BDX - Embedded Expectations Analysis - 2021 07 19
Becton, Dickinson and Company (BDX:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 20.4x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about their Alaris pump, the diabetes business spin-off, and core business momentum.Specifically, management may be exaggerating the growth potential of their diabetes business, the leadership position of Alaris and its positive impact on margins, and the capabilities of their combination COVID flu assays for BD Veritor and BD MAX. Also, they may have concerns about the FDA review processing time for Alaris, deal sizes for tuck-in M&A, and the sustainability of momentum in their core business. In addition, they may lack confidence in their ability to create shareholder value through financial discipline and they may have concerns about their diabetes business spinoff and declines in non-medical necessity revenues.
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.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
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