Buy BMY Stock Today? Bristol Myers Squibb Stock Analysis

TL;DR

Bristol Myers Squibb is a global biopharmaceutical company with steady revenue from drugs like leukemia medication, facing patent expiration but showing potential for growth, making its stock potentially undervalued.

Transcript

hi i'm jimmy in this video we're looking at bristol myers squibb ticker symbol bmy so we're going to look quickly at bristol myers business and then we're going to try to see if bristol myers is worth buying today using discount of free cash flow okay so let's jump right in so bristol-myers is a global biopharmaceutical company and basically this m... Read More

Key Insights

• ♋ Bristol Myers Squibb's revenue heavily relies on medications for cancer, leukemia, rheumatoid arthritis, and stroke prevention, accounting for a significant portion of their revenue.
• 🥺 Patent expirations on major drugs might lead to a gradual decline in revenue for Bristol Myers Squibb.
• 🥶 Debt increased post-acquisition, but revenue and free cash flow are expected to rise in the future.
• ⌛ Despite apparent negative profit due to one-time charges, adjusted figures show profit ramping up in the upcoming years.
• 🧚 Bristol Myers Squibb's stock appears potentially undervalued, trading at $57 per share against a fair value estimate of around $146 per share.
• 💄 The company's dividend yield of about three and a half percent makes it an attractive option for dividend investors.
• 🏛️ Joining the private investing community offers deeper insights into analyzing stocks like Bristol Myers Squibb and building investment portfolios.

Questions & Answers

Q: How does Bristol Myers Squibb generate revenue?

Bristol Myers Squibb generates revenue primarily from medications for cancer, leukemia, rheumatoid arthritis, and stroke prevention, with these drugs constituting about 86% of their revenue in 2020.

Q: What impact does patent expiration have on Bristol Myers Squibb?

Patent expiration on key drugs such as leukemia and rheumatoid arthritis medications is expected to lead to a gradual decline in revenue and, ultimately, profit for Bristol Myers Squibb in the coming years.

Q: Why did Bristol Myers Squibb's debt increase significantly in 2019?

Bristol Myers Squibb's debt increased in 2019 due to the acquisition of Celgene, which also brought significant debt from Celgene onto their books, impacting their balance sheet.

Q: How does Bristol Myers Squibb's profit appear negative in 2020?

Bristol Myers Squibb's apparent negative profit in 2020 was due to one-time charges related to acquisitions like in-process research and development, which, when adjusted, show an expected profit increase in the upcoming years.

Summary & Key Takeaways

• Bristol Myers Squibb is a global biopharmaceutical firm with revenue generated from cancer, leukemia, rheumatoid arthritis medications, stroke prevention, with 86% from these drugs in 2020.

• The company faces patent expirations on key drugs like leukemia and rheumatoid arthritis meds, impacting revenue in the future.

• Despite debt increase post-acquisition, revenue and free cash flow are expected to rise, potentially making the stock undervalued at present.