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

Fundamentals

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


Market Performance


7 Day Return

1.3%

BDX

1.2%

US Medical Equipment

1.0%

US Market


1 Year Return

8.0%

BDX

14.9%

US Medical Equipment

8.0%

US Market

Return vs Industry: BDX underperformed the US Medical Equipment industry which returned 14.9% over the past year.

Return vs Market: BDX exceeded the US Market which returned 8% over the past year.


Shareholder returns

BDXIndustryMarket
7 Day1.3%1.2%1.0%
30 Day0.2%-2.7%-0.07%
90 Day-0.7%-1.7%-1.0%
1 Year9.3%8.0%15.8%14.9%10.4%8.0%
3 Year53.8%47.6%71.4%66.2%46.2%36.7%
5 Year117.7%102.0%124.3%99.7%64.3%46.2%

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?

87.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BDX ($254.1) is trading above our estimate of fair value ($232.85)

Significantly Below Fair Value: BDX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BDX is poor value based on its PE Ratio (87.3x) compared to the Medical Equipment industry average (42.1x).

PE vs Market: BDX is poor value based on its PE Ratio (87.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: BDX is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: BDX is good value based on its PB Ratio (3.2x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

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

42.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDX's forecast earnings growth (42.9% per year) is above the savings rate (2.7%).

Earnings vs Market: BDX's earnings (42.9% per year) are forecast to grow faster than the US market (14.5% 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 (7.2% 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 (16.7%).


Next Steps

Past Performance

How has Becton Dickinson performed over the past 5 years?

-11.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BDX's earnings have declined by -11.8% per year over the past 5 years.

Accelerating Growth: BDX's earnings growth over the past year (26.2%) exceeds its 5-year average (-11.8% per year).

Earnings vs Industry: BDX earnings growth over the past year (26.2%) underperformed the Medical Equipment industry 28.2%.


Return on Equity

High ROE: BDX's Return on Equity (4.4%) is considered low.


Return on Assets

ROA vs Industry: BDX's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: BDX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Becton Dickinson's financial position?


Financial Position Analysis

Short Term Liabilities: BDX's short term assets ($6.8B) exceeds its short term liabilities ($6.2B)

Long Term Liabilities: BDX's short term assets (6.8B) do not cover its long term liabilities (24.5B)


Debt to Equity History and Analysis

Debt Level: BDX's debt to equity ratio (93.9%) is considered high

Reducing Debt: BDX's debt to equity ratio has increased from 73.9% to 93.9% over the past 5 years.

Debt Coverage: BDX's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: BDX's interest payments on its debt are well covered by EBIT (4.2x 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?

1.21%

Current Dividend Yield


Dividend Yield vs Market

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

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BDX's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: BDX's dividend (1.21%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (105.2%), 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 (28.2% payout ratio).


Next Steps

Management

What is the CEO of Becton Dickinson's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Vince Forlenza (66yo)

8yrs

Tenure

US$14,973,481

Compensation

Mr. Vincent A. Forlenza, also known as Vince, is a Director of Moody's Corp. since April 24, 2018. Mr. Forlenza serves as Chief Executive Officer and President of Becton, Dickinson U.K. Limited. Mr. Forlen ...


CEO Compensation Analysis

Compensation vs. Market: Vince's total compensation ($USD14.97M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

