BDX - Embedded Expectations Analysis - 2020 03 04
Becton, Dickinson and Company (BDX:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) Earnings, with a 22.0x Uniform P/E. At these levels, the market has muted expectations for the firm, and management may be concerned about the impact of coronavirus in China, their discussions with the FDA regarding a recalled pump, and their ability to pay down debtSpecifically, management may be concerned about the impact of coronavirus on growth, pricing, and distributor inventory supplies in China, and they may lack confidence in their ability to sustain double-digit growth in their Life Sciences and International segment. In addition, they may be concerned about their divestiture of the Advanced Bioprocessing product line and about the progress of discussions with the FDA regarding their recalled Baxter Colleague pump. Finally, they may lack confidence in their ability to continue to pay down debt and convert customers to more portions of their portfolio
Becton, Dickinson and Company is a medical technology company engaged in the development, manufacture and sale of a range of medical supplies, devices, laboratory equipment and diagnostic products. The company's segments are: BD Medical, which produces an array of medical technologies and devices that are used to help improve healthcare delivery in a range of settings; BD Life Sciences, which provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a range of infectious diseases, healthcare-associated infections and cancers; and BD Interventional, which provides vascular, urology, oncology and surgical products.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
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