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1. Company Snapshot

1.a. Company Description

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide.The company's BD Medical segment offers peripheral intravenous (IV) and advanced peripheral catheters, central lines, acute dialysis catheters, vascular care and preparation products, needle-free IV connectors and extensions sets, closed-system drug transfer devices, hazardous drug detections, hypodermic syringes and needles, anesthesia needles and trays, enteral syringes, and sharps disposal systems; IV medication and infusion therapy delivery systems, medication compounding workflow systems, automated medication dispensing and supply management systems, and medication inventory optimization and tracking systems; syringes, pen needles, and other products for diabetes; and prefillable drug delivery systems.Its BD Life Sciences segment provides specimen and blood collection products; automated blood and tuberculosis culturing, molecular testing, microorganism identification and drug susceptibility, and liquid-based cytology systems, as well as rapid diagnostic assays, microbiology laboratory automation products, and plated media products; and fluorescence-activated cell sorters and analyzers, antibodies and kits, reagent systems, and solutions for single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers.


The company's BD Interventional segment offers hernia and soft tissue repair, biological and bioresorbable grafts, biosurgery, and other surgical products; surgical infection prevention, surgical and laparoscopic instrumentation products; peripheral intervention products; and urology and critical care products.The company was founded in 1897 and is based in Franklin Lakes, New Jersey.

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1.b. Last Insights on BDX

Becton, Dickinson and Company's recent performance was positively driven by strong Q3 earnings, beating estimates with $3.68 per share, and a 10.4% revenue increase to $5.5 billion. The Medical and Interventional segments showed significant growth, with margin expansion driven by BD Excellence. A robust innovation pipeline, particularly in Pharmaceutical Systems and Interventional segments, fueled business momentum. The company's plan to complete a $250 million share buyback by the end of fiscal 2025, reducing outstanding shares, also supported shareholder value. (Source: BD's Q3 2025 financial results)

1.c. Company Highlights

2. BD's Q4 and Full Year Fiscal 2025 Earnings: A Strong Performance

BD delivered a strong fourth quarter and full year fiscal 2025 performance, with Q4 revenue of $5.9 billion increasing 7% and 3.9% organic. For the full year, record revenue of $21.8 billion increased 7.7% and 2.9% organic. The company also reported adjusted diluted EPS of $3.96 for Q4, beating estimates of $3.92, and a record $14.40 for the full year, representing 9.6% earnings growth. The biosciences business had a greater-than-anticipated impact in macro areas, specifically vaccines in biosciences academic and government research.

Publication Date: Nov -07

📋 Highlights

Segment Performance

The company's Pharm Systems business, which includes vaccines, is expected to grow mid- to high single digits, excluding vaccines. The broader portfolio is doing well, with over 90% consumables revenue and a strong cadence of new innovation. The BD Excellence operating model helped drive strong P&L leverage throughout the year, with adjusted gross margin up 140 basis points, fueling 80 basis points of adjusted operating margin expansion.

Guidance and Outlook

BD expects to deliver consistent mid-single-digit revenue growth over the long term, with margin expansion driven primarily by gross margin fueled by the BD Excellence business system. For fiscal '26, the company guides to low single-digit revenue growth, driven by a combination of factors including Alaris capital installations, China decline, and reductions in vaccination rates. Analysts estimate next year's revenue growth at 4.2%, slightly above the company's guidance.

Valuation

With a P/E Ratio of 30.3, the stock appears to be fairly valued, considering the company's growth prospects. The EV/EBITDA ratio of 13.9 also suggests a reasonable valuation. Additionally, the Dividend Yield of 2.35% and Free Cash Flow Yield of 5.02% provide a decent return for investors. The ROIC of 4.15% and ROE of 5.11% indicate a relatively efficient use of capital.

Capital Allocation

BD plans to execute another $250 million share buyback this quarter, in addition to using at least half of the $4 billion in cash proceeds from the Waters transaction for share buybacks, which will accelerate EPS growth. The company's commitment to returning value to shareholders is evident in its 54th consecutive year of dividend increases.

