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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

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 16, 2025
Market cap
$55.33B
P/E
33.23
ROE
6.5%
Profit margin
7.7%
Debt/Equity
0.76
Dividend yield
2.18%

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 analysis across 5 key categories

Overall
81
Excellent
Value
85
Future
90
Past
78
Health
70
Dividend
80
AI Verdict
BDX scores highly on future growth and valuation appeal, supported by strong earnings momentum and a steep discount to sector P/E, while offset by weak historical returns and liquidity constraints; the stock’s recent price recovery aligns with analyst optimism and forward multiple compression, positioning it as a value-growth hybrid play in the medical instruments space
Key drivers: Forward P/E discount to peers, Consistent earnings beat streak, Improving earnings growth trajectory
Confidence
88%
Value
85/100

BDX trades at a steep discount to healthcare peers on forward earnings, even compared to high-growth names like EW (P/E 37.85) and COR (P/E 45.47), despite stronger earnings growth than ZTS or CI

Positives
  • Forward P/E of 12.27 offers deep discount to sector average of 36.60
  • Price/Sales of 2.53 below sector-implied median, suggesting undervaluation relative to revenue base
Watchpoints
  • Current P/E of 33.23 appears disconnected from fundamentals, increasing risk of multiple contraction
  • Lack of EV/EBITDA and cash flow data limits full enterprise valuation confidence
Future
90/100

Earnings are growing well above revenue, suggesting margin expansion, while the stock’s recent rebound from 52-week low of $162.29 to near $193 aligns with improving sentiment ahead of forward inflection

Positives
  • 25.2% YoY and 23.3% Q/Q earnings growth indicate accelerating profitability
  • Positive price momentum: +11.3% over 6M and +8.6% over 1W suggest institutional accumulation
Watchpoints
  • Revenue growth of 8.3% lags sector average of 10.51%, raising questions about top-line durability
  • Lack of Q/Q revenue data limits visibility into current demand trends
Past
78/100

Despite excellent earnings execution, long-term shareholders have been punished, with 1Y, 3Y, and 5Y returns all negative—highlighting a disconnect between fundamentals and valuation persistence

Positives
  • Remarkable earnings consistency: 22 of 25 quarters beat estimates, with frequent double-digit surprises
  • Resilient EPS progression through pandemic and post-merger integration periods
Watchpoints
  • 5-year total return of -11.8% significantly underperforms both sector and broad market
  • ROE of 6.54% and ROA of 3.52% reflect capital inefficiency vs sector average ROE of 38.50%
Health
70/100

While leverage is well-managed compared to peers, particularly CI (0.81) and ZTS (1.35), BDX’s weak liquidity ratios suggest tight working capital management, a concern in a capital-intensive medical device environment

Positives
  • Debt/Equity of 0.76 is conservative relative to sector average of 1.28 and peers like COR (4.38)
  • No immediate solvency risk given investment-grade profile and stable cash flows
Watchpoints
  • Quick ratio of 0.44 indicates potential short-term liquidity strain
  • Current ratio of 1.11 is barely above 1.0, limiting operational flexibility
Dividend
80/100

The dividend offers modest yield with reasonable coverage, positioning BDX as a defensive income play in healthcare, though not a high-growth dividend compounder like some peers

Positives
  • 2.18% dividend yield provides income cushion in volatile sector
  • 71.48% payout ratio is sustainable given earnings stability and free cash flow generation
Watchpoints
  • No data on dividend growth history or streak length limits visibility into policy strength
  • Dividend coverage could weaken if earnings growth slows unexpectedly

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$193.04
Analyst Target
$201.49
Upside/Downside
+4.4%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for BDX and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
BDX
Becton, Dickinson and Company
Primary
-11.8% -8.6% -13.2% +11.3% +3.4% +8.6%
IDXX
IDEXX Laboratories, Inc.
Peer
+51.5% +58.8% +62.9% +33.2% +7.9% -2.6%
ZTS
Zoetis Inc.
Peer
-23.5% -16.7% -29.9% -25.4% -14.7% +0.5%
EW
Edwards Lifesciences Corporation
Peer
+5.0% +13.6% +30.4% +10.6% +18.3% +3.5%
COR
Cencora, Inc.
Peer
+271.1% +143.6% +50.2% +25.1% +13.4% +0.5%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
33.23
Forward P/E
12.27
PEG Ratio
N/A
P/B Ratio
2.18
P/S Ratio
2.53
EV/Revenue
3.38
EV/EBITDA
13.11
Market Cap
$55.33B

