Is Bristol-Myers Squibb Making Money?

Bristol-Myers Squibb’s (NYSE BMY) quarterly revenues almost doubled in a year. To explain, Bristol Myers reported quarterly revenues of $5.92 billion on 31 March 2019. That number grew to $10.781 billion on 31 March 2020.

Consequently, Stockrow credits BMY with a revenue growth rate of 82.11% in the quarter ending on 31 March 2020. However, much of that revenue growth could come from Bristol-Myers Squibb’s acquisition of Celgene last year.

The acquisition is increasing Bristol-Myers’ moneymaking capacity. For example, Bristol-Myers Squibb’s quarterly gross profit grew from $4.096 billion on 31 March 2020 to $7.119 billion on 31 March 2020.

Conversely, Bristol-Myers Squibb’s incomes are collapsing. For instance, Bristol-Myers reported a quarterly operating income that fell from $1.979 billion on 31 March 2019 to -$304 million a year later. Moreover, Bristol Myers Squibb’s quarterly common net income fell from $1.710 billion on 31 March 2019 to -$775 million in March 2020.  

How Much Cash does Bristol Myers’ Squibb Have?

Interestingly, the Bristol-Myers Squibb Co. (NYSE: BMY) is generating more cash. For instance, Bristol-Myers reported a quarterly operating cash flow of $1.39 billion in March 2019 that grew to $3.894 billion in March 2020.

Dramatically, Bristol-Myers ending cash flow more than doubled in the 12 months between March 2020 and March 2019. In detail, Bristol Myers Squib reported a quarterly ending cash flow of $7.335 billion that grew to $16.246 billion a year later.

Impressively, Bristol-Myers Squibb’s cash and short-term investments more than doubled in the same period. BMY reported $8.764 billion in cash and short-term investments on March 31, 2019. That cash and short-term investments grew to $18.322 billion a year later on 31 March 2020.

Thus, Bristol-Myers Squibb is a cash-rich company which is accumulating more cash. Finally, Bristol Myers’ Squibb has far more value. For instance, BMY had $34.834 billion in total assets on 31 March 2019 and $129.285 billion in assets on 31 March 2020.

Bristol-Myers Squibb is an impressive Growth Stock

I think Bristol-Myers Squibb is a great growth stock because it has added a tremendous amount of value over the past year.

For instance, BMY’s share value grew from $43.23 on 24 July 2020 to $59.87 on 23 July 2020 to $58.70 on 29 July 2020. Additionally, I think Bristol-Myers has a high margin of safety because it generates enormous amounts of cash.

Moreover, Bristol-Myers (NYSE: BMY) pays a good dividend. For instance, BMY shares paid a 45₵ quarterly dividend on 2 July 2020. That dividend grew from 41₵ on 11 September 2019.

Overall, BMY shares offered an annual dividend of $1.80 and a dividend yield of 3.01% on 29 July 2020. Plus, credits Bristol-Myers Squibb with one year of dividend growth. Thus, if you are seeking a safe growth stock, Bristol Myers Squibb is worth examining.

What is Bristol-Myers Squibb?

Bristol-Myers Squibb is one of America’s oldest pharmaceutical houses founded in 1887 in Brooklyn.

Today, Bristol-Myers Squibb owns a large portfolio of prescription drugs. Thus, Bristol-Myers sells products that the government and insurance companies pay for. Famously, in most countries government pays for most prescription drugs through single-payer health insurance.

For example, in the United States Medicare Part D pays 75% of prescription drug costs for many retired people, The Balance reports. Additionally, many Americans have private health insurance plans that pay for most prescription drugs.  

A Value Investment for the 21st Century

However, there are holes in Medicare coverage, including the infamous “coverage gap” or “donut hole.” In the coverage gap, Medicare only covers 35% of the costs of brand name drugs and 56% of cost of generic drugs.

Despite that, most people will pay for prescription drugs because they love being alive and healthy. Thus Bristol-Myers Squibb (NYSE: BMY) sells products people need and products paid for by insurance or government.

Furthermore, Bristol-Myers Squibb could soon receive enormous federal loans. The Eastman Kodak Company (NYSE: KODK) will receive a $765 million federal loan, the Associated Press reports.

Kodak will spend the money to expand its Rochester, New York, and Saint Paul, Minnesota, facilities to manufacture critical ingredients for generic drugs, the AP reveals. The US International Development Finance Corp is making the loan because American industry cannot produce sufficient quantities of the drug components.

Hence, Bristol-Myers Squibb could receive enormous federal loans for drug production. Notably, Bristol-Myers Squibb (NYSE: BMY) produced enormous amounts of penicillin and other drugs for the US military in World War War.  Consequently, the federal government could Bristol-Myers Squibb grow and make more money.

Given these realities, Bristol-Myers Squibb could be a substantial value investment for the 21st Century.