1.8yrs

Average Tenure

54yo

Average Age

Experienced Management: BDX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

7.0yrs

Average Tenure

65yo

Average Age

Experienced Board: BDX's board of directors are considered experienced (7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$11,80903 Sep 19
Alexandre Conroy
EntityIndividual
Shares46
Max PriceUS$256.72
SellUS$2,506,98529 Aug 19
Alexandre Conroy
EntityIndividual
Shares9,829
Max PriceUS$255.06
SellUS$32,23012 Aug 19
Patrick Kaltenbach
EntityIndividual
Role
Senior Key Executive
Executive VP & President of the Life Sciences Segment
Shares127
Max PriceUS$253.78
SellUS$36,98009 Aug 19
Patrick Kaltenbach
EntityIndividual
Role
Senior Key Executive
Executive VP & President of the Life Sciences Segment
Shares150
Max PriceUS$246.53
SellUS$347,61907 Aug 19
Claire Fraser-Liggett
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,429
Max PriceUS$243.26
SellUS$687,83713 Jun 19
Simon Campion
EntityIndividual
Shares2,903
Max PriceUS$236.94
SellUS$64,62505 Jun 19
Patrick Kaltenbach
EntityIndividual
Role
Senior Key Executive
Executive VP & President of the Life Sciences Segment
Shares275
Max PriceUS$235.00
SellUS$10,03730 May 19
Catherine Burzik
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares45
Max PriceUS$223.04
BuyUS$82,57330 May 19
Catherine Burzik
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares360
Max PriceUS$247.96
SellUS$3,774,82823 May 19
Samrat Khichi
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares16,085
Max PriceUS$234.68
SellUS$101,21014 May 19
Betty Larson
EntityIndividual
Shares450
Max PriceUS$224.91
SellUS$27,79518 Mar 19
Alberto Ribo
EntityIndividual
Shares109
Max PriceUS$255.00
SellUS$515,41606 Mar 19
Alberto Ribo
EntityIndividual
Shares2,021
Max PriceUS$255.03
SellUS$460,48403 Dec 18
James Borzi
EntityIndividual
Shares1,825
Max PriceUS$252.32
SellUS$233,52916 Nov 18
Charles Bodner
EntityIndividual
Role
Head of Corporate Finance
Senior VP of Corporate Finance
Shares950
Max PriceUS$245.82
SellUS$1,073,65516 Nov 18
Alberto Ribo
EntityIndividual
Shares4,530
Max PriceUS$237.01
SellUS$1,257,60608 Nov 18
Leong Ching Lim
EntityIndividual
Shares5,189
Max PriceUS$242.36
SellUS$9,956,94008 Nov 18
Timothy Ring
EntityIndividual
Shares42,000
Max PriceUS$237.07

Ownership Breakdown


Management Team

  • John DeFord (57yo)

    Executive VP of Research & Development and CTO

    • Tenure: 1.3yrs
  • Vince Forlenza (66yo)

    Chairman & CEO

    • Tenure: 8yrs
    • Compensation: US$14.97m
  • Sam Khichi (52yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: US$3.73m
  • Chris Reidy (62yo)

    Executive VP

    • Tenure: 6.3yrs
    • Compensation: US$5.18m
  • Gary DeFazio

    Senior VP

    • Tenure: 0yrs
  • Tom Polen (46yo)

    President & COO

    • Tenure: 2.5yrs
    • Compensation: US$5.83m
  • Patrick Kaltenbach (56yo)

    Executive VP & President of the Life Sciences Segment

    • Tenure: 1.4yrs
    • Compensation: US$5.23m
  • Charles Bodner (48yo)

    Senior VP of Corporate Finance

    • Tenure: 1.3yrs
  • Thomas Spoerel (41yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 0yrs
  • Jerry Flasz

    Executive VP of Global Services & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Vince Forlenza (66yo)

    Chairman & CEO

    • Tenure: 8yrs
    • Compensation: US$14.97m
  • Marshall Larsen (71yo)

    Lead Director

    • Tenure: 4.8yrs
    • Compensation: US$379.25k
  • Andy Eckert (57yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$329.25k
  • Chris Jones (64yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$329.25k
  • Bert Scott (68yo)

    Independent Director

    • Tenure: 17.1yrs
    • Compensation: US$349.25k
  • Claire Pomeroy (64yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$329.25k
  • Rebecca Rimel (68yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$324.25k
  • Cathy Burzik (69yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$339.52k
  • Claire Fraser-Liggett (64yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$344.25k
  • Dave Melcher (64yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$314.79k

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$68.595b
  • Shares outstanding: 269.95m
  • 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
BDXANYSE (New York Stock Exchange)PFD SHS CONV AUSUSDMay 2017

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:32
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.