Stock Analysis & Valuation Becton, Dickinson and Company (BDX.SW)

• Previous Close: CHF245.48
• Sector Valuation Confidence Level: High

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	48.80	-80
Graham Formula	7.50	-97

Strategic Investment Analysis

Company Overview

Becton, Dickinson and Company (BD) is a global leader in medical technology, specializing in the development, manufacturing, and sale of medical supplies, devices, laboratory equipment, and diagnostic products. Headquartered in Franklin Lakes, New Jersey, BD serves healthcare institutions, physicians, researchers, clinical laboratories, and pharmaceutical companies worldwide. The company operates through three key segments: BD Medical, BD Life Sciences, and BD Interventional. BD Medical focuses on infusion therapy, medication management, and diabetes care, while BD Life Sciences provides diagnostic solutions, including specimen collection and molecular testing. BD Interventional offers surgical and peripheral intervention products. With a history dating back to 1897, BD has established itself as a trusted name in healthcare innovation, leveraging its extensive product portfolio to improve patient outcomes and streamline clinical workflows. The company's commitment to R&D and strategic acquisitions strengthens its position in the competitive medical instruments and supplies sector.

Investment Summary

Becton, Dickinson and Company presents a compelling investment opportunity due to its diversified product portfolio, strong market position, and consistent revenue streams. The company's FY 2022 revenue of $18.87 billion and net income of $1.64 billion reflect its financial stability. BD's operating cash flow of $2.63 billion and dividend payout of $3.56 per share underscore its ability to generate shareholder value. However, investors should consider the company's high total debt of $16.07 billion and capital expenditures of $973 million, which may impact short-term liquidity. The healthcare sector's resilience and BD's focus on innovation mitigate some risks, but regulatory challenges and competitive pressures remain key considerations.

Competitive Analysis

Becton, Dickinson and Company holds a competitive edge through its diversified product offerings and strong brand recognition in the medical technology space. The company's three-segment structure allows it to address multiple healthcare needs, from infusion therapy to diagnostic testing. BD's extensive R&D investments and strategic acquisitions, such as the integration of C.R. Bard, enhance its technological capabilities and market reach. However, BD faces intense competition from established players like Medtronic and Abbott, which also boast broad product portfolios and global distribution networks. BD's focus on innovation and operational efficiency helps maintain its market share, but pricing pressures and regulatory hurdles in key markets like the U.S. and Europe pose challenges. The company's ability to navigate these dynamics while expanding in emerging markets will be critical to sustaining its competitive advantage.

Major Competitors

• Medtronic (MDT): Medtronic is a global leader in medical devices, offering a wide range of products across cardiovascular, surgical, and diabetes care segments. The company's strong R&D capabilities and extensive distribution network give it a competitive edge. However, Medtronic's recent regulatory challenges and slower growth in some segments may limit its ability to outperform BD in certain markets.
• Abbott Laboratories (ABT): Abbott Laboratories excels in diagnostics, medical devices, and nutrition, with a strong presence in emerging markets. The company's diversified portfolio and innovative product pipeline, including its Freestyle Libre glucose monitoring system, position it as a key competitor to BD. However, Abbott's reliance on a few high-growth segments may expose it to market volatility.
• Stryker Corporation (SYK): Stryker specializes in surgical equipment, orthopedic implants, and neurotechnology. The company's focus on high-margin products and strategic acquisitions strengthens its market position. While Stryker competes with BD in surgical and interventional segments, its narrower product range may limit its ability to match BD's broad healthcare solutions.
• Boston Scientific (BSX): Boston Scientific is a leader in minimally invasive medical devices, particularly in cardiovascular and neuromodulation segments. The company's innovative product pipeline and strong clinical outcomes give it a competitive advantage. However, Boston Scientific's smaller scale compared to BD may restrict its global reach and pricing power.