Becton, Dickinson and Company's (NYSE:BDX) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?

Simply Wall St.11-10

Becton Dickinson (NYSE:BDX) has had a rough month with its share price down 2.1%. However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty ...

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However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty ...</p>\n\n<a href=\"https://finance.yahoo.com/news/becton-dickinson-companys-nyse-bdx-120030689.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4504","symbol_name":"桥水持仓","start_time":0,"source_url":"https://finance.yahoo.com/news/becton-dickinson-companys-nyse-bdx-120030689.html","article_id":"2482500612","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/qrnhoA9Y9l_fYJBd0ck5WA--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/983f2bdfe32b19227b1d118c45bf4f09"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482500612","pubTimestamp":1731240030,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Becton Dickinson  has had a rough month with its share price down 2.1%. 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This implies that the","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4504":"桥水持仓","LU1059921491.USD":"NORDEA 1 GLOBAL STABLE EQUITY \"HB\" (USDHDG) ACC","IE00BFXG1179.USD":"BNY MELLON U.S. EQUITY INCOME \"B\" (USD) INC","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","BDX":"碧迪医疗","NYSE":"纽交所","LU1854104046.USD":"M&G (LUX) POSITIVE IMPACT \"A\" (USD) ACC","BK4588":"碎股","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","BK4082":"医疗保健设备","BK4585":"ETF&股票定投概念","LU1854103824.USD":"M&G (LUX) POSITIVE IMPACT \"A\" (USD) INC","LU0511384066.AUD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (AUDHDG) ACC"},"translate_title":"Becton，Dickinson and Company（纽约证券交易所股票代码：BDX）的基本面看起来相当强劲：市场对该股的看法可能是错误的吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BDX":1,"NYSE":1},"content_text":"Becton Dickinson (NYSE:BDX) has had a rough month with its share price down 2.1%. However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Becton Dickinson's  ROE in this article. \n Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. \n Check out our latest analysis for Becton Dickinson \n How Do You Calculate Return On Equity? \n The formula for return on equity is: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for Becton Dickinson is:\n5.6% = US$1.5b ÷ US$26b (Based on the trailing twelve months to June 2024).\n The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.06 in profit. \n Why Is ROE Important For Earnings Growth? \n So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. \n Becton Dickinson's Earnings Growth And 5.6% ROE \n At first glance, Becton Dickinson's ROE doesn't look very promising. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 12%. Although, we can see that Becton Dickinson saw a modest net income growth of 12% over the past five years. So, there might be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently. \n Next, on comparing Becton Dickinson's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 13% over the last few years. \n\n\n\n  NYSE:BDX Past Earnings Growth November 10th 2024\n \n\n The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. Is BDX fairly valued? This infographic on the company's intrinsic value  has everything you need to know. \n Is Becton Dickinson Using Its Retained Earnings Effectively? \n Becton Dickinson has a significant three-year median payout ratio of 68%, meaning that it is left with only 32% to reinvest into its business. This implies that the company has been able to achieve decent earnings growth despite returning most of its profits to shareholders. \n Additionally, Becton Dickinson has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 25% over the next three years. As a result, the expected drop in Becton Dickinson's payout ratio explains the anticipated rise in the company's future ROE to 22%, over the same period. \n Conclusion \n In total, it does look like Becton Dickinson has some positive aspects to its business. That is, quite an impressive growth in earnings. However, the low profit retention means that the company's earnings growth could have been higher, had it been reinvesting a higher portion of its profits. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482500612"}