Editor's Note: 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.
NEW YORK (
) 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 reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- Net operating cash flow has slightly increased to $1,134.00 million or 3.75% when compared to the same quarter last year. In addition, BRISTOL-MYERS SQUIBB CO has also modestly surpassed the industry average cash flow growth rate of 0.81%.
- The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.95 is somewhat weak and could be cause for future problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market on the basis of return on equity, BRISTOL-MYERS SQUIBB CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The gross profit margin for BRISTOL-MYERS SQUIBB CO is currently very high, coming in at 76.30%. Regardless of BMY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 14.50% trails the industry average.
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 16.4, equal to the average drugs industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Bristol-Myers Squibb has a market cap of $57.31 billion and is part of the health care sector and drugs industry. Shares are down 2.4% year to date as of the close of trading on Wednesday.
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--Written by a member of TheStreet Ratings Staff.
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