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Bristol Myers Squibb: Hidden Facts Blur The Strength Of The Company
Summary
- Bristol Myers Squibb is undervalued despite the looming patent cliff, as its robust pipeline and strong cash flow position it for future growth.
- The impact of Eliquis' patent expiry is overstated, since only half its revenue affects BMY's bottom line due to the Pfizer partnership.
- Earnings have been depressed by past acquisition amortizations, but these charges will drop sharply, revealing stronger profitability.
- BMY's healthy cash flow allows for debt reduction, share buybacks, and further pipeline investments, supporting long-term shareholder value.
I am a private investor, focused on long-term dividend growth investing. My investing career started more than 15 years ago. All companies I am investing in are analyzed thoroughly by myself before an investment decision is made. By writing articles on Seeking Alpha, I hope to inform other investors about details and facts maybe not everybody is aware of. I am also interested in exchanging experience and information with other investors. Therefore an article can be the start to a fruitful discussion for everybody. I finished my studies with a Master of Science in business administration and started working more than 10 years ago.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BMY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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