Bristol Myers Squibb Co (BMY) stock analysis

P/E below its 5-year median

Bristol Myers Squibb's P/E of 13.9 is below its own 5-year median of 18.1.

P/E below the industry

Bristol Myers Squibb's P/E of 13.9 is below the Drugs median of 25.1.

EV/EBITDA above its 5-year median

Bristol Myers Squibb's EV/EBITDA of 10.1 is above its 5-year median of 9.7.

P/B above the industry

Bristol Myers Squibb's price-to-book of 5.49 is above the Drugs median of 2.29.

Trading below fair value

The share price of $62.91 is below our fair value estimate of $92.05.

Margin of safety over 20%

The price is 31.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 5.5% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 4.2% over the last twelve months; the Drugs median is 8.0%.

Guidance lowered

Bristol Myers Squibb lowered its full-year Other income/(expense) outlook on Oct 29, 2026.

Gross margin slipping

Gross margin was 69.2% over the last twelve months, against 69.5% a year earlier.

Return on equity under 15%

Return on equity was 44.1% over the last twelve months and averaged 13.2% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Bristol Myers Squibb's return on equity of 44.1% is above the Drugs median of -58.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 18.5% over the last twelve months, against a 5-year average of 8.5%.

Net margin above the industry

Bristol Myers Squibb's net margin of 18.5% is above the Drugs median of -53.0%.

High debt

Debt is 183% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 134% five years ago to 183%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 24.8% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.59 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.23; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Bristol Myers Squibb paid dividends worth 4.0% of the share price over the last twelve months.

Yield below Treasuries

The 4.0% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Bristol Myers Squibb yields 4.0%.

Dividend not cut

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

Covered by earnings

Dividends take 55.4% of net income.

Covered by free cash flow

Dividends take 55.1% of free cash flow.