NYSE:BDX
$76.19
(12/21 4:28PM)
+1.8%
| Open | $74.9 |
Mkt Cap | $17.8 Billion |
| High | $76.34 |
52Wk High | $78.81 |
| Low | $74.86 |
52Wk Low | $60.40 |
| Volume | 1.6 Million |
Avg Vol 10D | 1.4 Million |
Ockham’s Rating/Recommendation Summary
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BDX Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at BDX through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 3.61x and 2.70x respectively.
Utilizing this range we can see that BDX’s current Price to Sales per share ratio of 2.48x is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $74.86, BDX is 22% below where we would expect to see it. This will beneficially factor into our final analysis of BDX as it is not often that this stock sinks to these levels.
BDX Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company’s value, and currently BDX is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for BDX to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 17.28 and a 12.88 low over the same period.
Now that BDX’s current price is $74.86 and its Price to Cash Earnings ratio is 10.43, we are very positive on its outlook from the cash earnings perspective. In fact, BDX is now trading a full 31% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why BDX has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
BDX Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don’t require dividend payments for company’s whose management has elected to forgo them entirely.
When reviewing dividend yields for BDX, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management’s confidence in the company. BDX’s estimated annual dividend is $1.48 resulting in a current dividend yield of 1.98%. The highest dividend yield from BDX over recent history was 2.45% while the lowest dividend yield was 0.97%. It’s hard not to notice that BDX pays a current dividend yield that is 15.79% above the historical median. This peaks our interest since our analysis looks favorably upon dividend yields that are greater than the historical median.
Holding BDX Stock? See What Is Being Discussed on Fast Money
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on BDX from Fast Money.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Becton, Dickinson & Company has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on BDX, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… We are long BECTON DICKINSON. We’re long bard. We’re long some striker and some I don’t have the hmos right now. We have been trading around . …”
Fast Money: What is Happening with Becton, Dickinson & Company Now?
As always, the latest news on BDX is available to Ockham clients through RazorWire, and it was mentioned recently on Fast Money.
In comparison to the other stocks that we follow, Becton, Dickinson & Company has seen more discussion in relation to its normal ranking among the group. So, be aware that the news sources we track are focusing on this stock more recently. Be aware that crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on BDX, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… I don’t have any of the hmos I have bc r6789, cr barred and BECTON DICKINSON. Syringes, gloves, things like they’re trading a lot lower than their multiple over the last five yea… …”
Becton, Dickinson & Company (BDX) Discussed on CNBC’s Squawk Box
Becton, Dickinson & Company is in the news. Find out how this impacts BDX trading on Ockham Research.
Supplies and we’re not part of the bottleneck. So if there’s any issue in the flu, it’s not the device. >> we’ve been talking about, too, how BECTON DICKINSON is the only stock that berkshire hathaway added to their portfolio. Have you spoken to anyone there? >> not directly. We have a large manufacturing presence in the state of we’ve invited them to come and see our plants. Maybe he’ll come visit us. But we’re the kind of company that I would think that he would be interested in.
“… ere? >> not directly. We have a large manufacturing presence in the state of we’ve invited them to come and see our plants. Maybe he’ll come visit us. But we’re the kind of company that I would think that he would be interested in. …”
Becton, Dickinson & Company (BDX) Discussed on CNBC’s Squawk Box
Becton, Dickinson & Company is in the news. Find out how this impacts BDX trading on Ockham Research.
That’s why he did that. >>> $1.25 a share for continuing operations for the current quarter for BECTON DICKINSON. Here to talk about those results is ed, the ceo of becton dickin ed, you’re talking about growth, as well, 5% to 6% of what you’ll be growing revenue when you strip out the currency?
“… revenue when you strip out the currency? …”
Becton, Dickinson & Company (BDX) Discussed on CNBC’s Mad Money
Becton, Dickinson & Company is in the news. Find out how this impacts BDX trading on Ockham Research.
>> all right igot the guidance. Has come to the right place. >> caller: my stocks are cop. >> conoco. >> caller: bdx. >> BECTON DICKINSON. >> caller: ge, pepsi and merck. >> take a look at these. Very interesting. Because you have a little twist obviously, pepsico, that’s I own it on my charitable trust. I think pepsi’s perfect. Conocophillips, nice yield stock will come in because oil’s coming in. More of a natural gas play these bectin dininson. I do own stock and ge is part my contract and merck, so what do we got? We have a soft drink company. We have an oil company. Industrial and then look at this grouping here. Medical device and drug. They trade together. Maybe you don’t think they should but they trade together so we’re going to do a swap we’re going to sell merck because i’m not crazy about that it’s too much dilution. And we’re going to pick up a — why don’t we do this, pick up we mentioned that earlier, we like that stock that’s going to come in a little, I think that’s a good idea.
