Long-established in the Drug Manufacturers industry, Bristol-Myers Squibb Co (BMY, Financial) has enjoyed a stellar reputation. Recently, the company experienced a modest daily gain of 0.16%, yet it faced a significant three-month decline of -11.99%. Fresh insights from the GF Score indicate potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we delve into these pivotal metrics to unravel the evolving narrative of Bristol-Myers Squibb Co.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have been closely correlated with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores generally yield higher returns than those with lower scores. Therefore, when picking stocks, investors should consider companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 4/10
- Profitability rank: 8/10
- Growth rank: 6/10
- GF Value rank: 4/10
- Momentum rank: 1/10
Based on the above method, GuruFocus assigned Bristol-Myers Squibb Co a GF Score of 69 out of 100, which signals poor future outperformance potential.
Understanding Bristol-Myers Squibb Co's Business
Bristol-Myers Squibb Co discovers, develops, and markets drugs for various therapeutic areas, such as cardiovascular, cancer, and immune disorders. A key focus for Bristol is immuno-oncology, where the firm is a leader in drug development. With a market cap of $86.58 billion and annual sales of $45.53 billion, Bristol derives close to 70% of its total sales from the U.S., indicating a higher dependence on the U.S. market than most of its peers.
Financial Strength Breakdown
Bristol-Myers Squibb Co's financial strength indicators reveal concerning insights about the company's balance sheet health. The Altman Z-Score is just 1.19, indicating potential financial distress. Additionally, the low cash-to-debt ratio at 0.17 suggests struggles in managing debt levels. The debt-to-equity ratio at 3.48 is higher than 96.77% of peers, and the debt-to-Ebitda ratio at 10.79 exceeds the cautionary threshold set by investment expert Joel Tillinghast, indicating high leverage.
Conclusion
Considering Bristol-Myers Squibb Co's financial strength, profitability, and growth metrics, the GF Score highlights the firm's potential for underperformance. Investors should weigh these factors carefully when considering this stock. For those looking to explore more robust investment opportunities, the GF Score Screen offers a tool to discover companies with strong GF Scores.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
