Bristol-Myers Squibb Company (BMY) Fundamental Analysis: Bull vs. Bear Case

BMY

Bristol-Myers Squibb Company

Fundamental data last updated:June 7, 2026

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company profile

SECTOR

Healthcare

industry

Drug Manufacturers - General

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/30/2026

Business Summary

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, and markets biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, neuroscience, and covid-19 diseases. The company's products include Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma; 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; and Orencia for adult patients with active RA and psoriatic arthritis. It also provides Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia; Yervoy for the treatment of patients with unresectable or metastatic melanoma; Abraxane, a protein-bound chemotherapy product; Reblozyl for the treatment of anemia in adult patients with beta thalassemia; and Empliciti for the treatment of multiple myeloma. In addition, the company offers Zeposia to treat relapsing forms of multiple sclerosis; Breyanzi, a CD19-directed genetically modified autologous T cell immunotherapy for the treatment of adult patients with relapsed or refractory large B-cell lymphoma; Inrebic, an oral kinase inhibitor indicated for the treatment of adult patients with myelofibrosis; and Onureg for the treatment of adult patients with AML. 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.

VALUATION

P/E

16.09 Market Cap ($M USD)

$116.95B

Forward P/E

12.03 PEG

0.36 PRICE TO SALES

2.41 PRICE TO BOOK

5.83 EV / EBITDA

11.02 5-Year Average P/E

Free Cash Flow Yield

10.18%

DCF Value

$259.41

Graham Number

$28.05

Price to FCF

9.82 EV to FCF

12.75 Earnings Yield

6.22%

FCF Yield

10.18%

DIVIDEND

Yield

4.37%

Annual Payout

$2.50

Payout Ratio

69.69%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.56

Next Year EPS Growth Estimate

$4.76

Next Year Revenue Growth Estimate

$3.67T

Return on Equity (ROE)

39.05%

FREE CASH FLOW

Operating Margin

25.67%

Debt-to-Equity

2.55 Piotroski F-Score

8 Altman Z-Score

2.43 Return on Invested Capital (ROIC)

18.49%

Current Ratio

1.42 Quick Ratio

1.28 Net Debt to EBITDA

2.53 Interest Coverage

12.25 Gross Profit margin

68.75%

FCF PER SHARE

$5.83

REVENUE PER SHARE

$23.72

Gainseekers Quantitative Analysis

Summary

Bristol-Myers Squibb’s valuation presents a compelling case of market mispricing. With a DCF value towering over recent pricing, the stock appears undervalued. The Forward P/E of 11.50 suggests growth potential, while the Earnings Yield of 6.38% indicates a solid return for investors. However, the Altman Z-score of 2.41 hints at moderate financial risk, suggesting the company is not entirely out of the woods. Overall, the market seems to be underestimating its intrinsic value, offering a potential opportunity for savvy investors.

AI Exposure / Tech Reliance

Operating in the healthcare sector, Bristol-Myers Squibb is strategically positioned to leverage AI advancements in drug discovery and personalized medicine. The company's focus on innovation and R&D could enhance its adaptability to tech shifts. As AI continues to revolutionize healthcare, BMY's robust pipeline and research capabilities may offer a competitive edge.

The Bull Case

For value and GARP investors, Bristol-Myers Squibb offers a tantalizing proposition. With an impressive ROIC of 18.49%, the company demonstrates exceptional capital efficiency. The FCF Yield of 10.44% and a Piotroski F-Score of 8 underscore its financial robustness and operational efficiency. Coupled with a strong operating margin of 25.67%, BMY showcases significant pricing power and a well-managed cost structure, making it an attractive buy.

The Bear Case

Despite its strengths, Bristol-Myers Squibb is not without its flaws. The Price/Book ratio of 5.69 and Price/Sales of 2.35 suggest the stock may be overvalued relative to its assets and revenue. Additionally, a Debt/Equity ratio of 2.55 raises concerns about financial leverage. With the stock trading closer to its 52-week high, there is a risk of technical overextension, warranting caution for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$61.73

Institutional Ownership %

1-Year Beta

0.26 Insider Buying % (6 Mo)

Distance to 52-Week High

9.81%

Distance to 52-Week Low

25.76%

EARNINGS SURPRISE %

11.27%

50-DAY SMA

$58.07

200-DAY SMA

$53.12

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.