Skip to main content

NEW YORK (

TheStreet

)

-- Bristol-Myers Squibb Company

(NYSE:

BMY

) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

    • ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money, headlined by Jim Cramer, now!

    Highlights from the ratings report include:

      • The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 4.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
      • The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
      • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
      • The gross profit margin for BRISTOL-MYERS SQUIBB CO is currently very high, coming in at 78.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.00% is above that of the industry average.

      TheStreet Recommends

      Bristol-Myers Squibb Company, a biopharmaceutical company, engages in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products that help patients prevail over serious diseases worldwide. The company has a P/E ratio of 15.5, equal to the average drugs industry P/E ratioand below the S&P 500 P/E ratio of 17.7. Bristol-Myers Squibb has a market cap of $58.31 billion and is part of the

      health care

      sector and

      drugs

      industry. Shares are down 2% year to date as of the close of trading on Wednesday.

      You can view the full

      Bristol-Myers Squibb Ratings Report

      or get investment ideas from our

      investment research center

      .

      --Written by a member of TheStreet Ratings Staff.

      TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

      null