Bristol-Myers Squibb Co BMY

Morningstar Rating
$55.92 −0.32 (0.57%)
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Company Report

Bristol's Portfolio of Newer Therapies and Strong Late-Stage Pipeline Support a Wide Moat

Adept at partnerships and acquisitions, Bristol-Myers Squibb has built a strong portfolio of drugs and a robust pipeline. This strategy is evident in the acquisition of Celgene, which netted the firm an excellent pipeline and a strong foothold in blood cancer. More recent acquisitions—oncology firms Mirati and RayzeBio and neurology firm Karuna—also help support Bristol's strong overall pipeline and wide moat.

Price vs Fair Value

BMY is trading at a 128% premium.
Price
$57.13
Fair Value
$37.00
Uncertainty
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1-Star Price
$26.10
5-Star Price
$47.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Bristol is launching innovative drugs in cardiology and neurology, which should have strong sales trajectories, given the high unmet medical need.

Bears

The acquisition of Celgene came shortly before the start of generic competition for that firm's cancer drug Revlimid in 2022, setting up a major growth obstacle over several years, given the planned staggered generic entry.

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Trading Information

Previous Close Price
$56.24
Day Range
$55.4556.62
52-Week Range
$42.5262.89
Bid/Ask
$55.70 / $55.99
Shares Outstanding
2.04B
Market Cap
$114.19B
Volume/Avg
12M / 12M

Key Statistics

Price/Earnings (Normalized)
9.67
Price/Sales
2.40
Dividend Yield (Trailing)
4.43%
Dividend Yield (Forward)
4.46%
Total Yield
4.38%

Company Profile

Bristol Myers Squibb discovers, develops, and markets drugs for various therapeutic areas, such as cardiovascular, cancer, and immune disorders. A key focus for Bristol is immuno-oncology, where the firm is a leader in drug development. Bristol derives close to 70% of total sales from the US, showing a higher dependence on the US market than most of its peer group.
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Large Value
Total Number of Employees
32,500

Competitors

Valuation

Metric
BMY
LLY
AZN
Price/Earnings (Normalized)
9.6738.5119.54
Price/Book Value
5.8132.455.81
Price/Sales
2.4014.084.66
Price/Cash Flow
7.9237.8717.69
Price/Earnings
BMY
LLY
AZN

Financial Strength

Metric
BMY
LLY
AZN
Quick Ratio
1.180.720.70
Current Ratio
1.421.500.91
Interest Coverage
6.318.17
Quick Ratio
BMY
LLY
AZN

Profitability

Metric
BMY
LLY
AZN
Return on Assets (Normalized)
13.15%24.73%9.16%
Return on Equity (Normalized)
65.90%114.33%22.59%
Return on Invested Capital (Normalized)
19.89%40.96%14.71%
Return on Assets
BMY
LLY
AZN

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