Bristol Myers Squibb (NYSE:BMY) has recently announced its results for the first quarter, reporting adjusted earnings of $1.80 per share on revenue of $11.2 billion. This revenue marks a 6% decline year-over-year from the same timeframe last year, during which the company recorded a loss of $4.40 per share.
In spite of the drop in revenue, BMY has raised its revenue and profit forecasts for the entire year, attributing this to cost-saving initiatives. The company now expects revenue for 2025 to be between $45.8 billion and $46.8 billion, an increase from its previous estimate of around $45.5 billion. It also anticipates full-year adjusted earnings per share between $6.70 and $7.00, up from its earlier guidance of $6.55 to $6.85 per share. This updated forecast also considers the effects of new tariffs on products being shipped to China.
After this unexpected first quarter performance and the upward adjustment of its financial expectations, a crucial question for investors is whether BMY stock, which is currently priced at $48, offers a buy opportunity. Our evaluation indicates that it does. We consider BMY to be a compelling investment at its existing valuation, potentially making it a good stock to purchase at this time. This assessment is grounded in a comparative analysis of BMY’s current valuation against its recent operational results, along with its current and historical financial health. Our review of Bristol Myers Squibb across vital metrics—Growth, Profitability, Financial Stability, and Downturn Resilience—shows that the company demonstrates moderate operating results and financial condition, as further elaborated below.
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How Does BMY Stock’s Valuation Look vs. The S&P 500?
When assessing what you pay for each dollar of sales or profit, BMY stock appears inexpensive compared to the broader market.
- Bristol Myers Squibb carries a price-to-sales (P/S) ratio of 2.0 compared to 2.8 for the S&P 500
- Moreover, the company’s price-to-free cash flow (P/FCF) ratio stands at 6.5, while the S&P 500’s is 17.6
- In addition, the stock is presently trading at a price-to-earnings (P/E) ratio of 6.5, which is significantly lower than its historical long-term average P/E multiple near 10.
How Have Bristol Myers Squibb’s Revenues Grown Over Recent Years?
Bristol Myers Squibb’s Revenues have experienced some growth in recent years.
- Bristol Myers Squibb has registered an average revenue growth rate of 1.4% over the past 3 years (compared to an increase of 6.2% for the S&P 500)
- Its revenues have increased by 7.3%, rising from $45 billion to $48 billion in the last 12 months (against 5.3% growth for the S&P 500)
- Nonetheless, its quarterly revenues dipped by 6% to $11.2 billion in the most recent quarter from $11.9 billion a year ago (compared to a 4.9% increase for the S&P 500)
How Profitable Is Bristol Myers Squibb?
Bristol Myers Squibb’s profit margins are impressive.
Does Bristol Myers Squibb Look Financially Stable?
Bristol Myers Squibb’s balance sheet appears stable.
- Bristol Myers Squibb’s debt reached $51 billion at the close of the most recent quarter, while its market capitalization is $97 billion (as of 4/25/2025). This results in a high Debt-to-Equity Ratio of 51.8%(versus 21.5% for the S&P 500). [Note: A lower Debt-to-Equity Ratio is preferable]
- Cash (including cash equivalents) constitutes $11 billion of the total $93 billion in assets for Bristol Myers Squibb. This leads to a solid Cash-to-Assets Ratio of 11.7% (compared to 15.0% for the S&P 500)
How Resilient Is BMY Stock During A Downturn?
BMY stock has experienced an impact that was slightly worse than the benchmark S&P 500 index during certain recent downturns. Concerned about how a market crash might affect BMY stock? Our dashboard How Low Can Bristol Myers Squibb Stock Go In A Market Crash? provides a detailed analysis of the stock’s performance during and after past market crashes.
Inflation Shock (2022)
- BMY stock declined 40.2% from a high of $81.13 on 2 December 2022 to $48.48 on 21 November 2023, compared to a peak-to-trough drop of 25.4% for the S&P 500
- The stock has not yet recovered to its pre-Crisis high
- The maximum price attained since then is $63.11 on 10 March 2025 and it currently trades around $48
COVID-19 Pandemic (2020)
- BMY stock fell 31.2% from a peak of $67.43 on 21 January 2020 to $46.40 on 23 March 2020, while the S&P 500 experienced a peak-to-trough drop of 33.9%
- The stock has fully returned to its pre-Crisis peak by 12 July 2021
Global Financial Crisis (2008)
- BMY stock decreased 46.3% from a high of $32.14 on 17 July 2007 to $17.26 on 16 October 2008, in comparison to a peak-to-trough decline of 56.8% for the S&P 500
- The stock completely recovered to its pre-Crisis peak by 5 October 2011
Putting All The Pieces Together: What It Means For BMY Stock
In summary, Bristol Myers Squibb’s performance across the aforementioned parameters is characterized as follows:
- Growth: Strong
- Profitability: Strong
- Financial Stability: Neutral
- Downturn Resilience: Neutral
- Overall: Good
Taking into account BMY’s robust performance across these key metrics, along with its low valuation, the stock seems to be a desirable investment. This supports our view that BMY offers a beneficial buying opportunity. Additionally, the company’s better-than-anticipated first-quarter results and positive revision of its financial guidance are likely to enhance investor confidence.
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