Becton Dickinson (BDX) AI Stock Analysis

• Market Cap: $48.37B
• Dividend Yield: 2.35%
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.32
• Revenue Growth: 5.84%
• EPS Growth: 15.12%
• Country: US
• Employees: 70,000
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 5.24
• Shares Outstanding: 287,135,400
• 10 Day Avg. Volume: 3,276,865
• 30 Day Avg. Volume: 2,707,827
• PEG Ratio: 1.85
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.73
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.18
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $213.09
• Price Target Upside: 26.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Becton Dickinson's overall stock score reflects a solid financial foundation with strong revenue and cash flow management. However, technical indicators show bearish trends, and valuation metrics suggest the stock is relatively expensive. Earnings call insights and strategic business separation plans provide a mixed outlook, with both opportunities and challenges ahead.

Positive Factors

Business Restructuring

The planned separation of the Biosciences and Diagnostic solutions business could potentially create more value, with completion expected in fiscal year 2026.

Margin Performance

BDX's gross margin of 54.9% surpassed consensus expectations, driven by the BD Excellence operating system.

Negative Factors

Guidance and Forecasts

The company has lowered its guidance for fiscal year 2025 organic sales growth due to difficult market conditions and tariff uncertainties.

Market Valuation

The level of organic growth is at the low-end of MedTech, implying the market will ascribe a lower valuation to the stock.

Revenue Performance

Becton, Dickinson and Co. reported lower-than-expected revenue for the fiscal second quarter, indicating a challenging operating environment.

Becton Dickinson Business Overview & Revenue Model

Company Description

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide. The company's BD Medical segment offers peripheral intravenous (IV) and advanced peripheral catheters, central lines, acute dialysis catheters, vascular care and preparation products, needle-free IV connectors and extensions sets, closed-system drug transfer devices, hazardous drug detections, hypodermic syringes and needles, anesthesia needles and trays, enteral syringes, and sharps disposal systems; IV medication and infusion therapy delivery systems, medication compounding workflow systems, automated medication dispensing and supply management systems, and medication inventory optimization and tracking systems; syringes, pen needles, and other products for diabetes; and prefillable drug delivery systems. Its BD Life Sciences segment provides specimen and blood collection products; automated blood and tuberculosis culturing, molecular testing, microorganism identification and drug susceptibility, and liquid-based cytology systems, as well as rapid diagnostic assays, microbiology laboratory automation products, and plated media products; and fluorescence-activated cell sorters and analyzers, antibodies and kits, reagent systems, and solutions for single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers. The company's BD Interventional segment offers hernia and soft tissue repair, biological and bioresorbable grafts, biosurgery, and other surgical products; surgical infection prevention, surgical and laparoscopic instrumentation products; peripheral intervention products; and urology and critical care products. The company was founded in 1897 and is based in Franklin Lakes, New Jersey.

How the Company Makes Money

Becton Dickinson (BDX) generates revenue primarily through the sale of its medical technology products and services. The company segments its operations into three main divisions: BD Medical, BD Life Sciences, and BD Interventional, each contributing to its revenue streams. BD Medical, the largest segment, provides products such as syringes, needles, intravenous catheters, and infusion pumps, crucial for medication delivery and management. BD Life Sciences generates income through products used in specimen collection, diagnostic testing, and laboratory research, including automated diagnostic systems and assays. BD Interventional focuses on minimally invasive surgical instruments and solutions for disease management. BD also benefits from strategic partnerships, collaborations, and long-term contracts with healthcare providers, institutions, and governments, enhancing its market presence and ensuring a steady revenue flow. The company's global reach and diversified product portfolio help mitigate risks associated with market fluctuations and regulatory changes, ensuring a robust revenue model.

Becton Dickinson Financial Statement Overview

Summary

Becton Dickinson maintains a commendable financial position with strong revenue growth, stable margins, and solid equity backing. The company demonstrates effective cash flow management, ensuring liquidity and operational efficiency. While there are minor areas of concern, such as increasing leverage and slightly declining net profit margins, the overall financial health is sound, providing a stable foundation for future growth.

Income Statement

Becton Dickinson shows strong financial performance with a consistent revenue growth trend from $17.12B in 2020 to $20.87B TTM. Gross Profit Margin is healthy, maintaining above 44% consistently, and the Net Profit Margin is stable, though slightly decreased to 7.18% TTM from 8.45% in 2021. EBIT and EBITDA margins demonstrate operational efficiency despite slight declines. Overall, the income statement reflects robust revenue growth and solid profitability, though there is room for improving net margins.

