NYSE:BMY

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 65.2% below its fair value

Earnings are forecast to grow 82.37% per year

Pays a high and reliable dividend of 2.74%

Risk Analysis

High level of non-cash earnings

Has a high level of debt

Profit margins (13.2%) are lower than last year (21.8%)

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential established dividend payer.


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

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


Market Performance


7 Day Return

-1.9%

BMY

-1.0%

US Pharmaceuticals

0.5%

US Market


1 Year Return

28.1%

BMY

6.7%

US Pharmaceuticals

20.3%

US Market

Return vs Industry: BMY exceeded the US Pharmaceuticals industry which returned 6.7% over the past year.

Return vs Market: BMY exceeded the US Market which returned 20.3% over the past year.


Shareholder returns

BMYIndustryMarket
7 Day-1.9%-1.0%0.5%
30 Day-1.5%-3.3%2.0%
90 Day15.6%5.7%9.4%
1 Year32.4%28.1%9.4%6.7%22.8%20.3%
3 Year29.6%18.7%25.9%16.9%50.1%40.4%
5 Year22.9%7.3%21.3%9.0%73.1%54.1%

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 ($65.71) is trading below our estimate of fair value ($189.05)

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


Price To Earnings Ratio

PE vs Industry: BMY is poor value based on its PE Ratio (32.6x) compared to the Pharmaceuticals industry average (21.5x).

PE vs Market: BMY is poor value based on its PE Ratio (32.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: BMY is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: BMY is overvalued based on its PB Ratio (6.1x) compared to the US Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

How is Bristol-Myers Squibb forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

82.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BMY's forecast earnings growth (82.4% per year) is above the savings rate (1.7%).

Earnings vs Market: BMY's earnings (82.4% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: BMY's revenue (8.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: BMY's revenue (8.1% 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 (25.4%)


Next Steps

Past Performance

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

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BMY has a high level of non-cash earnings.

Growing Profit Margin: BMY's current net profit margins (13.2%) are lower than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: BMY's earnings have grown by 16.7% per year over the past 5 years.

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

Earnings vs Industry: BMY had negative earnings growth (-30.1%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (2.4%).


Return on Equity

High ROE: BMY's Return on Equity (19.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bristol-Myers Squibb's financial position?


Financial Position Analysis

Short Term Liabilities: BMY's short term assets ($40.2B) exceed its short term liabilities ($10.5B).

Long Term Liabilities: BMY's short term assets ($40.2B) exceed its long term liabilities ($29.2B).


Debt to Equity History and Analysis

Debt Level: BMY's debt to equity ratio (141.9%) is considered high.

Reducing Debt: BMY's debt to equity ratio has increased from 52.2% to 141.9% over the past 5 years.

Debt Coverage: BMY's debt is well covered by operating cash flow (33.6%).

Interest Coverage: BMY's interest payments on its debt are well covered by EBIT (37x coverage).


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 1.6x debt).


Next Steps

Dividend

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

2.74%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: BMY's dividend (2.74%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: BMY's dividend (2.74%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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: At its current payout ratio (83.3%), BMY's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BMY's dividends in 3 years are forecast to be well covered by earnings (25.7% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Giovanni Caforio (54yo)

4.8yrs

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 ($USD19.38M) is above average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Giovanni Caforio
Chairman of the Board & CEO4.8yrsUS$19.38m0.016% $24.5m
Sandra Leung
Executive VP & General Counsel13yrsUS$6.24m0.025% $36.5m
Charles Bancroft
Executive VP & Head of Integration0.2yrsUS$7.89m0.017% $25.9m
Louis Schmukler
Executive VP and President of Global Product Development & Supply2.8yrsUS$4.13m0.0014% $2.1m
David Elkins
Executive VP & CFO0.3yrsno data0.00091% $1.4m
Paul von Autenried
Executive VP & Chief Information Officer8.1yrsno data0.0060% $8.9m
John Elicker
Executive Vice President of Investor Relations3.1yrsno data0.0033% $4.9m
Adam Dubow
Senior VP & Chief Compliance and Ethics Officer2.1yrsno data0.00074% $1.1m
Ann Powell Judge
Executive VP & Chief Human Resources Officer3.7yrsno data0.0014% $2.1m
Jitendra Tyagi
Head of US Drug Makers - India5.6yrsno datano data

3.4yrs

Average Tenure

57yo

Average Age

Experienced Management: BMY's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Giovanni Caforio
Chairman of the Board & CEO4.8yrsUS$19.38m0.016% $24.5m
Gerald Storch
Independent Director8.1yrsUS$325.00kno data
Alan Lacy
Independent Director12.1yrsUS$340.81k0.00010% $148.7k
Vicki Sato
Lead Independent Director2.8yrsUS$388.31kno data
Michael Grobstein
Independent Director12.9yrsUS$355.00k0.00015% $223.1k
Dinesh Paliwal
Independent Director6.6yrsUS$307.50k0.00057% $847.7k
Matthew Emmens
Independent Director3yrsUS$345.00k0.000010% $14.9k
Robert Bertolini
Independent Director3yrsUS$324.16k0.00051% $758.5k
Peter Arduini
Independent Director3.8yrsUS$332.75kno data
Theodore Samuels
Independent Director3yrsUS$337.50k0.0012% $1.8m

3.5yrs

Average Tenure

63yo

Average Age

Experienced Board: BMY's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.4%.


Top Shareholders

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$148.724b
  • Shares outstanding: 2.25b
  • 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
BRMETLX (Eurotlx)YesCommon StockITEURJan 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. It offers drugs in oncology, immunoscience, cardiovascular, and fibrotic diseases. The company’s products include Opdivo, a biological product for anti-cancer indications; Eliquis, an oral inhibitor targeted at stroke prevention in adult patients with non-valvular atrial fibrillation, and the prevention and treatment of venous thromboembolic disorders; and Orencia, a biological product for adult patients with active RA and prostate-specific antigen, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis. It also provides Sprycel, a tyrosine kinase inhibitor for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia; Yervoy, a monoclonal antibody for the treatment of patients with unresectable or metastatic melanoma; Empliciti, a humanized monoclonal antibody for the treatment of multiple myeloma; and Baraclude, an oral antiviral agent for the treatment of chronic hepatitis B. In addition, the company offers Reyataz, a protease inhibitor for the treatment of human immunodeficiency virus (HIV) and Evotaz; Sustiva franchise, a non-nucleoside reverse transcriptase inhibitor for the treatment of HIV; and Daklinza NS5A replication complex inhibitor, Sunvepra NS3 protease inhibitor, and Beclabuvir NS5B inhibitor. It sells products to wholesalers, retail pharmacies, hospitals, government entities, and medical profession. Bristol-Myers Squibb Company has collaboration agreements with Nektar Therapeutics; Janssen Pharmaceuticals, Inc.; Biocartis Group NV.; FameWave Ltd.; Novartis; Presage Biosciences; and WindMIL Therapeutics, Inc. The company was formerly known as Bristol-Myers Company and changed its name to Bristol-Myers Squibb Company in 1989. Bristol-Myers Squibb Company was founded in 1887 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 23:44
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.