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Bristol-Myers Squibb Company (BMY) Stock

Bristol-Myers Squibb Company Stock Details, Movements and Public Alerts

Bristol-Myers Squibb (BMY): The $89B Pharma Giant Navigating Patent Cliffs with 5.7% Dividend Yield

When Chris Boerner became CEO of Bristol-Myers Squibb in November 2023—succeeding the retiring Giovanni Caforio—he inherited a $90 billion pharma giant facing an existential challenge: Revlimid, the $9 billion cancer blockbuster, had lost patent protection, triggering a revenue cliff projected to erase $7-8 billion annually by 2027. Yet at $43.65, down 28% from highs, Bristol-Myers trades at just 8x forward earnings—cheaper than any peer in big pharma—while paying a massive 5.7% dividend yield. Boerner's strategy: leverage the Celgene acquisition's pipeline (30+ late-stage assets including CAR-T therapies, TYK2 inhibitors, and next-gen immunotherapies) to replace Revlimid revenue, while expanding Opdivo (cancer immunotherapy), Eliquis (blood thinner), and Reblozyl (anemia) to cushion the decline. For contrarian income investors, BMY offers a rare combination of deep value (18x P/E), massive yield (5.7%), and turnaround potential if the pipeline delivers.

52-Week Range

$61.00 - $42.38

-27.25% from high · +4.72% from low

Avg Daily Volume

15,510,183

20-day average

100-day avg: 13,938,833

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

17.59

Near market average

Forward P/E

7.58

Earnings expected to grow

PEG Ratio

2.26

Potentially overvalued

Price to Book

5.34

EV/EBITDA

8.65

EPS (TTM)

$2.49

Price to Sales

1.87

Beta

0.34

Less volatile than market

How is BMY valued relative to its earnings and growth?
Bristol-Myers Squibb Company trades at a P/E ratio of 17.59, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 7.58 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.26 indicates a premium valuation even accounting for growth.
What is BMY's risk profile compared to the market?
With a beta of 0.34, Bristol-Myers Squibb Company is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 5.34 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

10.60%

Operating Margin

33.70%

EBITDA

$19.11B

Return on Equity

29.30%

Return on Assets

8.33%

Revenue Growth (YoY)

0.60%

Earnings Growth (YoY)

-22.80%

How profitable and efficient is BMY's business model?
Bristol-Myers Squibb Company achieves a profit margin of 10.60%, meaning it retains $10.60 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 33.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 29.30% and ROA at 8.33%, the company generates strong returns on invested capital.
What are BMY's recent growth trends?
Bristol-Myers Squibb Company's revenue grew by 0.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 22.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against DRUG MANUFACTURERS - GENERAL industry averages for proper context.

Dividend Information

Dividend Per Share

$2.46

Dividend Yield

5.65%

Ex-Dividend Date

Oct 3, 2025

Dividend Date

Nov 3, 2025

What dividend income can investors expect from BMY?
Bristol-Myers Squibb Company offers a dividend yield of 5.65%, paying $2.46 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 3, 2025.
How reliable is BMY's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Bristol-Myers Squibb Company pays $2.46 per share in dividends against earnings of $2.49 per share, resulting in a payout ratio of 98.80%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Nov 3, 2025.

Company Size & Market

Market Cap

$89.2B

Revenue (TTM)

$47.70B

Revenue/Share (TTM)

$23.49

Shares Outstanding

2.04B

Book Value/Share

$8.57

Asset Type

Common Stock

What is BMY's market capitalization and position?
Bristol-Myers Squibb Company has a market capitalization of $89.2B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 2.04B shares outstanding, the company's ownership is widely distributed. As a participant in the DRUG MANUFACTURERS - GENERAL industry, it competes with other firms in this sector.
How does BMY's price compare to its book value?
Bristol-Myers Squibb Company's book value per share is $8.57, while the current stock price is $44.38, resulting in a price-to-book (P/B) ratio of 5.18. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$53.05

