Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin13.3%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-6.6%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt-55.6 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$15.2B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$495M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
C
Price-to-Book1.64x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$475M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings$334M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Becton, Dickinson and Company
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. It operates through Medical Essentials, Connected Care, BioPharma Systems, Interventional and Life Sciences segments. It provides peripheral intravenous (IV) and advanced peripheral catheters, central lines, acute dialysis catheters, vascular access technology, 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 safety and infusion therapy delivery systems, medication compounding workflow system, automated medication dispensing and supply management systems, informatics and analytics and pharmacy automation system, and medication inventory optimization and tracking system; hemodynamic monitoring system; and prefillable drug delivery systems. It also offers specimen and blood collection products; automated blood and tuberculosis culturing, molecular testing, and microorganism identification and drug susceptibility, 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 system, and solution for single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers. It provides hernia and soft tissue repair, biological and bioresorbable graft, biosurgery, and other surgical products; surgical infection prevention, peripheral intervention, and urology and critical care products. The company has a strategic collaboration with ChemoGLO for the advancement of hazardous drug contamination testing in health care settings to improve the safety of health care workers. The company was founded in 1897 and is headquartered in Franklin Lakes, New Jersey.
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. It operates through Medical Essentials, Connected Care, BioPharma Systems, Interventional and Life Sciences segments. It provides peripheral intravenous (IV) and advanced peripheral catheters, central lines, acute dialysis catheters, vascular access technology, 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 safety and infusion therapy delivery systems, medication compounding workflow system, automated medication dispensing and supply management systems, informatics and analytics and pharmacy automation system, and medication inventory optimization and tracking system; hemodynamic monitoring system; and prefillable drug delivery systems. It also offers specimen and blood collection products; automated blood and tuberculosis culturing, molecular testing, and microorganism identification and drug susceptibility, 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 system, and solution for single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers. It provides hernia and soft tissue repair, biological and bioresorbable graft, biosurgery, and other surgical products; surgical infection prevention, peripheral intervention, and urology and critical care products. The company has a strategic collaboration with ChemoGLO for the advancement of hazardous drug contamination testing in health care settings to improve the safety of health care workers. The company was founded in 1897 and is headquartered in Franklin Lakes, New Jersey.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-37,000
382,000
Reconciled Depreciation
520,000
614,000
Reconciled Cost Of Revenue
2,560,000
2,841,000
EBITDA
708,000
1,160,000
EBIT
188,000
546,000
Net Interest Income
-140,000
-149,000
Interest Expense
149,000
153,000
Interest Income
9,000
4,000
Normalized Income
282,800
489,892
Net Income From Continuing And Discontinued Operation
-311,000
382,000
Total Expenses
4,088,000
4,590,000
Total Operating Income As Reported
93,000
552,000
Diluted Average Shares
280,640
285,845
290,389