“… , pepsico, that’s I own it on my charitable trust. I think pepsi’s perfect. Conocophillips, nice yield stock will come in because oil’s coming in. More of a natural gas play these bectin dininson. I do own stock and ge is part my contract and merck, so what do we got? We have a soft drink company. We have an oil company. Industrial and then look at this grouping here. Medical device and drug. They trade together. Maybe you don’t think they should but they trade together so we’re going to do a swap we’re going to sell merck because i’m not crazy about that it’s too much dilution. And we’re going to pick up a — why don’t we do this, pick up we mentioned that earlier, we like that stock that’s going to come in a little, I think that’s a good idea. …”
Becton, Dickinson & Company (BDX) Discussed on CNBC’s The Call
Becton, Dickinson & Company is in the news. Find out how this impacts BDX trading on Ockham Research.
Manager med co-health, up a new high today, up 15% the last two months, double that the last six months. And while we are talking about berkshire hathaway, cut back on health insurers, took a new 1.2 million share stake in medical device maker BECTON DICKINSON, one to watch, not just this afternoon but the long haul here, it is down on the year and a real underperformer, interesting to see if it gets that buffet boost here as we look ahead the next couple of taking a look at the big box stores today, of course, you know there is a headline on lowe’s, but home depot is the one to watch, especial had I going into tomorrow. Home depot will be reporting today is a hat trick of bad news, got the lowe’s both warren buffett and eddie lamp the’s hedge funds cut their positions on hd. And this afternoon, we are going to get that home builders index that is likely to also weigh on
“… INSON, one to watch, not just this afternoon but the long haul here, it is down on the year and a real underperformer, interesting to see if it gets that buffet boost here as we look ahead the next couple of taking a look at the big box stores today, of course, you know there is a headline on lowe’s, but home depot is the one to watch, especial had I going into tomorrow. Home depot will be reporting today is a hat trick of bad news, got the lowe’s both warren buffett and eddie lamp the’s hedge funds cut their positions on hd. And this afternoon, we are going to get that home builders index that is likely to also weigh on …”
Becton, Dickinson & Company (BDX) Discussed on Fox Business’s Fox Business
Becton, Dickinson & Company is in the news. Find out how this impacts BDX trading on Ockham Research.
And they haven’t. That’s how big the bear market route has been. I like taking a look at some of the stocks that are still in megative territory on the — negative territory, where it’s BECTON DICKINSON or amgen. I just don’t think that the health reform is going to be as negative for the stock as the prices indicate right that’s why we’re looking at those. >> cheryl: scott, as we look to the next few months here
“… is going to be as negative for the stock as the prices indicate right that’s why we’re looking at those. >> cheryl: scott, as we look to the next few months here …”
Becton, Dickinson & Company (BDX) Discussed on CNBC’s Mad Money
Becton, Dickinson & Company is in the news. Find out how this impacts BDX trading on Ockham Research.
Less expensive. It is a speculative buy and it is not a buy on its own. Ivan in connecticut. Ivan! >> hi, i’m calling about bdx. The stock has been a one-way bear. It issen credible to me and it is a high quality company and it fits the packages of companies that people are throwing away
“… ies that people are throwing away …”
Becton, Dickinson & Company (BDX) Discussed on CNBC’s Mad Money
Becton, Dickinson & Company is in the news. Find out how this impacts BDX trading on Ockham Research.
These two health care stocks have taken undeserving hits courtesy of our president and trading at the very low end of their historical valuations. Bdx and bax at 12.3 times through 2008, baxter’s price earnings multiple ranged between 10 and 30 times beckton’s 11 to 28 times. Now we have trough valuations.
“… ton’s 11 to 28 times. Now we have trough valuations. …”
Becton, Dickinson & Company (BDX) Discussed on CNBC’s Mad Money
Becton, Dickinson & Company is in the news. Find out how this impacts BDX trading on Ockham Research.
Rosemary’s baby. As much as anyone who puts a suit and tie on any more. Is the companies don’t make fancy gadgets. BECTON DICKINSON and baxter are the staples of the health care industry and make the unsexy products that every hospital needs. Becton, basic hospital supplies
“… c hospital supplies …”