CA - Bristol-Myers Squibb: Turnaround Expected
2024-03-07 14:32:17 ET
Summary
- Bristol-Myers Squibb might have seen a price decline over the past year, but it now boasts of a superior dividend yield and competitive P/E ratio compared to peers.
- After a revenue setback on the patent erosion of its cancer treatment drug, it's now seeing progress in new products and some big existing ones.
- Its recent acquisitions might be small, but they do have significant growth potential, with two of the three already being revenue generating.
- The company's revenue forecast for 2024 is positive, and while the non-GAAP EPS is wanting, it might not be so for the corresponding GAAP number.
At first glance, there are two positives going on for the eighth largest US-based pharmaceuticals company by market capitalisation, Bristol-Myers Squibb ( BMY ) or BMS for short:
- It has a trailing twelve-month [TTM] dividend yield of 4.5%. This is second only to Pfizer ( PFE ) at 6.4% among peers with a market capitalisation of over USD 100 billion.
- Its TTM GAAP price-to-earnings (P/E) ratio of 13.3x is far lower than its peers by a significant margin. Biotech company Amgen ( AMGN ) has the second lowest P/E and even that’s at 22.5x.