Becton Dickinson and Co

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BDX : NYSE : Health Care
$195.15 | %
Today's Range: 193.84 - 195.45
Avg. Daily Volume: 1879700.0
06/23/17 - 4:01 PM ET

Financial Analysis


BECTON DICKINSON & CO's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. BECTON DICKINSON & CO has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.87% 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.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)2970.03068.0
EBITDA ($mil)784.0829.0
EBIT ($mil)523.0549.0
Net Income ($mil)343.0338.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)556.01712.0
Total Assets ($mil)24121.026236.0
Total Debt ($mil)10306.012514.0
Equity ($mil)7963.07666.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin57.057.53
EBITDA Margin26.3927.02
Operating Margin17.6117.89
Sales Turnover0.510.47
Return on Assets5.443.08
Return on Equity16.510.56
Debt Q2 FY17 Q2 FY16
Current Ratio1.221.51
Debt/Capital0.560.62
Interest Expense86.099.0
Interest Coverage6.085.55


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)213.31212.2
Div / share0.730.66
EPS1.581.56
Book value / share37.3336.13
Institutional Own % n/a n/a
Avg Daily Volume1841597.0929594.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 43.59 for the Health Care Equipment & Supplies industry and a premium compared to the S&P 500 average of 25.73. Conducting a second comparison, its price-to-book ratio of 5.14 indicates a significant premium versus the S&P 500 average of 3.08 and a premium versus the industry average of 4.97. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, BECTON DICKINSON & CO seems to be trading 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 31.71 Peers 43.59   BDX 15.90 Peers 27.54

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

BDX is trading at a significant 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 18.57 Peers 24.69   BDX 0.29 Peers 0.97

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 5.14 Peers 4.97   BDX 61.33 Peers 116.03

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.

 

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

However, BDX is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BDX 3.32 Peers 5.06   BDX 0.71 Peers 14.46

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

BDX significantly trails its peers on the basis of sales growth

 

 

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