Becton Dickinson & Co

Find Ratings Reports
BDX : NYSE : Health Care
$177.54 up 0.53 | 0.30%
Today's Range: 176.65 - 177.87
Avg. Daily Volume: 817,100
09/27/16 - 11:54 AM ET

Financial Analysis


BECTON DICKINSON & CO's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. BECTON DICKINSON & CO has weak liquidity. Currently, the Quick Ratio is 0.87 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.75% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)3198.03120.0
EBITDA ($mil)879.0543.0
EBIT ($mil)607.0244.0
Net Income ($mil)391.062.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1701.01588.0
Total Assets ($mil)26016.027079.0
Total Debt ($mil)11911.013170.0
Equity ($mil)8033.07253.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin56.8547.24
EBITDA Margin27.4817.4
Operating Margin18.987.82
Sales Turnover0.470.35
Return on Assets4.373.0
Return on Equity14.1711.23
Debt Q3 FY16 Q3 FY15
Current Ratio1.551.4
Debt/Capital0.60.64
Interest Expense97.0100.0
Interest Coverage6.262.44


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)212.93210.25
Div / share0.660.6
EPS1.80.29
Book value / share37.7334.5
Institutional Own % n/a n/a
Avg Daily Volume821673.0926875.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 44.20 for the Health Care Equipment & Supplies industry and a premium compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 4.81 indicates a significant premium versus the S&P 500 average of 2.82 and a discount versus the industry average of 5.05. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, BECTON DICKINSON & CO proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BDX 34.52 Peers 44.20   BDX 15.24 Peers 28.91

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

BDX is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BDX is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BDX 19.16 Peers 25.07   BDX 0.22 Peers 0.84

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

BDX is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

BDX trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BDX 4.81 Peers 5.05   BDX 28.29 Peers 23.13

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BDX is trading at a valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

BDX is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BDX 3.14 Peers 14.71   BDX 30.64 Peers 18.35

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BDX is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

BDX has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades