Bristol-Myers Squibb Company

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Bristol-Myers Squibb Company (NYSE: BMY) is a global biopharmaceutical company. It is engaged in the discovery, development and delivery of transformational medicines for patients facing serious diseases in areas: oncology, hematology, immunology, cardiovascular, neuroscience and other areas. Its platforms comprise chemically synthesized or small molecule drugs, including protein degraders; drugs produced from biological processes, called biologics; ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics. 

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 20.08% in the last three months, similarly a correction of 15.79% in past six months.
• The stock is in its lower band of its 52-week range of USD 63.33 and 52-week low price of USD 39.35. Post the announcement of Q1FY25 results the stock has given a correction of approximately 2.06%, with the current price near an important support levels of USD 44- USD 45.
• The price is currently trading below both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 48.99.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~35.06% of the total shareholding, signifying concentrated shareholding. The Vanguard Group, Inc., and BlackRock Institutional Trust Company, N.A., are the biggest shareholders, holding the maximum stake in the company at 9.36% and 4.80%, respectively.

1.4 Key Metrics

Bristol Myers Squibb (NYSE: BMY) exhibited significant year-over-year improvements in key financial metrics for Q1 FY2025 compared to Q1 FY2024, despite a 6% revenue decline to USD11.2 billion, driven by a 20% drop in Legacy Portfolio revenues due to generic competition. The gross profit margin increased from 55.61% to 65.65%, reflecting improved cost efficiencies in product mix and manufacturing processes. The EBITDA margin slightly improved from 44.05% to 45.34%, and the operating margin surged from 22.71% to 36.30%, driven by a 33% reduction in SG&A expenses to USD1.584 billion and a 16% decrease in R&D expenses to USD2.257 billion, largely due to the absence of 2024’s one-time acquisition costs. The company achieved a remarkable turnaround in profitability, with the income before tax margin shifting from -97.06% to 26.52% and the net margin from -100.36% to 21.98%, supported by lower acquired IPRD charges (USD188 million vs. USD12.9 billion) and a reduced effective tax rate (17.1% vs. negative in 2024). Return on average common equity improved dramatically from -25.45% to 31.99% and return on average total assets rose from -6.35% to 5.68%, indicating stronger capital efficiency and shareholder value creation. However, the trailing twelve-month free cash flow yield slightly declined from 11.22% to 10.56%, potentially due to increased capital expenditures or stock price dynamics, warranting investor attention to cash flow sustainability amidst ongoing investments in the Growth Portfolio.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q1FY25:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 20.08% in the last three months, similarly a correction of 15.79% in past six months.
• The stock is in its lower band of its 52-week range of USD 63.33 and 52-week low price of USD 39.35. Post the announcement of Q1FY25 results the stock has given a correction of approximately 2.06%, with the current price near an important support levels of USD 44- USD 45.
• The price is currently trading below both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 48.99.   

 4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 02, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.