Bristol-Myers Squibb Company (BMY) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Healthcare · Drug Manufacturers - General
Is Bristol-Myers Squibb Company a safe investment right now?
Bristol-Myers Squibb Company's Altman Z-Score of 2.3 places it in the gray zone. Our fair value estimate is $65.95 (Buy Zone). Moat rating: 3.1/5 stars.
Could Bristol-Myers Squibb Company go bankrupt? Altman Z-Score analysis
Z-Score of 2.3 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives BMY's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0663 | 1.2 | 0.08 |
| B · Retained Earnings / Total Assets | RE / TA | 0.1877 | 1.4 | 0.26 |
| C · EBIT / Total Assets | EBIT / TA | 0.1246 | 3.3 | 0.41 |
| D · Market Cap / Total Liabilities | MCap / TL | 1.6783 | 0.6 | 1.01 |
| E · Revenue / Total Assets | Rev / TA | 0.5353 | 1.0 | 0.54 |
How has BMY's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 2.31 | Gray |
| 2023 | 2.45 | Gray |
| 2024 | 1.54 | Distress |
| 2025 | 2.3 | Gray |
Source: Calculated from BMY's latest 10-K filing on SEC EDGAR.
What is Bristol-Myers Squibb Company actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $4.58 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $3.46 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $6.26 | 25 analysts consensus |
| Trailing P/E | 17.0x | Current market pricing |
| Fair P/E (β discount) | 14.4x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $63.04 (25 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Bristol-Myers Squibb Company have a durable competitive advantage?
Moat rating: 3.1/5.
What makes up BMY's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 2/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is BMY's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 12.7% | — |
| 2023 | 13.9% | Rising |
| 2024 | -9.8% | Declining |
| 2025 | 17.6% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Bristol-Myers Squibb Company's dividend safe?
Can Bristol-Myers Squibb Company afford its dividend?
Payout ratio is 72.0%. FCF covers the dividend 2.6x. 55 consecutive years of payments.
Bristol-Myers Squibb Company's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $48.2B | $48.3B | $46.2B | Stable |
| Net Income | $7.1B | −$8.9B | $6.3B | Rising |
| Free Cash Flow | $12.8B | $13.9B | $11.9B | Rising |
| Gross Margin | 71.1% | 71.1% | 78.0% | Declining |
Recent events that affect our BMY analysis
BMY earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.42. Revenue estimate: $10.93B. Our current Fair Value: $65.95 — a significant beat or miss could shift this estimate.
BMY analyst consensus: 34% bullish (10 of 29 analysts)
4 Strong Buy, 6 Buy, 18 Hold, 1 Sell, 0 Strong Sell. Consensus target: $63.04 (7.2% upside). Compare with our independent Fair Value: $65.95.
BMY paid $0.6300/share dividend
Dividend Safety Grade: A. Payout ratio: 72.0%.
BMY filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
BMY beat EPS estimates by 4.6%
Reported EPS: $1.26 vs estimate $1.20. Earnings strength supports our Fair Value of $65.95 (12.2% above current price).
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY paid $0.6300/share dividend
Dividend Safety Grade: A. Payout ratio: 72.0%.
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY beat EPS estimates by 7.5%
Reported EPS: $1.63 vs estimate $1.52. Earnings strength supports our Fair Value of $65.95 (12.2% above current price).
BMY filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY paid $0.6200/share dividend
Dividend Safety Grade: A. Payout ratio: 72.0%.
BMY beat EPS estimates by 32.6%
Reported EPS: $1.46 vs estimate $1.10. Earnings strength supports our Fair Value of $65.95 (12.2% above current price).
BMY filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY paid $0.6200/share dividend
Dividend Safety Grade: A. Payout ratio: 72.0%.
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY beat EPS estimates by 19.9%
Reported EPS: $1.80 vs estimate $1.50. Earnings strength supports our Fair Value of $65.95 (12.2% above current price).
BMY filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY paid $0.6200/share dividend
Dividend Safety Grade: A. Payout ratio: 72.0%.
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
BMY beat EPS estimates by 13.8%
Reported EPS: $1.67 vs estimate $1.47. Earnings strength supports our Fair Value of $65.95 (12.2% above current price).
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BMY paid $0.6200/share dividend
Dividend Safety Grade: A. Payout ratio: 72.0%.
