ASTRAZENECA PLC-SPONS ADR (AZN) Stock Fundamental Analysis
NASDAQ:AZN - Nasdaq - US0463531089 - ADR - Currency: USD
Overall AZN gets a fundamental rating of 6 out of 10. We evaluated AZN against 195 industry peers in the Pharmaceuticals industry. AZN scores excellent on profitability, but there are concerns on its financial health. AZN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year AZN was profitable.
AZN had a positive operating cash flow in the past year.
In the past 5 years AZN has always been profitable.
In the past 5 years AZN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AZN (7.31%) is better than 91.28% of its industry peers.
Looking at the Return On Equity, with a value of 18.94%, AZN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
AZN's Return On Invested Capital of 14.10% is amongst the best of the industry. AZN outperforms 92.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AZN is below the industry average of 14.87%.
The last Return On Invested Capital (14.10%) for AZN is above the 3 year average (11.62%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 14.14%, AZN belongs to the best of the industry, outperforming 90.26% of the companies in the same industry.
AZN's Profit Margin has improved in the last couple of years.
AZN has a better Operating Margin (24.05%) than 90.26% of its industry peers.
AZN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 82.36%, AZN belongs to the best of the industry, outperforming 88.72% 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 | 24.05% | ||
| 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.
AZN has about the same amout of shares outstanding than it did 1 year ago.
AZN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AZN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.98 indicates that AZN is not a great score, but indicates only limited risk for bankruptcy at the moment.
AZN's Altman-Z score of 2.98 is fine compared to the rest of the industry. AZN outperforms 75.38% 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.
With an excellent Debt to FCF ratio value of 3.46, AZN belongs to the best of the industry, outperforming 89.74% of the companies in the same industry.
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 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.64
WACC8.59%
2.3 Liquidity
A Current Ratio of 0.90 indicates that AZN may have some problems paying its short term obligations.
With a Current ratio value of 0.90, AZN is not doing good in the industry: 85.64% of the companies in the same industry are doing better.
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 86.15% 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.
AZN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.59% yearly.
Looking at the last year, AZN shows a quite strong growth in Revenue. The Revenue has grown by 15.48% in the last year.
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
AZN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.35% yearly.
Based on estimates for the next years, AZN will show a small growth in Revenue. The Revenue will grow by 6.34% on average per year.
EPS Next Y12.48%
EPS Next 2Y12.94%
EPS Next 3Y11.87%
EPS Next 5Y11.35%
Revenue Next Year8.37%
Revenue Next 2Y7.23%
Revenue Next 3Y6.74%
Revenue Next 5Y6.34%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AZN is valuated correctly with a Price/Earnings ratio of 16.05.
84.62% of the companies in the same industry are more expensive than AZN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.65. AZN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.40 indicates a correct valuation of AZN.
AZN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AZN is cheaper than 80.00% of the companies in the same industry.
AZN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 13.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AZN is valued cheaper than 83.08% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZN indicates a rather cheap valuation: AZN is cheaper than 81.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.97 | ||
| EV/EBITDA | 12.22 |
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.
PEG (NY)1.29
PEG (5Y)0.86
EPS Next 2Y12.94%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
AZN has a Yearly Dividend Yield of 2.33%.
Compared to an average industry Dividend Yield of 4.14, AZN pays a better dividend. On top of this AZN pays more dividend than 92.31% 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 | 2.33% |
5.2 History
The dividend of AZN has a limited annual growth rate of 1.40%.
AZN has paid a dividend for at least 10 years, which is 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%
70.64
+0.69 (+0.99%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners46.88%
Inst Owner Change-1.12%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap219.01B
Analysts82.29
Price Target90.73 (28.44%)
Short Float %0.23%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)-3.04%
PT rev (3m)0.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 13.4 | ||
| P/S | 3.98 | ||
| P/FCF | 23.97 | ||
| P/OCF | 16.73 | ||
| P/B | 5.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.22 |
EPS(TTM)4.4
EY6.23%
EPS(NY)5.27
Fwd EY7.46%
FCF(TTM)2.95
FCFY4.17%
OCF(TTM)4.22
OCFY5.98%
SpS17.73
BVpS13.24
TBVpS-5.69
PEG (NY)1.29
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 | 2.98 |
F-Score9
WACC8.59%
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)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 5Y11.35%
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 5Y6.34%
EBIT growth 1Y42.22%
EBIT growth 3Y37.28%
EBIT growth 5Y27.35%
EBIT Next Year34.44%
EBIT Next 3Y17.32%
EBIT Next 5Y14.19%
FCF growth 1Y51.52%
FCF growth 3Y24.58%
FCF growth 5Y70.22%
OCF growth 1Y34.8%
OCF growth 3Y25.76%
OCF growth 5Y31.92%