FAST Graphs At-A-Glance

Articles which show the principles for reading and analyzing FAST Graphs At-A-Glance.

Becton Dickinson & Co: Stock Research Analysis

FAST Graphs - Wednesday, September 12, 2012

This article is going to look at blue-chip dividend growth stock Becton Dickinson & Co (BDX) through the lens of FAST Graphs™, fundamentals analyzer software tool, which shows the company currently in value.  The dividend growth investor might want to research this company further for a possible candidate for their portfolio.

About Becton Dickinson & Co: Directly from their website

“BD is a leading global medical technology company that develops, manufactures and sells medical devices, instrument systems and reagents. The Company is dedicated to improving people's health throughout the world. BD is focused on improving drug delivery, enhancing the quality and speed of diagnosing infectious diseases and cancers, and advancing research, discovery and production of new drugs and vaccines. BD's capabilities are instrumental in combating many of the world's most pressing diseases. Founded in 1897 and headquartered in Franklin Lakes, New Jersey, BD employs approximately 29,000 associates in more than 50 countries throughout the world. The Company serves healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public.”

Earnings Determine Market Price:  The following earnings and price correlated FAST Graphs™ clearly illustrates the importance of earnings.  The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line.  On graph after graph the lines will move in tandem.  If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings.  

Earnings & Price Correlated Fundamentals-at-a-Glance

A quick glance at the historical earnings and price correlated FAST Graphs™ on Becton Dickinson & Co shows a picture of a company that is in-value based upon the historical earnings growth rate of 10.8% (orange circle) and a current PE of 14.5.  Analysts are forecasting the earnings growth to continue at about 9.5%, and when you look at the forecasting graph below, the stock appears in-value, (it’s inside of the value corridor of the five orange lines - based on future growth).

Becton Dickinson & Co:  Historical Earnings, Price, Dividends and Normal PE Since 1998

Performance Table Becton Dickinson & Co

The associated performance results with the earnings and price correlated graph, validates the principles regarding the two components of total return; capital appreciation and dividend income.  Dividends are included in the total return calculation and are assumed paid, but not reinvested. 

When presented separately like this, the additional rate of return a dividend paying stock produces for shareholders becomes undeniably evident.  In addition to the 8.1% capital appreciation (green circle), long-term shareholders of Becton Dickinson & Co, assuming an initial investment of $1,000, would have received an additional $436.40 in dividends (blue highlighting) that increased their total return from 8.1% to 9% per annum versus 4% (red circle) in the S&P 500.

The following graph plots the historical PE ratio (the dark blue line) in conjunction with 10-year Treasury note interest.   Notice that the current price earnings ratio on this quality company is as low as it has been since 1998.

A further indication of valuation can be seen by examining a company’s current price to sales ratio relative to its historical price to sales ratio.  The current price to sales ratio for Becton Dickinson & Co is 2.02 which is historically low.

Looking to the Future

Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:

1.            The rate of change (growth rate) of the company’s earnings

2.            The price or valuation you pay to buy those earnings

Forecasting future earnings growth, bought at sound valuations, is the key to safe, sound, and profitable performance.

The Estimated Earnings and Return Calculator Tool is a simple yet powerful resource that empowers the user to calculate and run various investing scenarios that generate precise rate of return potentialities. Thinking the investment through to its logical conclusion is an important component towards making sound and prudent commonsense investing decisions.

The consensus of 21 leading analysts reporting to Capital IQ forecast Becton Dickinson & Co’s long-term earnings growth at 9.5% (orange circle).  Becton Dickinson & Co has medium long-term debt at 34% of capital (red circle).  Becton Dickinson & Co is currently trading at a P/E of 14.5, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18.  If the earnings materialize as forecast, Becton Dickinson & Co’s True Worth™ valuation would be $126.80 at the end of 2017 (brown circle on EYE Chart), which would be a 12.3% annual rate of return from the current price (yellow highlighting).

Earnings Yield Estimates

Discounted Future Cash Flows:  All companies derive their value from the future cash flows (earnings) they are capable of generating for their stakeholders over time. Therefore, because Earnings Determine Market Price in the long run, we expect the future earnings of a company to justify the price we pay.

Since all investments potentially compete with all other investments, it is useful to compare investing in any prospective company to that of a comparable investment in low risk Treasury bonds. Comparing an investment in Becton Dickinson & Co to an equal investment in 10 year Treasury bonds, illustrates that Becton Dickinson & Co’s expected earnings would be 5.9 (purple circle) times that of the 10 Year T-Bond Interest. (See EYE chart below). This is the essence of the importance of proper valuation as a critical investing component.

Summary & Conclusions

This report presented essential “fundamentals at a glance” illustrating the past and present valuation based on earnings achievements as reported.  Future forecasts for earnings growth are based on the consensus of leading analysts.  Although, with just a quick glance you can know a lot about the company, it’s imperative that the reader conducts their own due diligence in order to validate whether the consensus estimates seem reasonable or not.

Disclosure:  No position at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

Comments
Anonymous commented on 24-Sep-2012 04:50 AM

All-NBA First Team ... NBA All Defensive First Team ... Western Conference All-Star (starter) ... Appeared in all 82 games (82 starts), averaging 25.3 points, 5.1 rebounds, 4.7 assists and 1.21 steals in 33.9 minutes ... Recorded nine double-doubles and
one triple-double ... Scored 30+ points 23 times and 40+ points three times ... Led team in points 61 times, rebounds once and assists 39 times ... Ranked among league leaders in points (5th/25.3), assists (31st/4.7) and steals (28th/1.21) ... Led all players
in All-Star balloting for 2nd time in career (2003) and earned 4th All-Star MVP award with 37 points, 14 rebounds, three assists and three steals 2/21 ... Western Conference Player of the Month (March) ... Western Conference Player of the Week (3/27/11) ...
Recorded 17th career triple-double (30 points, 10 rebounds,
coach outlet online 12 assists) 11/3 at Sacramento ... Scored 34 points (youngest player in NBA history to 26,000 points) 11/11 at Denver ... Scored 41 points 11/18 vs. Indiana ... Scored 41 points (youngest player in NBA history to 27,000
points) 1/30 vs. Boston ... Totaled a season-high 42 points, a season-high tying 12 rebounds and nine assists 3/22 vs. Phoenix ...
coach bags outlet Scored 30 points and became franchise leader in games played 3/27 vs. New Orleans ... In 10 playoff games, averaged 22.8 points, 3.4 rebounds, 3.3 assists and 1.60 steals in
35.4 minutes.

2009-10: NBA Finals Most Valuable Player ... All-NBA First Team ... NBA All Defensive First Team ... Named a starter in the 59th NBA All-Star Game ... Appeared in 73 games (73 starts), averaging 27.0 points, 5.4 rebounds, 5.0 assists and 1.55 steals in 38.8
minutes … Recorded six double-doubles … Scored 30+ points 29 times and 40+ points eight times … Led team in points 53 times, rebounds three times, assists 37 times, steals
coach outlet online 28 times, blocks 10 times and minutes 32 times … Ranked among league leaders in points (4th/27.0), assists (24th/5.0), steals (13th/1.55) and minutes (7th/38.8) … Named WC
Player of the Month for December … Named WC Player of the Week three times … Hit six game-winning FG, most of any player in a single season over the last 10 years
louis vuitton handbags (FGM in last 10 seconds
coach outlet usa of 4th quarter or overtime) … Totaled 41 points and season-high tying five steals 11/1 vs. Atlanta ... Posted 100th career 40+ point game (40 points, 5 rebounds, 5 assists)
11/17 vs. Detroit … Scored 33 points while hitting game winning last-second 3FG 12/4 vs. Miami … Scored 39 points, including a game-winning buzzer beater in OT 12/16 at Milwaukee … Finished with a season-high tying 44 points and 11 assists 12/29
coach factory outlet online vs. Golden State … Scored 39 points, including a game winning last-second 3FG 1/1 vs. Sacramento … Scored 31 points to become the youngest player in NBA history to
25,000 points 1/21 at Cleveland … Posted 27 points, a career-high 16 rebounds and nine assists 1/24 at Toronto … Scored game-winning FG with 7.3 seconds
coach factory outlet left 1/31 at Boston … Became Lakers all-time leading scorer with a season-high tying 44
coach factory outlet points 2/1 at Memphis … Connected on game-winning 3FG with 4.3 seconds left 2/23 at Memphis … Made sixth game-winning FG of the year with 1.9 seconds left 3/9 vs. Toronto
… coach outlet store online Recorded a season-high 13 assists 3/19 vs. Minnesota … Moved into 12th on the NBA’s all-time scoring list 3/24 at San Antonio, passing Alex English ... Missed 5 games
(2/6 - 2/18) with a sprained left ankle, 2 games (4/8-4/9)
coach outlet store online with right knee swelling and 2 games (4/13-4/14)
discount coach purses with an avulsion fracture (right index finger) ... Averaged 29.2 points, 6.0 rebounds, 5.5 assists and 1.35 steals in 23 playoff games ... In the playoffs, scored 30+
points 14 times including one 40+ point game.
Anonymous commented on 05-Oct-2012 08:14 AM
chanel replica handbags for gift xYyEUGMThttp://worldmusicblog.net/chanelreplicahandbags30/
Anonymous commented on 18-Oct-2012 10:12 AM
Howdy very cool blog!! Man .. Excellent .. Amazing .. I will bookmark your web site and take the feeds also¡KI am happy to seek out numerous helpful information right here in the put up, we want work out more techniques in this regard, thanks for sharing. . . . . .
online slots pokieaussie pokies
Anonymous commented on 18-Oct-2012 10:22 AM
Very good written story. It will be useful to anyone who usess it, as well as me. Keep up the good work - for sure i will check out more posts.
pokiesslots machine games online slots
Anonymous commented on 18-Oct-2012 01:23 PM
I consider something truly special in this web site. best sump pump
Anonymous commented on 19-Oct-2012 02:00 AM
The must have summer
Canada Goose JacketsOutlet styles include the timeless denim and leather as well as cropped and trench-style style items.
Canada Goose Parkas Outletare great in winter for warmth; they can be great on different styles and can go with casual or formal looks.The
Canada Goose OutletExpedition Parka provides heavy-duty warmth thanks to its high-quality duck down insulation.It is not a novelty that military style tops the leading fashion trends
Canada Goose Jackets Outletdue to its refined and classic influences and qualities.
Anonymous commented on 19-Oct-2012 03:17 AM
Designs of this season give you the unlimited cool feelings in this cool summer. The new designs of Coach products in the Coach Outlet enrich our daily life.
Anonymous commented on 19-Oct-2012 08:32 AM
I understand that in Egyptian hieroglyphics Louis Vuitton Official Website the course of development from ideograms to phonetic writing can be studied.Regarding the craft,the goods fromCoach Outlet Store is tight,the seams are aligned and details emulate the designer's actual handbags.west plus southwest around the commune,Louis Vuitton Online Store is usually a pure gardening plus Commune.Coach Outlet Online The staff was adamant about the policy even though they acknowledged there was nothing stopping us from coming in the next day and purchasing from another shop girl.Louis Vuitton Outlet iphone cases I was excited to see this coat online since I love Louis Vuitton, and I needed a new coat like this.This Louis Vuitton Canada for sale belongs to the sounding just what are termed asLouis Vuitton vintage best sellers.
Anonymous commented on 19-Oct-2012 03:13 PM
Wow! This can be one particular of the most beneficial blogs We have ever arrive across on this subject. Basically Excellent. I'm also an expert in this topic therefore I can understand your hard work.do you agree More hintslinkclick thisClicking Here
Anonymous commented on 19-Oct-2012 06:50 PM

Anonymous commented on 19-Oct-2012 09:12 PM
the north face clearance expands the boundary of traditional wind-blocking jackets to offer greatly increased breathability, mobility, and comfort. Instead of using a clammy laminate to make the
north face clearance windproof and comfortable, Thenorth face outlet integrated a mesh lining that lets in just a touch of air and keeps you from wallowing in your own sweat whenever you get a little warm
cheap north face. Waterproof, windproof and breathable: The patented GORE-TEX membrane makes garments 100% waterproof, windproof and breathablecheap north face jackets so that you stay dry and comfortable under any conditions.
Anonymous commented on 21-Oct-2012 04:08 PM
I believe this internet site has got some rattling fantastic info for everyone :D. "Experience is not what happens to you it's what you do with what happens to you." by Aldous Huxley.halogen cooker reivews
Anonymous commented on 22-Oct-2012 12:03 PM
Excellent read, I just passed this onto a colleague who was doing some research on that. And he actually bought me lunch since I found it for him smile Therefore let me rephrase that: Thanks for lunch! "No one can wear a mask for very long." by Seneca.kasino online
Anonymous commented on 22-Oct-2012 04:45 PM
You can certainly see your enthusiasm in the paintings you write. The sector hopes for more passionate writers like you who aren't afraid to mention how they believe. All the time go after your heart. "The most profound joy has more of gravity than of gaiety in it." by Michel de Montaigne. Dehumidifiers reviews | coffee grinder review |generator reviews |best Humidifiers | leaf blowers | best paint sprayer

Post a Comment




Captcha Image


Testimonials


“I appreciate your work, Chuck. As a subscriber to FAST Graphs™, I use the tool to decide on whether to purchase additional shares of what I currently hold or to add a new holding. Your articles help me make full use of the tool and give other readers valuable information, if they take the time to learn. One of the biggest enhancements that I use is the FFO data added for MLPs and REITs.”


“When FAST Graphs™ were unavailable because of Hurricane Sandy, I realized how much I need them in order to make investment decisions.

(Wish I could be) Long FAST Graphs!!!”


“One more vote for the value of FAST Graphs™; just started a subscription to Chuck's great service (premium), and am having a ball analyzing so many stocks quickly.”


“I feel very ill-equipped to make investment decisions without Fast Graphs. :-)”


“Yesterday, I signed up for your F.A.S.T. Graphs™. It's a really amazing, valuable tool for checking over/undervaluation of stocks. Wish I had it years and years ago!!”


“Love the F.A.S.T. Graphs™: One glance and you know a whole lot.”


“About Chuck's F.A.S.T. Graphs™: They are invaluable to me in making decisions about the stocks I own (in addition to what you are saying about doing other research) and the ones I hope to own in the future.”


"Chuck -- Your proprietary F.A.S.T. Graphs™ are a VERY impressive tool!"


“If there were an Investor Hall of Fame for people who have helped others with their investing, and sharing valuable information, you and your F.A.S.T. Graphs™ would get one of my selections.”


“I love Chuck's F.A.S.T. Graphs™! Well worth the price of admission for what he gives you.”


"Chuck - Thank you for your well thought out articles. I tend to be a visual type of person so I really appreciate the F.A.S.T. Graphs™ approach."


"Great article, as always! I always look forward to your articles, and am especially eagerly awaiting your next in this series. I find the F.A.S.T. Graphs™ extremely helpful."


“Your F.A.S.T. Graphs™ put all of this in a single artful picture and the accompanying spreadsheets hammer home the point.”


“I use the F.A.S.T. Graphs™ method to evaluate all of my ideas. I recommend it for individual investors, since it helps them focus on data and get past the many emotional arguments.”


“I recently subscribed to the F.A.S.T. Graphs™, and these articles are helping me learn how to better use them. They really do give you a good quick look at the valuations picture. A much needed tool!”


“I also always appreciate the clear-cut information provided through your F.A.S.T. Graphs™ and articles.”


“Thanks, Chuck, for your F.A.S.T. Graphs™. Each of these graphs is worth 1,000 words in describing a company's growth, consistency and valuation. Thanks for sharing your graphs.”


“Thanks, Chuck. Love the F.A.S.T. Graphs™! It makes investing so much more clear.”


“Chuck's F.A.S.T. Graphs™: They are invaluable to me in making decisions about the stocks I own (in addition to what you are saying about doing other research) and the ones I hope to own in the future.”


”I am amazed at the usefulness of your F.A.S.T. Graphs™ and I plan on using them for a long time to come.”


“Chuck's F.A.S.T. Graphs™ will give you a tool to find those well chosen stocks...”


“Thanks for the F.A.S.T. Graphs™, Chuck. They are the best tool I've used.”


Recent Posts


Tags


Archive

    Testimonials


    “I appreciate your work, Chuck. As a subscriber to FAST Graphs™, I use the tool to decide on whether to purchase additional shares of what I currently hold or to add a new holding. Your articles help me make full use of the tool and give other readers valuable information, if they take the time to learn. One of the biggest enhancements that I use is the FFO data added for MLPs and REITs.”


    “When FAST Graphs™ were unavailable because of Hurricane Sandy, I realized how much I need them in order to make investment decisions.

    (Wish I could be) Long FAST Graphs!!!”


    “One more vote for the value of FAST Graphs™; just started a subscription to Chuck's great service (premium), and am having a ball analyzing so many stocks quickly.”


    “I feel very ill-equipped to make investment decisions without Fast Graphs. :-)”


    “Yesterday, I signed up for your F.A.S.T. Graphs™. It's a really amazing, valuable tool for checking over/undervaluation of stocks. Wish I had it years and years ago!!”


    “Love the F.A.S.T. Graphs™: One glance and you know a whole lot.”


    “About Chuck's F.A.S.T. Graphs™: They are invaluable to me in making decisions about the stocks I own (in addition to what you are saying about doing other research) and the ones I hope to own in the future.”


    "Chuck -- Your proprietary F.A.S.T. Graphs™ are a VERY impressive tool!"


    “If there were an Investor Hall of Fame for people who have helped others with their investing, and sharing valuable information, you and your F.A.S.T. Graphs™ would get one of my selections.”


    “I love Chuck's F.A.S.T. Graphs™! Well worth the price of admission for what he gives you.”


    "Chuck - Thank you for your well thought out articles. I tend to be a visual type of person so I really appreciate the F.A.S.T. Graphs™ approach."


    "Great article, as always! I always look forward to your articles, and am especially eagerly awaiting your next in this series. I find the F.A.S.T. Graphs™ extremely helpful."


    “Your F.A.S.T. Graphs™ put all of this in a single artful picture and the accompanying spreadsheets hammer home the point.”


    “I use the F.A.S.T. Graphs™ method to evaluate all of my ideas. I recommend it for individual investors, since it helps them focus on data and get past the many emotional arguments.”


    “I recently subscribed to the F.A.S.T. Graphs™, and these articles are helping me learn how to better use them. They really do give you a good quick look at the valuations picture. A much needed tool!”


    “I also always appreciate the clear-cut information provided through your F.A.S.T. Graphs™ and articles.”


    “Thanks, Chuck, for your F.A.S.T. Graphs™. Each of these graphs is worth 1,000 words in describing a company's growth, consistency and valuation. Thanks for sharing your graphs.”


    “Thanks, Chuck. Love the F.A.S.T. Graphs™! It makes investing so much more clear.”


    “Chuck's F.A.S.T. Graphs™: They are invaluable to me in making decisions about the stocks I own (in addition to what you are saying about doing other research) and the ones I hope to own in the future.”


    ”I am amazed at the usefulness of your F.A.S.T. Graphs™ and I plan on using them for a long time to come.”


    “Chuck's F.A.S.T. Graphs™ will give you a tool to find those well chosen stocks...”


    “Thanks for the F.A.S.T. Graphs™, Chuck. They are the best tool I've used.”