Becton Dickinson (BDX) AI Stock Analysis

• Market Cap: $52.33B
• Dividend Yield: 2.22%
• Average Volume (3M): 2.95M
• Price to Earnings (P/E): 34.8
• Beta (1Y): 0.34
• Revenue Growth: 5.84%
• EPS Growth: 15.12%
• Country: US
• Employees: 70,000
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 3.35
• Shares Outstanding: 286,607,420
• 10 Day Avg. Volume: 3,665,416
• 30 Day Avg. Volume: 2,950,306
• PEG Ratio: -0.03
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.96
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 7.51
• Enterprise Value/Ebitda: 4.25
• 1Y Price Target: $200.73
• Price Target Upside: 9.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: $199.00 ▲(8.37%Upside)

Becton Dickinson's overall score reflects a solid financial foundation and strategic initiatives, tempered by valuation concerns and market challenges. Strong EPS growth and strategic U.S. investments are key positives, but revenue guidance revisions and external pressures, especially in China, are notable risks.

Positive Factors

Earnings

The deal is expected to be accretive to adjusted EPS in the first year, which suggests immediate financial benefits for the company.

Shareholder Value

BDX will receive a cash distribution of approximately $4B, half of which will be used for share repurchases, potentially increasing the value for shareholders.

Strategic Vision

The deal for BDX focuses the group down to the core MedTech franchise, which is critical.

Negative Factors

Complexity

Investors may take time to give BDX credit for the deal due to it being structured as an RMT, which involves complexities.

Revenue Risks

There is a perceived risk in the RemainCo revenue estimates, which makes the upcoming earnings as crucial as the deal announcement.

Shareholder Decisions

BDX shareholders will have to decide what to do with their shares in new-WAT post close and may need to hold them for a longer duration to realize full value, involving time value of money cost and equity risk.

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 makes money through the sale of its medical devices, laboratory equipment, and diagnostic products to healthcare institutions, clinical laboratories, and the pharmaceutical industry. The company's revenue streams are diversified across its three main segments: BD Medical, BD Life Sciences, and BD Interventional. BD Medical generates revenue through the sale of medication delivery systems, diabetes care products, and pharmaceutical systems. BD Life Sciences earns income from providing products for specimen collection, microbiology solutions, and molecular diagnostic systems. BD Interventional focuses on surgical, urology, and critical care products. The company also benefits from strategic partnerships with healthcare providers and ongoing innovation in medical technology, which contribute significantly to its earnings.

Becton Dickinson Financial Statement Overview

Summary

Becton Dickinson maintains strong revenue growth and stable margins. Despite minor concerns like increasing leverage and slightly declining net profit margins, the overall financial health is sound with effective cash flow management.

Income Statement

Becton Dickinson shows strong financial performance with a consistent revenue growth trend from $17.12B in 2020 to $20.87B TTM. Gross Profit Margin is healthy, maintaining above 44% consistently, and the Net Profit Margin is stable, though slightly decreased to 7.18% TTM from 8.45% in 2021. EBIT and EBITDA margins demonstrate operational efficiency despite slight declines. Overall, the income statement reflects robust revenue growth and solid profitability, though there is room for improving net margins.

Balance Sheet

The balance sheet displays a strong equity position with $54.47B in stockholders' equity as of TTM, providing a high Equity Ratio of 100% due to total liabilities being restated. The Debt-to-Equity Ratio is moderate, reflecting reasonable leverage but has increased from 0.75 in 2020 to 0.34 TTM. ROE has been consistent but slightly decreased recently, indicating stable returns on equity. The company's solid equity base and manageable leverage suggest financial stability, but increasing net debt warrants monitoring.

Cash Flow

Cash flow analysis reveals strong operating cash flows, with $3.30B TTM, and substantial free cash flows, despite a decline from $3.42B in 2021 to $2.59B TTM. The Free Cash Flow to Net Income Ratio remains favorable, highlighting efficient cash conversion. The Operating Cash Flow to Net Income Ratio is robust, ensuring liquidity. Although there are fluctuations, the overall cash flow position is strong, supporting operational and strategic investments.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	20.18B	19.37B	18.87B	20.25B	17.12B
Gross Profit	9.13B	8.17B	8.48B	9.43B	7.58B
EBITDA	4.82B	4.28B	4.29B	4.25B	2.97B
Net Income	1.71B	1.48B	1.78B	2.09B	874.00M
Balance Sheet
Total Assets	57.29B	52.78B	52.93B	53.87B	54.01B
Cash, Cash Equivalents and Short-Term Investments	2.16B	1.42B	1.01B	2.29B	2.85B
Total Debt	20.11B	15.88B	16.07B	17.61B	17.93B
Total Liabilities	31.40B	26.98B	27.63B	30.19B	30.24B
Stockholders Equity	25.89B	25.80B	25.30B	23.68B	23.77B
Cash Flow
Free Cash Flow	3.07B	2.12B	1.66B	3.42B	2.73B
Operating Cash Flow	3.80B	2.99B	2.63B	4.65B	3.54B
Investing Cash Flow	-5.51B	-716.00M	-3.23B	-1.88B	-1.23B
Financing Cash Flow	2.09B	-1.96B	-591.00M	-3.31B	22.00M

Becton Dickinson Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 183.63
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDX, the sentiment is Neutral. The current price of 183.63 is above the 20-day moving average (MA) of 176.85, above the 50-day MA of 173.80, and below the 200-day MA of 209.94, indicating a neutral trend. The MACD of 2.03 indicates Negative momentum. The RSI at 63.10 is Neutral, neither overbought nor oversold. The STOCH value of 89.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BDX.

Becton Dickinson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	83 Outperform	$40.08B	30.69	25.81%	0.78%	9.54%	37.23%
WST	78 Outperform	$16.33B	35.70	17.72%	0.30%	2.89%	-5.50%
COO	73 Outperform	$14.64B	35.59	5.15%	―	6.88%	21.11%
BDX	70 Outperform	$52.33B	34.84	5.97%	2.22%	5.84%	15.12%
HOLX	70 Outperform	$14.70B	27.85	11.77%	―	1.66%	21.95%
BAX	56 Neutral	$14.76B	136.07	-8.96%	2.78%	-20.17%	-138.32%
Sector *	46 Neutral	C$201.68M	-3.28	-23.14%	1.87%	20.75%	-0.36%

Becton Dickinson Corporate Events

Becton Dickinson Announces Reverse Morris Trust with Waters

On July 13, 2025, Becton, Dickinson and Company announced a Reverse Morris Trust transaction with Waters Corporation, combining its Biosciences and Diagnostic Solutions business with Waters. This strategic move will result in BD receiving approximately $4 billion in cash and its shareholders owning 39.2% of Waters’ common stock. The transaction involves several steps, including the separation of BD’s Biosciences and Diagnostic Solutions Business into a new entity, SpinCo, which will then merge with a subsidiary of Waters. This merger has been approved by both companies’ boards and is expected to enhance BD’s financial position and market influence.

The most recent analyst rating on (BDX) stock is a Buy with a $280.00 price target. To see the full list of analyst forecasts on Becton Dickinson stock, see the BDX Stock Forecast page.

Becton Dickinson Announces $17.5B Merger with Waters

On July 14, 2025, Becton Dickinson and Waters Corporation announced a definitive agreement to combine BD’s Biosciences and Diagnostic Solutions business with Waters in a Reverse Morris Trust transaction valued at approximately $17.5 billion. This strategic move aims to create a leading life science and diagnostics company with a strong presence in high-growth markets, doubling Waters’ total addressable market to $40 billion. The combined company is expected to generate significant shareholder value through cost and revenue synergies, with anticipated annualized EBITDA synergies of $345 million by 2030. The transaction is expected to be accretive to adjusted EPS in the first year, with a promising financial outlook projecting mid-to-high single-digit revenue growth and mid-teens adjusted EPS growth over the next five years.

The most recent analyst rating on (BDX) stock is a Buy with a $280.00 price target. To see the full list of analyst forecasts on Becton Dickinson stock, see the BDX Stock Forecast page.

Becton Dickinson Reaches Proposed Settlement in Derivative Case

Becton, Dickinson and Company (BD) is involved in a legal matter concerning stockholder derivative actions. A proposed settlement has been reached in the consolidated stockholder derivative litigation against BD and certain of its officers and directors, which alleges breaches of fiduciary duties and other misconduct related to the Alaris infusion pump system. The settlement, if approved by the court, will resolve the litigation and prevent further claims related to the issues. A settlement hearing is scheduled for August 11, 2025, to determine the fairness of the settlement terms.

The most recent analyst rating on (BDX) stock is a Buy with a $280.00 price target. To see the full list of analyst forecasts on Becton Dickinson stock, see the BDX Stock Forecast page.