location

  • Becton, Dickinson and Company
  • 1 Becton Drive
  • Franklin Lakes
  • New Jersey
  • 07417-1880
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/09/30


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.