Global Biopharmaceutical Company Bristol Myers Squibb is in Munich, Upper Bavaria, Bavaria, Germany, on April 13, 2025. (Photo by Michael Nguyen/NurPhoto via Getty Images)
NurPhoto via Getty Images
Bristol-Myers Squibb (NYSE: BMY) has considerably lagged behind the overall market, with its stock decreasing by 20% this year, while the S&P 500 index has risen by 14%. This drop can be attributed in part to recent challenges in the company’s drug pipeline, including underwhelming late-stage results for its cardiovascular treatment, Camzyos, as well as its schizophrenia medication, Cobenfy.
In spite of these difficulties, the fundamental question is whether BMY’s 20% decline in stock price represents a buying opportunity. We believe it does, and we find the stock appealing at its current price of $45. Our assessment is founded on an evaluation of BMY’s current valuation when juxtaposed with its recent operating performance and historical financial soundness. We examined Bristol-Myers Squibb concerning crucial metrics: Growth, Profitability, Financial Stability, and Downturn Resilience. Although the company’s operational and financial status is moderate, its presently low valuation renders the stock especially attractive, as outlined in the following analysis.
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How Does Bristol Myers Squibb’s Valuation Look vs. The S&P 500?
Based on price per dollar of sales or profit, BMY stock appears inexpensive relative to the broader market.
- Bristol Myers Squibb has a price-to-sales (P/S) ratio of 1.9 compared to a figure of 3.3 for the S&P 500
- Moreover, the company’s price-to-free cash flow (P/FCF) ratio stands at 7.0 in contrast to 21.1 for the S&P 500
- It also possesses a price-to-earnings (P/E) ratio of 16.9 as opposed to the benchmark’s 24.0
How Have Bristol Myers Squibb’s Revenues Grown Over Recent Years?
Bristol Myers Squibb’s Revenues have displayed variable growth in recent years.
- Bristol-Myers Squibb has experienced its top line grow at an average rate of 0.5% over the last 3 years (compared to an increase of 5.3% for the S&P 500)
- Its revenues have increased by 4.6% from $46 Bil to $48 Bil in the past 12 months (versus a growth of 5.1% for the S&P 500)
- Furthermore, its quarterly revenues dropped by 5.6% to $11 Bil in the most recent quarter from $12 Bil a year ago (as opposed to a 6.1% growth for the S&P 500)
How Profitable Is Bristol-Myers Squibb?
Bristol-Myers Squibb’s profit margins are superior to those of most companies within the Trefis coverage universe.
Does Bristol-Myers Squibb Look Financially Stable?
Bristol-Myers Squibb’s balance sheet appears solid.
- Bristol-Myers Squibb’s Debt figure was $51 Bil at the close of the most recent quarter, while its market capitalization stands at $92 Bil (as of 9/21/2025). This suggests a moderate Debt-to-Equity Ratio of 55.8% (compared to 21.0% for the S&P 500). [Note: A low Debt-to-Equity Ratio is preferable]
- Cash (including cash equivalents) constitutes $12 Bil of the $92 Bil in Total Assets for Bristol-Myers Squibb. This results in a strong Cash-to-Assets Ratio of 12.7% (compared to 7.0% for the S&P 500)
How Resilient Is BMY Stock During A Downturn?
BMY stock has experienced a slightly worse impact than the benchmark S&P 500 index during some recent downturns. Concerned about the effect of a market crash on BMY stock? Our dashboard – BMY Lost 6.7% In A Month. Do You Buy Or Wait? – provides an in-depth analysis of how the stock fared during and after prior market crashes.
Inflation Shock (2022)
- BMY stock declined 40.2% from a peak of $81.13 on December 2, 2022, to $48.48 on November 21, 2023, in contrast to a peak-to-trough decrease of 25.4% for the S&P 500
- The stock is still not back to its pre-Crisis high
- The highest the stock has attained since then is 63.11 on March 10, 2025, and it currently trades around $45
COVID-19 Pandemic (2020)
- BMY stock decreased 31.2% from a high of $67.43 on January 21, 2020, to $46.40 on March 23, 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500
- The stock completely recovered to its pre-Crisis peak by July 12, 2021
Global Financial Crisis (2008)
- BMY stock fell 46.3% from a high of $32.14 on July 17, 2007, to $17.26 on October 16, 2008, compared to a peak-to-trough drop of 56.8% for the S&P 500
- The stock fully regained its pre-Crisis peak by October 5, 2011
Putting All The Pieces Together: What It Means For BMY Stock
In conclusion, Bristol-Myers Squibb’s performance across the metrics discussed above can be summarized as follows:
- Growth: Inconsistent
- Profitability: Strong
- Financial Stability: Strong
- Downturn Resilience: Moderate
- Overall: Moderate
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The Bottom Line
In general, Bristol-Myers Squibb has a moderate performance across significant metrics, but its current valuation seems low. The stock is trading at only 1.9 times trailing revenues, considerably below its five-year average of 2.9 times. This valuation is also lower than some of its competitors, with Merck at 3.2 times and Johnson & Johnson at 4.7 times trailing revenues. See – Bristol Myers Squibb’s valuation compared to its peers. Given this appealing valuation, we consider BMY to be a worthwhile investment.
Nevertheless, we could be mistaken in our judgment, and investors may hesitate to pay a higher multiple due to recent pipeline challenges. Even so, we believe these apprehensions are already factored into the stock price. The company has a robust pipeline, and its recent acquisitions could offer considerable upside. For example, the company acquired 2seventy Bio earlier this year to take full control of their collaboratively developed CAR-T cell therapy – Abecma – for multiple myeloma. Additionally, Bristol-Myers Squibb is co-developing an antibody with BioNTech aimed at small-cell lung cancer. This promising medication has shown positive results in mid-stage clinical trials and possesses a potential peak sales value exceeding $5 billion. In our estimation, the promise of these new advancements outweighs the current pipeline setbacks, making the stock’s low valuation particularly enticing.
