Bristol Myers Squibb (NYSE:BMY) recently reported its first-quarter results, with adjusted earnings of $1.80 per share on revenue of $11.2 billion. This revenue figure represents a 6% year-over-year decrease compared to the same period last year, when the company recorded a loss of $4.40 per share.
Despite the revenue decline, BMY has increased its revenue and profit guidance for the full year, citing cost-cutting measures. The company now anticipates 2025 revenue to be in the range of $45.8 billion to $46.8 billion, an increase from its previous forecast of approximately $45.5 billion. It also projects full-year adjusted earnings per share of $6.70 to $7.00, up from its prior guidance of $6.55 to $6.85 per share. This revised outlook also incorporates the impact of new tariffs on products shipped to China.
Following this better-than-expected first quarter and the upward revision of its financial outlook, a key question for investors is whether BMY stock, currently trading at $48, represents a buying opportunity. Our analysis suggests that it does. We find BMY to be an attractive investment at its current valuation, making it a potentially good stock to buy now. This conclusion is based on a comparison of BMY’s current valuation with its recent operating performance, as well as its present and historical financial health. Our assessment of Bristol-Myers Squibb across key metrics—Growth, Profitability, Financial Stability, and Downturn Resilience—indicates that the company exhibits a moderate operating performance and financial condition, as further detailed below.
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How Does Bristol-Myers Squibb’s Valuation Look vs. The S&P 500?
Going by what you pay per dollar of sales or profit, BMY stock looks cheap compared to the broader market.
- Bristol-Myers Squibb has a price-to-sales (P/S) ratio of 2.0 vs. a figure of 2.8 for the S&P 500
- Additionally, the company’s price-to-free cash flow (P/FCF) ratio is 6.5 compared to 17.6 for S&P 500
- Furthermore, the stock is currently trading at a price-to-earnings (P/E) ratio of 6.5, which is notably lower than its historical long-term average P/E multiple of approximately 10.
How Have Bristol-Myers Squibb’s Revenues Grown Over Recent Years?
Bristol-Myers Squibb’s Revenues have seen some growth over recent years.
- Bristol-Myers Squibb has seen its top line grow at an average rate of 1.4% over the last 3 years (vs. increase of 6.2% for S&P 500)
- Its revenues have grown 7.3% from $45 Bil to $48 Bil in the last 12 months (vs. growth of 5.3% for S&P 500)
- However, its quarterly revenues fell 6% to $11.2 Bil in the most recent quarter from $11.9 Bil a year ago (vs. 4.9% improvement for S&P 500)
How Profitable Is Bristol-Myers Squibb?
Bristol-Myers Squibb’s profit margins are strong.
- Bristol-Myers Squibb’s Operating Income over the last four quarters was $7.9 Bil, which represents a good Operating Margin of 16.5% (vs. 13.1% for S&P 500)
- Bristol-Myers Squibb’s Operating Cash Flow (OCF) over this period was $14 Bil, pointing to a high OCF Margin of 30% (vs. 15.7% for S&P 500)
- For the last four-quarter period, Bristol-Myers Squibb’s Net Income was $5.4 Bil – indicating a good Net Income Margin of 11.4% (vs. 11.3% for S&P 500)
Does Bristol-Myers Squibb Look Financially Stable?
Bristol-Myers Squibb’s balance sheet looks fine.
- Bristol-Myers Squibb’s Debt figure was $51 Bil at the end of the most recent quarter, while its market capitalization is $97 Bil (as of 4/25/2025). This implies a poor Debt-to-Equity Ratio of 51.8% (vs. 21.5% for S&P 500). [Note: A lower Debt-to-Equity Ratio is desirable]
- Cash (including cash equivalents) makes up $11 Bil of the $93 Bil in Total Assets for Bristol-Myers Squibb. This yields a strong Cash-to-Assets Ratio of 11.7% (vs. 15.0% for S&P 500)
How Resilient Is BMY Stock During A Downturn?
BMY stock has seen an impact that was slightly worse than the benchmark S&P 500 index during some recent downturns. Worried about the impact of a market crash on BMY stock? Our dashboard How Low Can Bristol-Myers Squibb Stock Go In A Market Crash? has a detailed analysis of how the stock performed during and after previous market crashes.
Inflation Shock (2022)
- BMY stock fell 40.2% from a high of $81.13 on 2 December 2022 to $48.48 on 21 November 2023, vs. a peak-to-trough decline of 25.4% for the S&P 500
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $63.11 on 10 March 2025 and currently trades at around $48
COVID-19 Pandemic (2020)
- BMY stock fell 31.2% from a high of $67.43 on 21 January 2020 to $46.40 on 23 March 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500
- The stock fully recovered to its pre-Crisis peak by 12 July 2021
Global Financial Crisis (2008)
- BMY stock fell 46.3% from a high of $32.14 on 17 July 2007 to $17.26 on 16 October 2008, vs. a peak-to-trough decline of 56.8% for the S&P 500
- The stock fully recovered to its pre-Crisis peak by 5 October 2011
Putting All The Pieces Together: What It Means For BMY Stock
In summary, Bristol-Myers Squibb’s performance across the parameters detailed above are as follows:
- Growth: Strong
- Profitability: Strong
- Financial Stability: Neutral
- Downturn Resilience: Neutral
- Overall: Good
Considering BMY’s solid performance across the aforementioned key parameters, coupled with its low valuation, the stock appears to be an attractive investment. This reinforces our conclusion that BMY presents a favorable buying opportunity. Moreover, the company’s better-than-expected first-quarter results and upward revision of its financial guidance are likely to bolster investor confidence.
While BMY stock looks promising, investing in a single stock can be risky. On the other hand, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