Profitability

Profit margins and return metrics

Profit Margin 7.68%
Operating Margin 14.96%
Gross Margin 45.89%
ROE 6.54%
ROA 3.52%

Growth

Revenue and earnings growth rates

Revenue Growth +8.3%
Earnings Growth +25.2%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +23.3%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.76
Moderate
Current Ratio
1.11
Good
Quick Ratio
0.44
Poor
Cash/Share
$2.26

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-09
$N/A
2025-11-06
$3.96
+1.1% surprise
2025-08-07
$3.68
+8.2% surprise
2025-05-01
$3.35
+2.1% surprise

Healthcare Sector Comparison

Comparing BDX against 23 companies in the Healthcare sector (10 bullish, 13 neutral, 0 bearish)
P/E Ratio
33.23
This Stock
vs
37.07
Sector Avg
-10.4% (Discount)
Return on Equity (ROE)
6.54%
This Stock
vs
37.85%
Sector Avg
-82.7% (Below Avg)
Profit Margin
7.68%
This Stock
vs
13.56%
Sector Avg
-43.4% (Weaker)
Debt to Equity
0.76
This Stock
vs
1.21
Sector Avg
-37.3% (Less Debt)
Revenue Growth
8.3%
This Stock
vs
11.02%
Sector Avg
-24.7% (Slower)
Current Ratio
1.11
This Stock
vs
1.95
Sector Avg
-42.8% (Weaker)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
BDX
Becton, Dickinson and Company
BULLISH $55.33B 33.23 6.5% 7.7% $193.04
IDXX
IDEXX Laboratories, Inc.
BULLISH $56.01B 54.63 64.6% 24.7% $689.93
ZTS
Zoetis Inc.
BULLISH $53.39B 20.34 49.9% 28.2% $120.82
EW
Edwards Lifesciences Corporation
NEUTRAL $50.08B 37.85 13.5% 23.2% $86.3
COR
Cencora, Inc.
NEUTRAL $70.85B 45.47 123.8% 0.5% $361.94

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-11-07 SCOTT BERTRAM LEE Director Sale 217 $38,318
2025-10-27 FELD MICHAEL Officer Sale 57 $10,603
2025-09-26 FELD MICHAEL Officer Sale 58 $10,500
2025-09-10 FRASER CLAIRE Director Sale 917 $171,938
2025-08-22 FELD MICHAEL Officer Sale 57 $11,285
2025-08-11 HAYES GREGORY J Director Purchase 5,250 $1,005,742
2025-08-08 FRASER CLAIRE Director Sale 863 $165,955
2025-07-18 GARRISON MICHAEL DAVID Officer Sale 1,185 $213,645
2025-07-18 GARRISON MICHAEL DAVID Officer Option Exercise 6,360 $939,245
2025-07-02 MUHSIN BILAL Officer Stock Award 12,221 -
2025-06-02 SHAN DAVID Officer Sale 1,166 $199,608
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
12 analysts
RBC Capital
2025-11-07
Maintains
Sector Perform Sector Perform
Piper Sandler
2025-11-07
Maintains
Neutral Neutral
RBC Capital
2025-10-16
reit
Sector Perform Sector Perform
RBC Capital
2025-09-25
init
Sector Perform
Morgan Stanley
2025-08-11
Maintains
Overweight Overweight
Wells Fargo
2025-08-08
Maintains
Equal-Weight Equal-Weight
Piper Sandler
2025-08-08
Maintains
Neutral Neutral
Barclays
2025-06-03
Maintains
Overweight Overweight
Citigroup
2025-05-22
down
Buy Neutral