Balance Sheet

The balance sheet displays a strong equity position with $54.47B in stockholders' equity as of TTM, providing a high Equity Ratio of 100% due to total liabilities being restated. The Debt-to-Equity Ratio is moderate, reflecting reasonable leverage but has increased from 0.75 in 2020 to 0.34 TTM. ROE has been consistent but slightly decreased recently, indicating stable returns on equity. The company's solid equity base and manageable leverage suggest financial stability, but increasing net debt warrants monitoring.

Cash Flow

Cash flow analysis reveals strong operating cash flows, with $3.30B TTM, and substantial free cash flows, despite a decline from $3.42B in 2021 to $2.59B TTM. The Free Cash Flow to Net Income Ratio remains favorable, highlighting efficient cash conversion. The Operating Cash Flow to Net Income Ratio is robust, ensuring liquidity. Although there are fluctuations, the overall cash flow position is strong, supporting operational and strategic investments.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
20.18B	19.37B	18.87B	20.25B	17.12B
	Gross Profit
9.13B	8.17B	8.48B	9.43B	7.58B
	EBIT
2.40B	2.11B	2.28B	2.80B	1.48B
	EBITDA
4.82B	4.28B	4.29B	4.25B	2.97B
	Net Income Common Stockholders
1.71B	1.48B	1.78B	2.09B	874.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.16B	1.42B	1.01B	2.29B	2.85B
	Total Assets
57.29B	52.78B	52.93B	53.87B	54.01B
	Total Debt
20.11B	15.88B	16.07B	17.61B	17.93B
	Net Debt
18.39B	14.46B	15.06B	15.33B	15.11B
	Total Liabilities
31.40B	26.98B	27.63B	30.19B	30.24B
	Stockholders Equity
25.89B	25.80B	25.30B	23.68B	23.77B
Cash Flow		Free Cash Flow
3.07B	2.12B	1.66B	3.42B	2.73B
	Operating Cash Flow
3.80B	2.99B	2.63B	4.65B	3.54B
	Investing Cash Flow
-5.51B	-716.00M	-3.23B	-1.88B	-1.23B
	Financing Cash Flow
2.09B	-1.96B	-591.00M	-3.31B	22.00M

Becton Dickinson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 168.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDX, the sentiment is Negative. The current price of 168.78 is below the 20-day moving average (MA) of 199.76, below the 50-day MA of 216.08, and below the 200-day MA of 227.77, indicating a bearish trend. The MACD of -8.85 indicates Positive momentum. The RSI at 21.42 is Positive, neither overbought nor oversold. The STOCH value of 33.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BDX.

Becton Dickinson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	85 Outperform	$35.18B	26.94	25.81%	0.88%	9.54%	37.23%
WST	74 Outperform	$15.11B	33.02	17.42%	0.39%	-1.14%	-16.35%
COO	71 Outperform	$16.46B	39.80	5.25%	―	7.15%	41.96%
BDX	68 Neutral	$48.37B	28.04	5.97%	2.35%	5.84%	15.12%
HOLX	66 Neutral	$12.15B	17.14	11.77%	―	1.75%	50.25%
Sector *	52 Neutral	$5.36B	3.88	-42.93%	2.87%	17.85%	1.45%
BAX	51 Neutral	$15.75B	136.07	-9.24%	3.00%	-20.17%	-138.32%

Becton Dickinson Corporate Events

Gregory J. Hayes Joins Becton Dickinson Board

On March 26, 2025, Gregory J. Hayes was elected to the Board of Directors of Becton Dickinson, expanding the Board from eleven to twelve members. Hayes will serve on the Audit Committee and the Compensation and Human Capital Committee, and his appointment reflects BD’s adherence to corporate governance principles, potentially strengthening its board’s oversight capabilities.

Becton Dickinson Announces Strategic Business Separation Plan

On February 5, 2025, BD announced its plan to separate its Biosciences and Diagnostic Solutions business from the rest of the company, aiming for completion by fiscal 2026, pending various approvals. In its fiscal 2025 first quarter results, BD reported strong financial performance with a revenue increase of 9.8% to $5.2 billion and EPS growth, alongside plans to unlock value through strategic separation and enhance its focus on innovation and growth in respective markets.