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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
38.8%
Sector: -43.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, BRISTOL MYERS SQUIBB CO (BMY) receives a "Hold" rating with a composite score of 50.8/100, ranked #344 out of 4446 stocks. Key factor scores: Quality 50/100, Value 62/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
BRISTOL MYERS SQUIBB CO (BMY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does BRISTOL MYERS SQUIBB CO Do?
Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, and markets biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, neuroscience, and covid-19 diseases. The company's products include Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma; Eliquis, an oral inhibitor for reduction in risk of stroke/systemic embolism in NVAF, and for the treatment of DVT/PE; Opdivo for anti-cancer indications; Pomalyst/Imnovid indicated for patients with multiple myeloma; and Orencia for adult patients with active RA and psoriatic arthritis. It also provides Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia; Yervoy for the treatment of patients with unresectable or metastatic melanoma; Abraxane, a protein-bound chemotherapy product; Reblozyl for the treatment of anemia in adult patients with beta thalassemia; and Empliciti for the treatment of multiple myeloma. In addition, the company offers Zeposia to treat relapsing forms of multiple sclerosis; Breyanzi, a CD19-directed genetically modified autologous T cell immunotherapy for the treatment of adult patients with relapsed or refractory large B-cell lymphoma; Inrebic, an oral kinase inhibitor indicated for the treatment of adult patients with myelofibrosis; and Onureg for the treatment of adult patients with AML. It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies. The company was formerly known as Bristol-Myers Company. The company was founded in 1887 and is headquartered in New York, New York. BRISTOL MYERS SQUIBB CO (BMY) is classified as a large-cap stock in the Healthcare sector, specifically within the Pharmaceutical Products industry. The company is led by CEO Giovanni Caforio and employs approximately 34,300 people, headquartered in Wilmington, New Jersey. With a market capitalization of $126.0B, BMY is one of the prominent companies in the Healthcare sector.
BRISTOL MYERS SQUIBB CO (BMY) Stock Rating — Hold (April 2026)
As of April 2026, BRISTOL MYERS SQUIBB CO receives a Hold rating with a composite score of 50.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.BMY ranks #344 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, BRISTOL MYERS SQUIBB CO ranks #16 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
BMY Stock Price and 52-Week Range
BRISTOL MYERS SQUIBB CO (BMY) currently trades at $58.72. The stock lost $0.75 (1.3%) in the most recent trading session. The 52-week high for BMY is $62.67, which means the stock is currently trading -6.3% from its annual peak. The 52-week low is $42.52, putting the stock 38.1% above its annual trough. Recent trading volume was 8.1M shares, reflecting moderate market activity.
Is BMY Overvalued or Undervalued? — Valuation Analysis
BRISTOL MYERS SQUIBB CO (BMY) carries a value factor score of 62/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 16.82x, compared to the Healthcare sector average of 23.63x — a discount of 29%. The price-to-book ratio stands at 6.53x, versus the sector average of 2.75x. The price-to-sales ratio is 2.54x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, BMY trades at 17.38x EV/EBITDA, versus 6.34x for the sector.
Overall, BMY's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
BRISTOL MYERS SQUIBB CO Profitability — ROE, Margins, and Quality Score
BRISTOL MYERS SQUIBB CO (BMY) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 38.8%, compared to the Healthcare sector average of -43.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 8.0% versus the sector average of -33.1%.
On a margin basis, BRISTOL MYERS SQUIBB CO reports gross margins of 73.1%, compared to 71.5% for the sector. The operating margin is 20.1% (sector: -66.1%). Net profit margin stands at 15.2%, versus -58.7% for the average Healthcare stock. Revenue growth is running at 0.2% on a trailing basis, compared to 10.6% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
BMY Debt, Balance Sheet, and Financial Health
BRISTOL MYERS SQUIBB CO has a debt-to-equity ratio of 242.0%, compared to the Healthcare sector average of 32.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.26x, suggesting adequate working capital coverage. Total debt on the balance sheet is $44.83B. Cash and equivalents stand at $15.73B.
