ASTRAZENECA PLC-SPONS ADR (AZN)
US0463531089 - ADR
AZN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 198 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 correct valuation and a medium growth rate.
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.
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
With an excellent Return On Assets value of 5.89%, AZN belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
With an excellent Return On Equity value of 15.21%, AZN belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
AZN's Return On Invested Capital of 9.97% is amongst the best of the industry. AZN outperforms 90.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZN is significantly below the industry average of 16.40%.
The 3 year average ROIC (8.91%) for AZN is below the current ROIC(9.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 15.21% | ||
| ROIC | 9.97% |
ROA(3y)3.13%
ROA(5y)3.27%
ROE(3y)8.13%
ROE(5y)11%
ROIC(3y)8.91%
ROIC(5y)8.48%
1.3 Margins
The Profit Margin of AZN (13.00%) is better than 89.74% of its industry peers.
In the last couple of years the Profit Margin of AZN has grown nicely.
The Operating Margin of AZN (17.91%) is better than 87.69% of its industry peers.
In the last couple of years the Operating Margin of AZN has grown nicely.
AZN has a better Gross Margin (82.39%) than 85.13% of its industry peers.
AZN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.91% | ||
| PM (TTM) | 13% | ||
| GM | 82.39% |
OM growth 3Y5.6%
OM growth 5Y12.05%
PM growth 3Y2.68%
PM growth 5Y5.91%
GM growth 3Y0.9%
GM growth 5Y0.4%
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.
Compared to 5 years ago, AZN has more shares outstanding
Compared to 1 year ago, AZN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.84 indicates that AZN is not a great score, but indicates only limited risk for bankruptcy at the moment.
AZN has a Altman-Z score of 2.84. This is in the better half of the industry: AZN outperforms 74.87% of its industry peers.
The Debt to FCF ratio of AZN is 4.36, which is a neutral value as it means it would take AZN, 4.36 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 4.36, AZN belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that AZN is somewhat dependend on debt financing.
AZN's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. AZN is outperformed by 65.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.36 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.24
WACC8.07%
2.3 Liquidity
AZN has a Current Ratio of 0.82. 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 0.82. This is amonst the worse of the industry: AZN underperforms 91.79% of its industry peers.
AZN has a Quick Ratio of 0.82. This is a bad value and indicates that AZN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AZN (0.64) is worse than 88.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.86% 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 15.95% yearly.
The Revenue has been growing slightly by 3.29% in the past year.
The Revenue has been growing by 15.71% on average over the past years. This is quite good.
EPS 1Y (TTM)8.86%
EPS 3Y21.72%
EPS 5Y15.95%
EPS growth Q2Q5.07%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y19.84%
Revenue growth 5Y15.71%
Revenue growth Q2Q7.29%
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 10.63% yearly.
AZN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.
EPS Next Y15.7%
EPS Next 2Y14.6%
EPS Next 3Y12.43%
EPS Next 5Y10.63%
Revenue Next Year10.61%
Revenue Next 2Y8.95%
Revenue Next 3Y7.57%
Revenue Next 5Y6.09%
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
A Price/Earnings ratio of 20.44 indicates a rather expensive valuation of AZN.
84.10% of the companies in the same industry are more expensive than AZN, based on the Price/Earnings ratio.
AZN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.69 indicates a rather expensive valuation of AZN.
Based on the Price/Forward Earnings ratio, AZN is valued cheaper than 83.59% of the companies in the same industry.
AZN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 17.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AZN is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
80.51% of the companies in the same industry are more expensive than AZN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.42 | ||
| EV/EBITDA | 17.86 |
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.
AZN's earnings are expected to grow with 12.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)1.28
EPS Next 2Y14.6%
EPS Next 3Y12.43%
5. Dividend
5.1 Amount
AZN has a Yearly Dividend Yield of 2.28%.
AZN's Dividend Yield is rather good when compared to the industry average which is at 4.45. AZN pays more dividend than 91.79% of the companies in the same industry.
AZN's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
The dividend of AZN has a limited annual growth rate of 1.00%.
AZN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of AZN decreased in the last 3 years.
Dividend Growth(5Y)1%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
75.25% 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.
DP75.25%
EPS Next 2Y14.6%
EPS Next 3Y12.43%
ASTRAZENECA PLC-SPONS ADR
NASDAQ:AZN (4/25/2024, 7:00:01 PM)
After market: 74.78 -0.25 (-0.33%)75.03
+3.83 (+5.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap232.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 17.69 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.3
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 15.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.91% | ||
| PM (TTM) | 13% | ||
| GM | 82.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.86%
EPS 3Y21.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.29%
Revenue growth 3Y19.84%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y