ASTRAZENECA PLC-SPONS ADR (AZN) Stock Fundamental Analysis
USA - NASDAQ:AZN - US0463531089 - ADR
82.4 USD
+0.06 (+0.07%)
81.73 USD
-0.67 (-0.81%)
We assign a fundamental rating of 6 out of 10 to AZN. AZN was compared to 192 industry peers in the Pharmaceuticals industry. While AZN has a great profitability rating, there are some minor concerns on its financial health. AZN has a decent growth rate and is not valued too expensively. AZN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AZN was profitable.
In the past year AZN had a positive cash flow from operations.
Each year in the past 5 years AZN has been profitable.
In the past 5 years AZN always reported a positive cash flow from operatings.
1.2 Ratios
AZN's Return On Assets of 7.38% is amongst the best of the industry. AZN outperforms 90.63% of its industry peers.
With an excellent Return On Equity value of 18.55%, AZN belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.26%, AZN belongs to the top of the industry, outperforming 92.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AZN is below the industry average of 15.40%.
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 has a better Profit Margin (14.68%) than 89.06% of its industry peers.
AZN's Profit Margin has improved in the last couple of years.
AZN's Operating Margin of 24.39% is amongst the best of the industry. AZN outperforms 90.63% of its industry peers.
AZN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 82.07%, AZN belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
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 | 24.39% | ||
| 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
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.
The number of shares outstanding for AZN has been increased compared to 5 years ago.
The debt/assets ratio for AZN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.24 indicates that AZN is not in any danger for bankruptcy at the moment.
AZN has a Altman-Z score of 3.24. This is in the better half of the industry: AZN outperforms 70.31% of its industry peers.
AZN has a debt to FCF ratio of 4.01. This is a neutral value as AZN would need 4.01 years to pay back of all of its debts.
AZN's Debt to FCF ratio of 4.01 is amongst the best of the industry. AZN outperforms 86.98% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that AZN is somewhat dependend on debt financing.
AZN has a worse Debt to Equity ratio (0.63) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 3.24 |
ROIC/WACC1.62
WACC8.78%
2.3 Liquidity
AZN has a Current Ratio of 0.86. 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 worse Current ratio (0.86) than 86.98% of its industry peers.
AZN has a Quick Ratio of 0.86. 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 0.67. This is amonst the worse of the industry: AZN underperforms 86.46% 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.
The Revenue has been growing by 17.27% on average over the past years. This is quite good.
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
AZN is valuated rather expensively with a Price/Earnings ratio of 18.56.
83.85% of the companies in the same industry are more expensive than AZN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.11, AZN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.46, AZN is valued correctly.
Based on the Price/Forward Earnings ratio, AZN is valued cheaply inside the industry as 81.77% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AZN to the average of the S&P500 Index (22.55), we can say AZN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.56 | ||
| Fwd PE | 15.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AZN is valued cheaply inside the industry as 83.85% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZN indicates a somewhat cheap valuation: AZN is cheaper than 79.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.22 | ||
| EV/EBITDA | 13.54 |
4.3 Compensation for Growth
AZN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AZN may justify a higher PE ratio.
AZN's earnings are expected to grow with 12.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)1
EPS Next 2Y13.62%
EPS Next 3Y12.75%
5. Dividend
5.1 Amount
AZN has a Yearly Dividend Yield of 1.95%. Purely for dividend investing, there may be better candidates out there.
AZN's Dividend Yield is rather good when compared to the industry average which is at 6.54. AZN pays more dividend than 92.71% of the companies in the same industry.
AZN's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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
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%
82.4
+0.06 (+0.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners48.98%
Inst Owner Change0.21%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap255.48B
Revenue(TTM)56.50B
Net Income(TTM)8.29B
Analysts81.82
Price Target91.56 (11.12%)
Short Float %0.23%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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)-1.58%
PT rev (3m)0.94%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)1.18%
EPS NY rev (1m)0%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.56 | ||
| Fwd PE | 15.46 | ||
| P/S | 4.52 | ||
| P/FCF | 31.22 | ||
| P/OCF | 19.08 | ||
| P/B | 5.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.54 |
EPS(TTM)4.44
EY5.39%
EPS(NY)5.33
Fwd EY6.47%
FCF(TTM)2.64
FCFY3.2%
OCF(TTM)4.32
OCFY5.24%
SpS18.22
BVpS14.42
TBVpS-4.65
PEG (NY)1.35
PEG (5Y)1
Graham Number37.96
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%
ROICexgc growth 3Y43.28%
ROICexgc 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 | 3.24 |
F-Score7
WACC8.78%
ROIC/WACC1.62
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%
ASTRAZENECA PLC-SPONS ADR / AZN FAQ
What is the fundamental rating for AZN stock?
ChartMill assigns a fundamental rating of 6 / 10 to AZN.
What is the valuation status of ASTRAZENECA PLC-SPONS ADR (AZN) stock?
ChartMill assigns a valuation rating of 6 / 10 to ASTRAZENECA PLC-SPONS ADR (AZN). This can be considered as Fairly Valued.
Can you provide the profitability details for ASTRAZENECA PLC-SPONS ADR?
ASTRAZENECA PLC-SPONS ADR (AZN) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for AZN stock?
The Price/Earnings (PE) ratio for ASTRAZENECA PLC-SPONS ADR (AZN) is 18.56 and the Price/Book (PB) ratio is 5.71.
How financially healthy is ASTRAZENECA PLC-SPONS ADR?
The financial health rating of ASTRAZENECA PLC-SPONS ADR (AZN) is 4 / 10.