Money and Finance
Since I'm really lacking on health care industry exposure it was time to start looking at some of the different companies, so today we'll look at Becton Dickinson and Company. Becton Dickinson closed trading on Monday, November 5th at $76.59.
Company Background:
Becton, Dickinson and Company, a medical technology company, develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The companys BD Medical segment produces medical devices that are used in various healthcare settings. This segments products include needles, syringes, and intravenous catheters for medication delivery; prefilled IV flush syringes; syringes, pen needles, and other drugs to treat diabetes; prefillable drug delivery systems; anesthesia needles and trays; sharps disposal containers; and closed-system transfer devices. Its BD Diagnostics segment provides products for the safe collection and transport of diagnostics specimens, as well as instrument systems and reagents to detect various infectious diseases, healthcare-associated infections, and cancers. This segments products consist of integrated systems for specimen collection; safety-engineered blood collection products and systems; automated blood culturing systems; molecular testing systems; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays; and plated media. The companys BD Biosciences segment produces research and clinical tools that facilitate the study of cells and their components. This segments products comprise fluorescence-activated cell sorters and analyzers; monoclonal antibodies and kits for performing cell analysis; reagent systems for life science research; cell imaging systems; laboratory products for tissue culture and fluid handling; diagnostic assays; and cell culture media supplements for biopharmaceutical manufacturing. It markets its products through independent distribution channels and independent sales representatives to healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry, and the general public.
DCF Valuation:
Analysts expect BDX to grow earnings 6.12% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, slightly above the long term inflation rate. Running these numbers through a DCF analysis with a 10% discount rate yields a fair value price of $92.60. This means that at $76.59 the shares are undervalued by 17.3%.
Read more »
- Oak Value Fund: Investment Adviser’s Review – First Quarter 2009
Recent Purchases Becton, Dickinson & Co. – Becton, Dickinson is a global medical technology company that is focused on improving drug delivery, enhancing the diagnosis of infectious diseases and cancers and advancing drug discovery. The company...
- Can Becton, Dickinson & Company Cure Your Portfolio?
To no one's surprise the health care industry has a long-term bullish thesis with the aging baby-boomer population advancing in age. Unfortunately, as we age we also tend to use more health care services. Becton, Dickinson and Company (NYSE:BDX) provides...
- Baxter International (bax) - Dividend Stock Analysis
If you take a look at my portfolio I'm lacking in two major areas that I'd like to get more exposure too. One is the food industry, I only have KO and MCD that are direct plays on food and the other is healthcare. The demographics both in...
- Johnson And Johnson Dividend Stock Analysis
I've been meaning to revisit my analysis on Johnson and Johnson since it's been a year since I first looked at them. I've learned so much more about stock analysis in that time so this will be more thorough and hopefully more insightful....
- 3m Stock Analysis
It's time for another stock analysis report and this time I'll look at another dividend champion, 3M (MMM). 3M closed trading on Friday, January 11th at $96.28. Company Background: 3M Company operates as a diversified technology company worldwide....
Money and Finance
Becton Dickinson Stock Analysis
Since I'm really lacking on health care industry exposure it was time to start looking at some of the different companies, so today we'll look at Becton Dickinson and Company. Becton Dickinson closed trading on Monday, November 5th at $76.59.
Company Background:
Becton, Dickinson and Company, a medical technology company, develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The companys BD Medical segment produces medical devices that are used in various healthcare settings. This segments products include needles, syringes, and intravenous catheters for medication delivery; prefilled IV flush syringes; syringes, pen needles, and other drugs to treat diabetes; prefillable drug delivery systems; anesthesia needles and trays; sharps disposal containers; and closed-system transfer devices. Its BD Diagnostics segment provides products for the safe collection and transport of diagnostics specimens, as well as instrument systems and reagents to detect various infectious diseases, healthcare-associated infections, and cancers. This segments products consist of integrated systems for specimen collection; safety-engineered blood collection products and systems; automated blood culturing systems; molecular testing systems; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays; and plated media. The companys BD Biosciences segment produces research and clinical tools that facilitate the study of cells and their components. This segments products comprise fluorescence-activated cell sorters and analyzers; monoclonal antibodies and kits for performing cell analysis; reagent systems for life science research; cell imaging systems; laboratory products for tissue culture and fluid handling; diagnostic assays; and cell culture media supplements for biopharmaceutical manufacturing. It markets its products through independent distribution channels and independent sales representatives to healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry, and the general public.
DCF Valuation:
Analysts expect BDX to grow earnings 6.12% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, slightly above the long term inflation rate. Running these numbers through a DCF analysis with a 10% discount rate yields a fair value price of $92.60. This means that at $76.59 the shares are undervalued by 17.3%.
Read more »
- Oak Value Fund: Investment Adviser’s Review – First Quarter 2009
Recent Purchases Becton, Dickinson & Co. – Becton, Dickinson is a global medical technology company that is focused on improving drug delivery, enhancing the diagnosis of infectious diseases and cancers and advancing drug discovery. The company...
- Can Becton, Dickinson & Company Cure Your Portfolio?
To no one's surprise the health care industry has a long-term bullish thesis with the aging baby-boomer population advancing in age. Unfortunately, as we age we also tend to use more health care services. Becton, Dickinson and Company (NYSE:BDX) provides...
- Baxter International (bax) - Dividend Stock Analysis
If you take a look at my portfolio I'm lacking in two major areas that I'd like to get more exposure too. One is the food industry, I only have KO and MCD that are direct plays on food and the other is healthcare. The demographics both in...
- Johnson And Johnson Dividend Stock Analysis
I've been meaning to revisit my analysis on Johnson and Johnson since it's been a year since I first looked at them. I've learned so much more about stock analysis in that time so this will be more thorough and hopefully more insightful....
- 3m Stock Analysis
It's time for another stock analysis report and this time I'll look at another dividend champion, 3M (MMM). 3M closed trading on Friday, January 11th at $96.28. Company Background: 3M Company operates as a diversified technology company worldwide....