Becton Dickinson & Co

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BDX : NYSE : Health Care
$173.67 | %
Today's Range: 172.02 - 174.73
Avg. Daily Volume: 933,700
07/22/16 - 4:01 PM ET

Financial Analysis


BECTON DICKINSON & CO's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. BECTON DICKINSON & CO has weak liquidity. Currently, the Quick Ratio is 0.82 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.08% 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 FY16 Q2 FY15
Net Sales ($mil)3068.02051.0
EBITDA ($mil)851.0544.0
EBIT ($mil)571.0406.0
Net Income ($mil)338.0216.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1712.01952.0
Total Assets ($mil)26236.028293.0
Total Debt ($mil)12514.013838.0
Equity ($mil)7666.07159.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin57.5357.73
EBITDA Margin27.7326.52
Operating Margin18.6119.8
Sales Turnover0.470.3
Return on Assets3.083.81
Return on Equity10.5615.07
Debt Q2 FY16 Q2 FY15
Current Ratio1.511.56
Debt/Capital0.620.66
Interest Expense99.033.0
Interest Coverage5.7712.3


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)212.2209.39
Div / share0.660.6
EPS1.561.08
Book value / share36.1334.19
Institutional Own % n/a n/a
Avg Daily Volume925806.01077638.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 62.82 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 4.84 indicates a significant premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 4.84. 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 46.63 Peers 62.82   BDX 16.55 Peers 33.31

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 18.31 Peers 29.14   BDX 0.30 Peers 1.03

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 significant 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 4.84 Peers 4.84   BDX -31.32 Peers 159.18

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 3.03 Peers 4.71   BDX 44.59 Peers 20.16

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.

 

 

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