Common questions about Bristol-Myers Squibb Company
What is Bristol-Myers Squibb Company stock price today?
Bristol-Myers Squibb Company (BMY) stock price is $58.80 as of the latest market close, traded on the NYSE exchange.
What does Bristol-Myers Squibb Company do?
Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for oncology, hematology, immunology, cardiovascular, neuroscience, and other areas. The company's products include Opdivo for various anti-cancer indications; Opdivo Qvantig, a subcutaneous PD-1 inhibitor for solid tumorsr; Orencia for active rheumatoid arthritis and psoriatic arthritis; Yervoy for the treatment of patients with unresectable or metastatic melanoma; Reblozyl to treat anemia; Breyanzi for the treatment of patients with relapsed or refractory large B-cell lymphoma; Opdualag for the treatment of unresectable or metastatic melanoma; and Camzyos to treat symptomatic obstructive HCM to improve functional capacity and symptom.
What is Bristol-Myers Squibb Company market cap?
Bristol-Myers Squibb Company has a market capitalization of $120.05B, classifying it as a large-cap stock in the Healthcare sector.
What sector and industry is BMY in?
Bristol-Myers Squibb Company operates in the Healthcare sector, specifically within the Drug Manufacturers - General industry. It trades on the NYSE under the ticker symbol BMY.
Is BMY stock overvalued or undervalued?
Based on our valuation model, Bristol-Myers Squibb Company trades 10.8% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $65.95
- Current Price: $58.80
- Valuation Zone: Buy Zone
What is BMY stock forecast and analyst target price?
Based on 25 Wall Street analysts, the consensus price target for Bristol-Myers Squibb Company is $63.04, implying upside of 7.2% from the current price.
- Analyst High Target: $75.00
- Analyst Low Target: $40.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Bristol-Myers Squibb Company revenue and earnings growing?
Here are the analyst consensus growth estimates for Bristol-Myers Squibb Company:
- Revenue growth (current year est.): -2.2%
- EPS growth (current year est.): 1.9%
- Revenue growth (next year est.): -2.3%
- EPS growth (next year est.): -2.1%
What are Bristol-Myers Squibb Company's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $48.2B | Stable |
| Net Income | $7.1B | Rising |
| Free Cash Flow | $12.8B | Rising |
| Gross Margin | 71.1% | Declining |
What is BMY's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 17.0x
- Forward P/E (next 12 months est.): 9.6x
- FairValueLabs Fair P/E: 14.4x
How volatile is BMY stock?
Bristol-Myers Squibb Company has a beta of 0.27, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Bristol-Myers Squibb Company have?
Bristol-Myers Squibb Company's balance sheet shows:
- Total Cash: $10.67B
- Total Debt: $47.19B
- Net Cash Position: $-36.51B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Bristol-Myers Squibb Company's free cash flow?
Bristol-Myers Squibb Company generated $11.15B in trailing twelve-month free cash flow (from $14.16B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Bristol-Myers Squibb Company pay a dividend, and is it safe?
Yes, Bristol-Myers Squibb Company pays a regular dividend. Here are the key metrics:
- Dividend Yield: 4.2%
- Payout Ratio: 72.0%
- Consecutive Years Paid: 55
- 5-Year Dividend Growth: -3.0%
- FairValueLabs Safety Grade: A
Is Bristol-Myers Squibb Company at risk of going bankrupt?
Bristol-Myers Squibb Company's Altman Z-Score is 2.30, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Bristol-Myers Squibb Company have a durable competitive advantage?
Bristol-Myers Squibb Company scores 3.1/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 2/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is BMY's return on equity (ROE)?
Bristol-Myers Squibb Company's return on equity is 40.4%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy BMY stock?
BMY shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol BMY
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is BMY a value stock or speculative?
FairValueLabs classifies Bristol-Myers Squibb Company as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Bristol-Myers Squibb Company?
The current CEO of Bristol-Myers Squibb Company is Dr. Christopher S. Boerner Ph.D..
What is BMY's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $3.46
- Forward EPS (next 12 months est.): $6.14
- Analyst consensus EPS (this year): $6.26
- Analyst consensus EPS (next year): $6.13
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
BMY analysis methodology: How we calculate fair value, Z-Scores, and moat ratings