ASTRAZENECA PLC-SPONS ADR (AZN) Stock Fundamental Analysis
NASDAQ:AZN - Nasdaq - US0463531089 - ADR - Currency: USD
Taking everything into account, AZN scores 6 out of 10 in our fundamental rating. AZN was compared to 197 industry peers in the Pharmaceuticals industry. While AZN belongs to the best of the industry regarding profitability, there are concerns on its financial health. AZN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
AZN had positive earnings in the past year.
In the past year AZN had a positive cash flow from operations.
AZN had positive earnings in each of the past 5 years.
In the past 5 years AZN always reported a positive cash flow from operatings.
1.2 Ratios
AZN has a Return On Assets of 7.31%. This is amongst the best in the industry. AZN outperforms 90.86% of its industry peers.
AZN has a better Return On Equity (18.94%) than 91.88% of its industry peers.
The Return On Invested Capital of AZN (14.10%) is better than 90.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZN is significantly below the industry average of 42.34%.
The 3 year average ROIC (11.62%) for AZN is below the current ROIC(14.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 18.94% | ||
| ROIC | 14.1% |
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 has a better Profit Margin (14.14%) than 90.36% of its industry peers.
In the last couple of years the Profit Margin of AZN has grown nicely.
AZN has a Operating Margin of 24.05%. This is amongst the best in the industry. AZN outperforms 89.34% of its industry peers.
In the last couple of years the Operating Margin of AZN has grown nicely.
AZN's Gross Margin of 82.36% is amongst the best of the industry. AZN outperforms 87.31% of its industry peers.
In the last couple of years the Gross Margin of AZN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.05% | ||
| PM (TTM) | 14.14% | ||
| GM | 82.36% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AZN is still creating some value.
The number of shares outstanding for AZN remains at a similar level compared to 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 2.99. This is not the best score and indicates that AZN is in the grey zone with still only limited risk for bankruptcy at the moment.
AZN has a better Altman-Z score (2.99) than 75.13% of its industry peers.
The Debt to FCF ratio of AZN is 3.46, which is a good value as it means it would take AZN, 3.46 years of fcf income to pay off all of its debts.
AZN has a better Debt to FCF ratio (3.46) than 89.34% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that AZN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, AZN is doing worse than 65.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.65
WACC8.56%
2.3 Liquidity
AZN has a Current Ratio of 0.90. This is a bad value and indicates that AZN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.90, AZN is doing worse than 84.26% of the companies in the same industry.
AZN has a Quick Ratio of 0.90. This is a bad value and indicates that AZN is not financially healthy enough and could expect problems in meeting its short term obligations.
AZN has a Quick ratio of 0.70. This is amonst the worse of the industry: AZN underperforms 85.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.27% 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 15.48% in the past year. This is quite good.
The Revenue has been growing by 17.27% on average over the past years. This is quite good.
EPS 1Y (TTM)18.27%
EPS 3Y15.85%
EPS 5Y18.59%
EPS Q2Q%25.73%
Revenue 1Y (TTM)15.48%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%7.17%
3.2 Future
Based on estimates for the next years, AZN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.41% on average per year.
The Revenue is expected to grow by 6.41% on average over the next years.
EPS Next Y12.48%
EPS Next 2Y12.94%
EPS Next 3Y11.87%
EPS Next 5Y11.41%
Revenue Next Year8.37%
Revenue Next 2Y7.23%
Revenue Next 3Y6.74%
Revenue Next 5Y6.41%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 16.00, AZN is valued correctly.
84.77% of the companies in the same industry are more expensive than AZN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AZN to the average of the S&P500 Index (26.35), we can say AZN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.35, AZN is valued correctly.
AZN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AZN is cheaper than 81.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, AZN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 13.35 |
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 82.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AZN is valued cheaply inside the industry as 81.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.88 | ||
| EV/EBITDA | 12.27 |
4.3 Compensation for Growth
AZN's 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.
PEG (NY)1.28
PEG (5Y)0.86
EPS Next 2Y12.94%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, AZN has a reasonable but not impressive dividend return.
AZN's Dividend Yield is rather good when compared to the industry average which is at 4.20. AZN pays more dividend than 92.39% of the companies in the same industry.
AZN's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.4%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
63.60% of the earnings are spent on dividend by AZN. This is not a sustainable payout ratio.
AZN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.6%
EPS Next 2Y12.94%
EPS Next 3Y11.87%
70.38
-0.58 (-0.82%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners47.67%
Inst Owner Change-1.12%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap218.21B
Analysts82.29
Price Target93.58 (32.96%)
Short Float %0.16%
Short Ratio0.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend2.99
Dividend Growth(5Y)1.4%
DP63.6%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.54%
Min EPS beat(2)-0.63%
Max EPS beat(2)13.71%
EPS beat(4)2
Avg EPS beat(4)2.95%
Min EPS beat(4)-1.9%
Max EPS beat(4)13.71%
EPS beat(8)5
Avg EPS beat(8)2.79%
EPS beat(12)9
Avg EPS beat(12)4.04%
EPS beat(16)11
Avg EPS beat(16)2.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.64%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)2.7%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)2.7%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)4
Avg Revenue beat(12)-0.55%
Revenue beat(16)8
Avg Revenue beat(16)0.72%
PT rev (1m)0.98%
PT rev (3m)10.84%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 13.35 | ||
| P/S | 3.97 | ||
| P/FCF | 23.88 | ||
| P/OCF | 16.67 | ||
| P/B | 5.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.27 |
EPS(TTM)4.4
EY6.25%
EPS(NY)5.27
Fwd EY7.49%
FCF(TTM)2.95
FCFY4.19%
OCF(TTM)4.22
OCFY6%
SpS17.73
BVpS13.24
TBVpS-5.69
PEG (NY)1.28
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 18.94% | ||
| ROCE | 17.15% | ||
| ROIC | 14.1% | ||
| ROICexc | 15.14% | ||
| ROICexgc | 76.66% | ||
| OM | 24.05% | ||
| PM (TTM) | 14.14% | ||
| GM | 82.36% | ||
| FCFM | 16.62% |
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-Score9
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.46 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 58.81% | ||
| Cap/Sales | 7.18% | ||
| Interest Coverage | 9.49 | ||
| Cash Conversion | 65.63% | ||
| Profit Quality | 117.58% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.99 |
F-Score9
WACC8.56%
ROIC/WACC1.65
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)18.27%
EPS 3Y15.85%
EPS 5Y18.59%
EPS Q2Q%25.73%
EPS Next Y12.48%
EPS Next 2Y12.94%
EPS Next 3Y11.87%
EPS Next 5Y11.41%
Revenue 1Y (TTM)15.48%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%7.17%
Revenue Next Year8.37%
Revenue Next 2Y7.23%
Revenue Next 3Y6.74%
Revenue Next 5Y6.41%
EBIT growth 1Y42.22%
EBIT growth 3Y37.28%
EBIT growth 5Y27.35%
EBIT Next Year34.44%
EBIT Next 3Y17.32%
EBIT Next 5Y13.31%
FCF growth 1Y51.52%
FCF growth 3Y24.58%
FCF growth 5Y70.22%
OCF growth 1Y34.8%
OCF growth 3Y25.76%
OCF growth 5Y31.92%