19.54% upside potential

Analyst Recommendations

Strong Buy

3

Buy

3

Hold

19

Sell

1

Strong Sell

0

How reliable are analyst predictions for BMY?
26 analysts cover BMY with 23% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $53.05 implies 19.5% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on BMY?
Current analyst recommendations:3 Strong Buy, 3 Buy, 19 Hold, 1 Sell, 0The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 15, 2025, 02:19 AM

Technical Indicators

RSI (14-day)

36.10

Neutral

50-Day Moving Average

$45.07

-1.53% below MA-50

200-Day Moving Average

$49.12

-9.65% below MA-200

MACD Line

-0.51

MACD Signal

-0.43

MACD Histogram

-0.07

Bearish

What does BMY's RSI value tell investors?
The RSI (Relative Strength Index) for BMY is currently 36.10, indicating the stock is showing bearish momentum (30-40 range). Selling pressure is evident but not extreme. This often occurs during pullbacks in uptrends or early stages of downtrends. Combined with the price being below the 50-day moving average, this confirms bearish conditions.
How should traders interpret BMY's MACD and moving average crossovers?
MACD analysis shows the MACD line at -0.51 below the signal line at -0.43, with histogram at -0.07. This bearish crossover indicates downward pressure. The narrow histogram suggests a potential trend change ahead. The 50-day MA ($45.07) is below the 200-day MA ($49.12), forming a death cross pattern that often warns of extended weakness. Price is currently below both MAs, confirming weakness.

Indicators last updated: Oct 30, 2025, 12:36 AM

Active Alerts

Alert Condition
Price falls below
Threshold
$40.00
Created
Oct 3, 2025, 08:52 AM

Bristol-Myers Squibb Company (BMY) Stock Analysis 2025: Complete Investment Guide

The $7 Billion Revlimid Cliff

Bristol-Myers Squibb's current valuation—18x earnings with 5.7% dividend yield—reflects Wall Street's singular obsession: the Revlimid patent cliff. Acquired via the $74 billion Celgene merger in 2019, Revlimid (lenalidomide) generated $9.2 billion in 2023 revenue treating multiple myeloma and other blood cancers. Generic competition launched in 2022, initially limited by volume caps negotiated with Celgene, but those caps expire fully in 2026-2027—triggering an expected $7-8 billion revenue loss (15% of total sales). Chris Boerner's challenge is replacing this revenue faster than it declines. The good news? BMY's pipeline has 30+ late-stage assets, with 8-10 potential blockbusters ($1B+ peak sales) reaching market by 2027. The bad news? Even if half succeed, they'll generate $3-4B revenue—leaving a $3-4B gap that could force dividend cuts or aggressive cost restructuring. At $43.65, the stock prices in disaster, yet BMY still throws off $10+ billion in annual free cash flow—a profitable, dividend-paying company mispriced as distressed.

Business Model & Competitive Moat

Bristol-Myers operates across four therapeutic areas, each anchored by blockbuster franchises:

  • •Oncology/Hematology (50% of revenue): Opdivo (PD-1 cancer immunotherapy), Revlimid (multiple myeloma), Yervoy (melanoma), Opdualag (combo therapy); $24B revenue but 90% from products losing exclusivity 2025-2028
  • •Cardiovascular (30% of revenue): Eliquis (blood thinner co-marketed with Pfizer), Camzyos (heart failure); $14B revenue with Eliquis facing 2026 U.S. patent expiry
  • •Immunology (10% of revenue): Orencia (rheumatoid arthritis), Sotyktu (psoriasis—TYK2 inhibitor launched 2022); $5B revenue growing 15%+ annually
  • •Rare Diseases (10% of revenue): Reblozyl (anemia in blood disorders), Breyanzi (CAR-T cell therapy); $5B revenue with 25%+ growth potential

Bristol-Myers' moat is therapeutic depth and regulatory expertise. Unlike Pfizer (broad portfolio across 50+ indications), BMY concentrates in oncology/hematology, developing institutional knowledge in cancer trial design, biomarker development, and combination therapy protocols rivals can't match. Its Opdivo+Yervoy combination therapy (approved in 15+ tumor types) demonstrates this expertise—competitors like Merck's Keytruda dominate monotherapy, but BMY leads in complex multi-drug regimens. The Celgene acquisition also brought CAR-T cell therapy platforms (Breyanzi, Abecma) providing technology moats in next-generation cancer treatment. However, patent cliffs remain the Achilles' heel—Revlimid and Eliquis together represent 45% of revenue, both losing exclusivity by 2027.