3. NewsRoom

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BD Stock Up Post Tie-Up to Expand Hazardous Drug Contamination Testing

Dec -05

Source: zacks.com

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BD and ChemoGLO™ Collaborate to Expand Hazardous Drug Contamination Testing for Health Care Facilities and Laboratories

Dec -04

Source: prnewswire.com

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BD Launches New Cell Analyzer Configurations to Bring Cutting-Edge Capabilities to Labs of All Sizes

Dec -03

Source: prnewswire.com

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Best Dividend Aristocrats For December 2025

Nov -29

Source: seekingalpha.com

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BD Surgiphor™ Surgical Wound Irrigation System Expands to Europe to Help Hospitals Improve Patient Safety

Nov -24

Source: prnewswire.com

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BD Appoints Robert Huffines and Jacqueline Wright to Board of Directors

Nov -17

Source: prnewswire.com

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BD Onclarity™ HPV Assay for BD COR™ and BD Viper™ LT Systems Receive WHO Prequalification

Nov -17

Source: prnewswire.com

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First Pacific Advisors' Strategic Moves: Becton Dickinson & Co Takes Center Stage

Nov -13

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.90%)

6. Segments

BD Medical (Excl. of BD Interventional)

Expected Growth: 5.2%

The segment's steady growth is driven by increasing demand for diabetes care and medication delivery products, as well as expanding into emerging markets. Additionally, the segment's innovative product portfolio and strategic partnerships will contribute to its growth.

BD Life Sciences

Expected Growth: 4.5%

The segment's growth is driven by increasing demand for molecular diagnostics and biosciences research products. The segment's strong portfolio of products and services, as well as its strategic partnerships with research institutions and pharmaceutical companies, will contribute to its growth.

BD Interventional

Expected Growth: 5.5%

The segment's growth is driven by increasing demand for minimally invasive procedures and innovative products. The segment's strong portfolio of products, as well as its expanding presence in emerging markets, will contribute to its growth.

Other

Expected Growth: 3.8%

The segment's growth is driven by increasing demand for niche medical products and services. The segment's growth will be driven by its focused product portfolio and targeted investments in emerging markets.

7. Detailed Products

Syringes

Single-use syringes for injecting medications, vaccines, and other fluids

Needles

Hypodermic needles for injecting medications, vaccines, and other fluids

Infusion Therapy

Devices and systems for delivering medications, fluids, and nutrients through infusion

Pharmaceutical Diagnostics

Diagnostic systems and tests for detecting and monitoring diseases

Microbiology

Systems and tests for detecting and identifying microorganisms

Molecular Diagnostics

Molecular diagnostic systems and tests for detecting and monitoring diseases

Biosciences

Research and discovery tools for life science research

Infection Prevention

Devices and systems for preventing and controlling infections

Surgical Instruments

Surgical instruments and systems for minimally invasive and open surgical procedures

Anesthesia Systems

Anesthesia delivery systems and accessories

8. Becton, Dickinson and Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Becton, Dickinson and Company is medium due to the presence of alternative medical technologies and products that can replace their offerings.

Bargaining Power Of Customers

The bargaining power of customers for Becton, Dickinson and Company is low due to the company's strong brand reputation and the lack of buyer concentration in the medical technology industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Becton, Dickinson and Company is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Becton, Dickinson and Company is low due to the high barriers to entry in the medical technology industry, including regulatory hurdles and high research and development costs.

Intensity Of Rivalry

The intensity of rivalry for Becton, Dickinson and Company is high due to the presence of several established competitors in the medical technology industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.10%
Debt Cost 3.95%
Equity Weight 61.90%
Equity Cost 6.29%
WACC 5.40%
Leverage 61.56%

11. Quality Control: Becton, Dickinson and Company passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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ResMed

A-Score: 5.9/10

Value: 2.0

Growth: 8.1

Quality: 8.7

Yield: 1.0

Momentum: 7.0

Volatility: 8.7

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UnitedHealth

A-Score: 4.3/10

Value: 4.9

Growth: 6.1

Quality: 5.1

Yield: 4.0

Momentum: 0.5

Volatility: 5.0

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Becton Dickinson

A-Score: 4.1/10

Value: 3.2

Growth: 3.8

Quality: 5.1

Yield: 3.0

Momentum: 1.0

Volatility: 8.7

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Intuitive Surgical

A-Score: 4.1/10

Value: 0.0

Growth: 6.8

Quality: 7.8

Yield: 0.0

Momentum: 3.5

Volatility: 6.3

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Thermo Fisher

A-Score: 4.0/10

Value: 1.6

Growth: 6.1

Quality: 6.1

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

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West Pharma

A-Score: 3.8/10

Value: 0.9

Growth: 6.2

Quality: 7.4

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

193.96$

Current Price

193.96$

Potential

-0.00%

Expected Cash-Flows