BMY has a beta of 0.28, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for BRISTOL MYERS SQUIBB CO is 80/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
BRISTOL MYERS SQUIBB CO Revenue and Earnings History — Quarterly Trend
In TTM 2026, BRISTOL MYERS SQUIBB CO reported revenue of $47.58B and earnings per share (EPS) of $3.47. Net income for the quarter was $7.18B. Gross margin was 73.1%. Operating income came in at $9.53B.
In FY 2025, BRISTOL MYERS SQUIBB CO reported revenue of $48.19B and earnings per share (EPS) of $3.47. Net income for the quarter was $7.05B. Gross margin was 71.1%. Revenue grew -0.2% year-over-year compared to FY 2024. Operating income came in at $9.33B.
In Q3 2025, BRISTOL MYERS SQUIBB CO reported revenue of $12.22B and earnings per share (EPS) of $1.08. Net income for the quarter was $2.19B. Gross margin was 71.9%. Revenue grew 2.8% year-over-year compared to Q3 2024. Operating income came in at $3.11B.
In Q2 2025, BRISTOL MYERS SQUIBB CO reported revenue of $12.27B and earnings per share (EPS) of $0.64. Net income for the quarter was $1.31B. Gross margin was 72.5%. Revenue grew 0.6% year-over-year compared to Q2 2024. Operating income came in at $1.77B.
Over the past 8 quarters, BRISTOL MYERS SQUIBB CO has demonstrated a growth trajectory, with revenue expanding from $12.20B to $47.58B. Investors analyzing BMY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
BMY Dividend Yield and Income Analysis
BRISTOL MYERS SQUIBB CO (BMY) does not currently pay a dividend. This is common among growth-oriented companies in the Pharmaceutical Products industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.
BMY Momentum and Technical Analysis Profile
BRISTOL MYERS SQUIBB CO (BMY) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
BMY vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing BMY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full BMY vs S&P 500 (SPY) comparison to assess how BRISTOL MYERS SQUIBB CO stacks up against the broader market across all factor dimensions.
BMY Next Earnings Date
No upcoming earnings date has been announced for BRISTOL MYERS SQUIBB CO (BMY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy BMY? — Investment Thesis Summary
BRISTOL MYERS SQUIBB CO presents a balanced picture with arguments on both sides. The value score of 62/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 80/100) reduces downside risk.
In summary, BRISTOL MYERS SQUIBB CO (BMY) earns a Hold rating with a composite score of 50.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on BMY stock.
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Institutional Research Dossier
BRISTOL MYERS SQUIBB CO (BMY) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Bristol Myers Squibb (BMY) currently holds a BCR Action Rating of Hold, a reflection of its mixed financial performance and future uncertainties. While the company exhibits strong profitability metrics compared to the healthcare sector, concerns surrounding revenue growth and debt levels temper our enthusiasm. The Hold rating acknowledges BMY's established position in the pharmaceutical industry and its attractive valuation multiples, but also recognizes the challenges it faces in maintaining growth momentum amidst patent expirations and increasing competition.
The most critical takeaway is BMY's need to successfully navigate its patent cliff, particularly concerning Revlimid, and effectively deploy its capital to develop and acquire new revenue streams. Failure to do so will likely result in further stagnation in revenue growth and potentially erode shareholder value. While the company's current valuation offers some downside protection, sustained outperformance hinges on its ability to innovate and adapt to the evolving pharmaceutical landscape.
Business Strategy & Overview
Bristol Myers Squibb operates as a global biopharmaceutical company, focusing on the discovery, development, and commercialization of innovative medicines. Its revenue streams are primarily derived from the sale of prescription drugs across various therapeutic areas, including oncology, hematology, immunology, and cardiovascular diseases. Key products like Revlimid, Eliquis, and Opdivo have historically been significant revenue drivers, although Revlimid's sales are declining due to generic competition.