Basic Average Shares
280,640
285,582
289,505
Diluted EPS
0
0
0
Basic EPS
0
0
0
Diluted NI Availto Com Stockholders
-311,000
382,000
Net Income Common Stockholders
-311,000
382,000
Net Income
-311,000
382,000
Net Income Including Noncontrolling Interests
-311,000
382,000
Net Income Discontinuous Operations
-274,000
Net Income Continuous Operations
-37,000
382,000
Tax Provision
76,000
11,000
Pretax Income
39,000
393,000
Other Income Expense
-447,000
-121,000
Other Non Operating Income Expenses
86,000
-10,000
Special Income Charges
-533,000
-111,000
Restructuring And Mergern Acquisition
533,000
Net Non Operating Interest Income Expense
-140,000
-149,000
Interest Expense Non Operating
149,000
153,000
Interest Income Non Operating
9,000
4,000
Operating Income
626,000
662,000
Operating Expense
1,528,000
1,749,000
Other Operating Expenses
66,000
50,000
Research And Development
249,000
306,000
Selling General And Administration
1,213,000
1,393,000
Gross Profit
2,154,000
2,411,000
Cost Of Revenue
2,560,000
2,841,000
Total Revenue
4,714,000
5,252,000
Operating Revenue
4,714,000
5,252,000
Balance Sheet
2026
2025
2024
Treasury Shares Number
95,054
85,853
Ordinary Shares Number
275,540
284,742
Share Issued
370,594
370,594
Net Debt
16,466,000
18,799,000
Total Debt
17,279,000
19,539,000
Tangible Book Value
-10,170,000
-10,362,000
Invested Capital
41,411,000
44,821,000
Working Capital
-495,000
428,000
Net Tangible Assets
-10,170,000
-10,362,000
Common Stock Equity
24,132,000
25,282,000
Total Capitalization
38,838,000
42,198,000
Total Equity Gross Minority Interest
24,132,000
25,282,000
Stockholders Equity
24,132,000
25,282,000
Other Equity Interest
26,000
25,000
Gains Losses Not Affecting Retained Earnings
-1,764,000
-1,857,000
Other Equity Adjustments
-1,764,000
-1,857,000
Treasury Stock
11,660,000
10,064,000
Retained Earnings
17,391,000
16,704,000
Additional Paid In Capital
19,768,000
20,103,000
Capital Stock
371,000
371,000
Common Stock
371,000
371,000
Total Liabilities Net Minority Interest
26,700,000
29,559,000
Total Non Current Liabilities Net Minority Interest
18,193,000
20,798,000
Other Non Current Liabilities
2,461,000
2,815,000
Employee Benefits
1,026,000
1,067,000
Long Term Debt And Capital Lease Obligation
14,706,000
16,916,000
Long Term Debt
14,706,000
16,916,000
Current Liabilities
8,507,000
8,761,000
Other Current Liabilities
-1,000
Current Debt And Capital Lease Obligation
2,573,000
2,623,000
Current Debt
2,573,000
2,623,000
Other Current Borrowings
Commercial Paper
Payables And Accrued Expenses
5,934,000
6,138,000
Current Accrued Expenses
Payables
Total Tax Payable
Income Tax Payable
Accounts Payable
Total Assets
50,832,000
54,841,000
Total Non Current Assets
42,818,000
45,651,000
Other Non Current Assets
2,434,000
3,035,000
Goodwill And Other Intangible Assets
34,302,000
35,644,000
Other Intangible Assets
8,347,000
9,024,000
Goodwill
25,955,000
26,620,000
Net PPE
6,082,000
6,972,000
Accumulated Depreciation
-7,470,000
-8,265,000
Gross PPE
13,552,000
15,237,000
Leases
Other Properties
Machinery Furniture Equipment
Buildings And Improvements
Land And Improvements
Current Assets
8,012,000
9,189,000
Other Current Assets
1,432,000
1,561,000
Restricted Cash
202,000
284,000
Inventory
3,357,000
4,085,000
Other Inventories
-1,000
1,000
Finished Goods
2,161,000
2,650,000
Work In Process
396,000
495,000
Raw Materials
801,000
940,000
Receivables
2,205,000
2,508,000
Accounts Receivable
2,205,000
2,508,000
Allowance For Doubtful Accounts Receivable
Gross Accounts Receivable
Cash Cash Equivalents And Short Term Investments
816,000
751,000
Other Short Term Investments
3,000
11,000
Cash And Cash Equivalents
813,000
740,000
Cash Flow
2026
2025
2024
Free Cash Flow
475,000
548,000
Repurchase Of Capital Stock
-250,000
-750,000
Repayment Of Debt
-2,000,000
0
Capital Expenditure
-125,000
-108,000
End Cash Position
1,015,000
1,025,000
Beginning Cash Position
1,025,000
851,000
Effect Of Exchange Rate Changes
1,000
2,000
Changes In Cash
63,000
172,000
Financing Cash Flow
-345,000
-301,000
Cash Flow From Continuing Financing Activities
-416,000
-301,000
Net Other Financing Charges
3,863,000
