Is BDX a high-quality business?

AlphaMadera's AlphaQuality grade scores Becton, Dickinson and Company on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how BDX compares to a Buffett-style quality bar.

What is Becton, Dickinson and Company's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to BDX based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes BDX a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

BDX - Becton, Dickinson and Company

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $173.19 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C 53.7 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

D+ 39.4

5yr Avg ROIC 4.6% 33/100
Operating Margin Trend -0.01 pp/yr 54/100

Capital Efficiency

Weight: 15%

C 53.9

5yr Avg ROE 6.9% 44/100
5yr Share-Count CAGR -0.4% 71/100

Growth Quality

Weight: 15%

D+ 41.7

5yr Revenue CAGR 3.4% 48/100
5yr EPS CAGR -4.0% 12/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

A- 83.5

5yr FCF Margin 13.0% 77/100
5yr FCF/NI Conversion 1.48x 91/100

Balance Sheet

Weight: 20%

C- 45.1

Net Debt / EBITDA 3.70x 36/100
Interest Coverage (EBIT/Int) 4.07x 56/100
Altman Z-Score 2.24 49/100

Stability

Weight: 15%

B- 66.3

EPS Volatility (σ/μ) 0.40 44/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 1/5 80/100

3 of 5 gurus held; 2 added; 1 trimmed; 2 full exits.

Holders: 3 -2
Avg Δ position: -9.8%
New buys: 0
Full exits: 2

Cooperman sold -100%
Laffont sold -100%
Wood decreased -46%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.