NYSE:BMY

Stock Analysis Report

Executive Summary

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide.

Snowflake

Fundamentals

Undervalued with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Bristol-Myers Squibb's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

BMY

0.06%

US Pharmaceuticals

0.5%

US Market


1 Year Return

4.6%

BMY

-7.8%

US Pharmaceuticals

6.8%

US Market

Return vs Industry: BMY exceeded the US Pharmaceuticals industry which returned -7.8% over the past year.

Return vs Market: BMY underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

BMYIndustryMarket
7 Day3.2%0.06%0.5%
30 Day5.2%-1.7%-0.8%
90 Day23.6%-1.3%-0.9%
1 Year8.2%4.6%-5.5%-7.8%9.2%6.8%
3 Year17.9%8.1%18.4%10.1%45.6%36.2%
5 Year13.7%-0.6%22.2%9.3%63.2%45.4%

Price Volatility Vs. Market

How volatile is Bristol-Myers Squibb's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bristol-Myers Squibb undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BMY ($53.2) is trading below our estimate of fair value ($250.41)

Significantly Below Fair Value: BMY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BMY is good value based on its PE Ratio (14x) compared to the Pharmaceuticals industry average (16x).

PE vs Market: BMY is good value based on its PE Ratio (14x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: BMY is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: BMY is overvalued based on its PB Ratio (5.4x) compared to the US Pharmaceuticals industry average (2.9x).


Next Steps

Future Growth

How is Bristol-Myers Squibb forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

47.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BMY's forecast earnings growth (47% per year) is above the savings rate (2.7%).

Earnings vs Market: BMY's earnings (47% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: BMY's revenue (15.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: BMY's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BMY's Return on Equity is forecast to be high in 3 years time (26.3%)


Next Steps

Past Performance

How has Bristol-Myers Squibb performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BMY's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: BMY's earnings growth over the past year (1549.7%) exceeds its 5-year average (13% per year).

Earnings vs Industry: BMY earnings growth over the past year (1549.7%) exceeded the Pharmaceuticals industry 24.3%.


Return on Equity

High ROE: Whilst BMY's Return on Equity (38.54%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: BMY has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Bristol-Myers Squibb's financial position?


Financial Position Analysis

Short Term Liabilities: BMY's short term assets ($37.7B) exceeds its short term liabilities ($9.7B)

Long Term Liabilities: BMY's short term assets (37.7B) exceeds its long term liabilities (29.3B)


Debt to Equity History and Analysis

Debt Level: BMY's debt to equity ratio (156.1%) is considered high

Reducing Debt: BMY's debt to equity ratio has increased from 50.3% to 156.1% over the past 5 years.

Debt Coverage: BMY's debt is well covered by operating cash flow (28.5%).

Interest Coverage: BMY earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: BMY's debt is covered by short term assets (assets are 1.495590x debt).


Next Steps

Dividend

What is Bristol-Myers Squibb's current dividend yield, its reliability and sustainability?

3.08%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BMY's dividend (3.08%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BMY's dividend (3.08%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.9%), BMY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BMY's dividends in 3 years are forecast to be well covered by earnings (23.1% payout ratio).


Next Steps

Management

What is the CEO of Bristol-Myers Squibb's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Giovanni Caforio (54yo)

4.4yrs

Tenure

US$19,379,755

Compensation

Dr. Giovanni Caforio, M.D. serves as the Chief Executive Officer at Bristol-Myers Squibb Belgium NV/SA. Dr. Caforio has been the Chief Executive Officer of Bristol-Myers Squibb Farmacêutica Portuguesa, SA  ...


CEO Compensation Analysis

Compensation vs. Market: Giovanni's total compensation ($USD19.38M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

4.2yrs

Average Tenure

57yo

Average Age

Experienced Management: BMY's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

62yo

Average Age

Experienced Board: BMY's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: BMY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$491,92001 Aug 19
Robert Bertolini
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares11,000
Max PriceUS$44.72
BuyUS$236,44020 May 19
Theodore Samuels
EntityIndividual
Shares5,000
Max PriceUS$47.29
SellUS$145,77120 May 19
Karen Santiago
EntityIndividual
Shares3,065
Max PriceUS$47.56
BuyUS$55,656,55927 Feb 19
Wellington Management Group LLP
EntityCompany
Shares1,076,321
Max PriceUS$51.71
SellUS$517,778,65527 Feb 19
Wellington Management Group LLP
EntityCompany
Shares9,877,502
Max PriceUS$52.42

Ownership Breakdown


Management Team

  • Sandy Leung (58yo)

    Executive VP & General Counsel

    • Tenure: 12.7yrs
    • Compensation: US$6.24m
  • John Elicker (59yo)

    Senior Vice President of Corporate Affairs & Investor Relations

    • Tenure: 2.8yrs
  • Giovanni Caforio (54yo)

    Chairman of the Board & CEO

    • Tenure: 4.4yrs
    • Compensation: US$19.38m
  • Charlie Bancroft (59yo)

    Executive VP of Global Business Operations & CFO

    • Tenure: 9.5yrs
    • Compensation: US$7.89m
  • Paul von Autenried (57yo)

    Senior VP & Chief Information Officer

    • Tenure: 7.8yrs
  • Lou Schmukler (63yo)

    Senior VP and President of Global Product Development & Supply

    • Tenure: 2.8yrs
    • Compensation: US$4.13m
  • Ann Powell (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 3.3yrs
  • Jitendra Tyagi

    Head of US Drug Makers - India

    • Tenure: 5.3yrs
  • Paul Biondi (49yo)

    Head of Strategy & Business Development and Senior VP

    • Tenure: 4yrs
  • Adam Dubow (52yo)

    Senior VP & Chief Compliance and Ethics Officer

    • Tenure: 1.8yrs

Board Members

  • Jerry Storch (62yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$325.00k
  • Alan Lacy (65yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$340.81k
  • Vicki Sato (70yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$388.31k
  • Mike Grobstein (76yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$355.00k
  • Dinesh Paliwal (62yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$307.50k
  • Matt Emmens (67yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$345.00k
  • Bob Bertolini (58yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$324.16k
  • Pete Arduini (54yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$332.75k
  • Giovanni Caforio (54yo)

    Chairman of the Board & CEO

    • Tenure: 4.4yrs
    • Compensation: US$19.38m
  • Karen Vousden (61yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$321.10k

Company Information

Bristol-Myers Squibb Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bristol-Myers Squibb Company
  • Ticker: BMY
  • Exchange: NYSE
  • Founded: 1887
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$87.023b
  • Shares outstanding: 1.64b
  • Website: https://www.bms.com

Number of Employees


Location

  • Bristol-Myers Squibb Company
  • 430 East 29th Street
  • 14th Floor
  • New York
  • New York
  • 10016
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BMYNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
BMY *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
BRMDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
BRMXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
BMYSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
0R1FLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
BMYSWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
BMYBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1 COM USD0.10ARARSMar 2009
BMYB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1 COM SHSBRBRLAug 2012

Biography

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. The company offers drugs in oncology, immunoscience, cardiova ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:33
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.