Bristol-Myers Squibb Company (BMY) | Investment Case

1. Company Snapshot

1.a. Company Description

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, and markets biopharmaceutical products worldwide.It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, neuroscience, and covid-19 diseases.The company's products include Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma; Eliquis, an oral inhibitor for reduction in risk of stroke/systemic embolism in NVAF, and for the treatment of DVT/PE; Opdivo for anti-cancer indications; Pomalyst/Imnovid indicated for patients with multiple myeloma; and Orencia for adult patients with active RA and psoriatic arthritis.

It also provides Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia; Yervoy for the treatment of patients with unresectable or metastatic melanoma; Abraxane, a protein-bound chemotherapy product; Reblozyl for the treatment of anemia in adult patients with beta thalassemia; and Empliciti for the treatment of multiple myeloma.In addition, the company offers Zeposia to treat relapsing forms of multiple sclerosis; Breyanzi, a CD19-directed genetically modified autologous T cell immunotherapy for the treatment of adult patients with relapsed or refractory large B-cell lymphoma; Inrebic, an oral kinase inhibitor indicated for the treatment of adult patients with myelofibrosis; and Onureg for the treatment of adult patients with AML.It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies.

The company was formerly known as Bristol-Myers Company.The company was founded in 1887 and is headquartered in New York, New York.

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1.b. Last Insights on BMY

Bristol-Myers Squibb's recent performance was driven by strong demand for its key products, including Opdivo, Reblozyl, and Camzyos. The company's Q3 earnings beat analyst estimates, with quarterly earnings of $1.63 per share. Recent acquisitions and investments in R&D have positioned BMY for future growth. Bank of America upgraded BMY to Buy, citing pipeline catalysts and valuation support. Increased institutional investor ownership, such as Capital Asset Advisory Services LLC's 21.9% stake increase, also contributed to the positive momentum.

1.c. Company Highlights

Last Price	60.86
Change Percentage	0.15%
Open	60.94
Previous Close	60.77
Market Cap ( Millions)	123896
Volume	12080578
Year High	63.33
Year Low	42.52
M A 50	54.25
M A 200	48.61

FCF Yield	12.35%
Dividend Yield	4.09%
ROE	25.84%
Debt / Equity	-80.87%
Net Debt / EBIDTA	-380.34%
Price To Book	2.23
Price Earnings Ratio	17.61
Price To FCF	8.1
Price To sales	2.57
EV / EBITDA	4.71

2. Strong Q4 Results Drive Growth Momentum

The company's Q4 revenue came in at $12.5 billion, flat year-over-year, with the growth portfolio continuing its positive momentum, increasing 15% to $7.4 billion. Key brands, including Reblozyl, Breyanzi, Camzyos, and the IO portfolio, achieved significant growth. The company's non-GAAP EPS for the full year was $6.05, beating estimates. For 2026, the company expects non-GAAP EPS in the range of $6.05 to $6.35, with a gross margin between 69% to 70%. Actual EPS for Q4 came out at $1.26, relative to estimates at $1.23.

Publication Date: Feb -06

                                    📋 Highlights
                                    Portfolio Growth:
                                                Growth portfolio achieved 15% Q4 YoY growth and 17% full-year growth, driven by Opdualag, Breyanzi, Camzyos, and Reblozyl ($2B+ sales).
Financial Performance:
                                                Q4 revenue remained flat at $12.5B YoY, with growth portfolio contributing $7.4B (15% increase), offset by generic impacts on legacy brands.
Pipeline Milestones:
                                                10 new medicines and 30+ launch opportunities by 2030, with 6 potential new product data readouts in 2026 and 10+ pivotal studies across hematology, IPF, and AFib.
Cost Savings & AI Integration:
                                                Achieved $1B of $2B strategic productivity target in 2025, prioritizing AI-driven operational efficiency and reinvestment in growth.

                                

Growth Portfolio Drives Momentum

The growth portfolio delivered 15% year-over-year growth in Q4 and 17% for the full year, driven by key brands such as Reblozyl, Breyanzi, and Camzyos. As Christopher Boerner mentioned, "Our growth portfolio grew 15% year over year in Q4 and 17% for the full year." The company's pipeline also shows significant potential, with 10 new medicines and over 30 meaningful launch opportunities by 2030.

Pipeline Progress and Regulatory Highlights

The company reported several clinical and regulatory highlights, including Breyanzi's FDA approval for adults with relapsed or refractory marginal zone lymphoma. The company has eight registrational studies underway, with top-line registrational data expected for six potential new products in 2026.

Valuation and Growth Expectations

With a P/E Ratio of 17.18 and an expected revenue growth rate of -2.7% next year, the company's valuation appears to be pricing in a moderate level of growth. The company's ROE of 25.85% and ROIC of 90.34% indicate strong profitability. The dividend yield of 4.18% and free cash flow yield of 12.63% also suggest an attractive return profile.

