Becton Dickinson and Co

Find Ratings Reports
BDX : NYSE : Health Care
$173.35 -0.14 | -0.08%
Today's Range: 172.26 - 174.16
Avg. Daily Volume: 1179000.0
01/13/17 - 4:00 PM ET

Financial Analysis


BECTON DICKINSON & CO's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. BECTON DICKINSON & CO has weak liquidity. Currently, the Quick Ratio is 0.80 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 6.54% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)3231.03060.0
EBITDA ($mil)777.0793.0
EBIT ($mil)504.0478.0
Net Income ($mil)18.0181.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1568.01444.0
Total Assets ($mil)25586.026820.0
Total Debt ($mil)11551.012822.0
Equity ($mil)7633.07164.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin56.4856.99
EBITDA Margin24.0425.91
Operating Margin15.615.62
Sales Turnover0.490.38
Return on Assets3.812.59
Return on Equity12.789.7
Debt Q4 FY16 Q4 FY15
Current Ratio1.451.38
Debt/Capital0.60.64
Interest Expense95.099.0
Interest Coverage5.314.83


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)213.29210.7
Div / share0.660.6
EPS0.090.84
Book value / share35.7934.0
Institutional Own % n/a n/a
Avg Daily Volume1173404.0789160.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 69.11 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 4.85 indicates a significant premium versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 8.30. 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 38.47 Peers 69.11   BDX 14.46 Peers 23.72

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 16.49 Peers 23.81   BDX 0.34 Peers 1.00

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 4.85 Peers 8.30   BDX 32.25 Peers 84.51

Discount. 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 significant discount to 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 2.96 Peers 5.77   BDX 21.40 Peers 17.12

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 exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades