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Becton Dickinson And Company (BDX)
NYSE:BDX
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Becton Dickinson
(NYSE:BDX)73Outperform
Positive Factors
Business Strategy
Becton Dickinson’s ongoing positive transformation clearly took a meaningful positive step forward with the announcement of the Diagnostics business separation.
Earnings
F1Q revenue of $5.17B beat the Street's $5.10B forecast, reflecting organic growth of 3.9%.
Negative Factors
Concerns on Costs
BDX shares were pressured due to remainCo stranded cost, stand-up cost, and dilution concerns in the absence of separation-related financial specifics.
Becton Dickinson (BDX) vs. S&P 500 (SPY)
Market Cap
$65.60B
Dividend Yield1.7%
Average Volume (3M)1.97M
Price to Earnings (P/E)38.0
Beta (1Y)0.42
Revenue Growth5.89%
EPS Growth42.05%
CountryUS
Employees74,000
SectorHealthcare
Sector Strength74
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)6.02
Shares Outstanding287,135,400
10 Day Avg. Volume1,635,178
30 Day Avg. Volume1,972,689
Financial Highlights & Ratios
PEG Ratio0.90
Price to Book (P/B)N/A
Price to Sales (P/S)3.18
Price to Cash Flow (P/CF)23.70
P/FCF Ratio27.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$271.10Price Target Upside20.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Becton Dickinson Business Overview & Revenue Model
Company DescriptionFounded in 1897, Becton, Dickinson & Co. is a New Jersey-based medical technology company. The company develops, manufactures and sells medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions, physicians, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. It operates through the following segments: BD Medical, BD Life Sciences and BD Interventional.
How the Company Makes MoneyBecton 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. The company manages cash flow effectively and maintains a healthy profit margin, although high debt levels are a potential risk.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.82
Very Positive
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.75
Positive
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.78
Positive
| Breakdown | ||
| TTM | Sep 2024 | |
|---|---|---|
| Income Statement | Total Revenue | |
| 20.64B | 20.18B | Gross Profit |
| 9.33B | 9.13B | EBIT |
| 2.65B | 2.40B | EBITDA |
| 3.68B | 4.85B | Net Income Common Stockholders |
| 1.73B | 1.71B | |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |
| 2.30B | 2.30B | Total Assets |
| 57.29B | 57.29B | Total Debt |
| 20.11B | 20.11B | Net Debt |
| 18.25B | 18.25B | Total Liabilities |
| 31.40B | 31.40B | Stockholders Equity |
| 25.91B | 25.91B | |
| Cash Flow | Free Cash Flow | |
| 2.94B | 3.12B | Operating Cash Flow |
| 3.65B | 3.84B | Investing Cash Flow |
| -5.08B | -5.51B | Financing Cash Flow |
| 1.02B | 2.09B |
Becton Dickinson Technical Analysis
Negative
224.27
Price Trends
232.63
Negative
231.28
Negative
231.93
Negative
Market Momentum
-2.49
Positive
40.08
Neutral
43.43
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 224.27 is below the 20-day moving average (MA) of 228.88, below the 50-day MA of 232.63, and below the 200-day MA of 231.93, indicating a bearish trend. The MACD of -2.49 indicates Positive momentum. The RSI at 40.08 is Neutral, neither overbought nor oversold. The STOCH value of 43.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BDX.
Becton Dickinson Risk Analysis
Becton Dickinson disclosed 22 risk factors in its most recent earnings report. Becton Dickinson reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Becton Dickinson Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $238.61B | 18.01 | 28.12% | 1.60% | 4.59% | 134.50% | |
77 Outperform | $119.32B | 28.28 | 8.63% | 2.96% | 2.72% | 4.48% | |
73 Outperform | $65.60B | 37.95 | 6.85% | 1.70% | 5.89% | 42.05% | |
70 Outperform | $194.88B | 31.23 | 12.78% | 0.30% | 0.05% | 6.87% | |
65 Neutral | $147.01B | 38.89 | 7.87% | 0.53% | -13.50% | -17.25% | |
54 Neutral | $17.80B | 136.07 | -4.48% | 2.64% | -14.00% | -184.82% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
BDX
Becton Dickinson
224.27
-7.40
-3.19%
ABT
Abbott Laboratories
137.58
20.62
17.63%
BAX
Baxter International
34.79
-7.08
-16.91%
DHR
Danaher
205.91
-45.90
-18.23%
MDT
Medtronic
93.03
10.31
12.46%
TMO
Thermo Fisher
516.57
-73.32
-12.43%
Becton Dickinson Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -8.48% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong Q1 performance with significant revenue growth, shareholder returns, and innovation launches. However, challenges in China, Biosciences, and translational currency impacts were noted as headwinds.Highlights
Strong Q1 Financial Performance
BD reported 9.6% revenue growth or 3.9% organic growth. Adjusted diluted EPS grew by 28% to $3.43. The company also delivered 370 basis points in adjusted gross margin expansion and 340 basis points in adjusted operating margin expansion.
Significant Shareholder Returns
BD returned over $1 billion to shareholders in Q1, including $300 million in dividends and a $750 million accelerated share buyback.
Launch of New Innovations
BD launched several new innovations, including the next-gen HemoSphere Alta Monitor, new Swan IQ and ForeSight IQ smart sensors, and EU approval for the Phasix resorbable mesh for preventing incisional hernias.
Separation of Biosciences and Diagnostic Solutions
BD announced its intention to separate its Biosciences and Diagnostic Solutions business to create a pure-play MedTech company and a separate Life Sciences Tools & Diagnostics entity.
Lowlights
Challenges in China and Biosciences
The company experienced a decline in the Biosciences segment due to reduced research funding in China and the US. Additionally, challenges in China impacted overall performance.
Translational Currency Headwinds
BD expects a headwind to revenue from translational currency of approximately $250 million for the full fiscal year, which is an increase from prior guidance.
Research Spending Slowdown
There is a cautious outlook on research spending, impacting Biosciences due to reduced NIH funding and market dynamics in the US and China.
Company Guidance
During the call, BD provided updated financial guidance and shared their strategic decision to separate the Biosciences and Diagnostics Solutions business. For the fiscal year 2025, the company affirmed its full-year currency-neutral and organic revenue growth guidance despite a $250 million expected headwind from translational currency effects. BD reported a strong first quarter performance with 9.6% revenue growth, or 3.9% on an organic basis, and a 28% increase in adjusted diluted EPS to $3.43. They achieved a 370 basis point increase in adjusted gross margin and a 340 basis point rise in operating margin. The company returned over $1 billion to shareholders, including $300 million in dividends and a $750 million accelerated share buyback. BD's updated fiscal 2025 adjusted reported EPS guidance is now between $14.30 and $14.60, reflecting a 10% growth at the midpoint.Becton Dickinson Corporate Events
Business Operations and StrategyFinancial Disclosures
Becton Dickinson Announces Strategic Business Separation Plan
Positive
Feb 5, 2025
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.
Executive/Board Changes
Becton Dickinson Appoints New Chief Accounting Officer
Positive
Jan 10, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.