Becton Dickinson (BDX) AI Stock Analysis

• Market Cap: $59.53B
• Dividend Yield: 1.92%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.48
• Revenue Growth: 5.89%
• EPS Growth: 42.05%
• Country: US
• Employees: 70,000
• Sector: Healthcare
• Sector Strength: 77
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 6.02
• Shares Outstanding: 287,135,400
• 10 Day Avg. Volume: 2,214,039
• 30 Day Avg. Volume: 2,111,668
• PEG Ratio: 0.82
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.20
• Price to Cash Flow (P/CF): 23.90
• P/FCF Ratio: 28.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $273.88
• Price Target Upside: 32.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Becton Dickinson's strong financial performance and strategic initiatives, including a business separation plan, bolster its position despite high valuation and debt levels. The company's recent earnings call highlights robust growth and innovation, though challenges in China and currency headwinds are noted. Technical indicators suggest a balanced outlook, and while the stock is priced at a premium, it remains an attractive choice for investors seeking growth in the medical equipment industry.

Positive Factors

Business Strategy

The separated Biosciences and Diagnostic Solutions business should benefit from enhanced focus and investments as a pure-play tools and diagnostics company.

Company Performance

BDX delivered a solid start to the F1Q25 year, and the rest-of-F2025 setup argues positively for more quarterly beats ahead.

Earnings

F1Q revenue of $5.17B beat the Street's $5.10B forecast, reflecting organic growth of 3.9%.

Negative Factors

Financial Concerns

BDX shares were pressured due to remainCo stranded cost, stand-up cost, and dilution concerns in the absence of separation-related financial specifics.

Segment Performance

US pharma systems segment underperformed compared to expectations, but global performance was less impacted.

Becton Dickinson Business Overview & Revenue Model

Company Description

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide. The company's BD Medical segment offers peripheral intravenous (IV) and advanced peripheral catheters, central lines, acute dialysis catheters, vascular care and preparation products, needle-free IV connectors and extensions sets, closed-system drug transfer devices, hazardous drug detections, hypodermic syringes and needles, anesthesia needles and trays, enteral syringes, and sharps disposal systems; IV medication and infusion therapy delivery systems, medication compounding workflow systems, automated medication dispensing and supply management systems, and medication inventory optimization and tracking systems; syringes, pen needles, and other products for diabetes; and prefillable drug delivery systems. Its BD Life Sciences segment provides specimen and blood collection products; automated blood and tuberculosis culturing, molecular testing, microorganism identification and drug susceptibility, and liquid-based cytology systems, as well as rapid diagnostic assays, microbiology laboratory automation products, and plated media products; and fluorescence-activated cell sorters and analyzers, antibodies and kits, reagent systems, and solutions for single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers. The company's BD Interventional segment offers hernia and soft tissue repair, biological and bioresorbable grafts, biosurgery, and other surgical products; surgical infection prevention, surgical and laparoscopic instrumentation products; peripheral intervention products; and urology and critical care products. The company was founded in 1897 and is based in Franklin Lakes, New Jersey.

How the Company Makes Money

Becton Dickinson (BDX) generates revenue primarily through the sale of its medical technology products and services. The company segments its operations into three main divisions: BD Medical, BD Life Sciences, and BD Interventional, each contributing to its revenue streams. BD Medical, the largest segment, provides products such as syringes, needles, intravenous catheters, and infusion pumps, crucial for medication delivery and management. BD Life Sciences generates income through products used in specimen collection, diagnostic testing, and laboratory research, including automated diagnostic systems and assays. BD Interventional focuses on minimally invasive surgical instruments and solutions for disease management. BD also benefits from strategic partnerships, collaborations, and long-term contracts with healthcare providers, institutions, and governments, enhancing its market presence and ensuring a steady revenue flow. The company's global reach and diversified product portfolio help mitigate risks associated with market fluctuations and regulatory changes, ensuring a robust revenue model.

Becton Dickinson Financial Statement Overview

Summary

Becton Dickinson exhibits a strong financial position with stable growth and profitability. While the company effectively manages cash flow and maintains a healthy profit margin, high debt levels are a potential risk. Overall, the company is performing well with opportunities to further enhance equity returns.

Income Statement

Becton Dickinson demonstrates strong profitability with a healthy gross profit margin of 59.42% in TTM and a net profit margin of 8.36%. The revenue growth rate is 2.29%, indicating moderate growth. EBIT and EBITDA margins are solid at 12.85% and 17.85% respectively, showcasing efficient operations.

