Bristol Myers Squibb's Q4 Gains Amidst Revenue Challenges

Bristol Myers Squibb's stock has increased by 7% this year, despite facing revenue pressures. With a strong Q4 performance overshadowing a longer-term decline, the company navigates a complex landscape of drug sales and valuation. Investors may analyze its potential in a high-quality portfolio.

Date: 06-03-2025

AI Rating: 5

Earnings Per Share (EPS): The report does not provide specific EPS information for Bristol Myers Squibb (BMY).

Revenue Growth: BMY has reported a 5% increase in revenue, from $46.2 billion in 2022 to $48.3 billion now. This growth indicates a positive trajectory in terms of top-line performance in the short term.

Net Income: The analysis does not mention specific net income figures that could affect investor sentiment.

Profit Margins (Gross, Operating, Net): There is no specific information on profit margins provided in the report.

Free Cash Flow (FCF): There is no mention of free cash flow figures which could impact financial flexibility.

Return on Equity (ROE): The report does not include any data related to return on equity.

Share Buybacks: BMY has reduced its outstanding shares significantly through $13 billion in buybacks, demonstrating a commitment to returning capital to shareholders, although no repurchases were made in 2024.

Valuation Pressures: Despite sales growth, valuation pressures are anticipated due to legacy drug revenue declines and generic competition on the horizon, specifically for drugs like Eliquis. Currently trading at a P/S ratio of 2.5x, which is slightly below its average, suggests that market sentiment is cautious.

Overall, the mix of stagnation and growth, coupled with the strategic positioning for future drug releases, creates a complex outlook for BMY stock. The immediate challenges with the revenue of legacy drugs could overshadow the long-term prospects of its new drug portfolio.

Stocks: BMY