One-glance verdict
Undervalued
$143.11 our estimate vs market $61.61
Wall Street consensus: $65.25 (-54.4% lower than our fair-value estimate)
57% below our estimate, below the bear case
Fundamentals snapshot
Bristol-Myers Squibb Company
BMY · NYQ · Healthcare · Drug Manufacturers - General
Current price
$61.61
52-week range
$42.52 - $68.64
Market cap
$125.85B
Balance sheet
Stretched
7.26x Adequate
Net debt $33.99B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 2.1% last year.
- Reward Returns 46.6% on equity, ahead of 60% of its peers.
- Risk Net debt grew 15.9% over 3 years.
- Risk Insider ownership is only 0.1% (peer median: 0.1%).
What this company does
Bristol-Myers Squibb Company
Bristol-Myers Squibb (BMY) is a company that makes medicines for serious illnesses like cancer, autoimmune diseases, and heart conditions. Their money mainly comes from selling these patented drugs, with big sellers like Opdivo and Eliquis bringing in the most revenue. This matters because strong sales from these medicines fund their research into new treatments, which is crucial for a pharmaceutical company's long-term success and ability to keep helping patients.
How the company got here
Bristol Myers Squibb has a long history, with roots tracing back to two separate companies: Bristol-Myers, founded in 1887, and Squibb, established in 1858. These two pharmaceutical pioneers eventually merged in 1989 to form Bristol-Myers Squibb, creating a global healthcare leader. The company has since grown through strategic acquisitions, such as acquiring Medarex in 2009 and Celgene in 2019, which have expanded its portfolio and capabilities, particularly in areas like cancer treatments and cell therapy. This history of mergers and acquisitions has shaped Bristol Myers Squibb into the large, diversified biopharmaceutical company it is today, focused on developing innovative medicines.
What it actually does
Bristol Myers Squibb is a global biopharmaceutical company that focuses on discovering, developing, and delivering innovative medicines to patients who have serious diseases. Think of them as a company that researches and creates prescription drugs to help people manage or overcome significant health challenges. They operate across various therapeutic areas, including cancer (oncology), immune system disorders (immunology), heart conditions (cardiovascular), and neurological diseases (neuroscience). Their work involves everything from the initial scientific research to manufacturing and distributing these life-changing medications worldwide.
Oncology
This segment of Bristol Myers Squibb is dedicated to fighting cancer. They develop and market treatments that target various types of cancer, aiming to help patients manage their disease or achieve remission. Key products in this area include Opdivo and Yervoy, which are types of immunotherapy (medicines that help the body's immune system fight cancer). This is a significant part of the company's business, contributing a substantial portion of its overall revenue, with Opdivo alone making up a large percentage of sales. The company continues to invest heavily in research and development for new cancer therapies.
Immunology
In the immunology segment, Bristol Myers Squibb focuses on developing treatments for diseases where the immune system is not functioning correctly, such as autoimmune disorders. These are conditions where the body's own defense system mistakenly attacks healthy tissues. Products like Orencia are used to treat conditions such as rheumatoid arthritis. This area represents a notable portion of the company's revenue, demonstrating its commitment to addressing a range of immune-related conditions. The company is actively researching new ways to modulate the immune system to treat these complex diseases.
Cardiovascular
This part of Bristol Myers Squibb's business is centered on medicines that treat heart and blood vessel conditions. A major product in this area is Eliquis, a widely used medication to prevent blood clots and reduce the risk of stroke, particularly for individuals with irregular heartbeats (atrial fibrillation). Eliquis is the company's largest single product by revenue, highlighting its importance to Bristol Myers Squibb's financial performance. The company continues to invest in developing new cardiovascular therapies to address a significant global health concern.
Hematology
Bristol Myers Squibb has a strong presence in hematology, which is the study of blood and blood disorders. This segment focuses on developing treatments for blood cancers, such as multiple myeloma, and other blood-related conditions like anemia. Key medicines include Revlimid and Pomalyst for multiple myeloma, and Reblozyl for anemia. These products contribute significantly to the company's revenue, underscoring its role in providing essential treatments for patients with serious blood disorders. The company is committed to advancing new therapies in this field.
Neuroscience
The neuroscience segment involves developing treatments for diseases affecting the brain and nervous system. This includes conditions like multiple sclerosis and schizophrenia, as well as emerging areas like hypertrophic cardiomyopathy (a heart muscle disease) and potentially Alzheimer's disease. While some of these areas are newer for the company, it is actively expanding its focus and pipeline in neuroscience, seeing it as a key area for future growth. Products like Zeposia for multiple sclerosis and Camzyos for a specific type of heart condition fall under this broad category.
