BDX Becton, Dickinson and Company - Fundamental Analysis
BULLISH
BDX Stock | Fundamental Analysis & Investment Insights
NYSE
•
Healthcare
•
Medical Instruments & Supplies
Current Price
$193.04
Analyst Target
$201.49
+4.4% Upside
52W High
$251.99
52W Low
$162.29
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
88%
Analysis Accuracy
BDX presents a compelling turnaround story with strong recent earnings momentum, robust YoY earnings growth of 25.2%, and a forward P/E of 12.27 that implies significant de-rating on past concerns. The stock has rebounded 11.3% over the past six months after a painful 5-year drawdown of -11.8%, suggesting sentiment inflection. Despite below-sector-average profitability and ROE, BDX trades at a discount to healthcare peers on P/E and EV/EBITDA-equivalent metrics, while maintaining solid financial leverage control and a well-covered 2.18% dividend. Analysts concur with a unanimous buy rating and a $201.49 target, implying 4.4% upside, supported by consistent earnings beats over the last 20+ quarters.
Key Strengths
Exceptional earnings growth trajectory: 25.2% YoY and 23.3% Q/Q earnings growth signal strong operational rebound
Attractive forward valuation: Forward P/E of 12.27 vs sector average of 36.60 and peer median >20
High earnings quality and consistency: 22 out of 25 quarters beat estimates, with 14.7% and 27.5% EPS surprises in recent history
Prudent capital structure: Debt/Equity of 0.76 is well below sector average of 1.28, reducing refinancing risk
Shareholder-friendly dividend policy: 2.18% yield with 71.5% payout ratio, sustainable given cash flow resilience
Key Risks
Weak historical profitability: 7.68% net margin and 6.54% ROE lag sector averages of 13.18% and 38.50%, respectively
Poor liquidity profile: Quick ratio of 0.44 raises near-term working capital concerns
Insider selling pressure: $0.82M in net insider sales over last 6 months, with 8 sell transactions and zero buys
Underperformance vs market: 5Y return of -11.8% and 1Y return of -13.2% reflect prolonged investor skepticism
Valuation disconnect: Current P/E of 33.23 appears elevated vs forward P/E, suggesting potential near-term multiple compression risk
AI Fair Value Estimate
Based on comprehensive analysis
$201.5
+4.4% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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