Becton, Dickinson and Company
BDXBecton, Dickinson and Company is a scale-driven medical supplies giant that turns everyday healthcare procedures into dependable cash flow.
Because boring, essential tools often make the most durable 20-year investments.
Business Model
Devices plus services
It sells medical devices and diagnostics equipment, plus recurring consumables and service contracts.
Economic Engine
High cash generation
It converts profits into cash at 1.59 times reported net income, showing strong underlying economics.
Long-Term Lens
Ecosystem durability
The key question is whether its installed base and scale keep competitors from chipping away at margins.
On this page
Company Story
How do Becton, Dickinson and Company's business model and economics hold up on a closer read?
Start with the business itself, then go one layer deeper into the model, the economics, and the long-term case.
“A steady but not flashy healthcare workhorse with durable demand and strong cash flow, but only modest long-term growth.”
What does Becton, Dickinson and Company actually do?
Becton, Dickinson and Company makes the medical tools and testing equipment that hospitals and labs use every day.
- Syringes, needles, and infusion systems used in routine care
- Diagnostic machines and test kits used in labs and hospitals
- Medication management and infection prevention products
Why it matters
Healthcare plumbing
These products are required for basic patient care, which makes demand steady even during economic downturns.
How does Becton, Dickinson and Company make money?
It sells medical devices and then earns recurring revenue from the disposable supplies and services tied to those devices.
- One-time sales of equipment to hospitals and labs
- Ongoing sales of consumables like syringes and test cartridges
- Service and maintenance contracts on installed systems
Economic clue
45.4% gross margin
Healthy gross margins suggest pricing power and scale, not a pure commodity business.
Why do long-term investors keep Becton, Dickinson and Company on the radar?
It sits in the middle of long-term healthcare growth driven by aging populations and rising global medical spending.
- Revenue grew 8.2% year-over-year, with a 3.4% average annual growth over five years
- Free cash flow margin of 12.2%, showing real cash earnings
- 70,000 employees supporting a global hospital footprint
Investor takeaway
Strong cash quality
Free cash flow equals 1.59 times net income, which means reported profits translate into real money.
Based on company financial statements.
Benchmark Comparison
How has Becton, Dickinson and Company performed against common long-term benchmarks?
Once the business case is clear, compare the stock against broad market and alternative long-term baselines.
$1,125
+12.5% total return
$1,753
+75.3% total return
$2,975
+197.5% total return
$1,393
+39.3% total return
| Asset | Total Return | Dollar Value |
|---|---|---|
| BDX | +12.5% | $1,125 |
| S&P 500 | +75.3% | $1,753 |
| Gold | +197.5% | $2,975 |
| Bitcoin | +39.3% | $1,393 |
From Mar 5, 2021 to Mar 6, 2026. Historical price data based on company financial statements and market indices. Each card uses the same starting amount so the comparison stays apples-to-apples.
Investor Fit
How a first-time investor could frame Becton, Dickinson and Company
Before going deeper, decide what kind of business this is, what it tends to suit, and what deserves monitoring over time.
This Can Fit If You Want
- Exposure to long-term healthcare demand without betting on a single drug
- A company that turns steady procedures into reliable cash flow
- Moderate growth paired with durable end markets
Be Careful If You Expect
- Rapid double-digit earnings growth year after year
- Breakthrough innovation that reshapes entire industries
- Huge operating margins like software or biotech leaders
What To Watch Over Time
- Whether operating margin continues expanding from the current 11.8%
- Whether average annual revenue growth stays above the 3.4% five-year trend
- How management balances buybacks, debt reduction, and reinvestment
Key Metrics
Which metrics matter most for Becton, Dickinson and Company right now?
Three durable business metrics that matter more than day-to-day price moves.
3.4% average annual growth (5 years)
-4.2% average annual growth (5 years)
45.4% gross margin
| Metric | Value | Context |
|---|---|---|
| Revenue Growth | 3.4% average annual growth (5 years) | Shows whether the business has been expanding fast enough to create more long-term value. |
| EPS Growth | -4.2% average annual growth (5 years) | Shows whether earnings per share are compounding for owners over time. |
| Margin Quality | 45.4% gross margin | Shows how much room the business has to fund growth, absorb shocks, and stay profitable. |
Based on company financial statements.
Fundamentals
What do Becton, Dickinson and Company's fundamentals say right now?
Core financial markers that explain how the business is performing beneath the stock price.
4.1% ROIC
45.4% gross margin
12.2% FCF margin
Stable to shrinking
| Metric | Value | Interpretation |
|---|---|---|
| Capital Efficiency | 4.1% ROIC | The business is currently showing poor capital efficiency. |
| Profitability | 45.4% gross margin | Healthy gross margins give the company room to invest, price competitively, and absorb shocks. |
| Cash Generation | 12.2% FCF margin | Free cash flow margin shows how much real cash the business keeps after funding operations and investment. |
| Ownership Trend | Stable to shrinking | The company is not currently diluting owners and may be buying back shares instead. |
Based on company financial statements.
Included In Funds
Which ETFs and funds currently hold Becton, Dickinson and Company?
Becton, Dickinson and Company currently appears in these ETF and fund proxies.
SPY
SPDR S&P 500 ETF Trust
IWB
iShares Russell 1000 ETF
Questions & Answers
What questions come up most often about Becton, Dickinson and Company?
Company-specific questions readers often ask about Becton, Dickinson and Company.
Each entry answers a direct question about the business, the long-term thesis, or the risks that matter over time.
It makes and sells medical devices, diagnostic equipment, and everyday hospital supplies such as syringes and testing systems.
Decision Framing
Secondary context after the long-term thesis
Shorter-horizon context and comparison tools, after the core long-term read.
Shorter-horizon price moves, two-sided debate, and comparison tools live here so the page stays anchored on business quality, durability, and BinaPrint fit first.
Investment Thesis
Bull vs Bear
Two-sided framing before any decision.
Current argument weight is balanced.
Bull case
What can work
Healthcare demand is structurally rising as populations age, which steadily increases the need for injections, diagnostics, and hospital procedures that rely on BD products.
An installed base of equipment in hospitals creates recurring consumables revenue, making it harder for competitors to displace BD once systems are embedded.
Scale across 70,000 employees and global distribution allows cost efficiencies that smaller rivals struggle to match.
Strong cash conversion, with free cash flow at 1.59 times net income, provides resilience and capital to reinvest through industry cycles.
Bear case
What can break
Many products such as syringes and basic supplies risk commoditization, which could pressure the 45.4% gross margin over time.
Healthcare systems and governments may push aggressively on pricing to control costs, squeezing the 11.8% operating margin.
Technological shifts toward less invasive treatments or alternative drug delivery methods could reduce demand for certain core products.
Large acquisitions or misallocated capital could burden the balance sheet and dilute returns for years.
Risk Radar
Key Risks
Where downside pressure can build.
Pricing pressure from hospitals and governments could compress the 45.4% gross margin and 11.8% operating margin if reimbursement tightens.
Slower growth, with a five-year average revenue increase of 3.4% and negative 4.2% average annual EPS change, could limit long-term shareholder returns if not improved.
Sizing matters
Risks should be read as scenario inputs, not certainties. Position size and time horizon determine how much of this downside profile is acceptable.
Market Snapshot
Tactical context after the core long-term read.
- Price
- $167.12
- Daily move
- -1.66%
Peer Set
A compact peer list for side-by-side context.
Next Actions
Explore planning scenarios or keep browsing similar companies.