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Becton Dickinson And Company (BDX)
NYSE:BDX
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Becton Dickinson
(NYSE:BDX)
70Outperform
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.
Earnings
F1Q revenue of $5.17B beat the Street's $5.10B forecast, reflecting organic growth of 3.9%.
Financial Performance
Margins also topped Street forecasts, with adjusted gross and operating margins of 54.8% and 23.6%, respectively.
Negative Factors
Cost Concerns
BDX shares were pressured due to remainCo stranded cost, stand-up cost, and dilution concerns in the absence of separation-related financial specifics.
Market Sentiment
Investors repriced RemainCo for a lower growth outlook.
Segment Performance
US pharma systems segment underperformed compared to expectations, but global performance was less impacted.
Becton Dickinson (BDX) vs. S&P 500 (SPY)
Market Cap
$58.76B
Dividend Yield1.93%
Average Volume (3M)2.34M
Price to Earnings (P/E)34.0
Beta (1Y)0.43
Revenue Growth5.89%
EPS Growth42.05%
CountryUS
Employees70,000
SectorHealthcare
Sector Strength70
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)6.02
Shares Outstanding287,135,400
10 Day Avg. Volume2,107,192
30 Day Avg. Volume2,343,131
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.43
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit9.18
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$268.57Price Target Upside29.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Becton Dickinson Business Overview & Revenue Model
Company DescriptionBecton Dickinson (BDX) is a leading global medical technology company that develops, manufactures, and sells a diverse range of medical supplies, devices, laboratory equipment, and diagnostic products. The company operates through three primary segments: BD Medical, BD Life Sciences, and BD Interventional. BD Medical focuses on medication management and delivery solutions, BD Life Sciences provides products for sample collection and diagnostic systems, and BD Interventional offers surgical and interventional procedures products. With a commitment to advancing healthcare, BD serves hospitals, healthcare institutions, clinical laboratories, and the research industry worldwide.
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 Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business units, highlighting which segments drive growth and profitability, and identifying areas of strategic focus or potential risk.
Analyzes income from different business units, highlighting which segments drive growth and profitability, and identifying areas of strategic focus or potential risk.
Data provided by:
Main Street Data
Main Street DataBecton 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.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 | ||||
| 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 | EBIT |
| 2.40B | 2.11B | 2.28B | 2.80B | 1.48B | EBITDA |
| 4.85B | 4.28B | 4.29B | 4.25B | 2.97B | Net Income Common Stockholders |
| 1.71B | 1.48B | 1.78B | 2.09B | 874.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.30B | 1.42B | 1.01B | 2.29B | 2.85B | Total Assets |
| 57.29B | 52.78B | 52.93B | 53.87B | 54.01B | Total Debt |
| 20.11B | 15.88B | 16.07B | 17.61B | 17.93B | Net Debt |
| 18.25B | 14.46B | 15.06B | 15.33B | 15.11B | Total Liabilities |
| 31.40B | 26.98B | 27.63B | 30.19B | 30.24B | Stockholders Equity |
| 25.91B | 25.80B | 25.30B | 23.68B | 23.77B |
| Cash Flow | Free Cash Flow | |||
| 3.12B | 2.12B | 1.66B | 3.42B | 2.73B | Operating Cash Flow |
| 3.84B | 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
Negative
207.09
Price Trends
218.38
Negative
224.57
Negative
228.33
Negative
Market Momentum
-4.40
Negative
46.02
Neutral
86.06
Negative
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 207.09 is above the 20-day moving average (MA) of 205.24, below the 50-day MA of 218.38, and below the 200-day MA of 228.33, indicating a neutral trend. The MACD of -4.40 indicates Negative momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 86.06 is Negative, 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $34.69B | 26.56 | 25.81% | 0.87% | 9.54% | 37.23% | |
