BDX

Becton Dickinson

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Healthcare

industry

Medical Instruments & Supplies

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/07/26

Business Summary

Becton Dickinson generates cash by manufacturing and distributing essential medical instruments and supplies used across hospitals, laboratories, and clinical settings, creating recurring demand tied to healthcare utilization rather than economic cycles. Its scale allows it to leverage distribution networks and procurement relationships, embedding its products deeply into provider workflows. Cash flow is driven by high-volume consumables and device placements that create repeat purchasing patterns. The moat stems from entrenched hospital relationships, regulatory compliance barriers, and switching costs embedded in clinical processes rather than breakthrough margin expansion.

VALUATION

P/E

25.2

Market Cap ($M USD)

$43,870

Forward P/E

11.4

PEG

3.2

PRICE TO SALES

2

PRICE TO BOOK

1.7

EV / EBITDA

12.4

5-Year Average P/E

DIVIDEND

Yield

2.70%

Annual Payout

$4.20

Payout Ratio

68.10%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

4.80%

Financial Health & Profitability

Earnings Per Share

$6.12

Next Year EPS Growth Estimate

$13.51

Next Year Revenue Growth Estimate

2.90%

Return on Equity (ROE)

7.00%

Operating Margin

14.20%

Debt-to-Equity

0.8

Piotroski F-Score

8

Altman Z-Score

1.9

Return on Invested Capital (ROIC)

5.30%%

Current Ratio

1.1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 25.2x earnings with a Forward P/E of 11.4, the market is aggressively discounting future expectations, implying either a sharp earnings contraction or elevated risk. The Altman Z-Score of 1.9 places the company in financial distress territory, which cannot be ignored despite a strong Piotroski F-Score of 8 signaling solid internal financial momentum. A PEG Forward of 3.2 suggests growth is expensive relative to expectations, while a modest 7.00% operating margin and 5.30% ROIC point to operational mediocrity rather than dominance. This is not a clean balance sheet compounder; it is a leveraged healthcare operator priced as if earnings volatility is imminent. The valuation disconnect between 25.2x trailing and 11.4x forward earnings makes this a high-uncertainty setup rather than a clear mispricing.

AI Exposure / Tech Reliance

As a Medical Instruments & Supplies company within Healthcare, BDX operates in a segment where automation, diagnostics integration, and data-driven device optimization are increasingly relevant. AI integration in medical instrumentation can enhance efficiency, workflow precision, and predictive maintenance, reinforcing demand durability. However, the financial data shows no premium profitability metrics that suggest it is currently monetizing technological superiority.

The Bull Case

A GARP or disciplined value investor could justify entry based on the Piotroski F-Score of 8, which signals strong operating improvements and balance sheet discipline relative to peers. The Forward P/E of 11.4 against a current P/E of 25.2 implies a substantial earnings recalibration that, if realized, would make the stock statistically inexpensive. Price/Book at 1.7 and Price/Sales at 2 indicate the market is not assigning an excessive asset or revenue premium, while institutional ownership at 190.18 suggests serious capital backing the story. Despite only a 7.00% operating margin, the company remains profitable with EPS of 12.4 and maintains a dividend of 2.70% with a 0.8 TTM yield, adding modest income support. With ROIC at 5.30% exceeding the 2.90% Return on Equity, there is evidence of operational capital productivity even if equity returns are muted.

The Bear Case

The bear case is dominated by structural balance sheet risk and questionable growth efficiency. A Debt/Equity ratio of 14.20% combined with an Altman Z-Score of 1.9 signals financial vulnerability, particularly concerning in a higher-rate environment. A PEG Forward of 3.2 indicates investors are paying heavily for limited forward growth, and Sales Growth Next Year listed at $13.51 does not reconcile cleanly with the compressed forward EPS estimate of $6.12 versus current EPS of 12.4. The 4.80% short float suggests skepticism is present but not extreme, meaning downside pressure could build if earnings disappoint. Add in a thin 7.00% operating margin and 5.30% ROIC, and this looks more like a leveraged mature operator than a durable compounding machine.

Market Sentiment & Smart Money

Short Interest %

4.60%

Analyst Consensus

2.38

Average Analyst Price Target

$190.18

Institutional Ownership %

96.30%

1-Year Beta

0.65

Insider Buying % (6 Mo)

0.40%%

Distance to 52-Week High

82.30%%

Distance to 52-Week Low

120.80%%