Becton Dickinson & Co (BDX) stock analysis

P/E above its 5-year median

Becton Dickinson's P/E of 64.2 is above its own 5-year median of 42.5.

P/E above the industry

Becton Dickinson's P/E of 64.2 is above the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

EV/EBITDA below its 5-year median

Becton Dickinson's EV/EBITDA of 14.9 is below its 5-year median of 18.9.

P/B below the industry

Becton Dickinson's price-to-book of 2.37 is below the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

Trading above fair value

The share price of $212.61 is above our fair value estimate of $185.60.

Margin of safety under 20%

The price is 14.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 5.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -0.3% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -40.6% over the last twelve months, against a 5-year average of 13.9% a year.

Growing faster than the industry

Revenue grew 17.4% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

Guidance raised

Becton Dickinson raised its full year fiscal 2026 Adjusted Diluted EPS outlook on Aug 6, 2026.

Gross margin improving

Gross margin was 46.9% over the last twelve months, against 44.5% a year earlier.

Return on equity under 15%

Return on equity was 3.8% over the last twelve months and averaged 7.0% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.1%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Becton Dickinson's return on equity of 3.8% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.

Earnings grew over 5 years

Net income grew 13.9% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 4.0% over the last twelve months, against a 5-year average of 8.8%.

Net margin above the industry

Becton Dickinson's net margin of 4.0% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

High debt

Debt is 68.8% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 75.5% five years ago to 68.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 23.5% of total debt.

Interest not well covered

Operating income covers interest expense 4.2 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.87 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.39; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Becton Dickinson paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Becton Dickinson yields 2.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Not covered by earnings

Dividends take 125% of net income, leaving little room.

Covered by free cash flow

Dividends take 36.6% of free cash flow.