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BMY

NEUTRAL
$54.65 Live
Bristol-Myers Squibb Company · NYSE
Target $56.96 (+4.2%)
$42.52 52W Range $63.33

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AI Analysis

AI-powered fundamental assessment

Confidence
72%
Bristol-Myers Squibb's Advanced Deterministic Scorecard shows a Piotroski F-Score of 4/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a definitive distress risk assessment. The stock trades below its growth-based intrinsic value of $87.32 at $54.65, suggesting potential undervaluation, yet the high debt/equity ratio and inconsistent earnings performance temper optimism. Strong profitability metrics like 31.57% operating margin and 33.78% ROE are offset by weak recent earnings growth and bearish insider activity. Analysts consensus is a hold with a $56.96 target, implying limited upside, while the 4.59% dividend yield offers income appeal despite an elevated 83.5% payout ratio.

Key Strengths

High operating margin (31.57%) indicating strong pricing power and cost control
Exceptional gross margin (73.15%) reflecting premium product portfolio and scalability
High ROE (33.78%) signaling efficient use of shareholder equity
Attractive dividend yield (4.59%) above sector average and market
Forward P/E of 9.14 suggests valuation discount relative to near-term earnings potential

Key Risks

Low Piotroski F-Score (4/9) signals weak financial stability and mixed profitability trends
High debt/equity ratio (2.74) above sector average, increasing financial risk
YoY EPS decline of 40.0% despite one-time spikes, indicating underlying earnings volatility
Bearish insider sentiment with $2.67M in net sales and zero buys in last 6 months
Technical trend at 0/100 indicates strong bearish momentum despite short-term price rebound
AI Fair Value Estimate
Based on comprehensive analysis
$68.5
+25.3% above current price

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