Becton Dickinson (BDX) AI Stock Analysis

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Becton Dickinson

(NYSE:BDX)

68Neutral

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

Margin Improvement

BDX has momentum and a long runway ahead with BD Excellence, which is expected to drive gross margin improvements.

Revenue Growth

Pharm systems are seeing positive order movement and the advanced patient monitoring acquisition is expected to contribute to revenue in the second half.

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 Conditions

Macro factors are impacting BDX growth rate including declines in China due to VBP and reduced biosciences growth from funding constraints.

Becton Dickinson (BDX) vs. S&P 500 (SPY)

Market Cap

$50.25B

Dividend Yield2.27%

Average Volume (3M)3.49M

Price to Earnings (P/E)33.5

Beta (1Y)0.32

Revenue Growth5.84%

EPS Growth15.12%

CountryUS

Employees70,000

SectorHealthcare

Sector Strength39

IndustryMedical - Instruments & Supplies

Share Statistics

EPS (TTM)3.35

Shares Outstanding286,607,420

10 Day Avg. Volume5,483,183

30 Day Avg. Volume3,488,811

Financial Highlights & Ratios

PEG Ratio-0.03

Price to Book (P/B)1.91

Price to Sales (P/S)0.00

P/FCF Ratio18.50

Enterprise Value/Market Cap1.32

Enterprise Value/Revenue0.82

Enterprise Value/Gross Profit7.16

Enterprise Value/Ebitda4.06

Forecast

1Y Price Target

$206.40

Price Target Upside20.69% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering12

Becton Dickinson Business Overview & Revenue Model

Company DescriptionBecton Dickinson (BDX) is a leading global medical technology company that develops, manufactures, and sells a diverse range of medical supplies, devices, laboratory equipment, and diagnostic products. The company operates through three primary segments: BD Medical, BD Life Sciences, and BD Interventional. BD Medical focuses on medication management and delivery solutions, BD Life Sciences provides products for sample collection and diagnostic systems, and BD Interventional offers surgical and interventional procedures products. With a commitment to advancing healthcare, BD serves hospitals, healthcare institutions, clinical laboratories, and the research industry worldwide.

How the Company Makes MoneyBecton 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 Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Analyzes income from different business units, highlighting which segments drive growth and profitability, and identifying areas of strategic focus or potential risk.

Chart InsightsBecton Dickinson's Medical segment shows strong recovery, with a notable upward trend since 2022, driven by strategic investments in Pharm Systems and Alaris. However, the Life Sciences segment faces headwinds from reduced global research funding, impacting growth. Despite these challenges, BD's strategic focus on U.S. manufacturing and product innovations, like Phasix, aims to bolster future performance. The earnings call highlighted a 6% revenue growth, though organic growth lagged at 0.9%, reflecting market pressures, particularly in China and Diagnostics, which could temper near-term optimism.

Data provided by:

Main Street Data

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

Very Positive

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

Positive

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

Very Positive

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.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
20.87B	20.18B	19.37B	18.87B	20.25B	17.12B
	Gross Profit
9.29B	9.13B	8.17B	8.48B	9.43B	7.58B
	EBIT
2.36B	2.40B	2.11B	2.28B	2.80B	1.48B
	EBITDA
3.52B	4.82B	4.28B	4.29B	4.25B	2.97B
	Net Income Common Stockholders
1.50B	1.71B	1.48B	1.78B	2.09B	874.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
683.00M	2.16B	1.42B	1.01B	2.29B	2.85B
	Total Assets
54.47B	57.29B	52.78B	52.93B	53.87B	54.01B
	Total Debt
19.27B	20.11B	15.88B	16.07B	17.61B	17.93B
	Net Debt
18.60B	18.39B	14.46B	15.06B	15.33B	15.11B
	Total Liabilities
29.23B	31.40B	26.98B	27.63B	30.19B	30.24B
	Stockholders Equity
25.24B	25.89B	25.80B	25.30B	23.68B	23.77B
Cash Flow		Free Cash Flow
2.59B	3.07B	2.12B	1.66B	3.42B	2.73B
	Operating Cash Flow
3.30B	3.80B	2.99B	2.63B	4.65B	3.54B
	Investing Cash Flow
-4.21B	-5.51B	-716.00M	-3.23B	-1.88B	-1.23B
	Financing Cash Flow
-723.00M	2.09B	-1.96B	-591.00M	-3.31B	22.00M

Becton Dickinson Technical Analysis

Technical Analysis Sentiment

Negative

Last Price171.02

Price Trends

50DMA

206.00

Negative

100DMA

218.79

Negative

200DMA

225.02

Negative

Market Momentum

MACD

-10.80

Negative

RSI

33.54

Neutral

STOCH

54.54

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 171.02 is below the 20-day moving average (MA) of 184.60, below the 50-day MA of 206.00, and below the 200-day MA of 225.02, indicating a bearish trend. The MACD of -10.80 indicates Negative momentum. The RSI at 33.54 is Neutral, neither overbought nor oversold. The STOCH value of 54.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BDX.

