Bristol-Myers Squibb Co.
BMY
$0.00
-3.45%
Bristol Myers Squibb is a global pharmaceutical company focused on discovering, developing, and marketing drugs for cardiovascular, cancer, and immune disorders. It is a leader in immuno-oncology drug development, with a core advantage derived from its strong portfolio and significant US market presence.…
BMY
Bristol-Myers Squibb Co.
$0.00
Related headlines
Investment Opinion: Should I buy BMY Today?
Based on a synthesis of the data, BMY warrants a Hold rating. The stock's compelling valuation (forward P/E of 9.9) and high dividend yield (~4.6%) provide a floor and income appeal, particularly for value-oriented investors. However, the significant fundamental risks from patent expirations, high debt, and lackluster revenue growth counterbalance these positives, suggesting limited near-term capital appreciation potential. The mixed and non-consensus analyst ratings further support a neutral stance, indicating a wait-and-see approach is prudent until the company demonstrates a clearer path to sustainable post-patent growth.
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BMY 12-Month Price Forecast
The analysis indicates a balanced risk/reward. The attractive valuation and dividend create a margin of safety, but the lack of clear growth catalysts and major patent risks justify a neutral outlook with a base case for range-bound trading.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Bristol-Myers Squibb Co.'s 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
10 analysts
Implied Upside
—
vs. current price
Analyst Count
10
covering this stock
Price Range
$0 - $0
Analyst target range
No sufficient analyst coverage available. The provided data includes recent rating actions from individual firms but lacks a consolidated consensus target price or ratings distribution. The institutional ratings show a mix of 'Hold', 'Neutral', 'Equal Weight', 'Sector Perform', 'Overweight', 'Outperform', and 'Buy' actions, indicating a lack of clear directional consensus among the ten analysts referenced.
Bulls vs Bears: BMY Investment Factors
BMY presents a classic value vs. growth dilemma. The stock is technically strong and appears cheap on a forward earnings basis, supported by robust cash flows and a high dividend. However, significant fundamental headwinds loom, primarily from patent cliffs and volatile earnings, creating uncertainty around its long-term growth trajectory.
Bullish
- Strong Technical Uptrend: Stock up 32.6% over 6 months, significantly outperforming the S&P 500.
- Attractive Forward Valuation: Forward P/E of 9.9 suggests a discount to near-term earnings potential.
- Robust Cash Flow Generation: TTM free cash flow of $12.8B supports dividend and debt obligations.
- Leadership in Immuno-Oncology: Strong portfolio and pipeline in a key, high-growth therapeutic area.
Bearish
- Patent Expiration Headwinds: Upcoming loss of exclusivity for key drugs threatens future revenue.
- High Financial Leverage: Debt-to-equity ratio of 2.55 indicates elevated balance sheet risk.
- Stagnant Revenue Growth: Q4 revenue grew only 1.3% YoY, reflecting growth challenges.
- Volatile Profitability: Net margin swings from 0.6% to 21.9% due to charges and costs.
BMY Technical Analysis
The stock has demonstrated a strong overall uptrend over the past six months, rising 32.6% from its price in early October 2025. It has significantly outperformed the broader market, as evidenced by a 17.1% relative strength over the S&P 500 in the last three months. However, the stock has faced recent pressure, declining 2.8% over the past month, which still represents an outperformance versus the S&P 500's 5.3% decline.
Short-term performance shows a 12.4% gain over the last three months, driven by a rally from the low $50s in early December to a peak above $62 in late February. The one-month decline of 2.8% reflects a consolidation phase following that peak, with the price retreating from the $62 level. The price action indicates a period of digestion after a substantial multi-month advance.
The current price of $60.65 is near the upper end of its 52-week range of $42.52 to $62.89, trading approximately 96% of the way toward its 52-week high. This positioning suggests the stock is in a technically strong area, though it faces potential resistance near its recent highs. No RSI or other momentum indicators were provided for a more granular assessment of overbought or oversold conditions.
Beta
0.27
0.27x market volatility
Max Drawdown
-32.5%
Largest decline past year
52-Week Range
$43-$63
Price range past year
Annual Return
+0.0%
Cumulative gain past year
| Period | BMY Return | S&P 500 |
|---|---|---|
| 1m | -2.6% | -4.3% |
| 3m | +11.5% | -4.0% |
| 6m | +31.1% | -2.0% |
| 1y | +0.0% | +22.2% |
| ytd | +11.5% | -3.8% |
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BMY Fundamental Analysis
Revenue growth has been modest, with Q4 2025 revenue of $12.5 billion representing a 1.3% year-over-year increase. Profitability has been volatile; the Q4 net margin was 8.7%, a significant improvement from the 0.6% margin in Q4 2024 but down sharply from the 18.0% and 21.9% margins seen in Q3 and Q1 of 2025, respectively. This volatility is largely due to one-time charges and acquisition-related costs impacting quarterly results.
The company's financial health is characterized by a high degree of leverage, with a debt-to-equity ratio of 2.55. However, cash flow generation remains robust, with trailing twelve-month free cash flow of $12.8 billion, providing ample coverage for its dividend and debt obligations. The current ratio of 1.26 indicates adequate short-term liquidity.
Operational efficiency, as measured by Return on Equity (ROE), is strong at 38.2%, though this is inflated by the high financial leverage. Return on Assets (ROA) is a more moderate 10.3%. The company maintains healthy gross margins above 67%, but operating margins have compressed in recent quarters, reflecting increased investment in R&D and potential pricing pressures.
Quarterly Revenue
$12.5B
2025-12
Revenue YoY Growth
+0.01%
YoY Comparison
Gross Margin
+0.67%
Latest Quarter
Free Cash Flow
$12.8B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is BMY Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is 15.6, while the forward P/E is 9.9 based on analyst EPS estimates. The forward P/E suggests the stock is trading at a discount relative to its near-term earnings potential. The Price-to-Sales (P/S) ratio is 2.3, and the Enterprise Value-to-Sales (EV/Sales) is 3.3.
Peer comparison data for industry averages is not available in the provided inputs. Therefore, a relative valuation against sector peers cannot be performed. The forward P/E of 9.9 appears low for a large-cap pharmaceutical company, potentially reflecting market concerns over future growth and patent expirations rather than current profitability.
PE
15.6x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range -2x~398x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
10.1x
Enterprise Value Multiple
Investment Risk Disclosure
BMY's primary risk is its looming patent cliff, which threatens a significant portion of its revenue base as top-selling drugs lose exclusivity. This creates a fundamental growth challenge not fully reflected in the modest 1.3% YoY revenue increase. Financially, the company carries high leverage with a debt-to-equity ratio of 2.55, amplifying risk if earnings decline. While strong TTM free cash flow of $12.8 billion provides a cushion, a high payout ratio of ~71.5% limits financial flexibility.
Operational risks include volatile quarterly profitability, as seen in net margins swinging from 0.6% to 21.9% over the past year, driven by acquisition costs and one-time charges. The company's heavy dependence on the US market (~70% of sales) exposes it to domestic pricing pressures and healthcare policy changes. Recent news highlights that even positive FDA approvals, like for Opdivo, are viewed as incremental and fail to materially move the stock, indicating market skepticism about the pipeline's ability to offset patent losses.
FAQ
The paramount risk is revenue erosion from patent expirations on top-selling drugs, threatening future growth. Financial risk is elevated due to high leverage, with a debt-to-equity ratio of 2.55. Operational risks include volatile quarterly profitability, as seen in swinging net margins, and heavy dependence on the US market for ~70% of sales, exposing the company to domestic pricing and policy pressures.
The 12-month outlook is for range-bound trading with a base case target of $55 to $65. This reflects a 60% probability and assumes the dividend provides support while patent headwinds limit upside. A bull case (25% probability) to $70 requires successful pipeline execution, while a bear case (15% probability) could see a retest of the 52-week low near $42.50 if growth deteriorates faster than expected.
BMY stock appears undervalued based on near-term earnings. Its forward P/E ratio of 9.9 is low for a large-cap pharmaceutical company, and it trades at a Price-to-Sales ratio of 2.3. This discount likely reflects market concerns over future growth from patent expirations rather than current profitability, suggesting the stock is cheap if the company can successfully navigate its pipeline transition.
BMY is a mixed opportunity. It appears undervalued with a forward P/E of 9.9 and offers a high ~4.6% dividend yield, which is attractive for income. However, it is not a clear growth buy due to significant risks from upcoming patent expirations on key drugs and only 1.3% year-over-year revenue growth. It may suit value-oriented, income-seeking investors who are comfortable with the associated risks.
BMY is more suitable for a long-term, income-oriented investment horizon. The high dividend yield and low valuation provide a margin of safety for patient investors willing to wait for the company's pipeline to potentially offset patent losses. It is less ideal for short-term trading due to its low growth profile, earnings volatility, and the time required for its strategic transition to play out.