BDX

Healthcare

Becton Dickinson

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Market Data

Financials

XBRL · SEC EDGAR

2007–2025(19yr)

Revenue

Net Income

Free CF

Metric	FY 2007	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$6.3B	$7.1B	$7.2B	$7.4B	$7.8B	$7.7B	$8.1B	$8.4B	$10.3B	$12.5B	$12.1B	$16.0B	$17.3B	$17.1B	$20.2B	$18.9B	$19.4B	$20.2B	$21.8B	+8.2%
Gross Profit	$3.2B	$3.6B	$3.8B	$3.8B	$4.1B	$4.0B	$4.2B	$4.3B	$4.7B	$6.0B	$5.9B	$7.3B	$8.3B	$7.6B	$9.4B	$8.5B	$8.2B	$9.1B	$9.9B	+8.8%
Gross Margin	51.7%	51.3%	52.6%	51.9%	52.3%	51.3%	51.8%	50.9%	45.7%	48.0%	49.1%	45.5%	47.9%	44.3%	46.6%	44.9%	42.2%	45.2%	45.4%	+0.2pp
Operating Income	$1.2B	$1.5B	$1.7B	$1.7B	$1.8B	$1.6B	$1.3B	$1.6B	$1.1B	$1.4B	$1.5B	$1.5B	$1.8B	$1.5B	$2.8B	$2.3B	$2.1B	$2.4B	$2.6B	+7.6%
Operating Margin	18.9%	21.7%	23.0%	22.7%	22.5%	20.2%	15.6%	19.0%	10.4%	11.5%	12.2%	9.4%	10.2%	8.7%	13.8%	12.1%	10.9%	11.9%	11.8%	-0.1pp
Net Income	$890.0M	$1.1B	$1.2B	$1.3B	$1.3B	$1.2B	$1.3B	$1.2B	$695.0M	$976.0M	$1.1B	$311.0M	$1.2B	$874.0M	$2.1B	$1.8B	$1.5B	$1.7B	$1.7B	-1.6%
Net Margin	14.2%	15.9%	17.2%	17.9%	16.2%	15.2%	16.1%	14.0%	6.8%	7.8%	9.1%	1.9%	7.1%	5.1%	10.3%	9.4%	7.7%	8.4%	7.7%	-0.8pp
Free Cash Flow	—	—	—	—	—	—	—	$1.2B	$1.1B	$1.9B	$1.8B	$2.0B	$2.4B	$2.7B	$3.4B	—	—	—	—	—
FCF Margin	—	—	—	—	—	—	—	13.7%	11.0%	14.9%	15.1%	12.3%	13.7%	15.9%	16.9%	—	—	—	—	—
EPS (Diluted)	$3.49	$4.46	$4.99	$5.49	$5.62	$5.59	$6.49	$5.99	$3.35	$4.49	$4.60	$0.60	$3.94	$2.71	$6.85	$5.88	$4.94	$5.86	$5.82	-0.7%

Total Debt$17.6B

Cash & Equiv.$641.0M

Net Debt$17.0B

4 min read

1. THE BIG PICTURE

Becton Dickinson is a scale-driven consumables machine—with 90% of its revenue coming from recurring supplies—currently trading at a significant discount because it is the least efficient operator among its major MedTech peers. While Becton Dickinson is growing faster than half of its peer group, its bottom-tier margins and an ongoing FDA consent decree have created a "show-me" story for investors waiting for the "Excellence Unleashed" strategy to translate into actual cash flow.

2. WHERE THE RISKS HIT HARDEST

Pricing Power vs. Consolidation: Becton Dickinson’s "best-in-class consumables revenue profile" is increasingly vulnerable to industry consolidation. As healthcare systems and group purchasing organizations merge, they gain the leverage to exert downward pricing pressure on medical device suppliers (10-K Item 1A).
Strategic Focus vs. Regulatory Constraints: The BD Alaris™ Infusion System is a primary focus for Becton Dickinson’s return-to-market strategy (Business), yet this effort is directly hampered by an ongoing FDA Consent Decree. This legal constraint subjects the business to continuous audits and potential enforcement actions that could suspend product sales (Competitive Position).
Reliability vs. Supply Chain Fragility: While management prioritizes "unmatched quality and supply reliability" as a competitive strength, Becton Dickinson simultaneously admits to relying on "sole sourced" raw materials. This creates a structural vulnerability where a single supplier failure can halt production for critical product lines (Competitive Position).

3. WHAT THE NUMBERS SAY TOGETHER

Revenue growth of 8.2% (TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter) is healthy, ranking 3rd of 6 in its peer group, but this growth is failing to reach the bottom line. Becton Dickinson maintains the lowest gross (45.0%), operating (11.5%), and net margins (7.4%) among its peers (XBRL). This inefficiency is most visible in its free cash flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) conversion; at a 3.9% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin, Becton Dickinson converts revenue to cash at roughly one-fifth the rate of Danaher (20.1%).

The most recent quarterly results reveal a business mix shift. While the Life Sciences segment declined 8.3% due to lower research funding and point-of-care sales, the Interventional segment grew 5.8%, led by specialized products like PureWick™ and tissue regeneration tools (8-K). This suggests Becton Dickinson is successfully pivoting toward higher-growth chronic care markets, even as its legacy "Medical Essentials" segment struggles with volume-based procurement impacts in China (10-Q). Short interest at 5.8% of the float indicates that a notable portion of the market remains skeptical of this transition (Supplemental Signals).

