Bristol-Myers Squibb(BMY)Q1 2024

Introduction

Bristol-Myers Squibb Company(BMY) continues to operate in one segment engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products on a global basis.

Bristol-Myers Squibb Company’ revenues come from products in the following therapeutic classes: hematology, oncology, cardiovascular and immunology.

Profitability analysis

Bristol-Myers Squibb Company(BMY) reported $46.1 billion, $46.3 billion and $42.5 billion in revenues for 2022,for 2021 and for 2020, respectively.

Net earnings was $6.3 billion ,$7 billion and -$8.99 billion in the fiscal 2022,2021 and 2020,respectively.

Why did the net profit in 2020 fall into a loss? Because acquire IPRD hits $12.5 billion in 2020, compared with $0.8 billion and $1.1 billion in 2022 and in 2021.

Total equity was $31.1 billion for 2022 and the return on ratio is 20%.

Total assets were $96.8 billion for 2022 and the return on total asset is 6.5%.

Assets structure analysis

Goodwill was $21.1 billion as of December 31,2023, accounting for 21.8% of total assets.

Other intangible assets were $35.8 billion ,consisting of 37% of total assets.

The amount of goodwill and other intangible assets is the main part of total assets, indicating external acquisitions are the main way for the company development.

Liquidity and solvency analysis

The current ratio was 1.24 times as of December 31,2023.

The cash flow adequacy was 0.76 times,1.43 times and 1.85 times as of December 31,2022,December 31,2021 and December 31,2020,respectively.

Total liabilities were $65.7 billion as of December 31,2022 and the debt ratio was 67.8% as of December 31,2022.

Net cash provided by operating activities was $13 billion in 2022.

We could see that the company have a lot of net cash provided by operating activities ,which service debt.

Cash flow analysis

Apart from capital expenditure ,acquisition activity also lead to cash outflow among cash flows from investing activities. There is a account called acquisition and other payment, net of cash acquisition. The account was $4.28 billion, $1.61 billion and $13 billion in 2022,in 2021 and in 2020,respectively. What dose this show? This show that acquiring is the normality other than coincidental happenings, making free cash flow overestimated.

But you do not know the amount of acquisitions each year. Go and guess!

Don’t rush off, I’m not finished.

Bristol-Myers Squibb Company(BMY)’s  Q3,2023

Bristol-Myers Squibb Company(BMY) reported $33.5 billion in the nine months to September 30,2023, compared with $34.7 billion in the nine months to September 30,2022.

Net earnings was $6.27 billion and $4.32 billion in the nine months to September 30,2023 and in the nine months to September 30,2022,respectively.

In the nine months to September 30,2023,net earnings increased by $4.32 billion or 45%,primarily because amortization of acquiring intangible assets and income tax decreased.

Bristol-Myers Squibb Company(BMY) reported net cash provided by operating activities of $9.6 billion and $9.76 billion in the nine months to September 30,2023 and in the nine months to September 30,2022.

In 2023, the acquisition amount is very small , which did not increase debt.

Summary

Currently, Bristol-Myers Squibb Company(BMY)’s price stock is $50 per share.

We reckon $50 is a good buying opportunity.