Becton Dickinson (BDX) AI Stock Analysis

• Market Cap: $52.91B
• Dividend Yield: 2.25%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.38
• Revenue Growth: 7.86%
• EPS Growth: 14.24%
• Country: US
• Employees: 70,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 3.68
• Shares Outstanding: 286,627,470
• 10 Day Avg. Volume: 1,414,201
• 30 Day Avg. Volume: 1,586,392
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 3.18
• Enterprise Value/Gross Profit: 7.05
• Enterprise Value/Ebitda: 14.15
• 1Y Price Target: $194.00
• Price Target Upside: 5.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: $206.00 ▲(11.59% Upside)

Becton Dickinson's overall stock score is driven by strong earnings call performance, highlighting revenue growth and strategic initiatives. However, financial performance and valuation present challenges, with declining profitability margins and a high P/E ratio. Technical indicators suggest mixed momentum, adding to the cautious outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective product strategies, supporting long-term business expansion.

Strategic Initiatives

Strategic restructuring through a Reverse Morris Trust can optimize operations and unlock shareholder value, enhancing competitive positioning.

Innovation and Product Launches

Continuous innovation and localized product launches strengthen market presence and cater to regional needs, driving sustainable growth.

Negative Factors

Profitability Margins

Declining margins suggest rising costs or pricing pressures, which could impact long-term profitability if not addressed.

Cash Flow Challenges

Negative cash flow growth can limit investment in growth opportunities and affect financial flexibility, posing a risk to future operations.

Market Headwinds in China

Persistent challenges in a key market like China can hinder growth prospects and require strategic adjustments to mitigate risks.

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 generates revenue through the sale of a diverse range of medical devices, equipment, and diagnostic solutions across its three main sectors. The BD Medical segment is a significant revenue source, contributing through products like syringes, needles, and infusion systems used widely in hospitals and clinics. BD Life Sciences generates revenue from diagnostic instruments, reagents, and microbiology products, which are essential for laboratory testing and disease management. The BD Interventional segment includes products for surgical and minimally invasive procedures, further enhancing the company's revenue. Additionally, BDX benefits from partnerships with healthcare providers, research institutions, and technology companies that facilitate the development and distribution of its products, enhancing its market presence and driving sales. The company's focus on innovation and expanding its product portfolio also plays a crucial role in maintaining a steady revenue stream.

Becton Dickinson Financial Statement Overview

Summary

Becton Dickinson demonstrates solid revenue growth and operational efficiency, though profitability margins have slightly declined. The balance sheet shows improved leverage management, but return on equity has decreased. Cash flow metrics indicate challenges in cash generation, with negative free cash flow growth. Overall, the company maintains a stable financial position with areas for improvement in profitability and cash flow.

Income Statement

Becton Dickinson shows a stable revenue growth trajectory with a TTM revenue growth rate of 2.49%. The gross profit margin has decreased from previous years, indicating potential cost pressures. The net profit margin is slightly lower than the previous year, reflecting a modest decline in profitability. However, the company maintains a healthy EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved slightly, indicating better leverage management. Return on equity has decreased, which may suggest challenges in generating returns on shareholder investments. The equity ratio remains stable, reflecting a balanced capital structure.

Cash Flow

Operating cash flow has decreased, impacting the operating cash flow to net income ratio. Free cash flow has also declined, resulting in negative free cash flow growth. However, the free cash flow to net income ratio remains strong, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.39B	20.18B	19.37B	18.87B	19.13B	16.07B
Gross Profit	9.64B	9.13B	8.17B	8.48B	8.63B	6.80B
EBITDA	4.80B	4.82B	4.40B	4.41B	4.39B	3.06B
Net Income	1.61B	1.71B	1.48B	1.78B	2.09B	874.00M
Balance Sheet
Total Assets	54.90B	57.29B	52.78B	52.93B	53.88B	54.01B
Cash, Cash Equivalents and Short-Term Investments	757.00M	2.16B	1.42B	1.01B	2.29B	2.85B
Total Debt	19.34B	20.92B	15.88B	16.07B	17.61B	17.93B
Total Liabilities	29.43B	31.40B	26.98B	27.65B	30.20B	30.25B
Stockholders Equity	25.47B	25.89B	25.80B	25.28B	23.68B	23.77B
Cash Flow
Free Cash Flow	2.55B	3.07B	2.12B	1.66B	3.42B	2.73B
Operating Cash Flow	3.25B	3.80B	2.99B	2.63B	4.65B	3.54B
Investing Cash Flow	-4.26B	-5.51B	-716.00M	-3.23B	-1.88B	-1.23B
Financing Cash Flow	-2.68B	2.09B	-1.96B	-591.00M	-3.31B	22.00M

Becton Dickinson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 184.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 184.6 is below the 20-day moving average (MA) of 187.82, below the 50-day MA of 187.24, and below the 200-day MA of 199.96, indicating a bearish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 32.83 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	79 Outperform	$39.57B	28.43	23.47%	0.81%	9.84%	37.48%
ISRG	78 Outperform	$158.13B	61.56	―	―	20.77%	23.16%
WST	78 Outperform	$18.81B	39.17	16.65%	0.32%	2.88%	-5.50%
BDX	70 Outperform	$52.91B	33.20	6.26%	2.25%	7.86%	14.24%
HOLX	69 Neutral	$14.95B	27.89	11.50%	―	1.28%	-17.73%
BAX	54 Neutral	$11.29B	-82.79	-9.32%	3.09%	-27.41%	67.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%