Disclaimer
Nothing on Old School Value, related pages, emails, or other communications by the author, either written or oral, are intended to be a
recommendation to either buy, hold, or sell any specific security or group of securities. Likewise, nothing herein should be construed as an
endorsement of any financial adviser, investment manager, commercial information provider, transaction service, or brokerage firm.
The findings from this spreadsheet is merely a start to a means of further research and uncovering a great business and investment. Old
School Value holds no responsibility for any investment whatsoever.
Quick Instructions
- Yellow highlighted fields are user input fields. Use these fields to override the default values without messing up formulas and accidently saving
incorrect values
- Press F9 to start calculations. Automatic formula calculations have been turned off in the excel menu to improve start speed and convenience.
- Refer to the manual for trouble shooting issues. The manual contains every possible problem you will encounter or the problem is a variant of what
I have written which is solved the same way. The solutions in the manual has been able to help everyone with a problem thus far.
http://www.oldschoolvalue.com/intrinsic-value-spreadsheets/installation-troubleshooting-guide/
Company Name ticker
Becton Dickinson & Co www.oldschoolvalue.com BDX
8/15/2009 all figures in $Mil
Financial Data
BDX 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM
Income Statement
Revenue $ 3,418.4 $ 3,618.3 $ 3,754.3 $ 4,033.1 $ 4,527.9 $ 4,934.8 $ 5,414.7 $ 5,834.8 $ 6,359.7 $ 7,155.9 $ 7,177.5
COGS $ 1,711.7 $ 1,848.3 $ 1,913.3 $ 2,083.7 $ 2,336.3 $ 2,500.4 $ 2,662.0 $ 2,886.9 $ 3,071.9 $ 3,492.6 $ 3,451.3
COGS (%) 50.1% 51.1% 51.0% 51.7% 51.6% 50.7% 49.2% 49.5% 48.3% 48.8% 48.1%
Gross Profit $ 1,706.7 $ 1,770.0 $ 1,841.0 $ 1,949.4 $ 2,191.7 $ 2,434.4 $ 2,752.7 $ 2,948.0 $ 3,287.8 $ 3,663.4 $ 3,726.2
Gross Profit (%) 49.9% 48.9% 49.0% 48.3% 48.4% 49.3% 50.8% 50.5% 51.7% 51.2% 51.9%
Operating Expenses
SG&A $ 931.9 $ 973.9 $ 983.3 $ 1,032.0 $ 1,207.5 $ 1,311.5 $ 1,449.9 $ 1,537.5 $ 1,602.4 $ 1,715.1 $ 1,728.3
SG&A (%) 27.3% 26.9% 26.2% 25.6% 26.7% 26.6% 26.8% 26.4% 25.2% 24.0% 24.1%
R&D $ 254.0 $ 223.8 $ 211.8 $ 220.2 $ 235.1 $ 235.7 $ 271.6 $ 360.0 $ 482.2 $ 396.2 $ 404.9
R&D (%) 7.4% 6.2% 5.6% 5.5% 5.2% 4.8% 5.0% 6.2% 7.6% 5.5% 5.6%
Other $ 75.5 $ 57.5 NaN $ 21.5 -NaN $ 100.0 $ - $ - $ - $ - $ -
Other (%) 2.2% 1.6% #VALUE! 0.5% #VALUE! 2.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Operating Income $ 445.3 $ 514.8 $ 645.9 $ 675.7 $ 749.1 $ 787.3 $ 1,031.2 $ 1,050.5 $ 1,203.2 $ 1,552.1 $ 1,593.1
Operating Income (%) 13.0% 14.2% 17.2% 16.8% 16.5% 16.0% 19.0% 18.0% 18.9% 21.7% 22.2%
Net Income $ 275.7 $ 392.9 $ 401.7 $ 480.0 $ 547.1 $ 467.4 $ 722.3 $ 752.3 $ 890.0 $ 1,127.0 $ 1,152.6
Net Income (%) 8.1% 10.9% 10.7% 11.9% 12.1% 9.5% 13.3% 12.9% 14.0% 15.7% 16.1%
Diluted EPS, Cont Ops$ $ 1.0 $ 1.5 $ 1.6 $ 1.8 $ 2.1 $ 2.2 $ 2.7 $ 3.0 $ 3.4 $ 4.5 $ 4.8
Diluted EPS$ $ 1.0 $ 1.5 $ 1.5 $ 1.8 $ 2.1 $ 1.8 $ 2.8 $ 2.9 $ 3.5 $ 4.5 $ 4.8
Shares 265 263 269 268 264 264 260 256 255 244 241
Balance Sheet
Assets
Cash and Equiv $ 59.9 $ 49.2 $ 82.1 $ 243.1 $ 519.9 $ 719.4 $ 1,042.9 $ 1,000.3 $ 511.5 $ 830.5 $ 542.7
Short-Term Investments $ 4.7 $ 5.6 $ 4.6 $ 1.9 $ - $ 32.1 $ 86.8 $ 106.4 $ 158.0 $ 199.9 $ 187.5
Accts Rec $ 812.5 $ 751.7 $ 768.1 $ 746.0 $ 781.3 $ 807.4 $ 842.8 $ 885.8 $ 1,083.2 $ 1,079.1 $ 1,062.1
Inventory $ 642.5 $ 678.7 $ 707.7 $ 697.7 $ 795.0 $ 738.8 $ 776.0 $ 875.7 $ 1,052.0 $ 1,080.4 $ 1,180.7
Other Current Assets $ 164.1 $ 175.5 $ 200.5 $ 240.0 $ 242.3 $ 343.7 $ 226.9 $ 317.1 $ 325.9 $ 424.8 $ 434.8
Total Current Assets $ 1,683.7 $ 1,660.7 $ 1,762.9 $ 1,928.7 $ 2,338.6 $ 2,641.3 $ 2,975.3 $ 3,185.3 $ 3,130.6 $ 3,614.7 $ 3,407.8
Net PP&E $ 1,431.2 $ 1,576.1 $ 1,716.0 $ 1,765.7 $ 1,844.8 $ 1,881.0 $ 1,933.7 $ 2,133.6 $ 2,497.3 $ 2,744.5 $ 2,663.1
Intangibles $ 1,034.7 $ 948.1 $ 900.8 $ 1,186.4 $ 1,196.8 $ 1,039.1 $ 966.8 $ 1,090.8 $ 1,234.9 $ 715.4 $ 1,167.2
Other Long-Term Assets $ 287.4 $ 320.2 $ 422.6 $ 159.7 $ 192.1 $ 191.1 $ 196.2 $ 414.9 $ 466.6 $ 838.4 $ 337.8
Total Assets $ 4,437.0 $ 4,505.1 $ 4,802.3 $ 5,040.5 $ 5,572.3 $ 5,752.6 $ 6,072.0 $ 6,824.5 $ 7,329.4 $ 7,912.9 $ 7,575.8
Total Current Liabilities $ 1,329.3 $ 1,353.5 $ 1,264.7 $ 1,252.5 $ 1,043.4 $ 1,050.1 $ 1,299.4 $ 1,576.3 $ 1,478.8 $ 1,416.6 $ 1,510.7
Long-Term Debt $ 954.2 $ 779.6 $ 783.0 $ 803.0 $ 1,184.0 $ 1,171.5 $ 1,060.8 $ 957.0 $ 955.7 $ 953.2 $ 747.7
Other Long-Term
Liabilities $ 384.8 $ 416.0 $ 425.8 $ 497.1 $ 447.9 $ 463.1 $ 427.8 $ 455.0 $ 532.9 $ 607.6 $ 513.5
Total Liabilities $ 2,668.3 $ 2,549.1 $ 2,473.5 $ 2,552.5 $ 2,675.3 $ 2,684.7 $ 2,788.0 $ 2,988.3 $ 2,967.4 $ 2,977.4 $ 2,771.8
Total Equity $ 1,768.7 $ 1,956.0 $ 2,328.8 $ 2,488.0 $ 2,897.0 $ 3,067.9 $ 3,284.0 $ 3,836.2 $ 4,362.0 $ 4,935.6 $ 4,804.0
Total Liabilities & Equity $ 4,437.0 $ 4,505.1 $ 4,802.3 $ 5,040.5 $ 5,572.3 $ 5,752.6 $ 6,072.0 $ 6,824.5 $ 7,329.4 $ 7,913.0 $ 7,575.8
Cash from Operations $ 431.8 $ 615.5 $ 778.7 $ 836.0 $ 905.7 $ 1,100.3 $ 1,223.9 $ 1,076.4 $ 1,236.1 $ 1,688.0 $ 1,527.5
Cash from Investing $ (815.9) $ (403.4) $ (541.9) $ (361.1) $ (349.4) $ (395.2) $ (382.0) $ (786.5) $ (1,018.3) $ (783.0) $ (765.4)
Cash from Financing $ 364.7 $ (219.5) $ (201.1) $ (313.7) $ (291.7) $ (504.4) $ (524.5) $ (342.2) $ (726.0) $ (585.8) $ (751.6)
Currency Adj $ (4.0) $ (3.3) $ (2.7) $ (0.2) $ 12.1 $ 1.6 $ 3.9 $ 9.7 $ 15.0 $ 0.8 $ (26.5)
Change in Cash $ (23.3) $ (10.7) $ 32.9 $ 161.0 $ 276.8 $ 199.5 $ 323.5 $ (42.6) $ (488.8) $ 319.0 $ (18.3)
Free Cash Flow $ 223.0 $ 304.8 $ 336.6 $ 525.2 $ 630.6 $ 558.9 $ 792.2 $ 698.1 $ 774.9 $ 1,002.4 $ 1,072.6
Book Value Per Share $ 6.67 $ 7.44 $ 8.66 $ 9.28 $ 10.97 $ 11.62 $ 12.63 $ 14.99 $ 17.11 $ 20.23 $ 19.93
Company Name ticker
Becton Dickinson & Co BDX
8/15/2009 User Growth www.oldschoolvalue.com all figures in $Mil
10.00%
Desired MOS Growth Discount % Price Share Value Buy under Actual D/C % 52Wk High 52Wk Low
User Input Params
50% 10.0% 9.0% $ 66.39 $ 87.38 $ 43.69 24% $89.24 $58.14
Financial Data
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Income Sheet Data
Revenue $ 3,418.4 $ 3,618.3 $ 3,754.3 $ 4,033.1 $ 4,527.9 $ 4,934.8 $ 5,414.7 $ 5,834.8 $ 6,359.7 $ 7,155.9
Gross Profit $ 1,706.7 $ 1,770.0 $ 1,841.0 $ 1,949.4 $ 2,191.7 $ 2,434.4 $ 2,752.7 $ 2,948.0 $ 3,287.8 $ 3,663.4
Operating Income $ 445.3 $ 514.8 $ 645.9 $ 675.7 $ 749.1 $ 787.3 $ 1,031.2 $ 1,050.5 $ 1,203.2 $ 1,552.1
Net Income $ 275.7 $ 392.9 $ 401.7 $ 480.0 $ 547.1 $ 467.4 $ 722.3 $ 752.3 $ 890.0 $ 1,127.0
Diluted EPS $ 1.0 $ 1.5 $ 1.5 $ 1.8 $ 2.1 $ 1.8 $ 2.8 $ 2.9 $ 3.5 $ 4.5
Margins
Gross Margin 49.93% 48.92% 49.04% 48.34% 48.40% 49.33% 50.84% 50.52% 51.70% 51.19%
Operating Margin 13.03% 14.23% 17.20% 16.75% 16.54% 15.95% 19.04% 18.00% 18.92% 21.69%
Net Margin 8.07% 10.86% 10.70% 11.90% 12.08% 9.47% 13.34% 12.89% 13.99% 15.75%
Current Assets>1.5 times 1.3 1.2 1.4 1.5 2.2 2.5 2.3 2.0 2.1 2.6
Debt Related
Debt to Equity 150.9% 130.3% 106.2% 102.6% 92.3% 87.5% 84.9% 77.9% 68.0% 60.3%
Capitalization Ratio 35.0% 28.5% 25.2% 24.4% 29.0% 27.6% 24.4% 20.0% 18.0% 16.2%
FCF to Debt 8.4% 12.0% 13.6% 20.6% 23.6% 20.8% 28.4% 23.4% 26.1% 33.7%
Multi-Year Performance
2003-2007 2004-2008 2003-2006 2004-2007 2005-2008 2003-2005 2004-2006 2005-2007 2006-2008 Median
Shareholder Equity 16.5% 20.1% 17.3% 15.5% 22.1% 16.7% 16.3% 16.2% 24.0% 16.7%
Free Cash Flow 5.3% 15.7% 3.4% 11.5% 8.2% 12.1% 11.8% -1.1% 19.8% 11.5%
