BRISTOL MYERS SQUIBB CO (BMY) Stock Analysis
BRISTOL MYERS SQUIBB CO (BMY) Stock Analysis
Analysis from 10-Q filed 2025-10-30. Data as of Q4 2025.
Overall Grade: F (Concerning)
BRISTOL MYERS SQUIBB CO faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 10.6% | Near cost of capital |
| FCF Margin | 26.7% | Strong cash generation |
| Debt/Equity | 2.4x | Elevated debt |
Investment Thesis: Healthy free cash flow margin of 26.7% provides financial flexibility for growth and shareholder returns.
Explore BRISTOL MYERS SQUIBB CO: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: BRISTOL MYERS SQUIBB CO earns 10.6% ROIC, Top 25% in Healthcare
BRISTOL MYERS SQUIBB CO's trailing-twelve-month ROIC of 10.6% ranks Top 25% in Healthcare companies (sector median: -3.9%), driven by NOPAT margin of 14.6% combined with asset turnover of 0.5x. Source: 10-Q filed 2025-10-30. Gross margin of 71.1% with operating margin at 19.4% reflects strong pricing power.
| Metric | BMY | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.6% | Adequate | Above sector median of -3.9% |
| Return on Equity (ROE) | 39.9% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 71.1% | Excellent | Strong pricing power |
| Operating Margin | 19.4% | Good | Efficient operations |
Cash Flow: BRISTOL MYERS SQUIBB CO generates $12.8B FCF at 26.7% margin, positive NaN/8 quarters
BRISTOL MYERS SQUIBB CO generated $12.8B in free cash flow (TTM), a 26.7% FCF margin, a margin that ranks Top 5% in Healthcare. Operating cash flow exceeds net income by 2.0x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-30.
| Metric | BMY | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 26.7% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $12.8B | Good | Positive cash generation |
| OCF/Net Income | 2.0x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: BRISTOL MYERS SQUIBB CO at 2.4x leverage
BRISTOL MYERS SQUIBB CO's debt-to-equity ratio of 2.4x reflects high leverage. Total debt of $45.1B offset by $10.7B in cash. Source: 10-Q filed 2025-10-30.
| Metric | BMY | Rating | Context |
|---|---|---|---|
| Debt to Equity | 2.4x | Warning | Elevated leverage |
| Net Cash Position | $-34.4B | Warning | Net debt position |
Valuation: BRISTOL MYERS SQUIBB CO trades at 15.5x earnings
BRISTOL MYERS SQUIBB CO trades at a P/E of 15.5x. Free cash flow yield of 11.7% offers attractive cash returns relative to price.
| Metric | BMY | Rating | Context |
|---|---|---|---|
| P/E Ratio | 15.5x | Adequate | Reasonable valuation |
| EV/Sales | 3.0x | Good | Growth premium priced in |
| FCF Yield | 11.7% | Excellent | Attractive cash return |
| Dividend Yield | 4.6% | Good | Meaningful income |
Capital Allocation: BRISTOL MYERS SQUIBB CO returns 4.6% shareholder yield
BRISTOL MYERS SQUIBB CO's total shareholder yield is 4.6% (dividends 4.6% + buybacks). Source: 10-Q filed 2025-10-30.
| Metric | BMY | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 4.6% | Good | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $5.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.6% | Top 25% | - |
| Free Cash Flow Margin | 26.7% | Top 5% | - |
| Gross Margin | 71.1% | Top 50% | 1.1x above |
| Operating Margin | 19.4% | Top 25% | 10.1x above |
| Return on Equity (ROE) | 39.9% | Top 25% | - |
| P/E Ratio | 15.5x | N/A | - |
Financial Scorecard
| Metric | BMY | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.6% | Adequate | Top 25% of sector (median: -3.9%) |
| Free Cash Flow Margin | 26.7% | Excellent | Top 5% of sector (median: 0.0%) |
| Gross Margin | 71.1% | Excellent | Top 50% of sector (median: 64.0%) |
| Debt to Equity Ratio | 244.2% | Warning | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 15.5x | Adequate | Fair value |
| Free Cash Flow Yield | 11.7% | Excellent | High cash return |
Frequently Asked Questions
Q: What is BRISTOL MYERS SQUIBB CO's Return on Invested Capital (ROIC)?
BRISTOL MYERS SQUIBB CO (BMY) has a trailing twelve-month Return on Invested Capital (ROIC) of 10.6%. This compares above the sector median of -3.9%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is BRISTOL MYERS SQUIBB CO's Free Cash Flow Margin?
BRISTOL MYERS SQUIBB CO (BMY) has a free cash flow margin of 26.7%, generating $12.8 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is BRISTOL MYERS SQUIBB CO stock overvalued or undervalued?
BRISTOL MYERS SQUIBB CO (BMY) trades at a P/E ratio of 15.5x, which is above the sector median of N/A. The EV/Sales multiple is 3.0x. Free cash flow yield is 11.7%, which represents an attractive cash return to investors.
Q: Does BRISTOL MYERS SQUIBB CO pay a dividend?
BRISTOL MYERS SQUIBB CO (BMY) currently pays a dividend yield of 4.6%. Including share buybacks, the total shareholder yield is 4.6%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: How much debt does BRISTOL MYERS SQUIBB CO have?
BRISTOL MYERS SQUIBB CO (BMY) has a debt-to-equity ratio of 2.4x with total debt of $45.1 billion. Net debt position is $34.4 billion.
Q: What is BRISTOL MYERS SQUIBB CO's revenue and earnings growth?
BRISTOL MYERS SQUIBB CO (BMY) declined revenue by 0.2% year-over-year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does BRISTOL MYERS SQUIBB CO compare to competitors in Healthcare?
Compared to other companies in Healthcare, BRISTOL MYERS SQUIBB CO (BMY) shows: ROIC of 10.6% is above the sector median of -3.9% (Top 25%). FCF margin of 26.7% exceeds the sector median of 0.0% (Top 0% of sector). Gross margin at 71.1% is 7.1 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.
Q: What warning signs should I watch for with BRISTOL MYERS SQUIBB CO?
Investors in BRISTOL MYERS SQUIBB CO (BMY) should monitor these potential warning signs: 1) Debt-to-equity of 2.4x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.