Becton Dickinson and Company
🇺🇸 BDX · NYSE/NASDAQ · US0758871091
Healthcare
USD 156.68 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
25.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 156.68 ÷ 6.11 = 25.6
TTM period through: 2025-12-31
Forward P/E (estimated): 12.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 25.3
Yield (Fwd)
2.68%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 2.69%
Net Debt/EBITDA (TTM)
3.6x
Latest quarter: 15.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 15.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
68.7%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 67.9%
Cash Flow Payout (TTM): 35.1%
FCF Coverage (TTM): 2.21x
ROE
7.0%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
12.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Becton Dickinson is a dominant global provider of essential medical supplies with highly predictable recurring revenue and an exceptional track record of dividend reliability. While the ongoing biosciences spin-off creates temporary stock volatility and distorts trailing earnings, current valuations and a 2.69% yield offer limited upside. Existing shareholders should maintain positions given the strong underlying business, but new investors may want to wait for better entry points or a higher yield.
Sector Context
Becton Dickinson is a leading medical technology company that develops and manufactures essential medical supplies, devices, and laboratory equipment used globally by healthcare institutions. In the healthcare sector, entrenched providers of basic medical consumables benefit from high switching costs and recession-resistant demand, making them highly reliable dividend payers despite occasional restructuring cycles.
Temporary Opportunity Identified
Ongoing strategic spin-off of its Biosciences and Diagnostics operations (along with a guidance cut) is creating near-term earnings distortion and stock price volatility.
📊 Strategy Analysis
- • Exceptional dividend reliability with 10 years of consistent payments and no cuts, backed by a very secure cash flow payout ratio of 35.15%.
- • Dominant global oligopoly position in essential medical consumables, providing highly defensive and predictable recurring revenues.
- • Forward P/E of 12.33 suggests that post-spin-off earnings expectations are significantly stronger than what the distorted TTM P/E of 25.64 implies.
⚠ What to Watch
- • Current dividend yield of 2.69% falls short of the strategy's 3.0% minimum target for optimal income generation.
- • Current price of $156.68 exceeds our maximum monopoly fair value estimate of $109.99, indicating limited margin of safety.
- • Trailing 5-year EPS CAGR has declined by 4.0%, and Net Debt/EBITDA of 3.63x sits above the conservative 3.0x target.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-18
Disclaimer: This information is for educational purposes only. Not financial advice.