Balance Sheet

The company's balance sheet is robust with an equity ratio of 100%, indicating full equity financing for its assets. However, the debt-to-equity ratio is high at 0.34, suggesting reliance on debt which could pose risks. ROE is a modest 3.16%, indicating room for improvement in leveraging equity.

Cash Flow

Cash flow analysis reveals efficient conversion of income into cash, with an operating cash flow to net income ratio of 2.11. Free cash flow growth is slightly negative at -5.87%, but free cash flow to net income ratio is strong at 1.70, indicating good cash management.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
20.64B	20.18B	19.37B	18.87B	20.25B	17.12B
	Gross Profit
9.33B	9.13B	8.17B	8.48B	9.43B	7.58B
	EBIT
2.65B	2.40B	2.11B	2.28B	2.80B	1.48B
	EBITDA
3.68B	4.85B	4.28B	4.29B	4.25B	2.97B
	Net Income Common Stockholders
1.73B	1.71B	1.48B	1.78B	2.09B	874.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.26B	2.30B	1.42B	1.01B	2.29B	2.85B
	Total Assets
8.94B	57.29B	52.78B	52.93B	53.87B	54.01B
	Total Debt
1.69B	20.11B	15.88B	16.07B	17.61B	17.93B
	Net Debt
860.15M	18.25B	14.46B	15.06B	15.33B	15.11B
	Total Liabilities
3.79B	31.40B	26.98B	27.63B	30.19B	30.24B
	Stockholders Equity
5.15B	25.91B	25.80B	25.30B	23.68B	23.77B
Cash Flow		Free Cash Flow
2.94B	3.12B	2.12B	1.66B	3.42B	2.73B
	Operating Cash Flow
3.65B	3.84B	2.99B	2.63B	4.65B	3.54B
	Investing Cash Flow
-5.08B	-5.51B	-716.00M	-3.23B	-1.88B	-1.23B
	Financing Cash Flow
1.02B	2.09B	-1.96B	-591.00M	-3.31B	22.00M

Becton Dickinson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 207.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDX, the sentiment is Negative. The current price of 207.34 is below the 20-day moving average (MA) of 226.54, below the 50-day MA of 229.75, and below the 200-day MA of 230.41, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 25.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BDX.

Becton Dickinson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	78 Outperform	$30.13B	24.24	25.65%	1.01%	9.38%	40.38%
BDX	76 Outperform	$59.53B	34.44	6.92%	1.92%	5.89%	42.05%
COO	73 Outperform	$14.75B	35.67	5.25%	―	7.15%	41.96%
HOLX	71 Outperform	$13.66B	19.26	15.78%	―	1.75%	50.25%
WST	65 Neutral	$14.69B	30.40	17.71%	0.40%	-1.93%	-15.47%
BAX	54 Neutral	$14.77B	136.07	-9.24%	3.19%	-14.00%	-184.82%
Sector *	48 Neutral	$6.36B	1.14	-49.01%	2.63%	17.12%	1.49%

Becton Dickinson Corporate Events

Gregory J. Hayes Joins Becton Dickinson Board

On March 26, 2025, Gregory J. Hayes was elected to the Board of Directors of Becton Dickinson, expanding the Board from eleven to twelve members. Hayes will serve on the Audit Committee and the Compensation and Human Capital Committee, and his appointment reflects BD’s adherence to corporate governance principles, potentially strengthening its board’s oversight capabilities.

Becton Dickinson Announces Strategic Business Separation Plan

On February 5, 2025, BD announced its plan to separate its Biosciences and Diagnostic Solutions business from the rest of the company, aiming for completion by fiscal 2026, pending various approvals. In its fiscal 2025 first quarter results, BD reported strong financial performance with a revenue increase of 9.8% to $5.2 billion and EPS growth, alongside plans to unlock value through strategic separation and enhance its focus on innovation and growth in respective markets.

Becton Dickinson Appoints New Chief Accounting Officer

Becton Dickinson has appointed Pamela L. Spikner as Senior Vice President, Chief Accounting Officer and Controller, effective January 20, 2025. Spikner, who has extensive experience in corporate finance and accounting, is expected to enhance the financial leadership at BD, contributing to the company’s strategic goals and operational efficiency.