Pharmaceutical Preparations
Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases. The company's products include Eliquis, an oral inhibitor for reduction in risk of stroke/systemic embolism in NVAF, and for the treatment of DVT/PE; Opdivo for anti-cancer indications; Pomalyst/Imnovid indicated for patients with multiple myeloma; Orencia for adult patients with active RA and psoriatic arthritis; and Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia. It also provides Yervoy for the treatment of patients with unresectable or metastatic melanoma; Empliciti for the treatment of multiple myeloma; Abecma for the treatment of relapsed or refractory multiple myeloma; Reblozyl for the treatment of anemia in adult patients with beta thalassemia; Opdualag for the treatment of unresectable or metastatic melanoma; and Zeposia to treat relapsing forms of multiple sclerosis. In addition, the company offers Breyanzi, a CD19-directed genetically modified autologous T cell immunotherapy for the treatment of adult patients with relapsed or refractory large B-cell lymphoma; Onureg for the treatment of adult patients with AML; Inrebic, an oral kinase inhibitor indicated for the treatment of myelofibrosis; Camzyos for the treatment of adults with symptomatic obstructive HCM to enhance functional capacity and symptoms; Sotyktu for the treatment of adults with moderate-to-severe plaque psoriasis; Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma; and Abraxane, a protein-bound chemotherapy product. It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies. The company was formerly known as Bristol-Myers Company. The company was founded in 1887 and is headquartered in New York, New York.
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Discounted Cash Flow Valuation of Bristol Myers Squibb Co
Growth
%
%
Discount
%
%
Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $12.51B | $16.26B | $20.69B | $25.75B | $31.32B | $37.24B | $43.24B | $49.01B | $54.18B | $58.39B | $61.31B | $613.1B |
DCF | $14.14B | $15.64B | $16.93B | $17.91B | $18.52B | $18.69B | $18.42B | $17.71B | $16.6B | $15.16B | $151.6B | |
Value | $321.3B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 9.5% | 23% | 4.7% | 22% | 13% | -21% | 15% | 14% | 18% | -14% |
ROA | 7.1% | 18% | 16% | 18% | 4.3% | -4.6% | 7.4% | 8% | 8.9% | -5.8% |
ROE | 11% | 27% | 8.2% | 35% | 6.7% | -24% | 19% | 20% | 27% | -37% |
The average Net Margin over the past 5 years is +10.06%.
The trend of Net Margin over the past 5 years is +0.52%.
The average ROA over the past 5 years is +6.93%.
The trend of ROA over the past 5 years is -0.59%.
The average ROE over the past 5 years is +14.11%.
The trend of ROE over the past 5 years is +1.32%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 6.61 | 4.10 | 1.89 | 1.72 | 6.84 | 3.96 | 3.24 | 3.62 | 3.37 | 4.68 |
Debt Equity | 0.46 | 0.41 | 0.67 | 0.61 | 0.96 | 1.39 | 1.37 | 1.39 | 1.45 | 3.54 |
MIN | ||||||||||
Graham Stability | - | - | 36% | 100% | 100% | -290% | - | 100% | 100% | -290% |
The Debt/FCF trailing twelve month is 4.68.
The trend of Debt/FCF over the past 5 years is -0.06.
Graham’s Stability measure stands at -2.90.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 13% | 15% | 1.9% | -2.5% | -0.37% |
Net Income | 8.8% | 10% | - | 27% | -8% |
Stockholders Equity | 8.8% | 16% | -8% | -5.2% | -1.5% |
FCF | 34% | 20% | -1.7% | 5.9% | -3.4% |
The Revenue CAGR over the past 5 years is +14.81%.
The trend of Revenue growth rate over the past 5 years is -0.37%.
The Earnings CAGR over the past 5 years is +10.28%.
The trend of Earnings growth rate over the past 5 years is -8.05%.
The Equity CAGR over the past 5 years is +15.85%.
The trend of Equity growth rate over the past 5 years is -1.46%.
The FCF CAGR over the past 5 years is +20.45%.
The trend of FCF growth rate over the past 5 years is -3.36%.