ASTRAZENECA PLC-SPONS ADR (AZN) Stock Fundamental Analysis
NASDAQ:AZN - Nasdaq - US0463531089 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to AZN. AZN was compared to 197 industry peers in the Pharmaceuticals industry. AZN scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on AZN.
1. Profitability
1.1 Basic Checks
AZN had positive earnings in the past year.
AZN had a positive operating cash flow in the past year.
Each year in the past 5 years AZN has been profitable.
AZN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AZN has a better Return On Assets (7.31%) than 90.86% of its industry peers.
AZN has a Return On Equity of 18.94%. This is amongst the best in the industry. AZN outperforms 91.88% of its industry peers.
With an excellent Return On Invested Capital value of 14.10%, AZN belongs to the best of the industry, outperforming 90.86% of the companies in the same industry.
AZN had an Average Return On Invested Capital over the past 3 years of 11.62%. This 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 Profit Margin of 14.14%. This is amongst the best in the industry. AZN outperforms 90.36% of its industry peers.
In the last couple of years the Profit Margin of AZN has grown nicely.
Looking at the Operating Margin, with a value of 24.05%, AZN belongs to the top of the industry, outperforming 89.34% of the companies in the same industry.
AZN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 82.36%, AZN belongs to the top of the industry, outperforming 87.31% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AZN is 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
The debt/assets ratio for AZN is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 2.99, AZN is in the better half of the industry, outperforming 75.63% of the companies in the same industry.
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 Debt to FCF ratio of 3.46. This is amongst the best in the industry. AZN outperforms 89.34% 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.
With a Debt to Equity ratio value of 0.71, AZN is not doing good in the industry: 65.99% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.99 |
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's Current ratio of 0.90 is on the low side compared to the rest of the industry. AZN is outperformed by 84.26% of its industry peers.
A Quick Ratio of 0.70 indicates that AZN may have some problems paying 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
AZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.27%, which is quite good.
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
AZN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.41% yearly.
AZN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.41% yearly.
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.
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
A Price/Earnings ratio of 16.55 indicates a correct valuation of AZN.
Based on the Price/Earnings ratio, AZN is valued cheaply inside the industry as 84.77% of the companies are valued more expensively.
AZN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.81, AZN is valued correctly.
AZN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AZN is cheaper than 82.23% of the companies in the same industry.
AZN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 13.81 |
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.
AZN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AZN is cheaper than 81.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.71 | ||
| EV/EBITDA | 12.26 |
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)1.33
PEG (5Y)0.89
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.
Compared to an average industry Dividend Yield of 4.20, AZN pays a better dividend. On top of this AZN pays more dividend than 92.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 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 their dividend for at least 10 years, which is a reliable track record.
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%
72.83
+1.96 (+2.77%)
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 Cap225.80B
Analysts82.29
Price Target93.58 (28.49%)
Short Float %0.16%
Short Ratio0.8
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)0.98%
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 | 16.55 | ||
| Fwd PE | 13.81 | ||
| P/S | 4.11 | ||
| P/FCF | 24.71 | ||
| P/OCF | 17.25 | ||
| P/B | 5.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.26 |
EPS(TTM)4.4
EY6.04%
EPS(NY)5.27
Fwd EY7.24%
FCF(TTM)2.95
FCFY4.05%
OCF(TTM)4.22
OCFY5.8%
SpS17.73
BVpS13.24
TBVpS-5.69
PEG (NY)1.33
PEG (5Y)0.89
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
WACC8.58%
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%