Becton Dickinson and Co

Find Ratings Reports
BDX : NYSE : Health Care
$183.42 | %
Today's Range: 181.14 - 183.42
Avg. Daily Volume: 999600.0
02/24/17 - 4:00 PM ET

Financial Analysis


BECTON DICKINSON & CO's gross profit margin for the first 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 0.61 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.98% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)2922.02986.0
EBITDA ($mil)824.0761.0
EBIT ($mil)562.0472.0
Net Income ($mil)562.0229.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)937.01593.0
Total Assets ($mil)24318.026046.0
Total Debt ($mil)11018.012809.0
Equity ($mil)7583.07223.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin58.6956.8
EBITDA Margin28.1925.48
Operating Margin19.2315.81
Sales Turnover0.510.43
Return on Assets5.382.64
Return on Equity17.269.52
Debt Q1 FY17 Q1 FY16
Current Ratio1.141.25
Debt/Capital0.590.64
Interest Expense95.097.0
Interest Coverage5.924.87


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)212.83211.82
Div / share0.730.66
EPS2.581.06
Book value / share35.6334.1
Institutional Own % n/a n/a
Avg Daily Volume1031118.0993345.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 51.36 for the Health Care Equipment & Supplies industry and a premium compared to the S&P 500 average of 26.35. Conducting a second comparison, its price-to-book ratio of 5.07 indicates a significant premium versus the S&P 500 average of 2.94 and a premium versus the industry average of 5.03. 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 29.95 Peers 51.36   BDX 16.00 Peers 24.07

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 17.37 Peers 23.64   BDX 0.27 Peers 0.83

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 5.07 Peers 5.03   BDX 84.40 Peers 96.88

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 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 3.10 Peers 5.98   BDX 10.71 Peers 16.85

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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