Morningstar Rating

Stock Research and Analysis

by Alex Morozov, CFA

Bulls Say

BD has historically been very disciplined in its capital allocation strategy. It should resume its dividend strategy once it reduces its leverage post-Carefusion acquisition.
Economies of scale in BD's medical segment stem from several global manufacturing plants that produce billions of sharps. BD's sizable infrastructure should preclude potential rivals from entering this business.
BD Max has enjoyed strong adoption, and with test menu growing, this platform should continue seeing solid placements. Read more 

Bears Say

Growth in the company's hospital consumables and capital equipment product lines is likely to remain weak, as health-care providers remain cautious with their cash deployment.
BD's TriPath product line should continue struggling in the U.S. over the next year or so, given the latest recommendations for pap smears (once every two to three years as opposed to annually).
BD is seeing increasing price pressure across not just sharps but also in diagnostic assays due to competition and tight spending environment. Read more 

Management

The company's executives are among the best in the industry in terms of capital allocation, in our view, and we assign BD an exemplary stewardship grade. Over the years, the firm has focused on returns on invested capital and wise capital deployment   Read more 

Profile

Becton Dickinson is the world's largest manufacturer and distributor of medical surgical products, such as needles, syringes, and sharps-disposal units. The company also   Read more 

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