Company Overview
Bristol-Myers Squibb is a large pharmaceutical company that develops and sells prescription medicines. Its business is built around bringing therapies to market and supporting them through commercial distribution. The company operates at global scale, with a footprint that matches its position as a major US-listed healthcare name. With roughly 2 billion shares outstanding and a market capitalization of about USD 125.7 billion, it sits firmly in the mega-cap end of the sector.
Analysis of recent data
FundamentalsIn its latest annual results reported in USD, revenue was USD 48.2 billion, essentially flat year over year (down 0.2%). Profitability, viewed through trailing margins, remained structured around a 72.63% gross margin and a 21.51% operating margin, with 14.64% reaching the bottom line.
Reinvestment intensity looked light relative to the revenue base, with capital spending of USD 1.3 billion alongside USD 4.0 billion of depreciation and amortization. The balance sheet carried USD 10.2 billion of cash against USD 45.1 billion of total debt.
Valuation
DCF / MultiplesAt USD 61.73, the current price sits below the fair value range implied by the model’s weaker-
Conclusion
TakeawayThe operating model is built on high gross margins and controlled reinvestment. The valuation setup assumes the cash engine remains durable. Execution risk shows up if margins fade or revenue stalls further. Debt is manageable only if cash generation stays consistent. Overall, the pricing looks more pessimistic than the operating record.