Becton, Dickinson and CompanyBDXNYSE
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Executive Summary

Latest Data: Sep 2025
HealthcareMedical - Instruments & Supplies
$63.7BLarge Cap

A large-scale business, operating profitably valued in line with the market.

Key Investment Themes
Mature business (8% growth)

Business Narrative

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide. The company's BD Medical segment offers peripheral intravenous (IV) and advanced peripheral catheters, central lines, acute dialysis catheters, vascular care and preparation products, needle-free IV connectors and extensions sets, closed-system drug transfer devices, hazardous drug detections, hypodermic syringes and needles, anesthesia needles and trays, enteral syringes, and sharps disposal systems; IV medication and infusion therapy delivery systems, medication compounding workflow systems, automated medication dispensing and supply management systems, and medication inventory optimization and tracking systems; syringes, pen needles, and other products for diabetes; and prefillable drug delivery systems. Its BD Life Sciences segment provides specimen and blood collection products; automated blood and tuberculosis culturing, molecular testing, microorganism identification and drug susceptibility, and liquid-based cytology systems, as well as rapid diagnostic assays, microbiology laboratory automation products, and plated media products; and fluorescence-activated cell sorters and analyzers, antibodies and kits, reagent systems, and solutions for single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers.

HealthcareMedical - Instruments & Supplies
Mature & Stable
high confidence
Revenue Mix
Single segment business

Company at a Glance

Revenue Growth
8%
Profit Margin
8%
Free Cash Flow
$2.7B
P/E Ratio
28.5x
-26% vs 5Y avg
ATTRACTIVE

Business Performance

Business Scale
Revenue$21.8B
Net Income$1.7B
Profitability Quality
Gross Margin45%
Operating Margin12%
Net Margin8%
Growth Trajectory
Revenue Growth
8%
EPS Growth
-2%
FCF Growth
-13%

Key Highlights

Positive Signals

  • Trading 26% below 5-year average valuation

Financial Health

Liquidity
Watch
Current Ratio1.11
1.0-2.0 = Adequate
Cash & Equivalents$851M
Leverage
Watch
Debt / Equity0.76
<1.0 = Low leverage
Interest Coverage4.21x
2-5x = Adequate
Efficiency
Concern
Return on Equity6.6%
<8% = Weak
Return on Capital4.7%
<8% = Weak

Valuation Assessment

Market Cap
$63.7B
Large Cap
P/E (TTM)
28.5x
In-line
vs 5Y avg: 38.3x (-26%)
P/S (TTM)
2.9x
In-line
vs 5Y avg: 3.3x (-13%)
EV/EBITDA
15.9x
In-line
vs 5Y avg: 18.0x
(-12%)
P/E Historical Range (5Y)
Min: 32.0xAvg: 38.3xNow: 28.5xMax: 49.9x
P/S Historical Range (5Y)
Min: 2.5xAvg: 3.3xNow: 2.9xMax: 3.8x
EV/EBITDA Historical Range (5Y)
Min: 14.5xAvg: 18.0xNow: 15.9xMax: 20.1x

Valuation Corridor

FAIR
FCF Yield
4.1%
vs Cost of Capital ~8.0% = Moderate
P/E Corridor (5Y)28.5x
32.0xFair: 32.0x-45.7x49.9x
P/S Corridor (5Y)2.9x
2.5xFair: 2.8x-3.8x3.8x
EV/EBITDA Corridor (5Y)15.9x
14.5xFair: 15.9x-20.1x20.1x

Detailed Financials

Comprehensive financial statement data for deep analysis

MetricSep 21Sep 22Sep 23Sep 24Sep 25
Return on Equity
-
-
-
-
-
Return on Invested Capital
-
-
-
-
-
Gross Margin
45.1%
44.9%0.4%
42.2%6.1%
45.2%7.2%
45.4%0.5%
Operating Margin
11.8%
12.1%2.8%
10.9%9.9%
11.9%9.0%
11.8%0.6%
Net Margin
10.9%
9.4%13.8%
7.7%18.7%
8.4%10.3%
7.7%9.1%
Earnings Yield
-
-
-
-
-
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