Should I Buy Bristol Myers Squibb (BMY)? Finance YouTuber Analysis

The YouTuber suggests Bristol Myers Squibb for its 5.5% dividend yield and its transition into a growth-oriented pharmaceutical company with a strong pipeline. Despite increased spending on development, the company has grown its dividend by 46% over five years and has a substantial $5 billion remaining in its buyback authorization after repurchasing $49 billion last year.

“bmy is a best-in-class pharmaceutical transitioning into a growth portfolio of pipeline drugs total revenue grew 6% year-over-year in the most recent quarter while its focused growth portfolio grew 11% with 12 assets entering registration stage and more than 30 in early stage development despite the higher spending to develop that growth pipeline Bristol Myers has still been able to grow its dividend by 46% over the last 5 years and has repurchased $49 billion in shares last year alone with another 5 billion still remaining in its buyback authorization.”

The YouTuber recommends Bristol-Myers Squibb for its strong portfolio in hematology, multiple blockbuster drugs, and a safe 3.3% dividend yield. The company has a manageable debt load and a promising pipeline of drugs in late-stage testing, suggesting underappreciated potential.

“I like Bristol Myers because it's not quite as heavily indebted as a lot of these other pharmaceutical stocks it owes net debt of just 30 billion dollars which is about a quarter of its market cap and the shares go ex-dividend early in the month so you're going to get that payment within the first week or quickly thereafter.”

The analyst believes Bristol-Myers Squibb is a 'trifecta' opportunity due to its growing earnings, share buybacks, and potential for market multiple expansion. Despite a recent stock price drop, the company maintains strong free cash flow margins, a reasonable debt ratio, and a robust drug pipeline, making it undervalued at its current single-digit market multiple.

“I think it's a trifecta opportunity because it's growing earnings, buying back shares, and if you if if they can stabilize the revenue you get a market multiple expansion and that has how you really win.”

Michael Burry's firm holds Bristol Myers Squibb as its largest position. This suggests optimism in the pharmaceutical company despite Burry's overall cautious market stance.