Buy Bristol Myers Squibb Stock At $45?

Core Viewpoint - Bristol-Myers Squibb (BMY) has underperformed the market with a 20% stock price decline this year, while the S&P 500 has increased by 14%, primarily due to challenges in its drug pipeline [2][3] Valuation - BMY stock is currently priced at $45, which is considered attractive given its low valuation metrics compared to the S&P 500 [3] - The price-to-sales (P/S) ratio for BMY is 1.9, while the S&P 500 stands at 3.3; the price-to-free cash flow (P/FCF) ratio is 7.0 compared to 21.1 for the S&P 500; and the price-to-earnings (P/E) ratio is 16.9 versus 24.0 for the benchmark [8][14] Revenue Growth - BMY's revenues have shown variable growth, with a 4.6% increase from $46 billion to $48 billion over the past 12 months, compared to a 5.1% growth for the S&P 500 [8] - The company has experienced an average revenue growth rate of 0.5% over the last three years, significantly lower than the S&P 500's 5.3% [8] Profitability - BMY's operating income for the last four quarters was $7.9 billion, resulting in an operating margin of 16.5%, which is below the S&P 500's 18.6% [15] - The net income for BMY was $5.4 billion, yielding a net income margin of 11.4%, compared to 12.7% for the S&P 500 [15] Financial Stability - BMY's balance sheet is considered solid, with a debt figure of $51 billion and a market capitalization of $92 billion, leading to a debt-to-equity ratio of 55.8%, higher than the S&P 500's 21.0% [15] - The cash-to-assets ratio stands at 12.7%, significantly above the S&P 500's 7.0%, indicating strong liquidity [15] Downturn Resilience - BMY stock has shown moderate resilience during downturns, with a 40.2% decline from its peak in December 2022, compared to a 25.4% decline for the S&P 500 [16] - Historical performance indicates that BMY has fully recovered from past crises, suggesting potential for future recovery [16] Pipeline and Future Prospects - Despite recent pipeline challenges, BMY has a robust pipeline and recent acquisitions, such as 2seventy Bio, which could provide significant upside [17] - The company is co-developing a promising antibody with BioNTech for small-cell lung cancer, which has shown positive mid-stage trial results and a potential peak sales value exceeding $5 billion [17]