BMY
Bristol-Myers Squibb Company
Healthcare · Drug Manufacturers - General · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 57.4 reflects a mixed profile: the dividend sub-score of 16.2 provides a strong base, but the financial health score of 10.0 and growth score of 12.5 materially drag the overall result downward.
- The model's confidence rating of 10.0/10 combined with full 10/10 metric mapping means the score is built on complete data from the SEC 10-K filing, so the 57.4 is a high-confidence assessment rather than an estimate based on partial data.
- BMY scores in the mid-range because it is genuinely a split profile — strong income characteristics pulled toward the top but significant leverage and weak growth characteristics pulling toward the bottom, producing a balanced but unexceptional composite.
Why Not Higher
- The financial health sub-score of 10.0/20 prevents a higher overall score because leverage ratios and interest coverage derived from the 10-K filing reflect a debt-heavy balance sheet that the model penalizes as a structural risk.
- The theme score of 0.0/20 contributes zero points to the composite, meaning BMY receives no credit for macro or sector theme exposure, a gap that keeps the total score from reaching the upper tier despite the strong dividend component.
Data Confidence
10 / 10
Very High — full data coverage
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Bristol-Myers Squibb Company (BMY) is a global biopharmaceutical company focused on the discovery, development, and commercialization of medicines in oncology, hematology, immunology, and cardiovascular disease. Its portfolio includes blockbuster franchises such as Eliquis, Opdivo, and Revlimid, the latter of which has faced significant generic competition following patent expiration. The model assigned BMY a composite score of 57.4/100, reflecting a company with meaningful income-generating characteristics but notable structural headwinds. The dividend sub-score of 16.2/20 is the standout component, indicating strong free cash flow payout discipline, a consistent dividend-per-share streak, and healthy FCF coverage — aligning BMY most closely with a dividend income research profile. However, the growth sub-score of 12.5/20 and the momentum sub-score of 11.4/20 reflect pressure on revenue and earnings trajectory, consistent with the loss of Revlimid exclusivity and the ongoing need to offset that revenue through newer pipeline products and acquisitions. The financial health sub-score of 10.0/20 is the most concerning element, suggesting elevated leverage and constrained interest coverage — a direct consequence of the large debt load taken on through the Celgene acquisition and subsequent bolt-on deals. The theme score of 0.0 indicates the model found no material macro theme exposure in the filings reviewed, which limits any thematic tailwind attribution. The central research tradeoff is between BMY's durable income profile and its high-debt, patent-cliff-challenged balance sheet, making it a nuanced candidate requiring careful further examination.
Plain English
Bristol-Myers Squibb is a large US pharmaceutical company that makes cancer drugs, blood thinners, and immune system medicines. The model score of 57.4 out of 100 suggests it scores well for dividend income but struggles with debt levels and revenue growth, landing it in a 'research further' category rather than a clear standout. The High risk rating reflects the company's heavy debt from past acquisitions and real revenue pressure from drugs losing patent protection. It is not a simple, low-concern research candidate — it requires a researcher to dig into the balance sheet and pipeline before drawing conclusions.
Bull Case vs. Bear Case
Bull Case
- The dividend sub-score of 16.2/20 — the model's highest individual component — indicates strong free cash flow coverage of dividend payments and a consistent dividend-per-share growth track record, supporting BMY's case as a dividend income research candidate.
- The profitability sub-score of 14.4/20 reflects that despite revenue headwinds, Bristol-Myers Squibb maintains respectable net and operating margins, suggesting the core business retains meaningful pricing power and operational efficiency in its in-line portfolio.
- BMY's best-fit scoring profile is dividend income at 64.0, meaning the model identifies this company as most competitive against peers when evaluated specifically on income-generation metrics, which could attract researchers focused on that goal profile.
Bear Case
- The financial health sub-score of 10.0/20 — the weakest component in the model — signals elevated leverage and strained interest coverage ratios as reported in the 10-K filing, a direct consequence of heavy acquisition-related debt that limits financial flexibility.
- The growth sub-score of 12.5/20 reflects weak year-over-year revenue, net income, and EPS growth trends in the filing data, consistent with the revenue drag from Revlimid's loss of exclusivity and the challenge of replacing that volume through newer products.
- The momentum sub-score of 11.4/20 indicates that quarterly improvements in revenue, earnings, and margins have been modest or inconsistent across the filing period, suggesting the recovery trajectory is not yet clearly established in the reported financials.
What Could Change the Picture
Bullish Triggers
- Evidence of meaningful debt reduction — specifically a materially improved leverage ratio or interest coverage metric in a subsequent 10-K filing — would directly address the financial health sub-score weakness and could lift the composite score.
- Reported acceleration in revenue and net income growth from newer oncology or immunology assets in future filings would improve the growth sub-score of 12.5 and momentum sub-score of 11.4, strengthening the overall research case.
Bearish Triggers
- A deterioration in free cash flow coverage of dividend payments — reflected in a declining dividend sub-score in a future filing — would undermine the primary pillar supporting BMY's current research standing as a dividend income candidate.
- Further increases in debt load through additional acquisitions without corresponding earnings accretion would worsen the already-stressed financial health sub-score of 10.0, pushing the composite score lower and reinforcing the high risk rating.
Red Flags
- The financial health sub-score of 10.0/20 is a material concern — balance sheet leverage and interest coverage metrics derived from the 10-K filing suggest the company carries a structurally elevated debt burden relative to its earnings capacity.
- The theme score of 0.0/20 indicates no identifiable macro tailwind exposure was mapped from filings, meaning the model finds no incremental thematic support to offset the company's fundamental headwinds.
- The gap between BMY's best profile score (dividend income at 64.0) and its weakest profile score (aggressive growth at 55.0) is relatively narrow, suggesting limited upside differentiation and a lack of strong conviction across multiple research frameworks.
Risk Profile
High RiskThe High risk rating for Bristol-Myers Squibb reflects the combination of elevated acquisition-driven debt on the balance sheet, as evidenced by the financial health sub-score of 10.0/20, and ongoing revenue uncertainty from patent expirations on key legacy products — both of which are documented in the 10-K filing data. This risk profile means that while the income characteristics are identifiable, the underlying financial structure introduces meaningful variability in the company's ability to sustain those characteristics over time.
Key Catalysts to Watch
The key catalysts to monitor for BMY are developments in the 10-K-reported pipeline that could demonstrate new revenue streams capable of offsetting legacy product declines, and any filed evidence of material debt reduction that would improve the financial health sub-score. Researchers should also track whether free cash flow coverage of dividends — the foundation of the 16.2 dividend sub-score — remains stable or begins to erode in future regulatory filings.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.