Bristol Myers Squibb Co (NYSE: BMY)

Sector: Healthcare Industry: Drug Manufacturers - General CIK: 0000014272
Market Cap 120.32 Bn
P/B 8.54
P/E 22.11
P/S 7.24
ROIC (Qtr) 10.51
Div Yield % 3.10
Rev 1y % (Qtr) 1.30
Total Debt (Qtr) 45.11 Bn
Debt/Equity (Qtr) 2.44
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About

Bristol-Myers Squibb Company (BMS), a prominent player in the biopharmaceutical industry, is a global entity involved in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products. Established in 1887, the company has its headquarters in New York City. BMS's primary business activities encompass the biopharmaceutical sector, focusing on four main therapeutic areas: oncology, hematology, immunology, and neuroscience. The company's operations span various countries and regions, including...

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Investment thesis

Bull case

  • Healthy cash reserves of 10.21B provide 4.52x coverage of short-term debt 2.26B, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 14.16B provides strong 25.60x coverage of stock compensation 553M, indicating sustainable incentive practices.
  • Operating cash flow of 14.16B provides exceptional 7078x coverage of minority interest expenses 2M, showing strong core operations.
  • Robust free cash flow of 12.85B exceeds capital expenditure of 1.31B by 9.80x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 14.16B provides 1.95x coverage of SG&A expenses 7.27B, showing efficient operational cost management.

Bear case

  • Operating cash flow of 14.16B barely covers its investment activities of (4.13B), with a coverage ratio of -3.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 14.16B provides thin coverage of dividend payments of (5.04B) with a -2.81 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (4.13B) provide weak support for R&D spending of 9.95B, which is -0.42x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 10.21B provide limited coverage of acquisition spending of (2.87B), which is -3.55x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 11.41B relative to inventory of 2.69B (4.24 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Drug Manufacturers - General
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LLY ELI LILLY & Co 1,096.48 Bn 444.66 53.21 42.50 Bn
2 JNJ Johnson & Johnson 586.00 Bn 21.86 6.22 47.93 Bn
3 MRK Merck & Co., Inc. 351.73 Bn 29.51 8.33 41.37 Bn
4 ABBV AbbVie Inc. 346.46 Bn 41.07 10.17 68.74 Bn
5 AZN Astrazeneca Plc 324.54 Bn 31.74 5.53 29.62 Bn
6 NVS Novartis Ag 322.29 Bn 23.05 5.69 35.46 Bn
7 GILD Gilead Sciences, Inc. 237.69 Bn 78.03 22.28 24.94 Bn
8 AMGN Amgen Inc 233.95 Bn 29.40 9.93 54.60 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.32 2.46
EV to Cash from Ops. EV/CFO 38.86 38.77
EV to Debt EV to Debt 2.64 6.68
EV to EBIT EV/EBIT 18.13 37.43
EV to EBITDA EV/EBITDA 23.46 30.58
EV to Free Cash Flow [EV/FCF] EV/FCF 54.98 50.59
EV to Market Cap EV to Market Cap 0.99 1.31
EV to Revenue EV/Rev 7.17 8.62
Price to Book Value [P/B] P/B 8.54 5.91
Price to Earnings [P/E] P/E 22.11 44.84
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.40 0.95
Dividend Payout Ratio % Div Payout % (Qtr) 71.50 65.78
Dividend per Basic Share Div per Share (Qtr) 2.49 2.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 39.46 40.65
Interest Coverage Interest Coverage 0.00 20.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -5.05 -17.39
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -1.32 74.29
Dividend Growth (1y) % Div 1y % (Qtr) 2.89 3.76
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 178.83 71.80
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 992.47 65.77
EBIT Growth (1y) % EBIT 1y % (Qtr) 211.10 63.01
EBT Growth (1y) % EBT 1y % (Qtr) 211.10 306.04
EPS Growth (1y) % EPS 1y % (Qtr) 178.68 348.81
FCF Growth (1y) % FCF 1y % (Qtr) -7.87 11.69
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.22 7.99
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.54 0.39
Cash Payout Ratio Cash Payout (Qtr) 0.33 0.28
Cash Ratio Cash Ratio (Qtr) 0.44 2.08
Current Ratio Curr Ratio (Qtr) 1.26 6.16
Debt to Equity Ratio Debt/Equity (Qtr) 2.44 -0.39
Interest Cover Ratio Interest Cover Ratio 0.00 20.38
Times Interest Earned Times Interest Earned 0.00 20.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 27.70 -13.64
EBIT Margin % EBIT Margin % (Qtr) 19.35 -10.45
EBT Margin % EBT Margin % (Qtr) 19.35 -25.59
Gross Margin % Gross Margin % (Qtr) 71.10 65.04
Net Profit Margin % Net Margin % (Qtr) 14.60 -34.87