74 Outperform | $15.53B | 33.94 | 17.42% | 0.38% | -1.14% | -16.35% | |
71 Outperform | $16.33B | 39.49 | 5.25% | ― | 7.15% | 41.96% | |
70 Outperform | $58.76B | 33.99 | 6.92% | 1.93% | 5.89% | 42.05% | |
63 Neutral | $13.03B | 18.38 | 15.78% | ― | 1.75% | 50.25% | |
52 Neutral | $5.38B | 3.59 | -41.63% | 2.87% | 17.72% | 1.87% | |
49 Neutral | $15.99B | 136.07 | -9.24% | 2.97% | -14.00% | -184.82% |
* Healthcare Sector Average
Performance Comparison
BDX
Becton Dickinson
207.09
-29.13
-12.33%
BAX
Baxter International
31.17
-4.78
-13.30%
COO
Cooper Co
81.67
-8.08
-9.00%
HOLX
Hologic
58.20
-17.71
-23.33%
RMD
Resmed
236.59
20.40
9.44%
WST
West Pharmaceutical Services
211.29
-156.09
-42.49%
Becton Dickinson Earnings Call Summary
Earnings Call Date:Feb 05, 2025
(Q2-2025)
| % Change Since: -15.11%|
Next Earnings Date:May 01, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mixed performance for BD, with strong adjusted EPS growth and strategic investments being overshadowed by revenue challenges and external market pressures in Life Sciences, Diagnostics, and the China market. Tariff impacts further complicate the outlook.Q2-2025 Updates
Positive Updates
Adjusted EPS Growth Exceeds Expectations
Despite revenue challenges, BD exceeded their adjusted EPS growth expectations, delivering $3.35 in Q2, representing a 5.7% year-over-year increase.
Strong Margin Performance
BD reported adjusted gross margins of 54.9%, which increased by 190 basis points year-over-year, supported by the BD Excellence program.
Significant U.S. Manufacturing Investment
BD announced plans to invest $2.5 billion in U.S. manufacturing over the next five years to strengthen their position and commitment to a resilient U.S. healthcare system.
Positive Product Launches and Innovations
BD launched several new products like Phasix ST Umbilical and is on track to launch the BD FACSDiscover A8, which have received positive feedback from pilot customers.
Negative Updates
Revenue Growth Below Expectations
Revenues grew 6% or 0.9% organic, below expectations, due to market dynamics in Life Sciences and lower-than-expected recovery in Diagnostics.
Challenges in Life Sciences and Diagnostics
Life Sciences faced reduced global research funding, impacting biosciences instrument sales, while Diagnostics saw softness in the blood culture business.
China Market Decline
BD experienced a double-digit decrease in China sales due to volume-based procurement and ongoing research spending pressure.
Impact of Tariffs
BD expects $90 million in tariff expenses for FY '25, which will impact adjusted EPS by approximately $0.25, predominantly in Q4.
Company Guidance
During BD's Second Fiscal Quarter 2025 Earnings Call, the company provided guidance indicating a revised expectation for organic revenue growth of 3% to 3.5% for the full fiscal year, down from previous projections due to market dynamics impacting the Life Sciences and Diagnostics segments. BD reported Q2 revenue growth of 6%, or 0.9% organically, and an adjusted gross margin of 54.9%, which increased by 190 basis points year-over-year. Despite these challenges, BD exceeded its adjusted EPS growth expectations, delivering an EPS of $3.35, reflecting a 5.7% increase. The company is undertaking strategic actions to reaccelerate organic sales growth, including investments in its Pharm Systems, Alaris, PureWick, and Phasix product lines. Additionally, BD is actively mitigating the impacts of tariffs, estimating a $90 million tariff expense for FY '25, and has committed to a $2.5 billion investment in U.S. manufacturing over the next five years.Becton Dickinson Corporate Events
Executive/Board Changes
Gregory J. Hayes Joins Becton Dickinson Board
Neutral
Mar 27, 2025
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.
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.
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.