Over the last year, Becton, Dickinson and logged a 1.7% change, with its stock price reaching a high of $287.32 and a low of $229.86. Over the same period, the stock underperformed the S&P 500 index by -29.9%. AThe company's 50-day average price was $238.6. 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. Based in Franklin Lakes, NJ, the Large-Cap Health Care company has 73,000 full time employees. Becton, Dickinson and has not offered a dividend during the last year.
Strong Revenue Growth but Significant Leverage Levels:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $15,983 | $17,290 | $16,074 | $19,131 | $18,870 | $19,372 |
| Operating Margins | 9% | 10% | 6% | 12% | 12% | 11% |
| Net Margins | 2% | 7% | 5% | 11% | 9% | 8% |
| Net Income (M) | $311 | $1,233 | $874 | $2,092 | $1,779 | $1,530 |
| Net Interest Expense (M) | $706 | $639 | $528 | $469 | $398 | -$452 |
| Depreciation & Amort. (M) | $1,978 | $2,253 | $2,115 | $2,230 | $2,229 | $2,288 |
| Diluted Shares (M) | 274 | 275 | 293 | 287 | 285 | 288 |
| Earnings Per Share | $0.6 | $3.94 | $2.71 | $6.85 | $5.88 | $4.94 |
| EPS Growth | n/a | 556.67% | -31.22% | 152.77% | -14.16% | -15.99% |
| Avg. Price | $215.03 | $228.42 | $231.64 | $235.34 | $250.69 | $246.25 |
| P/E Ratio | 346.82 | 56.96 | 84.23 | 34.01 | 42.27 | 49.85 |
| CAPEX (M) | $895 | $957 | $769 | $1,194 | $973 | $874 |
| EV / EBITDA | 22.62 | 20.37 | 27.39 | 18.55 | 19.18 | 19.54 |
| Total Debt (M) | $22,148 | $20,537 | $18,961 | $18,174 | $16,074 | $15,879 |
| Net Debt / EBITDA | 6.08 | 4.98 | 5.19 | 3.63 | 3.43 | 3.29 |
| Current Ratio | 0.97 | 0.96 | 1.36 | 1.23 | 1.07 | 1.31 |
Becton, Dickinson and has weak operating margins with a stable trend, just enough current assets to cover current liabilities, as shown by its current ratio of 1.31, and significant leverage levels. We also note that the company benefits from rapidly growing revenues and a flat capital expenditure trend and exceptional EPS growth. Furthermore, Becton, Dickinson and's financial statements do not display any obvious red flags.
Becton, Dickinson and's Valuation Is in Line With Its Sector Averages:
Becton, Dickinson and has a trailing twelve month P/E ratio of 54.7, compared to an average of 30.21 for the Health Care sector. Based on its EPS guidance of $14.34, the company has a forward P/E ratio of 16.6. According to the 57.4% compound average growth rate of Becton, Dickinson and's historical and projected earnings per share, the company's PEG ratio is 0.95. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 22.6%. On this basis, the company's PEG ratio is 2.42. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Becton, Dickinson and in terms of its equity because its P/B ratio is 2.81 while the sector average is 4.08. The company's shares are currently trading -59.5% below their Graham number.
There's an Analyst Consensus of Some Upside Potential for Becton, Dickinson and:
The 13 analysts following Becton, Dickinson and have set target prices ranging from $240.0 to $315.0 per share, for an average of $278.54 with a buy rating. The company is trading -11.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Becton, Dickinson and has a very low short interest because 0.7% of the company's shares are sold short. Institutions own 89.3% of the company's shares, and the insider ownership rate stands at 0.31%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $6,432,899,562.
