Becton, Dickinson & Co. (BDX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DexCom, Inc.

Agilent Technologies, Inc.

Intuitive Surgical, Inc.

Thermo Fisher Scientific, Inc.

IDEXX Laboratories, Inc.

Stryker Corp.

Abbott Laboratories

Becton, Dickinson & Co.

Edwards Lifesciences Corp.

Danaher Corp.

Medtronic Plc

Why is Becton, Dickinson & Co. ?

Poor long term growth as Operating profit has grown by an annual rate 5.16% of over the last 5 years

Negative results in Jun 25

CASH AND EQV(HY) Lowest at USD 1,582 MM
DEBT-EQUITY RATIO (HY) Highest at 72.72 %
DEBTORS TURNOVER RATIO(HY) Lowest at 7.72 times

With ROCE of 6.24%, it has a expensive valuation with a 1.88 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.32%, its profits have risen by 13.3% ; the PEG ratio of the company is 2.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.32% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Becton, Dickinson & Co. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Becton, Dickinson & Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Becton, Dickinson & Co.

-8.98%

-0.53

30.59%

S&P 500

20.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.78%

EBIT Growth (5y)

2.26%

EBIT to Interest (avg)

5.60

Debt to EBITDA (avg)

3.26

Net Debt to Equity (avg)

0.73

Sales to Capital Employed (avg)

0.47

Tax Ratio

11.22%

Dividend Payout Ratio

71.53%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

6.58%

ROE (avg)

8.05%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.75

EV to EBIT

29.30

EV to EBITDA

16.71

EV to Capital Employed

2.01

EV to Sales

4.14

PEG Ratio

3.86

Dividend Yield

2.14%

ROCE (Latest)

6.87%

ROE (Latest)

7.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

PRE-TAX PROFIT(Q)

At USD 504 MM has Grown at 309.35%

NET PROFIT(Q)

At USD 489.89 MM has Grown at 278.92%

ROCE(HY)

Highest at 6.96%

DIVIDEND PER SHARE(HY)

Highest at USD 8.52

RAW MATERIAL COST(Y)

Fallen by -6.3% (YoY

-13What is not working for the Company

NET PROFIT(HY)

At USD -2,036.97 MM has Grown at -315.06%

OPERATING CASH FLOW(Y)

Lowest at USD 3,394 MM

CASH AND EQV(HY)

Lowest at USD 1,894 MM

DEBT-EQUITY RATIO (HY)

Highest at 73.19 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.98 times

Here's what is working for Becton, Dickinson & Co.

Pre-Tax Profit

At USD 504 MM has Grown at 309.35%

over average net sales of the previous four periods of USD -240.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 489.89 MM has Grown at 278.92%

over average net sales of the previous four periods of USD -273.8 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Dividend per share

Highest at USD 8.52 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -6.3% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

At USD 614 MM has Grown at 27.65%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Becton, Dickinson & Co.

Operating Cash Flow

Lowest at USD 3,394 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 1,894 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 73.19 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 2.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio