Becton, Dickinson and Company

BDX pitch long Gavin Baker, Atreides Management

Thesis

Becton Dickinson is a medical device company trading at around 12.5 times next-twelve months earnings, which is cheap for a quality compounder. The company is poised for earnings growth due to an operational efficiency program and the sale of its biosciences business, which will enhance margins and allow for stock buybacks. The medical device industry is currently undervalued compared to the broader market, making it a rich hunting ground for investments.

Did it work?

inconclusive confidence: low

Without specific price performance data or a defined time horizon for the thesis, it's difficult to assess whether the investment thesis has played out. The factors mentioned, such as operational efficiency and the sale of the biosciences business, could potentially enhance margins and support earnings growth, but without concrete results or time elapsed, the outcome remains uncertain.

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