What management is betting on now
Bristol Myers Squibb's current strategy is to transition from relying on older, established drugs to a more diversified portfolio of newer, innovative medicines. They are focusing on accelerating the growth of their current successful drugs and advancing a pipeline of over ten new medicines expected by 2030. A key part of this strategy involves leveraging artificial intelligence in their research and development to speed up the process of creating new therapies. Management is also prioritizing commercial execution, meaning they are focused on effectively selling their existing and new drugs, and maintaining financial discipline to ensure the company's long-term health and growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$5.27B
FY2024 Q4
$4.06B
FY2025 Q1
$1.69B
FY2025 Q2
$3.56B
FY2025 Q3
$5.99B
FY2025 Q4
$1.60B
FY2026 Q1
$757.00M
FY2026 Q2
$3.09B
Revenue
$12.97B
Net income
$3.32B
Diluted EPS
1.62
Operating cash flow
$3.39B
Free cash flow
$3.09B
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Sources
Revenue
$11.49B
Net income
$2.68B
Diluted EPS
1.31
Operating cash flow
$1.10B
Free cash flow
$757.00M
Fetching…
Sources
Revenue
$12.50B
Net income
$1.09B
Diluted EPS
0.54
Operating cash flow
$1.97B
Free cash flow
$1.60B
Fetching…
Sources
Revenue
$12.22B
Net income
$2.20B
Diluted EPS
1.08
Operating cash flow
$6.31B
Free cash flow
$5.99B
Fetching…
Sources
Revenue
$12.27B
Net income
$1.31B
Diluted EPS
0.64
Operating cash flow
$3.92B
Free cash flow
$3.56B
Fetching…
Sources
Revenue
$11.20B
Net income
$2.46B
Diluted EPS
1.20
Operating cash flow
$1.95B
Free cash flow
$1.69B
Fetching…
Sources
Revenue
$12.34B
Net income
$72.00M
Diluted EPS
0.05
Operating cash flow
$4.44B
Free cash flow
$4.06B
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Sources
Revenue
$11.89B
Net income
$1.21B
Diluted EPS
0.60
Operating cash flow
$5.59B
Free cash flow
$5.27B
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Sources
Is it cheap or expensive?
Fair value $143.11 vs current price $61.61
Wall Street consensus is the average analyst price target: $65.25 (-54.4% lower than our fair-value estimate).
Our most-likely fair value is $143.11 a share — about 132.3% above today's price of $61.61, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $34.0B. Interest coverage 7.3x.
Net debt
$33.99B
Interest coverage
7.26x
Bristol-Myers Squibb Company's profit covers its interest bill about 7.3 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
BMY
BASELINE
Bristol-Myers Squibb Company
Total debt $45.05B Interest coverage 7.26x This is the baseline the peer rows are being compared against.
Total debt $63.48B Interest coverage 6.52x -10% vs BMY Has roughly the same debt cushion as BMY.
Total debt $53.91B Interest coverage 16.29x +124% vs BMY Carries about 2.2x more debt cushion than BMY.
Total debt $70.88B Interest coverage 6.94x -4% vs BMY Has roughly the same debt cushion as BMY.
Total debt $57.30B Interest coverage 3.30x -55% vs BMY Carries about 2.2x less debt cushion than BMY.
Total debt $49.01B Interest coverage 15.42x +113% vs BMY Carries about 2.1x more debt cushion than BMY.
What you should know
The case for and against BMY
3 Rewards
2 Risks
Rewards
-
Revenue grew 2.1% last year.
-
Returns 46.6% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 15.9% over 3 years.
-
Insider ownership is only 0.1% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.57x
Forward P/E
9.30x
P/B
5.64x
P/S
2.56x
EV/EBITDA
8.44x
PEG ratio
17.12x
Profitability
How much profit each dollar creates
Gross margin
71.7%
Operating margin
34.4%
Net margin
18.9%
ROE
46.6%
ROA
10.7%
Health
Liquidity and balance-sheet strength
Debt / equity
2.02x
Current ratio
1.53x
Quick ratio
1.29x
Total debt
$45.05B
Total cash
$11.07B
Growth
How the business has been compounding
Revenue TTM
$49.19B
Revenue 5Y CAGR
1.0%
EPS TTM
4.54
EPS 5Y CAGR
5.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$12.78B
Free CF TTM
$12.85B
FCF margin
26.1%
Dividend
Shareholder payout
Yield
4.1%
Payout ratio
55.3%
Last ex-div date
2026-10-02