By examining the primary indicators between Bristol Myers and Travelers, we can assess the impact of market volatility on the prices of both companies. This will allow us to determine if combining them in a single portfolio can help diversify away market risk. Pair trading strategies can also be utilized, such as matching a long position in Travelers with a short position in Bristol Myers. For more information, please refer to our
pair correlation module.
Now, let's analyze the assets. The asset utilization indicator reflects the revenue generated for every dollar of assets a company currently reports. Bristol Myers has an asset utilization ratio of 47.68 percent, indicating that the company generates $0.48 for each dollar of assets. An increasing asset utilization ratio suggests that Bristol Myers Squibb is becoming more efficient in using each dollar of assets for its daily operations.
Progressive assessment
Bristol Myers Squibb (BMY), a prominent player in the Drug Manufacturers - General industry, presents a compelling case for retail investors, despite its
Jensen Alpha of -0.1, indicating a slight underperformance compared to the expected return of the market. With a solid
EBITDA of $18.7 billion, the company has demonstrated strong operational profitability. Furthermore, BMY's substantial
beginning period cash flow of $14.3 billion suggests a robust
financial health and liquidity, reinforcing its investment potential. However, the company's financial strength is slightly offset by a high
PEG Ratio of 2.4369, which may suggest that the stock is currently overvalued. Additionally, the firm's significant
total cash from financing activities at a loss of $17 billion could indicate potential challenges in capital structure management. Therefore, while BMY holds promising aspects, investors should carefully consider these factors in their comparative analysis against other US stocks such as Travelers Companies.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Bristol or Crinetics is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Bristol Myers dividends
A dividend is the distribution of a portion of Bristol Myers earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Bristol Myers dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Bristol one year expected dividend income is about USD1.56 per share.
At this time, Bristol Myers'
Dividend Payout Ratio is fairly stable compared to the past year.
Dividend Paid And Capex Coverage Ratio is likely to rise to 2.44 in 2024, despite the fact that
Dividends Paid is likely to grow to (4.5
B).
Investing in dividend-paying stocks, such as Bristol Myers Squibb is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Bristol Myers must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Bristol Myers. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Bristol Myers's Liquidity
Bristol Myers
financial leverage refers to using borrowed capital as a funding source to finance Bristol Myers Squibb ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bristol Myers financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Bristol Myers' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Bristol Myers' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Bristol Myers's total debt and its cash.
Correlation Between Bristol and Crinetics Pharmaceuticals
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Bristol Myers together with similar or unrelated positions with a negative correlation. For example, you can also add Crinetics Pharmaceuticals to your portfolio. If Crinetics Pharmaceuticals is not perfectly correlated to Bristol Myers it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Bristol Myers, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Bristol Myers and Crinetics Pharmaceuticals in your portfolio? Please note if you are using this as a pair-trade strategy between Bristol Myers and Crinetics Pharmaceuticals, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between BMY and CRNX for more information.
Breaking it down
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Bristol Myers revenue. Based on the latest financial disclosure, Bristol Myers Squibb reported 46.16
B of revenue. This is much higher than that of the Pharmaceuticals sector and significantly higher than that of the
Health Care industry. The revenue for all United States stocks is significantly lower than that of the stock.
As for Travelers Companies we see revenue of 36.88
B, which is much higher than that of the Health Care
| Bristol | 46.16 Billion |
| Sector | 0.0 |
| Travelers | 36.88 Billion |
Every investor knows that diversification is key to a healthy portfolio. In the quest for diversification, retail investors often find themselves comparing stocks from different sectors. Take for instance, Bristol Myers Squibb (BMY), a giant in the pharmaceutical sector, and Travelers Companies, a stalwart in the insurance industry. BMY's robust financials, with a net income of
$6.34 billion and an EBITDA of
$19.92 billion, are impressive. However, its quarterly revenue growth shows a slight decrease of 0.06. On the other hand, BMY's price to earnings ratio of 24.88X and a healthy dividend yield of 0.0406 make it an attractive option for income-focused investors. In comparison, Travelers Companies may offer different benefits, but investors need to consider their own risk tolerance, investment goals, and sector preferences before making a decision. The choice between these two stocks ultimately depends on the individual investor's strategy and market outlook. .
Will Bristol pull back in November 2023?
The current Information Ratio of Bristol Myers Squibb, a measure of portfolio returns beyond the returns of a benchmark, has increased to -0.06, signaling underperformance. This negative value implies that the company's returns are not sufficiently compensating for the risk taken over the benchmark. Consequently, there's a potential for the stock price to decline. Investors are advised to exercise caution and closely monitor the stock's performance as we transition into November 2023. As of October 26th, Bristol Myers displays a Mean Deviation of 0.7387, a standard deviation of 0.9915, and a Risk Adjusted Performance of -0.09. The
technical analysis of Bristol-Myers Squibb provides a methodology to utilize historical prices and volume patterns to predict a pattern that approximates the direction of the company's future prices. In other words, this information can be used to determine if the company will indeed mirror its model of historical prices and volume momentum, or if the prices will eventually revert. We have gathered data for thirteen technical drivers for Bristol Myers Squibb, which can be compared to its
competitors.
Please verify Bristol-Myers Squibb's coefficient of variation and value at risk to determine if Bristol-Myers Squibb is priced correctly, assuming the market reflects its regular price of 56.61 per share. Given that Bristol Myers has an information ratio of -0.06, we recommend you to validate Bristol Myers Squibb's current market performance to ensure the company can sustain itself in the future. In conclusion, Bristol Myers Squibb (BMY) presents a mixed bag for investors. With an
Analyst Overall Consensus of 'Hold' and a
Valuation Market Value of
56.61, the stock's performance has been steady but not spectacular. However, the
Valuation Real Value of
63.99 suggests there may be some undervalued potential. The analyst community is divided, with 7 Strong Buys, 9 Holds, and 1 Strong Sell. The estimated target price ranges from a low of 56 to a high of 85, with an average of 70.142. While the stock is rising slowly, investors should carefully consider these factors before making a decision. .
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Bristol Myers Squibb. Please refer to our
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