CROIC 16.8% 16.8% 17.9% 16.8% 17.1% 18.9% 16.8% 16.8% 16.8% 16.8%
FCF/Sales 12.2% 12.2% 12.9% 12.1% 13.1% 13.9% 12.0% 12.2% 12.2% 12.2%
ROA 11.7% 12.2% 11.0% 11.9% 12.4% 10.3% 11.7% 12.2% 12.6% 11.9%
ROE 21.1% 21.7% 20.9% 21.4% 22.3% 20.6% 21.1% 21.7% 21.7% 21.4%
Revenue Growth 8.9% 9.7% 8.8% 8.8% 9.7% 9.4% 8.7% 8.4% 10.7% 8.9%
Gross Margin 50.5% 50.8% 49.9% 50.7% 51.0% 49.3% 50.5% 50.8% 51.2% 50.7%
Operating Margin 18.0% 18.9% 17.3% 18.5% 19.0% 16.5% 18.0% 18.9% 18.9% 18.5%
Net Margin 12.9% 13.3% 12.5% 13.1% 13.7% 12.1% 12.9% 13.3% 14.0% 13.1%
Earnings Growth 13.9% 26.0% 12.3% 25.4% 17.2% 15.7% 28.7% 12.2% 23.4% 17.2%
Cash from Ops Growth 8.1% 11.3% 5.9% 4.0% 11.3% 16.2% -1.1% 0.5% 25.2% 8.1%
Company Valuation Free Cash Flow and Tangible Shareholder Equity Trend
Total Value $ 20,931 $4,500.0 $4,220.2
$4,000.0 FCF
Shares Outstanding 239.53
$3,500.0 $3,127.1
Per Share Value $ 87.38 Shareholder Equity
$2,745.4
Margin of Safety 50% $3,000.0
$2,317.2
Purchase Price $ 43.69 $2,500.0 $2,028.8
$1,700.2
Current Price $ 66.39 $2,000.0 $1,428.0 $1,301.6
Actual Discount 24% $1,500.0 $1,007.9 $1,002.4
$734.0 $630.6 $792.2 $698.1 $774.9
$1,000.0 $525.2 $558.9
Enterprise Value $ 16,330.00 $223.0 $304.8 $336.6
Enterprise Value/EBITDA 7.844 $500.0
$-
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Multi-Year Performance Graph
160.0%
Gross Margin Operating Margin Net Margin Earnings Growth ROA ROE
140.0%
21.7% 21.4% 21.1% 21.7%
22.3%
120.0% 21.1% 21.7%
12.2% 20.9% 11.9% 20.6% 11.7% 12.6%
12.4%
100.0% 11.7% 10.3% 12.2%
26.0% 11.0% 25.4% 28.7% 23.4%
17.2%
13.9% 12.2%
12.3% 15.7%
80.0%
12.9% 13.3% 13.1% 13.7% 12.9% 13.3% 14.0%
12.5% 12.1%
40.0%
0.0%
2003-2007 2004-2008 2003-2006 2004-2007 2005-2008 2003-2005 2004-2006 2005-2007 2006-2008
Margin Percentages
60.00%
50.84% 50.52% 51.70% 51.19%
49.93% 48.92% 49.04% 48.34% 48.40% 49.33%
50.00%
Gross Margin
40.00%
Operating Margin
Net Margin
30.00%
21.69%
19.04% 18.00% 18.92%
17.20% 16.75% 16.54% 15.95% 15.75%
20.00% 14.23% 13.99%
13.03% 11.90% 12.08% 13.34% 12.89%
10.86% 10.70% 9.47%
8.07%
10.00%
0.00%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
25.00% 140.0%
120.0%
20.00%
100.0%
15.00% 80.0%
60.0%
10.00%
40.0%
5.00%
20.0%
0.00% 0.0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
$7,000.0
$6,000.0
$5,000.0
$4,000.0
$3,000.0
$2,000.0
$1,000.0
$-
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM
Company Name ticker
Becton Dickinson & Co www.oldschoolvalue.com BDX
8/15/2009 all figures in $Mil
