ASTRAZENECA PLC-SPONS ADR (AZN) Stock Fundamental Analysis
USA - NASDAQ:AZN - US0463531089 - ADR
85.31 USD
+1.66 (+1.98%)
85.31 USD
0 (0%)
Taking everything into account, AZN scores 6 out of 10 in our fundamental rating. AZN was compared to 196 industry peers in the Pharmaceuticals industry. While AZN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AZN is not valued too expensively and it also shows a decent growth rate. Finally AZN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AZN had positive earnings in the past year.
AZN had a positive operating cash flow in the past year.
In the past 5 years AZN has always been profitable.
AZN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AZN has a Return On Assets of 7.38%. This is amongst the best in the industry. AZN outperforms 90.86% of its industry peers.
The Return On Equity of AZN (18.55%) is better than 91.37% of its industry peers.
AZN has a better Return On Invested Capital (14.26%) than 92.89% of its industry peers.
AZN had an Average Return On Invested Capital over the past 3 years of 11.62%. This is below the industry average of 15.30%.
The last Return On Invested Capital (14.26%) for AZN is above the 3 year average (11.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 18.55% | ||
| ROIC | 14.26% |
ROA(3y)5.35%
ROA(5y)4.19%
ROE(3y)13.78%
ROE(5y)12.42%
ROIC(3y)11.62%
ROIC(5y)9.52%
1.3 Margins
AZN's Profit Margin of 14.68% is amongst the best of the industry. AZN outperforms 89.34% of its industry peers.
AZN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.39%, AZN belongs to the top of the industry, outperforming 90.86% of the companies in the same industry.
AZN's Operating Margin has improved in the last couple of years.
AZN has a better Gross Margin (82.07%) than 85.79% of its industry peers.
AZN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.39% | ||
| PM (TTM) | 14.68% | ||
| GM | 82.07% |
OM growth 3Y21.43%
OM growth 5Y8.6%
PM growth 3Y251.6%
PM growth 5Y18.9%
GM growth 3Y3.31%
GM growth 5Y0.47%
2. Health
2.1 Basic Checks
AZN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AZN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AZN has more shares outstanding
Compared to 1 year ago, AZN has a worse debt to assets ratio.
2.2 Solvency
AZN has an Altman-Z score of 3.32. This indicates that AZN is financially healthy and has little risk of bankruptcy at the moment.
AZN has a Altman-Z score of 3.32. This is in the better half of the industry: AZN outperforms 72.59% of its industry peers.
The Debt to FCF ratio of AZN is 4.01, which is a neutral value as it means it would take AZN, 4.01 years of fcf income to pay off all of its debts.
AZN's Debt to FCF ratio of 4.01 is amongst the best of the industry. AZN outperforms 87.31% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that AZN is somewhat dependend on debt financing.
The Debt to Equity ratio of AZN (0.63) is worse than 64.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 3.32 |
ROIC/WACC1.64
WACC8.72%
2.3 Liquidity
A Current Ratio of 0.86 indicates that AZN may have some problems paying its short term obligations.
AZN's Current ratio of 0.86 is on the low side compared to the rest of the industry. AZN is outperformed by 85.79% of its industry peers.
A Quick Ratio of 0.67 indicates that AZN may have some problems paying its short term obligations.
AZN has a Quick ratio of 0.67. This is amonst the worse of the industry: AZN underperforms 85.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.30% over the past year.
Measured over the past years, AZN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.59% on average per year.
The Revenue has grown by 15.00% in the past year. This is quite good.
Measured over the past years, AZN shows a quite strong growth in Revenue. The Revenue has been growing by 17.27% on average per year.
EPS 1Y (TTM)22.3%
EPS 3Y15.85%
EPS 5Y18.59%
EPS Q2Q%9.6%
Revenue 1Y (TTM)15%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%11.74%
3.2 Future
The Earnings Per Share is expected to grow by 12.44% on average over the next years. This is quite good.
Based on estimates for the next years, AZN will show a small growth in Revenue. The Revenue will grow by 7.04% on average per year.
EPS Next Y13.74%
EPS Next 2Y13.62%
EPS Next 3Y12.75%
EPS Next 5Y12.44%
Revenue Next Year9.63%
Revenue Next 2Y7.79%
Revenue Next 3Y7.1%
Revenue Next 5Y7.04%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.21, the valuation of AZN can be described as rather expensive.
Based on the Price/Earnings ratio, AZN is valued cheaper than 82.74% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.86, AZN is valued a bit cheaper.
AZN is valuated correctly with a Price/Forward Earnings ratio of 16.01.
Based on the Price/Forward Earnings ratio, AZN is valued a bit cheaper than 79.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AZN to the average of the S&P500 Index (23.32), we can say AZN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZN indicates a rather cheap valuation: AZN is cheaper than 83.25% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AZN is valued a bit cheaper than the industry average as 79.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.32 | ||
| EV/EBITDA | 13.98 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AZN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AZN's earnings are expected to grow with 12.75% in the coming years.
