Buffett Brain · Research note
Score updated 22 Oct 2026 · analysis from 6 Oct 2026
BMY· Healthcare
Bristol-Myers Squibb
Bristol-Myers Squibb's valuation appears reasonable, but concerns about long-term durability and growth persist.
Buffett fit
Partial fit
Owner
52
Durability
15
Management
76
Price
75
Score updated 22 Oct 2026 · analysis from 6 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Bristol-Myers Squibb, we'd focus on maintaining its strong of 28.5% and leveraging its brand in oncology.
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Durability is a concern due to the 5-year average of 6.8%, below sector top-quintile, indicating potential challenges in sustaining competitive advantages.
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Management appears committed to shareholder returns, with a 3.35% yield over five years and a 4.39% dividend yield.
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The yield of 9.63% suggests a reasonable valuation, but the of 18.9 is on the higher side for a company with modest growth.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
6- 1 of 28.5% is top-quintile in the healthcare sector.
- 2Net margin of 14.6% exceeds the sector's top-quintile cutoff of 12.8%.
- 3 of 71.1% indicates strong in the drug portfolio.
- 4Share count reduction at a CAGR of -1.69% over five years.
Concerns
5- 15-year average of 6.8% is below the sector's top-quintile cutoff.
- 2Revenue CAGR of 1.45% over five years indicates sluggish growth.
- 3Net debt/EBITDA ratio of 2.42 suggests a high level.
- 4Current ratio of 1.26 is below the preferred threshold of 1.5.
Price history
$61.12+6.1%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Bristol-Myers Squibb develops and sells biopharmaceutical products globally, focusing on oncology, hematology, immunology, and cardiovascular diseases. Key products include Opdivo and Yervoy for cancer treatment, contributing significantly to its $48.2 billion revenue. The company maintains a 71.1% , indicative of strong pricing in its drug portfolio. Unit economics are favorable due to high margins, but growth is limited, with a 5-year revenue CAGR of only 1.45%.
How this analysis has moved
The call has held across 3 reviews.
Oct 11, 2026 → Oct 22, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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