Desired MOS Growth Discount % Price Share Value Buy under Actual D/C % 52Wk High 52Wk Low
50% 10.0% 9% $ 66.39 $ 87.38 $ 43.69 24% $ 89.24 $ 58.14
90
80
70
60
50
40
30
20
10
0
12/2/2002 6/2/2003 12/2/2003 6/2/2004 12/2/2004 6/2/2005 12/2/2005 6/2/2006 12/2/2006 6/2/2007 12/2/2007 6/2/2008 12/2/2008 6/2/2009
Company Name ticker
Becton Dickinson & Co BDX
8/15/2009 User Growth all figures in $Mil
10.00% www.oldschoolvalue.com
Desired MOS Growth Price Actual DC% Share Value Buy under P/B Ratio Net Net Working Capital
User Input Params
66% 10.0% $ 66.39 40% $ 111.27 $ 37.83 3.28 $ (2.73)
Earnings
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
$ 1.04 $ 1.49 $ 1.49 $ 1.79 $ 2.07 $ 1.77 $ 2.77 $ 2.93 $ 3.49 $ 4.46
Diluted EPS
2009 2010 2011 2012
$ 4.20 $ 4.95 $ 5.24 $ 5.78
TTM 2008/09 2007/09 2006/09 2005/09 2004/09 2003/09 2002/09 2001/09 2000/09 1999/09 TTM 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12
16.8% 15.7% 14.0% 12.9% 13.3% 9.5% 12.1% 11.9% 10.7% 10.9% 8.1% 1503.2 1687.1 1269.9 1073.1 1223.9 1100.3 905.7 836.0 778.6 615.5 431.8
% Change 12.5% 8.5% -3.3% 40.8% -21.6% 1.5% 11.2% -1.5% 34.6% -- % Change 32.9% 18.3% -12.3% 11.2% 21.5% 8.3% 7.4% 26.5% 42.5% --
Magic Formula Investing -- Return on Capital Magic Formula Investing -- Earnings Yield
53.8% 55.8% 49.8% 52.8% 52.8% 52.1% 13.0% 12.3% 11.9% 12.2%
46.1% 44.9% 46.3% 47.3% 46.2% 10.8% 10.2% 10.2%
9.0% 8.6% 9.0%
0.0%
Now 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12 Now 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12
46.1% 53.8% 55.8% 44.9% 46.3% 47.3% 46.2% 49.8% 52.8% 52.8% 52.1% 13.0% 12.3% 9.0% 8.6% #VALUE! 9.0% 11.9% 12.2% 10.8% 10.2% 10.2%
% Change -3.6% 24.2% -3.0% -2.0% 2.2% -7.2% -5.6% 0.0% 1.2% -- % Change 36.4% 4.6% #VALUE! #VALUE! -24.6% -2.7% 12.8% 6.3% -0.2% --
2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12 2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12
13.5% 14.2% 12.1% 11.0% 11.9% 8.1% 9.8% 9.5% 9.1% 8.7% 6.2% 23.0% 22.8% 20.4% 19.6% 22.0% 15.4% 19.1% 19.6% 19.2% 20.5% 16.0%
% Change 17.4% 10.0% -7.6% 46.9% -17.3% 3.2% 4.4% 4.6% 40.3% -- % Change 11.8% 4.1% -10.9% 42.9% -19.4% -2.6% 2.1% -6.3% 28.1% --
2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12 2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12
2.7 2.6 2.1 2.0 2.3 2.5 2.2 1.5 1.4 1.2 1.3 2.0 1.8 1.4 1.5 1.7 1.8 1.5 1.0 0.8 0.7 0.8
% Change 20.5% 4.8% -11.7% -9.0% 12.2% 45.6% 10.5% 13.6% -3.1% -- % Change 27.3% -4.1% -13.4% -6.6% 22.5% 50.5% 17.8% 15.0% -7.4% --