Becton, Dickinson and Company (BDX) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Healthcare · Medical Instruments & Supplies
Is Becton, Dickinson and Company a safe investment right now?
Trading at $156.69, Becton, Dickinson and Company (BDX) in the Healthcare sector carries a FairValueLabs fair value estimate of $167.09 — a margin of safety of 6.2%, placing it in the Watch Zone. An Altman Z-Score of 2.12 lands in the gray zone, signaling elevated uncertainty around financial health. Our moat rating stands at 2.6/5 stars (Narrow moat · eroding), suggesting limited pricing power in a competitive landscape. On the income side, BDX currently pays a dividend with a safety grade of .
Could Becton, Dickinson and Company go bankrupt? Altman Z-Score analysis
Z-Score of 2.12 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives BDX's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.017 | 1.2 | 0.02 |
| B · Retained Earnings / Total Assets | RE / TA | 0.3004 | 1.4 | 0.42 |
| C · EBIT / Total Assets | EBIT / TA | 0.0451 | 3.3 | 0.15 |
| D · Market Cap / Total Liabilities | MCap / TL | 1.8964 | 0.6 | 1.14 |
| E · Revenue / Total Assets | Rev / TA | 0.3948 | 1.0 | 0.39 |
How has BDX's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 2.13 | Gray |
| 2023 | 2.22 | Gray |
| 2024 | 2.01 | Gray |
| 2025 | 2.12 | Gray |
Source: Calculated from BDX's latest 10-K filing on SEC EDGAR.
What is Becton, Dickinson and Company actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $7.70 | Proprietary blend of reported actuals (1Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $5.82 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $12.47 | 13 analysts consensus |
| Trailing P/E | 25.6x | Current market pricing |
| Fair P/E (β discount) | 21.7x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $191.46 (13 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Becton, Dickinson and Company have a durable competitive advantage?
Moat rating: 2.6/5.
What makes up BDX's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is BDX's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 5.3% | — |
| 2023 | 5.1% | Stable |
| 2024 | 5.5% | Stable |
| 2025 | 5.6% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is Becton, Dickinson and Company's dividend safe?
Can Becton, Dickinson and Company afford its dividend?
Payout ratio is 68.1%. FCF covers the dividend 1.5x. 45 consecutive years of payments.
Becton, Dickinson and Company's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $21.8B | $20.2B | $18.9B | Rising |
| Net Income | $1.7B | $1.7B | $1.8B | Declining |
| Free Cash Flow | $2.7B | $3.1B | $1.7B | Rising |
| Gross Margin | 45.4% | 45.2% | 44.9% | Stable |
Common questions about Becton, Dickinson and Company
Is Becton, Dickinson and Company at risk of going bankrupt?
Becton, Dickinson and Company's Altman Z-Score of 2.12 places it in the gray zone. This metric uses balance sheet ratios to predict bankruptcy probability within 2 years. A score below 1.8 signals distress, while above 3.0 indicates safety.
What is Becton, Dickinson and Company's estimated fair value?
Our valuation model estimates Becton, Dickinson and Company's fair value at $167.09 per share. The current margin of safety is 6.2%. This estimate uses a PE-based approach with analyst consensus earnings.
Does Becton, Dickinson and Company have a competitive moat?
Becton, Dickinson and Company receives a moat rating of 2.6 out of 5 stars, based on ROIC stability, gross margin trends, and estimated switching costs. A rating above 3.5 suggests a durable competitive advantage.
Is Becton, Dickinson and Company's dividend safe?
Our dividend safety analysis examines payout ratio, free cash flow coverage, and the company's streak of consecutive dividend payments to determine whether the current payout is sustainable.
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
BDX analysis methodology: How we calculate fair value, Z-Scores, and moat ratings