BMY's strategic positioning revolves around maintaining a diversified portfolio of products, both in terms of therapeutic areas and stages of development. The company invests heavily in research and development (R&D) to discover and develop new drugs, while also pursuing strategic acquisitions and licensing agreements to expand its pipeline and product offerings. This dual approach aims to mitigate the risks associated with relying on a limited number of blockbuster drugs and to ensure a sustainable flow of new products to market.
The pharmaceutical industry is characterized by intense competition, high R&D costs, and stringent regulatory requirements. BMY competes with other large pharmaceutical companies, as well as smaller biotechnology firms, for market share and access to innovative technologies. The company's success depends on its ability to effectively manage its R&D pipeline, obtain regulatory approvals for its products, and successfully commercialize its drugs in a competitive market.
BMY's product pipeline includes a range of investigational drugs in various stages of development, targeting a variety of diseases. The company is focused on developing innovative therapies that address unmet medical needs and offer significant clinical benefits to patients. Recent approvals, such as Breyanzi and Opdualag, demonstrate BMY's commitment to bringing new and innovative treatments to market. However, the success of these new products in offsetting the decline in revenue from older drugs will be crucial for the company's future growth.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
0.2%
Sector: 10.6%
-98% VS SCTR
Economic Moat Analysis
Bristol Myers Squibb possesses a narrow economic moat, primarily derived from intangible assets in the form of patents and regulatory exclusivity. These patents protect the company's key products from generic competition for a limited period, allowing BMY to generate significant profits. However, the expiration of these patents, as seen with Revlimid, exposes the company to generic erosion and revenue decline, highlighting the limited duration of this competitive advantage.
The pharmaceutical industry is characterized by high barriers to entry, due to the significant R&D costs, lengthy regulatory approval processes, and complex manufacturing requirements. These barriers to entry provide BMY with some degree of protection from new entrants. However, the company still faces intense competition from existing players and innovative biotechnology firms.
BMY's brand reputation and established relationships with healthcare providers also contribute to its narrow moat. Physicians and patients often prefer established brands with a proven track record of safety and efficacy. However, this advantage can be eroded by the introduction of new and innovative therapies from competitors.
While BMY's scale and distribution network provide some cost advantages, these are not significant enough to create a wide moat. The company's cost structure is similar to that of its major competitors, and it does not have a significant cost advantage in manufacturing or distribution.
Overall, BMY's economic moat is narrow and vulnerable to patent expirations and competition. The company's ability to maintain its competitive advantage depends on its ability to continuously innovate and develop new products to replace those that are losing patent protection. The reliance on intangible assets makes the moat susceptible to erosion, requiring constant reinvestment in R&D to sustain it.
Financial Health & Profitability
Bristol Myers Squibb's financial health presents a mixed picture. The company exhibits strong profitability metrics compared to the healthcare sector, with a gross margin of 73.1%, an operating margin of 20.1%, and a net margin of 15.2%. These figures significantly outperform the sector averages, which are negatively impacted by less profitable companies. The company's ROE of 38.8% is also substantially higher than the sector average, indicating efficient use of equity.
However, BMY's revenue growth has been sluggish, with a TTM revenue growth of only 0.2%. This is significantly lower than the sector average of 10.7%, raising concerns about the company's ability to generate organic growth. The quarterly financial history reveals fluctuations in revenue and net income, with a notable net loss in FY2024 due to specific accounting charges. While FY2025 shows a return to profitability, the revenue growth remains a concern.
BMY's balance sheet is characterized by a high level of debt, with a debt-to-equity ratio of 242.00. This is significantly higher than the sector average of 30.00, indicating a higher degree of financial leverage. While the company has a substantial cash balance of $15.73 billion, the high debt level increases its financial risk and limits its flexibility to pursue strategic acquisitions or investments.
The current ratio of 1.26 indicates that BMY has sufficient current assets to cover its current liabilities. However, the company's free cash flow is not available in the provided data, making it difficult to assess its ability to generate cash from operations. The high debt level and sluggish revenue growth raise concerns about the company's long-term financial sustainability. BMY needs to improve its revenue growth and manage its debt levels to maintain its financial health.