4. IS IT WORTH IT AT THIS PRICE?

At 12.2x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Becton Dickinson is attractively valued, trading at a 32% discount to the peer median of 17.9x. The market is currently pricing in a long-term growth rate of just 0.5% (CAPM analysis). This appears disconnected from Becton Dickinson's actual TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth of 8.2%, suggesting that investors are heavily penalizing Becton Dickinson for its $16.2 billion in net debt and 19.6x net leverage.

If Becton Dickinson can achieve even a GDP-paced growth rate of 2.5%, the justified multiple would rise to 27.1x (CAPM analysis). However, Becton Dickinson's 6th-of-6 ranking in every major margin category justifies a significant portion of the current discount. The price is only "right" if one assumes Becton Dickinson will never close the efficiency gap with peers like Abbott or Stryker.

5. WHAT WOULD CHANGE THIS VIEW?

Constructive if the FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin moves toward the double digits, providing evidence that the "BD Excellence" operating system is successfully capturing Becton Dickinson's 8.2% revenue growth.
Constructive if the FDA lifts the Consent Decree on the Alaris infusion business, removing the primary regulatory overhang on the Connected Care segment.
Cautious if Medical Essentials revenue continues to stagnate or decline due to volume-based procurement impacts in international markets like China (10-Q).

6. BOTTOM LINE

Structural Advantage: A massive global distribution footprint and a 90% consumables-based revenue model that ensures high recurring demand across nearly every healthcare setting.

Bottom Line: Becton Dickinson is a classic value play for investors who believe management can fix the industry's least efficient cost structure; until those margins expand, it remains a laggard priced for stagnation.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Macroeconomic Instability: Becton Dickinson faces risks from inflation, capital market volatility, and interest rate fluctuations, which have impacted demand for products and increased borrowing costs. Currency exchange rate volatility specifically affects the reported value of assets, liabilities, and cash flows (10-K Item 1A).
International Operations: A substantial portion of Becton Dickinson’s sales originate outside the U.S., exposing Becton Dickinson to geopolitical instability, trade barriers, and tariffs. Becton Dickinson expects tariffs to adversely impact operating expenses in fiscal year 2026 and beyond (10-K Item 1A).
Competitive Pressures: Becton Dickinson operates in a highly competitive industry where consolidation among healthcare systems and group purchasing organizations has increased purchasing power, leading to downward pricing pressure on medical device suppliers (10-K Item 1A).
Regulatory Compliance: Becton Dickinson is subject to extensive global regulation, including FDA oversight. Failure to comply with good manufacturing practices or post-market requirements can result in warning letters, consent decrees, or the suspension of product sales (10-K Item 1A).
Supply Chain and Sterilization: Becton Dickinson relies on sole suppliers for certain raw materials and components, creating exposure to shortages. Additionally, new EPA regulations regarding ethylene oxide emissions for sterilization may require Becton Dickinson to incur significant implementation and operating costs (10-K Item 1A).

2. Company-Specific Risks

BD Alaris™ Infusion System: Becton Dickinson is operating under an amended Consent Decree and is currently remediating or replacing devices in the U.S. market, a process expected to be substantially complete over the next calendar year (10-K Item 1A).
Waters Combination: The proposed combination of Becton Dickinson’s Biosciences and Diagnostic Solutions business with Waters is subject to regulatory and stockholder approvals. Failure to complete the transaction or realize expected benefits could adversely affect financial results (10-K Item 1A).
Ethylene Oxide Compliance: Becton Dickinson is in the process of implementing changes to facilities to comply with NESHAP and ID requirements by April 2028, which will require additional implementation and ongoing operating costs (10-K Item 1A).
Debt Refinancing: Becton Dickinson’s ability to refinance indebtedness may be adversely impacted by the loss of its “well-known seasoned issuer” status following a December 2024 SEC Order (10-K Item 1A).

3. Regulatory/Legal Risks

Antitrust and Securities Litigation: Becton Dickinson is a defendant in purported class action lawsuits regarding alleged antitrust violations and federal securities law violations (10-K Item 1A).
Product Liability: Becton Dickinson faces pending claims related to hernia repair implants, surgical continence and pelvic organ prolapse products, vena cava filters, and implantable ports (10-K Item 1A).
Government Investigations: Becton Dickinson is subject to civil investigative demands and government investigations concerning sales and marketing practices and compliance with federal and state healthcare programs (10-K Item 1A).
Global Tax Regulations: The implementation of the Organization for Economic Cooperation and Development’s Pillar Two Model Rules, which impose a 15% global minimum tax, may increase tax expenses and uncertainty (10-K Item 1A).

4. Financial Impact Map

Macroeconomic Volatility → Assets and Liabilities → Reported values affected by currency exchange rate fluctuations.

International Tariffs → Operating Expense → Expected to adversely impact expenses for fiscal year 2026 and beyond.

Industry Consolidation → Revenue → Downward pricing pressure from group purchasing organizations and integrated health delivery networks.

Regulatory Compliance/Sterilization → Operating Costs → Additional implementation and ongoing costs required to meet NESHAP and ID requirements.

Legal Proceedings → Cash Flows/Liquidity → Potential for charges in excess of established accruals to have a material adverse effect on consolidated results.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-Q	Feb 2026	Dec 2025
8-K	Feb 2026	—
14A	Dec 2025	—
10-K	Nov 2025	Sep 2025