-69,000
Cash Dividends Paid
-290,000
-299,000
Common Stock Dividend Paid
-290,000
-299,000
Net Common Stock Issuance
-2,000,000
-250,000
Common Stock Payments
-250,000
-750,000
Net Issuance Payments Of Debt
-1,989,000
317,000
Net Short Term Debt Issuance
11,000
317,000
Net Long Term Debt Issuance
-2,000,000
0
Long Term Debt Payments
-2,000,000
0
Investing Cash Flow
-192,000
-183,000
Cash Flow From Continuing Investing Activities
-139,000
-183,000
Net Other Investing Changes
-37,000
-75,000
Net Investment Purchase And Sale
23,000
0
Sale Of Investment
23,000
0
411,000
Purchase Of Investment
Net Business Purchase And Sale
0
0
-8,000
Purchase Of Business
0
-8,000
Capital Expenditure Reported
-125,000
-108,000
Operating Cash Flow
600,000
656,000
Cash From Discontinued Operating Activities
0
Cash Flow From Continuing Operating Activities
673,000
656,000
Change In Working Capital
-2,000
-415,000
Other Non Cash Items
-48,000
-43,000
Stock Based Compensation
58,000
91,000
Deferred Tax
-73,000
29,000
Deferred Income Tax
-73,000
29,000
Depreciation Amortization Depletion
520,000
614,000
Depreciation And Amortization
520,000
614,000
Operating Gains Losses
-124,000
-2,000
Pension And Employee Benefit Expense
-2,000
-2,000
Net Income From Continuing Operations
-108,000
382,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $4.5B▲ $4.7B+5.2%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 41.5%▲ 45.7%+4.2pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 14.0%▲ 13.3%-0.7pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 6.9%▼ -6.6%-13.5pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$4.7B/qtr (≈$18.9B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.94x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$475M
vs Positive
Operating Cash Flow
$600M
Latest quarter · Buffett's cash reality check
ROIC
1.2%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
1.6x
Net Assets: $24.1B
⚠️Net margin compressed 13.5pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
⚠️Operating income is positive but net income is negative. This typically reflects below-the-line items: interest expense, impairment charges, tax adjustments, or one-time write-offs. The core business may be healthy — operating margin is a better signal of ongoing profitability here.
Peers & Industry
No auto-detected peers for Medical Instruments & Supplies. You can manually compare BDX against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.41%
Low — management has little skin in the game
Return on Equity (ROE)
-1.3%
Weak — poor returns on equity
Return on Assets (ROA)
-0.6%
Poor — assets are not generating adequate returns
Debt Trend YoY
-11.6% YoY
Debt is declining — management is deleveraging
Leadership Team
Thomas Polen Jr.
President, CEO & Chairman
Age 52
Pay: $3,588,724
Michael Garrison
Executive VP & President of Medical Segment and BioPharma Systems Segments
Age 56
Pay: $1,360,526
Vitor Roque
Executive VP & CFO
Age 42
Denise Russell Fleming
Executive Vice President & Chief Information Officer
Age 54
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
9.49%
26,153,411
Vanguard Capital Management LLC
6.71%
18,490,610
Vanguard Portfolio Management LLC
5.56%
15,317,242
State Street Corporation
5.02%
13,822,808
First Eagle Investment Management, LLC
4.33%
11,928,111
Invesco Ltd.
3.69%
10,174,327
T. Rowe Price Investment Management, Inc.
3.52%
9,685,271
Massachusetts Financial Services Co.
3.30%
9,101,454
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.28
Low volatility — more stable than the market
Short Interest
3.0% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.72x
Conservative balance sheet — low financial risk
Current Ratio
0.94x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $127.59Current: $143.98High: $187.35
Currently at 27% of 52-week range
Becton, Dickinson and Company (BDX) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 45.7%. Operating margin: 13.3%. Net margin: -6.6%. Market cap: $39.7B. Sector: Healthcare. Industry: Medical Instruments & Supplies. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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