Financial Performance

  • •Revenue: $47.7B trailing (+0.6% YoY—Revlimid decline offset by Opdivo, Eliquis, new product growth)
  • •Operating Margin: 33.7%, compressed from 37% in 2022 as R&D spending increased and Revlimid margins eroded
  • •Profit Margin: 10.6%, depressed by $3B Celgene acquisition-related charges; normalized margin ~15-17%
  • •EBITDA: $19.1B (40% margin) demonstrating underlying cash generation despite accounting headwinds
  • •Return on Equity: 29.3%, exceptional for big pharma (J&J at 18%, Pfizer at 12%)
  • •EPS Decline: $2.49 (down 23% YoY as Revlimid generic erosion accelerated)
  • •Dividend: $2.46 per share (5.65% yield) with 15-year consecutive increase streak; 99% payout ratio concerning but FCF coverage solid

The near-flat revenue growth (+0.6%) masks positive underlying momentum: excluding Revlimid (down $2.1B YoY), the base business grew 6-7% as Opdivo sales expanded in adjuvant lung cancer, Eliquis benefited from aging demographics, and new launches like Sotyktu (psoriasis) and Opdualag (melanoma) ramped. The 23% EPS decline reflects both Revlimid margin compression (generics cut prices 70%+) and strategic R&D investments ($8.5B, 18% of revenue) funding the pipeline. Free cash flow of $10.2 billion comfortably covers the $5 billion dividend, but rising capital allocation pressures (debt paydown, share buybacks suspended) suggest dividend growth will slow or freeze until revenue stabilizes.

Growth Catalysts

  • •Opdivo Expansion: Adjuvant (post-surgery) indications in lung, gastric, esophageal cancers could add $2-3B revenue by 2027; currently $8B, targeting $10B+ peak
  • •KarXT Schizophrenia Launch: FDA approval expected Q4 2024; addresses 3M U.S. patients with first new mechanism in decades; $3-5B peak sales potential
  • •Repotrectinib (Lung Cancer): Targets ROS1/NTRK mutations; smaller indication but 70%+ response rates vs. 40% competitors; $500M-1B peak sales
  • •Sotyktu TYK2 Platform: Psoriasis launched 2022, expanding into lupus, IBD; oral pill competing with Abbvie biologics; $2-3B peak sales across indications
  • •CAR-T Next-Gen: Breyanzi (lymphoma) and Abecma (multiple myeloma) sales growing 50%+ annually; earlier-line approvals could drive $3-4B combined peak sales

Risks & Challenges

  • •Revlimid/Eliquis Cliff: Combined $7-9B revenue loss 2025-2028 if pipeline replacements underdeliver; could force 20-30% dividend cut
  • •Pipeline Execution Risk: KarXT, repotrectinib, Opdualag launches must hit peak sales forecasts; 50% failure rate typical in late-stage pharma
  • •Opdivo Competition: Merck's Keytruda (20% market share vs. Opdivo's 12%) expanding in adjuvant settings; BMY losing ground in key indications
  • •Debt Burden: $45B net debt (2.4x EBITDA) from Celgene acquisition limits M&A flexibility; requires $2-3B annual FCF for interest/paydown
  • •Dividend Sustainability: 99% payout ratio leaves no margin for error; if EPS falls below $2.20, dividend at risk

Competitive Landscape

CompanyMarket CapDividend YieldP/E Ratio
Bristol-Myers Squibb (BMY)$89B5.65%18x (8x forward)
Merck (MRK)$258B2.8%22x
Pfizer (PFE)$151B6.2%10x
AbbVie (ABBV)$322B3.4%38x

