Bristol Myers Squibb (BMY) has a market cap of about $125 billion, but its stock has returned just 6% over five years, while the S&P 500 returned nearly 70%. In the first six months, legacy portfolio revenue fell 6% excluding FX, while the growth portfolio grew 12% organically; overall revenue rose just 3% organically. The stock is up nearly 14% this year, slightly ahead of the S&P 500's roughly 12%. It trades at about nine times estimated future earnings versus the S&P 500's average of 19, and pays a 4.1% dividend with a payout ratio of around 55%. The author views the stock as undervalued, while acknowledging the company is dealing with patent expirations.
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