Outlook and Risks

The company expects to deliver mid-single-digit growth in the growth portfolio, but faces risks from generics coming this year. David Elkins noted, "We feel good about where we exited 2025 and the prospects heading into '26." The company's financial strength and pipeline progress are expected to drive growth momentum.

3. NewsRoom

Will BMY's Legacy Portfolio Decline Weigh on Its 2026 Top Line?

Feb -10

Source: zacks.com

Wesbanco Bank Inc. Reduces Position in Bristol Myers Squibb Company $BMY

Feb -10

Source: defenseworld.net

BMY Up 7.6% Post Q4 Earnings: Should You Buy, Sell or Hold the Stock?

Feb -09

Source:

Schwab vs Vanguard: Which is the Better Dividend ETF?

Feb -09

Source:

Oppenheimer Asset Management Inc. Purchases 32,005 Shares of Bristol Myers Squibb Company $BMY

Feb -09

Source: defenseworld.net

Candriam S.C.A. Cuts Stake in Bristol Myers Squibb Company $BMY

Feb -09

Source: defenseworld.net

Evinova and Bristol Myers Squibb Forge Strategic Collaboration to Optimize Clinical Development with Artificial Intelligence

Feb -09

Source: businesswire.com

Birmingham Capital Management Co. Inc. AL Reduces Stake in Bristol Myers Squibb Company $BMY

Feb -07

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.20%)

6. Segments

Pharmaceuticals

Expected Growth: 7.2%

Strong product pipeline, increasing demand for cancer and immunology treatments, and strategic acquisitions drive growth for Bristol–Myers Squibb.

7. Detailed Products

Opdivo

A programmed death-1 (PD-1) inhibitor used to treat various types of cancer, including melanoma, lung cancer, kidney cancer, and others.

Eliquis

An oral factor Xa inhibitor used to reduce the risk of stroke and systemic embolism in patients with non-valvular atrial fibrillation.

Orencia

A selective T-cell costimulation modulator used to treat rheumatoid arthritis, juvenile idiopathic arthritis, and psoriatic arthritis.

Yervoy

A monoclonal antibody used to treat unresectable or metastatic melanoma.

Sprycel

A tyrosine kinase inhibitor used to treat chronic myeloid leukemia and Philadelphia chromosome-positive acute lymphoblastic leukemia.

Empliciti

A humanized monoclonal antibody used to treat multiple myeloma.

Reblozyl

A luspatercept-aamt used to treat anemia in patients with beta thalassemia.

8. Bristol-Myers Squibb Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Bristol-Myers Squibb Company is medium due to the presence of alternative treatments and generic drugs in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power of individual patients and the complexity of pharmaceutical products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of raw materials and the company's dependence on them.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the pharmaceutical industry, including regulatory hurdles and high research and development costs.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several large pharmaceutical companies competing in the market, leading to high marketing and advertising expenses.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	58.49%
Debt Cost	3.95%
Equity Weight	41.51%
Equity Cost	6.17%
WACC	4.87%
Leverage	140.89%

11. Quality Control: Bristol-Myers Squibb Company passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

J&J

A-Score: 6.9/10

Value: 3.1

Growth: 4.0

Quality: 8.8

Yield: 6.0

Momentum: 9.5

Volatility: 10.0

1-Year Total Return ->

Gilead Sciences

A-Score: 6.8/10

Value: 3.3

Growth: 3.0

Quality: 9.3

Yield: 7.0

Momentum: 9.5

Volatility: 8.3

1-Year Total Return ->

Amgen

A-Score: 6.3/10

Value: 2.9

Growth: 5.0

Quality: 6.8

Yield: 6.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

Merck

A-Score: 6.2/10

Value: 4.6

Growth: 6.2

Quality: 8.2

Yield: 6.0

Momentum: 4.5

Volatility: 8.0

1-Year Total Return ->

Bristol-Myers Squibb

A-Score: 5.5/10

Value: 5.0

Growth: 3.9

Quality: 6.5

Yield: 8.0

Momentum: 1.5

Volatility: 8.0

1-Year Total Return ->

Lilly

A-Score: 5.3/10

Value: 0.0

Growth: 7.1

Quality: 7.5

Yield: 2.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-9.11%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.87%

Bristol-Myers Squibb Company - US1101221083

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BMY

1.c. Company Highlights

Higher Yield

Less Volatile

Higher Growth

Revenues Beats

Average Growth

Earnings Beats

Weak Momentum

Lower Quality

Strong Momentum

Stable Momentum

Average Quality

Better Quality

2. Strong Q4 Results Drive Growth Momentum

Growth Portfolio Drives Momentum

Pipeline Progress and Regulatory Highlights

Valuation and Growth Expectations

Outlook and Risks

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.20%)

6. Segments

Pharmaceuticals

Expected Growth: 7.2%

7. Detailed Products

Opdivo

Eliquis

Orencia

Yervoy

Sprycel

Empliciti

Reblozyl

8. Bristol-Myers Squibb Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Bristol-Myers Squibb Company passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

60.86$

Current Price

60.86$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA