Bristol-Myers Squibb Co. (NYSE:BMY)

The analysis of the financial ratios over the reported quarters reveals notable trends and shifts in valuation metrics.

Price to earnings (P/E) ratio

The P/E ratio was not reported for the earliest quarters but began at 20.92 in March 2022. It increased moderately to a peak near 25.64 by June 2022, then showed a consistent declining trend through December 2023, reaching a low of 12.27. After a period of missing data, the ratio rose again in early 2025, nearing 18.29 in March 2025 before settling to 15.38 by September 2025. This pattern indicates an initial period of lower market earnings expectation, followed by increased investor confidence, and then a correction or anticipation of lower growth or profitability, with some recovery in valuation towards the end.

Price to operating profit (P/OP) ratio

Similar to the P/E ratio, the P/OP was first recorded in March 2022 at 19.84 and showed some fluctuation but generally declined steadily through December 2023 to a low of 13.53. Afterward, with missing data for some quarters, it further decreased to 10.25 by September 2025, reflecting a trend of increasingly lower valuation relative to operating profits. This could suggest improving operating profits or cautious market sentiment.

Price to sales (P/S) ratio

The P/S ratio started at 3.28 in March 2021, with moderate volatility in the early periods, peaking around 3.41 in March 2022. Following this, there was a distinct downward trajectory through 2023 and into early 2024, bottoming at 1.99 in March 2024. Subsequently, the ratio experienced some recovery and stabilized within the 1.85 to 2.38 range through 2025. This pattern suggests market valuation of sales declined significantly in the medium term but showed signs of stabilization and slight rebound more recently.

Price to book value (P/BV) ratio

The P/BV ratio shows notable volatility throughout the period. Starting at 3.73 in March 2021 and fluctuating moderately until the end of 2022, it sharply increased beginning in 2024, reaching as high as 6.98 in December 2024. Subsequently, the ratio declined to approximately 5.01 by September 2025. This increase in P/BV ratio in early 2024 suggests a strong rise in market valuation relative to book value, potentially reflecting investor optimism or revaluation of assets, while the subsequent decrease indicates some normalization or market adjustment.

Overall, the patterns reveal a period of initial growth in valuation multiples, followed by significant downward corrections across most ratios during 2023-2024, and then partial recovery or stabilization in 2025. The divergent behavior of the P/BV ratio, with a sharp increase followed by decline, contrasts the generally declining trends of P/E, P/OP, and P/S, indicating nuanced investor perspectives on the company's earnings, operating profitability, sales, and book value over time.

The financial data demonstrates notable fluctuations in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the analyzed periods.

Share Price Trends

The share price experienced an upward trend from early 2021, rising from approximately $62.89 to a peak near $75.27 by the first half of 2022. Following this peak, a steady decline emerged, with the share price dropping consistently to around $44.70 in early 2024. After this low point, a modest recovery occurred, bringing the price back to roughly $56.15 by the end of 2024. In 2025, the share price again declined to levels between $43.31 and $45.62, indicating volatility and an overall downward trend compared to the peak.

Earnings per Share (EPS) Patterns

The EPS values reveal cyclical variations with distinctive shifts. Negative EPS readings dominated early 2021, with figures improving and turning positive in late 2021 and sustaining positive values through 2023's first quarter. This positive EPS period reflects profitability stability during this timeframe. However, a significant reversal to negative EPS occurred starting early 2024, with values worsening through the year's end. Despite this negative phase, EPS returned to positive territory in 2025, suggesting a financial recovery. The magnitude of EPS swings highlights underlying volatility in earnings performance.

Price-to-Earnings (P/E) Ratio Movements

The P/E ratio data are available only for select periods but provide useful insights. Early 2022 periods show relatively high P/E ratios in the 23 to 25 range, consistent with positive earnings and elevated share prices. As EPS and share prices declined, the P/E ratio decreased accordingly, reaching levels near 12.27 by the end of 2023, suggesting the market adjusted valuations in response to lower earnings or share prices. In 2025, the P/E ratio somewhat rebounded towards 15-18, aligning with the positive EPS recovery noted.

Overall Insights

The data indicates phases of profitability and market confidence, followed by intervals of earnings challenges and declining investor sentiment. The initial upward trajectory in both share price and EPS through 2022 was not sustained, leading to a marked deterioration in earnings and valuation metrics in 2024. The partial recovery seen in late 2024 and 2025 suggests that the company may be navigating through cyclical pressures or structural adjustments. The fluctuating EPS, coupled with varying P/E ratios, underscores the importance of closely monitoring earnings quality and market perceptions moving forward.

Share Price Trend

The share price initially increased from $62.89 in the first quarter of 2021 to a peak near $75.27 by the first quarter of 2022. Following this peak, a general downward trend is observed, with the share price declining steadily through 2023, reaching a low of $44.7 in the first quarter of 2024. Subsequently, there was a moderate recovery in share price during 2024, rising to $56.15 by the fourth quarter, before declining again to $43.31 by mid-2025 and slightly rebounding to $45.62 by the third quarter of 2025.

Operating Profit Per Share (OPPS)

The operating profit per share showed a shift from negative values in early 2021 to positive values in the last quarter of 2021, indicating a turnaround in profitability. Positive OPPS levels persisted throughout 2022 and 2023, with slight fluctuations but maintaining a generally stable range around $3.6 to $4.19. Notably, in the first quarter of 2024, OPPS dropped back to negative values and remained negative through the fourth quarter of 2024. This negative trend reversed again starting in the first quarter of 2025, returning to positive levels with continued improvement into the third quarter of 2025.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio was not reported during the initial quarters in 2021 but appeared starting with the first quarter of 2022. From this point, it demonstrated a consistent decline from approximately 20.32 at the beginning of 2022 to 13.53 by the fourth quarter of 2023. Data for parts of 2024 are missing; however, the ratio resumed a downward trend in 2025, falling to 10.25 by the third quarter. This decreasing P/OP ratio suggests an improving valuation relative to operating profit, implying that the stock became less expensive per unit of operating profit over the analyzed timeframe.

Overall Financial Insights

The data reveal a fluctuating financial performance with cycles of improved profitability followed by periods of challenges. The initial loss in operating profit per share was overcome with positive earnings through 2022 and 2023, accompanied by a high yet gradually declining valuation multiple. The sharp return to negative operating profit in 2024 indicates operational or market difficulties during that period, coinciding with a lower share price. The recovery in 2025 with a renewed positive operating profit and further compression of the P/OP ratio indicates a potential restoration of investor confidence and operational efficiency, though share prices remained below earlier highs, reflecting a cautious market sentiment.

The share price of the company exhibited fluctuations over the observed quarters, initially rising from $62.89 to a peak near $75.27 by early 2022. Following this period, a steady downward trend is noticeable, with the share price declining significantly to a low of $43.31 by mid-2025, despite occasional minor recoveries. This indicates a general weakening in market valuation over the long term, particularly after the peak in early 2022.

Sales per share demonstrated a consistent upward trend throughout the entire period. Starting at $19.17 in early 2021, sales per share increased nearly every quarter, reaching $23.60 by mid-2025. This steady growth in sales per share suggests ongoing improvement in the company’s revenue generation on a per-share basis, indicating positive operational performance and potential growth in business activities.

The price-to-sales (P/S) ratio shows a pattern somewhat aligned with the share price movements but with an overall declining trend. Initially, the P/S ratio increased up to 3.44 by mid-2021, then experienced fluctuations declining steadily to below 2.0 by early 2024. Despite a slight recovery in mid-2024, the ratio again declined to around 1.85 by mid-2025. The decreasing P/S ratio paired with rising sales per share and decreasing share price implies that while sales are growing, the market price is not keeping pace, reflecting reduced investor valuation multiples placed on the company's sales figures.

Summary of Trends

The share price peaked early in the time frame but declined steadily in the following years, suggesting market concerns or external factors affecting investment sentiment.

Sales per share consistently increased, reflecting solid revenue growth on a per-share basis and indicating operational strength.

The P/S ratio decreased gradually, indicating that the company is being valued lower relative to its sales, which might reflect diminishing investor confidence or broader market valuation adjustments.

Overall, the data suggests that while the company has demonstrated strong sales growth, market perception expressed through share price and valuation multiples has weakened. This divergence could point to external market pressures, changes in industry outlook, or company-specific risk factors influencing investor sentiment beyond the fundamental sales performance.

Share Price Trends

The share price exhibited considerable volatility over the observed periods. Initially, it increased from $62.89 at the end of Q1 2021 to a peak of $75.27 by Q1 2022. Subsequently, a downward trend followed, with the price decreasing steadily to a low of $44.7 by Q1 2024. After this low point, the share price saw a moderate recovery, climbing to a high of $56.15 by Q4 2024. However, in the final quarters analyzed, the price declined again, reaching $45.62 by Q3 2025. Overall, the share price demonstrated fluctuations with peaks around early 2022 and late 2024 and notable declines in mid-2023 and early 2024.

Book Value Per Share (BVPS) Trends

Book value per share (BVPS) showed a relatively stable, yet slightly declining trend from Q1 2021 through Q4 2023, fluctuating around $15 to $16.8. A significant drop occurred between Q4 2023 and Q1 2024, where BVPS fell sharply from approximately $14.55 to $8.13. Following this, the BVPS remained relatively flat with minor increases, ending at $9.11 in Q3 2025. This indicates a substantial reduction in the company’s book value per share starting in early 2024, with no full recovery observed through Q3 2025.

Price-to-Book Value (P/BV) Ratio Analysis

The price-to-book value ratio (P/BV) initially ranged between approximately 3.48 and 4.15 in 2021. This ratio increased markedly in early 2022, reaching values slightly above 5.0, before gradually declining throughout 2023 to nearly 3.35 by Q4 2023. From Q1 2024 onwards, the P/BV ratio experienced a pronounced increase, peaking at nearly 6.98 by Q4 2024. After that peak, the ratio decreased steadily, ending around 5.01 by Q3 2025. The sharp increase in P/BV starting in 2024 reflects the pronounced drop in book value per share coupled with partial fluctuations in share price, resulting in a higher market valuation relative to its book value.

Overall Observations

The data indicates a period of growth in market valuation up to early 2022, followed by a decline in share price through 2023. The significant reduction in book value per share starting in early 2024 is a critical event that strongly impacted valuation metrics, causing the P/BV ratio to inflate substantially. Despite some recovery in share price during late 2024, the book value did not recover similarly, causing the P/BV to remain elevated compared to earlier periods. The trends suggest increased market valuation volatility, combined with underlying declines in net asset value reflected in book value per share. This situation warrants a closer examination of underlying factors affecting book value and investor sentiment driving the price fluctuations.