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BRISTOL-MYERS SQ.
Trailing:
RELATIVE
NYSE-BMY
22.35 RATIO 13.2
P/E RATIO 1.06 YLD
5.5% LINE
Target Price Range
TIMELINESS 1 Raised 12/5/08
2011 2012 2013
2 Raised 7/20/07
BETA .80 (1.00 = Market)
2011-13 PROJECTIONS
Ann’l Total
20%
12%
Insider Decisions
F M A M J J A S O
% TOT. RETURN 12/08
Institutional Decisions
VL ARITH.
Hld’s(000)143094514327331415621
Bristol-Myers Squibb was incorporated in 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
VALUE LINE PUB., INC. 11-13
Delaware in August 1933 as successor to a 10.75
11.40 Sales per sh
13.55
2.05
2.15 ‘‘Cash Flow’’ per sh
2.35
1.60
1.70 Earnings per sh A
1.85
1.28 Div’ds Decl’d per sh B■
1.32
ration on October 4, 1989. The combination .45
.45 Cap’l Spending per sh
.55
6.65
7.25 Book Value per sh C
8.90
shares of Bristol-Myers for each share of 1988.8 1980.8 1953.5 1960.6 1937.4 1940.5 1942.4 1952.3 1962.4 1979.4 1974.0 1973.0 Common Shs Outst’g D
1970.0
13.5
Avg Ann’l P/E Ratio
19.0
.85
Relative P/E Ratio
1.25
pooling-of-interests accounting method.
Avg Ann’l Div’d Yield
3.8%
CAPITAL STRUCTURE as of 9/30/08
21260
22500 Sales ($mill)
26700
Total Debt $7902 mill. Due in 5 Yrs $1782 mill.
26.5%
27.0% Operating Margin
25.0%
LT Debt $6120 mill.
LT Interest $315.2 mill.
915
930 Depreciation ($mill)
980
3160
3355 Net Profit ($mill)
3645
Leases, Capitalized $49.0 mill.
23.0%
24.0% Income Tax Rate
24.0%
14.9%
14.9% Net Profit Margin
13.7%
Pension Assets-12/07 $6.3 bill. Oblig. $6.8 bill.
6900
3500 Working Cap’l ($mill)
4000
6120
6100 Long-Term Debt ($mill)
6500
Pfd Stock None
Common Stock 1,976,562,119 shs.
13150
14300 Shr. Equity ($mill) C
17530
as of 10/28/08
20.0%
19.5% Return on Total Cap’l
15.5%
24.0%
23.5% Return on Shr. Equity
20.5%
MARKET CAP: $44.2 billion (Large Cap)
5.5%
6.5% Retained to Com Eq
6.0%
CURRENT POSITION
76%
75% All Div’ds to Net Prof
71%
($MILL.)
BUSINESS: Bristol-Myers Squibb Company manufactures proprie-
10/01/01. International operations represent 46% of sales (35% of tary medical products, ethical pharmaceuticals, diagnostics, infant operating profit); R&D, 16.9%. ’07 depreciation rate: 10.3%. Es- formula, orthopedic implants, health and beauty aids. Major brand timated plant age: 14 years. Has about 46,050 employees Officers names include: Plavix ($4.8 billion in ’07 sales), Avapro, Pravachol, & directors own 1% of stock (3/08 proxy). Chairman and CEO: Coumadin, Reyataz, Sustiva, Baraclude, Erbitux, Taxol, Sprycel, James M. Cornelius. Incorporated: DE. Addr.: 345 Park Ave., NY, Ixempra, Abilify, Enfamil, Enfagrow. Acquired DuPont Pharma.
NY 10154. Tel.: 212-546-4000. Internet: www.bms.com.
Bristol-Myers has a very healthy cash
hoard. At the end of the third quarter,
gin, and a 13% hike in drug operation rev- ANNUAL RATES
Past Est’d ’05-’07
of change (per sh)
to ’11-’13
$7.4 billion. And we look for that tally to Nutritional unit sales. In 2009, we expect rise by another $2 billion after Bristol sells to an anticipated 10% in 2008. As the dol- QUARTERLY SALES ($ mill.)
of BMY’s Nutritionals business in early able to be less favorable. Also, a decrease Mar.31 Jun. 30 Sep. 30 Dec. 31
2009 should net BMY another $1 billion.
Abilify is likely. It remains to be seen how new pipleine drugs, Sustiva, Sprycel, and February, but we wouldn’t be surprised to Reyataz, will perform in a recession, but 5622 21260
we suspect they will do fairly well against 5450
5500
5700
5850 22500
the generics and other brand-name drugs.
EARNINGS PER SHARE A
Although top-ranked, this issue has
Mar.31 Jun. 30 Sep. 30 Dec. 31
subpar total return potential to 2011-
moves, however, we look for Bristol to up 2013. Near-term pipeline hopefuls, and
little chance of filling the earnings vacuum .43
1.60
.40
.40
.45
.45
1.70
left by the patent expirations of BuSpar, Pravachol, Taxol, and Glucophage, as well QUARTERLY DIVIDENDS PAID B■
rights to more cancer treatments, are also as decling growth of Plavix. Still, those in- Mar.31 Jun.30 Sep.30 Dec.31
vestors interested in yield (and they are a We look for share net of $1.60 in 2008
and $1.70 in 2009. Final-quarter share
A) Based on avg. shares outstanding thru. ’97, 2Q ’04.
(C) Includes intangibles. In ’07: $6328 million,
Company’s Financial Strength
diluted thereafter. Next earnings report due late (B) Dividends historically paid in the first week $3.20/sh.
Stock’s Price Stability
January. Excludes nonrecurring losses: ’98, of February, May, August, and November. ■ (D) In millions, adjusted for stock split.
Price Growth Persistence
25¢. Includes extraordinary charge of $0.11 in Dividend reinvestment plan available.
Earnings Predictability
2009, Value Line Publishing, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind.
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