Becton Dickinson Risk Analysis

Becton Dickinson disclosed 22 risk factors in its most recent earnings report. Becton Dickinson reported the most risks in the “Macro & Political” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Becton Dickinson Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	85 Outperform	$36.31B	27.81	25.81%	0.83%	9.54%	37.23%
WST	74 Outperform	$15.51B	33.90	17.42%	0.40%	-1.14%	-16.35%
COO	73 Outperform	$16.35B	38.91	5.25%	―	7.15%	41.96%
BDX	68 Neutral	$50.25B	33.46	5.97%	2.27%	5.84%	15.12%
HOLX	66 Neutral	$12.73B	23.38	11.77%	―	1.66%	21.95%
BAX	54 Neutral	$15.99B	136.07	-8.96%	3.03%	-20.17%	-138.32%
Sector *	52 Neutral	$5.14B	3.39	-43.55%	2.83%	16.49%	-0.19%

* Healthcare Sector Average

Performance Comparison

BDX

Becton Dickinson

172.27

-60.29

-25.92%

BAX

Baxter International

31.04

-3.22

-9.40%

COO

Cooper Co

81.45

-16.45

-16.80%

HOLX

Hologic

55.74

-19.21

-25.63%

RMD

Resmed

248.58

30.57

14.02%

WST

West Pharmaceutical Services

210.68

-142.39

-40.33%

Becton Dickinson Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q2-2025)

% Change Since: -17.42%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call revealed a mixed performance for BD, with strong adjusted EPS growth and strategic investments being overshadowed by revenue challenges and external market pressures in Life Sciences, Diagnostics, and the China market. Tariff impacts further complicate the outlook.

Q2-2025 Updates

Positive Updates

Adjusted EPS Growth Exceeds Expectations

Despite revenue challenges, BD exceeded their adjusted EPS growth expectations, delivering $3.35 in Q2, representing a 5.7% year-over-year increase.

Strong Margin Performance

BD reported adjusted gross margins of 54.9%, which increased by 190 basis points year-over-year, supported by the BD Excellence program.

Significant U.S. Manufacturing Investment

BD announced plans to invest $2.5 billion in U.S. manufacturing over the next five years to strengthen their position and commitment to a resilient U.S. healthcare system.

Positive Product Launches and Innovations

BD launched several new products like Phasix ST Umbilical and is on track to launch the BD FACSDiscover A8, which have received positive feedback from pilot customers.

Negative Updates

Revenue Growth Below Expectations

Revenues grew 6% or 0.9% organic, below expectations, due to market dynamics in Life Sciences and lower-than-expected recovery in Diagnostics.

Challenges in Life Sciences and Diagnostics

Life Sciences faced reduced global research funding, impacting biosciences instrument sales, while Diagnostics saw softness in the blood culture business.

China Market Decline

BD experienced a double-digit decrease in China sales due to volume-based procurement and ongoing research spending pressure.

Impact of Tariffs

BD expects $90 million in tariff expenses for FY '25, which will impact adjusted EPS by approximately $0.25, predominantly in Q4.

Company Guidance

During BD's Second Fiscal Quarter 2025 Earnings Call, the company provided guidance indicating a revised expectation for organic revenue growth of 3% to 3.5% for the full fiscal year, down from previous projections due to market dynamics impacting the Life Sciences and Diagnostics segments. BD reported Q2 revenue growth of 6%, or 0.9% organically, and an adjusted gross margin of 54.9%, which increased by 190 basis points year-over-year. Despite these challenges, BD exceeded its adjusted EPS growth expectations, delivering an EPS of $3.35, reflecting a 5.7% increase. The company is undertaking strategic actions to reaccelerate organic sales growth, including investments in its Pharm Systems, Alaris, PureWick, and Phasix product lines. Additionally, BD is actively mitigating the impacts of tariffs, estimating a $90 million tariff expense for FY '25, and has committed to a $2.5 billion investment in U.S. manufacturing over the next five years.

Becton Dickinson Corporate Events

Executive/Board Changes

Gregory J. Hayes Joins Becton Dickinson Board

Neutral

Mar 27, 2025

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.