Taking a look at the company’s most recent numbers located on their 8-K report, we can gather a general understanding of their short term fundamental health. The company increased fourth quarter revenues 22% to $5.2 billion, 17% for the full year to $19.4 billion. Fourth quarter GAAP earnings per share came in at $0.53 and non-GAAP earnings per share of $0.63. These are healthy numbers and the report offers more, but as a potential investor, these are reassuring measures.
Switching gears to the chart, we can see that price has dropped dramatically on the monthly time frame. It seems that there was an event or numbers miss that might have caused this large sell off. The chart is certainly indicating that price wants to go lower as there are lower lows being created as well as lower highs. An event like at this is cause for concern and should certainly be looked into. Be sure to read all the news reports and SEC filings to understand if this was a one time event or there is something larger wrong with the company.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Bristol Myers income statement, its balance sheet, and the statement of cash flows. Potential Bristol Myers investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Bristol Myers investors may use each financial statement separately, they are all related. The changes in Bristol Myers's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Bristol Myers's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Bristol Myers
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Bristol Myers performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Bristol Myers shares is the value that is considered the true value of the share. If
the intrinsic value of Bristol is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Bristol Myers. Please read more on our
fundamental analysis page.
How effective is Bristol Myers in utilizing its assets?
Bristol Myers Squibb reports assets on its Balance Sheet. It represents the amount of Bristol resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Bristol Myers aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Pharmaceuticals space. To get a better handle on how balance sheet or income statements item affect Bristol volatility, please check the breakdown of all its
fundamentals.
Are Bristol Myers Earnings Expected to grow?
The
future earnings power of Bristol Myers involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Bristol Myers factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Bristol Myers
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Bristol
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Bristol Myers earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Bristol Myers dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Bristol one year expected dividend income is about USD1.5 per share.
Dividend Payout Ratio is likely to rise to 0.61 in 2024, whereas
Dividends Paid is likely to drop slightly above 2.5
B in 2024.
Investing in dividend-paying stocks, such as Bristol Myers Squibb is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Bristol Myers must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Bristol Myers. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Bristol Myers Gross Profit
Bristol Myers Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Bristol Myers previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Bristol Myers Gross Profit growth over the last 10 years. Please check Bristol Myers'
gross profit and other
fundamental indicators for more details.
Breaking it down
Risks
You can take a look at the 10-K report for a full list of risks, but here are a couple to keep in mind while you are completing your research. First, the company could lose market exclusivity earlier than expected. As soon as other people join the party, competition goes up as well as a change in supply and demand. Secondly, the company faces intense competition from other manufactures, including innovative medicines. Again, there are large sums of money put into the research and development of these products and the added factor of competition could really put a strain on their financials and end products.
Conclusion
In my opinion, it is certainly a better idea to have a well diversified portfolio so risk can be limited as much as possible. Have a pharmaceutical company in your portfolio is something to keep in mind as they have the potential to offer great returns when times are going well. If after all of your research you still have questions, be sure to consult an investing professional as they can help guide you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Bristol Myers Squibb. Please refer to our
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