How Does This Medical Technology Business Operate?
Becton Dickinson and Co is a medical technology company focused on devices, consumables, and systems used in healthcare settings. Its products support routine clinical workflows, with an emphasis on repeat-use categories that tie ongoing demand to daily patient care. The company operates at large scale, serving healthcare providers and related customers across a broad footprint. With a market value around USD 41.4 billion, it sits among the larger, established names in health care equipment.
Are Margins and Cash Flow Holding Steady?
FundamentalsFor fiscal 2025, reported in USD, revenue was about USD 21.8 billion, with EBIT of roughly USD 2.6 billion and net income of around USD 1.7 billion. The year included 8.2% revenue growth, alongside trailing margins showing a 46.42% gross margin, a 12.15% operating margin, and an 8.01% net profit margin.
Reinvestment and cash conversion appear in the spending lines: depreciation and amortization was about USD 2.5 billion versus capital spending of roughly USD 760 million. Using an EBIT-based cash flow proxy (excluding working-capital changes), the business generated about USD 4.1 billion, while carrying total debt of around USD 17.6 billion.
Is the Market Discounting Cash Generation?
DCF / MultiplesAt USD 145.31, the shares trade below the discounted cash flow range implied by the modeled outcomes. The headline multiples—23.52× trailing earnings and 11.95× EV/EBITDA—sit alongside that setup, leaving the stock priced as if the business’s reinvestment and cash generation are worth less than what the DCF range captures.
Cautious Price Meets Solid Cash Flow
TakeawayThe price embeds a cautious view of long-run cash generation. For the gap to close, reinvestment must keep turning into cash. Revenue growth needs to stay positive without margin leakage. Debt becomes a problem if cash generation softens. If cash holds up, the current valuation looks hard to justify.