PEG (NY)1.4
PEG (5Y)1.03
EPS Next 2Y13.62%
EPS Next 3Y12.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, AZN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.27, AZN pays a better dividend. On top of this AZN pays more dividend than 91.37% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, AZN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of AZN has a limited annual growth rate of 1.40%.
AZN has been paying a dividend for at least 10 years, so it has a reliable track record.
AZN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.4%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
59.51% of the earnings are spent on dividend by AZN. This is a bit on the high side, but may be sustainable.
The dividend of AZN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.51%
EPS Next 2Y13.62%
EPS Next 3Y12.75%
85.31
+1.66 (+1.98%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners48.98%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap264.50B
Analysts81.82
Price Target90.41 (5.98%)
Short Float %0.26%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend2.99
Dividend Growth(5Y)1.4%
DP59.51%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.79%
Min EPS beat(2)-1.74%
Max EPS beat(2)9.32%
EPS beat(4)2
Avg EPS beat(4)1.9%
Min EPS beat(4)-1.74%
Max EPS beat(4)9.32%
EPS beat(8)4
Avg EPS beat(8)1.17%
EPS beat(12)8
Avg EPS beat(12)2.95%
EPS beat(16)11
Avg EPS beat(16)2.52%
Revenue beat(2)0
Avg Revenue beat(2)-2.11%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)-0.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)2.7%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)4
Avg Revenue beat(12)-0.55%
Revenue beat(16)7
Avg Revenue beat(16)0.32%
PT rev (1m)-0.6%
PT rev (3m)-0.35%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)2.26%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 16.01 | ||
| P/S | 4.68 | ||
| P/FCF | 32.32 | ||
| P/OCF | 19.76 | ||
| P/B | 5.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.98 |
EPS(TTM)4.44
EY5.2%
EPS(NY)5.33
Fwd EY6.25%
FCF(TTM)2.64
FCFY3.09%
OCF(TTM)4.32
OCFY5.06%
SpS18.22
BVpS14.42
TBVpS-4.65
PEG (NY)1.4
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 18.55% | ||
| ROCE | 17.47% | ||
| ROIC | 14.26% | ||
| ROICexc | 15.63% | ||
| ROICexgc | 78.69% | ||
| OM | 24.39% | ||
| PM (TTM) | 14.68% | ||
| GM | 82.07% | ||
| FCFM | 14.48% |
ROA(3y)5.35%
ROA(5y)4.19%
ROE(3y)13.78%
ROE(5y)12.42%
ROIC(3y)11.62%
ROIC(5y)9.52%
ROICexc(3y)12.66%
ROICexc(5y)10.55%
ROICexgc(3y)112.76%
ROICexgc(5y)85.06%
ROCE(3y)13.95%
ROCE(5y)11.45%
ROICexcg growth 3Y43.28%
ROICexcg growth 5Y4.77%
ROICexc growth 3Y41%
ROICexc growth 5Y11.99%
OM growth 3Y21.43%
OM growth 5Y8.6%
PM growth 3Y251.6%
PM growth 5Y18.9%
GM growth 3Y3.31%
GM growth 5Y0.47%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 4.01 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 76.24% | ||
| Cap/Sales | 9.21% | ||
| Interest Coverage | 10.19 | ||
| Cash Conversion | 64.97% | ||
| Profit Quality | 98.66% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.32 |
F-Score7
WACC8.72%
ROIC/WACC1.64
Cap/Depr(3y)61.87%
Cap/Depr(5y)60.41%
Cap/Sales(3y)7.51%
Cap/Sales(5y)7.64%
Profit Quality(3y)144.6%
Profit Quality(5y)772.45%
High Growth Momentum
Growth
EPS 1Y (TTM)22.3%
EPS 3Y15.85%
EPS 5Y18.59%
EPS Q2Q%9.6%
EPS Next Y13.74%
EPS Next 2Y13.62%
EPS Next 3Y12.75%
EPS Next 5Y12.44%
Revenue 1Y (TTM)15%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%11.74%
Revenue Next Year9.63%
Revenue Next 2Y7.79%
Revenue Next 3Y7.1%
Revenue Next 5Y7.04%
EBIT growth 1Y37.03%
EBIT growth 3Y37.28%
EBIT growth 5Y27.35%
EBIT Next Year34.36%
EBIT Next 3Y17.49%
EBIT Next 5Y12.9%
FCF growth 1Y24.74%
FCF growth 3Y24.58%
FCF growth 5Y70.22%
OCF growth 1Y31.54%
OCF growth 3Y25.76%
OCF growth 5Y31.92%