ASTRAZENECA PLC-SPONS ADR (AZN) Stock Fundamental Analysis
NASDAQ:AZN - Nasdaq - US0463531089 - ADR - Currency: USD
AZN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 195 industry peers in the Pharmaceuticals industry. While AZN has a great profitability rating, there are some minor 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
AZN had positive earnings in the past year.
In the past year AZN had a positive cash flow from operations.
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
With an excellent Return On Assets value of 7.31%, AZN belongs to the best of the industry, outperforming 91.28% of the companies in the same industry.
The Return On Equity of AZN (18.94%) is better than 92.31% of its industry peers.
AZN's Return On Invested Capital of 14.10% is amongst the best of the industry. AZN outperforms 91.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZN is below the industry average of 14.70%.
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
AZN has a Profit Margin of 14.14%. This is amongst the best in the industry. AZN outperforms 90.77% 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 24.05%, AZN belongs to the top of the industry, outperforming 90.26% of the companies in the same industry.
In the last couple of years the Operating Margin of AZN has grown nicely.
Looking at the Gross Margin, with a value of 82.36%, AZN belongs to the top of the industry, outperforming 88.72% of the companies in the same industry.
AZN's Gross Margin has been stable in the last couple of years.
| 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
AZN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AZN has about the same amount of shares outstanding.
AZN has more shares outstanding than it did 5 years ago.
AZN has a worse debt/assets ratio than last year.
2.2 Solvency
AZN has an Altman-Z score of 3.02. This indicates that AZN is financially healthy and has little risk of bankruptcy at the moment.
AZN has a Altman-Z score of 3.02. This is in the better half of the industry: AZN outperforms 75.90% 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.
The Debt to FCF ratio of AZN (3.46) is better than 89.23% of its industry peers.
AZN has a Debt/Equity ratio of 0.71. This is a neutral value indicating 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 | 3.02 |
ROIC/WACC1.64
WACC8.58%
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.
AZN has a Current ratio of 0.90. This is amonst the worse of the industry: AZN underperforms 85.64% of its industry peers.
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 86.67% 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.
AZN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.48%.
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
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 correctly with a Price/Earnings ratio of 16.32.
AZN's Price/Earnings ratio is rather cheap when compared to the industry. AZN is cheaper than 85.13% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, AZN is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.62, which indicates a correct valuation of AZN.
Based on the Price/Forward Earnings ratio, AZN is valued cheaper than 82.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AZN to the average of the S&P500 Index (22.30), we can say AZN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 13.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AZN is valued cheaply inside the industry as 82.56% of the companies are valued more expensively.
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 | 24.37 | ||
| EV/EBITDA | 12.42 |
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)1.31
PEG (5Y)0.88
EPS Next 2Y12.94%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
AZN has a Yearly Dividend Yield of 2.36%. 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 4.15. AZN pays more dividend than 92.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AZN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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.
The dividend of AZN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.6%
EPS Next 2Y12.94%
EPS Next 3Y11.87%
71.82
-0.11 (-0.15%)
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 Cap222.67B
Analysts82.29
Price Target93.58 (30.3%)
Short Float %0.25%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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%
PT rev (3m)10.84%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-0.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 13.62 | ||
| P/S | 4.05 | ||
| P/FCF | 24.37 | ||
| P/OCF | 17.01 | ||
| P/B | 5.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.42 |
EPS(TTM)4.4
EY6.13%
EPS(NY)5.27
Fwd EY7.34%
FCF(TTM)2.95
FCFY4.1%
OCF(TTM)4.22
OCFY5.88%
SpS17.73
BVpS13.24
TBVpS-5.69
PEG (NY)1.31
PEG (5Y)0.88
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 | 3.02 |
F-Score9
WACC8.58%
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 5Y11.41%
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%