April 14, 2025 a 10:46 am
BMY: Dividend Analysis - Bristol-Myers Squibb Company
Bristol-Myers Squibb Company, a stalwart in the healthcare sector, presents a robust dividend profile despite recent financial challenges. With a long-standing history of dividend payments spanning 54 years, it highlights an enduring commitment to shareholder returns. The company's dividend yield and growth, juxtaposed with its unique payout ratios, warrant a nuanced analysis to fully understand its implications on investor returns. Below, we dissect the key metrics that define BMY's dividend landscape.
📊 Overview
The performance metrics provide a window into the company's sector alignment and investor-focused strategies. A close examination of Bristol-Myers' dividend yield reveals a notable 4.41%, underpinned by a current dividend per share of USD 2.40. The company sustains a rich dividend history of 54 years without cuts, underscoring its reliability and commitment to shareholders.
| Metric | Value |
|---|---|
| Sector | Healthcare |
| Dividend Yield | 4.41% |
| Current Dividend Per Share | 2.40 USD |
| Dividend History | 54 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Understanding the company's dividend history is essential as it reflects its financial health and commitment to shareholders. Bristol-Myers Squibb's consistent dividend payments for over five decades illustrate its robust cash flow and fiscal discipline.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.24 |
| 2024 | 2.40 |
| 2023 | 2.28 |
| 2022 | 2.16 |
| 2021 | 1.47 |
📈 Dividend Growth
The dividend growth over the last few years indicates the company's future payout potential. A 3-year growth rate of 0.18% and a 5-year growth rate of 0.08% highlight steady, albeit modest, escalations in shareholder returns.
| Time | Growth |
|---|---|
| 3 years | 0.18% |
| 5 years | 0.08% |
The average dividend growth is 0.08% over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
The payout ratio is crucial in assessing the sustainability of dividend payments. An EPS-based ratio of -54.40% suggests negative earnings, while a 35.01% FCF-based ratio reflects manageable cash commitments. These disparities suggest the company relies on cash flow rather than earnings to fund dividends, highlighting potential sustainability issues.
| Key figure | Ratio |
|---|---|
| EPS-based | -54.40% |
| Free cash flow-based | 35.01% |
Cashflow & Capital Efficiency
A deep dive into cash flow and capital efficiency shows how well the company uses its resources. Key ratios, including CAPEX to operating cash flow at 0.08, are pivotal in understanding the operational efficiency. The company maintains a positive earnings yield and free cash flow yield, though capital outlays require prudent management.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 12.16% | 11.92% | 7.80% |
| Earnings Yield | -7.80% | 7.56% | 4.13% |
| CAPEX to Operating Cash Flow | 8.22% | 8.72% | 8.56% |
| Stock-based Compensation to Revenue | 1.05% | 1.15% | 0.99% |
| Free Cash Flow / Operating Cash Flow Ratio | 91.78% | 91.28% | 91.44% |
Balance Sheet & Leverage Analysis
Evaluating Bristol-Myers Squibb's balance sheet and leverage offers insights into its financial stability and risk profile. High leverage ratios, such as a debt-to-equity ratio above 3, suggest significant reliance on debt, which could pose risks during downturns.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 313.44% | 140.89% | 131.09% |
| Debt-to-Assets | 55.29% | 43.57% | 42.05% |
| Debt-to-Capital | 75.81% | 58.49% | 56.73% |
| Net Debt to EBITDA | 12.95 | 1.55 | 1.64 |
| Current Ratio | 1.25 | --- | --- |
| Quick Ratio | 1.15 | 1.31 | 1.14 |
| Financial Leverage | 5.67 | 3.23 | 3.12 |
Fundamental Strength & Profitability
Analyzing fundamental strength and profitability is vital for understanding Bristol-Myers Squibb's operational success. Despite challenging earnings returns, the company maintains competitive margins indicative of operational efficiency. The R&D expenditure underscores a commitment to innovation, essential for long-term growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | -54.78% | 27.27% | 20.37% |
| Return on Assets | -9.66% | 8.43% | 6.53% |
| Net Margin | -18.53% | 17.83% | 13.71% |
| EBIT Margin | -13.32% | 21.34% | 19.38% |
| EBITDA Margin | 6.56% | 43.14% | 41.66% |
| Gross Margin | 71.08% | 76.24% | 78.04% |
| R&D to Revenue | 23.10% | 20.66% | 20.60% |
Price Development
✅ Dividend Scoring System
| Category | Score | Indicator |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 2 |
Total Score: 28/40
Rating
In conclusion, Bristol-Myers Squibb Company presents a complex financial picture, with commendable dividend stability and continuity. However, caution is advised due to its negative earnings and high leverage ratios. The decision to invest should be weighted carefully, considering the moderate dividend yield and steady growth amidst potential risks related to financial and payout ratios.