Bristol-Myers' 18x P/E (8x forward!) is the cheapest valuation in big pharma, reflecting max pessimism on patent cliff risk. Pfizer's 10x P/E and 6.2% yield appears cheaper on trailing basis, but forward P/E of 15x reflects COVID revenue normalization. Merck's 22x premium reflects Keytruda dominance (no major patent cliffs until 2028), while AbbVie's 38x P/E trades on Humira replacement success (Rinvoq, Skyrizi growing 50%+ annually). If BMY successfully navigates the Revlimid cliff, it could re-rate toward Merck's 20-22x P/E—implying $100+ stock price (2.3x upside).

Who Is This Stock Suitable For?

Perfect For

  • ✓Income investors seeking 5.65% yield with 15-year dividend growth track record (despite payout concerns)
  • ✓Contrarian value investors betting on pipeline replacing Revlimid (8x forward P/E for 29% ROE business)
  • ✓Big pharma diversification seekers wanting exposure to oncology/hematology without Pfizer's COVID overhang
  • ✓Defensive investors attracted to 0.34 beta (lowest volatility in pharma) and recession-resistant drug demand

Less Suitable For

  • ✗Growth investors seeking >10% annual revenue growth (BMY is low-single-digit grower at best)
  • ✗Dividend safety seekers uncomfortable with 99% payout ratio and potential cut risk
  • ✗Momentum traders (stock likely range-bound $40-50 until pipeline clarity emerges in 2025-2026)
  • ✗ESG investors concerned about cancer drug pricing practices and access issues

Investment Thesis

Bristol-Myers Squibb represents a classic deep value play: a profitable, cash-generative pharma giant trading at distressed valuations due to near-term patent cliff fears. At 8x forward earnings with 5.7% dividend yield, the market prices in catastrophic pipeline failure—yet BMY generates $10 billion in annual free cash flow, operates with 29% ROE, and has 30+ late-stage programs addressing $50+ billion in peak sales opportunities. Chris Boerner's turnaround hinges on 3-4 pipeline winners (KarXT, Opdivo adjuvant, Sotyktu, CAR-T) collectively replacing $5-6 billion of Revlimid's lost revenue by 2028. If he succeeds, BMY could re-rate from 8x to 12-14x forward earnings—driving 50-75% stock appreciation plus the 5.7% dividend yield.

The bull case hinges on three pillars: (1) KarXT schizophrenia approval and commercial success generates $3-4B peak sales, replacing half of Revlimid losses; (2) Opdivo adjuvant indications expand sales from $8B to $12B by 2028; (3) Sotyktu/CAR-T/repotrectinib collectively add $4-5B revenue. If all three occur, BMY could deliver $50-52B revenue in 2027 with $4-5 EPS—justifying 12-15x P/E and $60-75 stock price. The bear case is pipeline failures (KarXT flops, Opdivo loses share to Keytruda), forcing dividend cut to preserve debt paydown and triggering capitulation selling. At $43.65, the risk/reward favors bulls—30-40% downside if disaster, but 50-100% upside if turnaround succeeds.

Conclusion

Buy for income-focused value investors with 3-5 year horizon and comfort with pharma pipeline risk. BMY offers compelling risk/reward at 8x forward P/E with 5.7% yield—best suited for patient investors who can stomach 12-24 months of uncertainty as pipeline readouts clarify. Position size should reflect dividend cut risk—4-6% allocation max. Ideal entry below $45, but current $43.65 offers margin of safety. Avoid if uncomfortable with 99% payout ratio or pharma execution risk.
Bull Case
$75 (72% upside) - Pipeline delivers 3-4 blockbusters, revenue stabilizes at $52B, re-rates to 15x forward P/E
Base Case
$55 (26% upside) - 2-3 pipeline winners offset 50% of Revlimid losses, dividend maintained, trades at 11x forward P/E
Bear Case
$32 (27% downside) - KarXT/Opdivo disappoint, Revlimid cliff worse than expected, dividend cut 30-40%

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