Valuation Assessment
Bristol Myers Squibb's valuation appears attractive based on several key metrics. The company's P/E ratio of 16.6x is significantly lower than the healthcare sector average of 24.3x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 4.3x is also lower than the sector average of 6.4x, further supporting the notion that the stock is undervalued based on its enterprise value and earnings.
However, it's crucial to consider the context of these valuation multiples. BMY's sluggish revenue growth of 0.2% warrants a lower valuation compared to companies with higher growth rates. The market may be discounting the stock due to concerns about patent expirations and the company's ability to generate future growth.
A discounted cash flow (DCF) analysis, which is not possible with the provided data, would provide a more comprehensive assessment of the company's intrinsic value. However, based on the available information, it appears that the stock is trading at a reasonable discount to its peers, reflecting the challenges it faces in maintaining growth momentum.
The Hold rating reflects this mixed valuation picture. While the stock is not expensive, it is not necessarily a bargain either. The valuation appears fair, given the company's current financial performance and future uncertainties. Investors may be attracted to the stock's low valuation multiples, but they should also be aware of the risks associated with its sluggish revenue growth and high debt levels. A significant catalyst, such as a successful drug launch or a strategic acquisition, would be needed to justify a higher valuation.
Risk & Uncertainty
Bristol Myers Squibb faces several specific risks that could negatively impact its business and financial performance. The most significant risk is the patent cliff, particularly concerning Revlimid, which has already experienced generic erosion. The loss of exclusivity for key products can lead to a significant decline in revenue and profitability, as generic competitors enter the market and offer lower-priced alternatives. BMY needs to successfully develop and launch new products to offset the revenue decline from patent expirations.
Another risk is the intense competition in the pharmaceutical industry. BMY competes with other large pharmaceutical companies, as well as smaller biotechnology firms, for market share and access to innovative technologies. The company's success depends on its ability to effectively manage its R&D pipeline, obtain regulatory approvals for its products, and successfully commercialize its drugs in a competitive market. Failure to do so could result in a loss of market share and reduced profitability.
Regulatory risks are also a significant concern for BMY. The pharmaceutical industry is subject to stringent regulatory requirements, including those related to drug development, manufacturing, and marketing. Changes in regulations or adverse regulatory actions could negatively impact the company's ability to develop and commercialize its products. Additionally, pricing pressures from governments and payers could reduce the profitability of BMY's drugs.
Finally, BMY's high debt level increases its financial risk. The company's debt-to-equity ratio of 242.00 is significantly higher than the sector average, making it more vulnerable to adverse economic conditions or unexpected financial setbacks. The company needs to manage its debt levels effectively to maintain its financial stability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWBMY's attractive valuation multiples, particularly its low P/E and EV/EBITDA ratios, offer significant downside protection and potential for capital appreciation as the market recognizes its underlying value.
BULL VIEWThe company's strong profitability metrics, including its high gross, operating, and net margins, demonstrate its efficient operations and ability to generate substantial profits, even amidst challenging market conditions.
BULL VIEWBMY's pipeline of new drugs and its strategic acquisitions position it for future growth, as these new products and technologies offset the decline in revenue from older drugs and expand its market reach.
The Bear Case
BEAR VIEWBMY's sluggish revenue growth, particularly compared to the sector average, indicates a lack of organic growth and raises concerns about its ability to maintain its market position in the long term.
BEAR VIEWThe company's high debt level increases its financial risk and limits its flexibility to pursue strategic acquisitions or investments, potentially hindering its ability to adapt to changing market conditions.
BEAR VIEWThe patent cliff, especially concerning Revlimid, poses a significant threat to BMY's revenue and profitability, as generic competition erodes sales and reduces its pricing power.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score BMY and 4,400+ other equities.
BRISTOL MYERS SQUIBB CO exhibits a 84% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
8.0%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
73.1%
Sector: 71.5%
Operating Margin
Core business profitability
20.1%
Sector: -66.1%
Net Margin
Bottom-line profitability
15.2%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
