ASTRAZENECA PLC-SPONS ADR (AZN) Stock Fundamental Analysis
NASDAQ:AZN - US0463531089 - ADR
79.66 USD
-1.31 (-1.62%)
81.09 USD
+1.43 (+1.8%)
Taking everything into account, AZN scores 6 out of 10 in our fundamental rating. AZN was compared to 193 industry peers in the Pharmaceuticals industry. AZN scores excellent on profitability, but there are some minor concerns on its financial health. AZN has a correct valuation and a medium growth rate. 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.
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
With an excellent Return On Assets value of 7.38%, AZN belongs to the best of the industry, outperforming 90.67% of the companies in the same industry.
AZN's Return On Equity of 18.55% is amongst the best of the industry. AZN outperforms 91.19% of its industry peers.
With an excellent Return On Invested Capital value of 14.26%, AZN belongs to the best of the industry, outperforming 92.75% 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 15.38%.
The 3 year average ROIC (11.62%) for AZN is below the current ROIC(14.26%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 14.68%, AZN belongs to the top of the industry, outperforming 89.12% 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 (24.39%) than 90.67% of its industry peers.
AZN's Operating Margin has improved in the last couple of years.
The Gross Margin of AZN (82.07%) is better than 86.53% of its industry peers.
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
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.
AZN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AZN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.16 indicates that AZN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.16, AZN is in the better half of the industry, outperforming 73.06% of the companies in the same industry.
The Debt to FCF ratio of AZN is 4.01, which is a neutral value as it means it would take AZN, 4.01 years of fcf income to pay off all of its debts.
AZN has a Debt to FCF ratio of 4.01. This is amongst the best in the industry. AZN outperforms 87.05% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that AZN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, AZN is not doing good in the industry: 65.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.65
WACC8.65%
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 84.97% 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 worse Quick ratio (0.67) than 86.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
AZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.30%, which is quite impressive.
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 15.00% in the last year.
AZN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.27% yearly.
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
Based on estimates for the next years, AZN will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.21% on average per year.
The Revenue is expected to grow by 6.77% on average over the next years.
EPS Next Y13.69%
EPS Next 2Y13.68%
EPS Next 3Y12.68%
EPS Next 5Y12.21%
Revenue Next Year9.37%
Revenue Next 2Y7.8%
Revenue Next 3Y7.28%
Revenue Next 5Y6.77%
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 17.94 indicates a rather expensive valuation of AZN.
Compared to the rest of the industry, the Price/Earnings ratio of AZN indicates a rather cheap valuation: AZN is cheaper than 83.94% of the companies listed in the same industry.
AZN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
Based on the Price/Forward Earnings ratio of 14.93, the valuation of AZN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AZN indicates a somewhat cheap valuation: AZN is cheaper than 79.79% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. AZN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 14.93 |
4.2 Price Multiples
AZN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AZN is cheaper than 84.46% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZN indicates a somewhat cheap valuation: AZN is cheaper than 79.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.18 | ||
| EV/EBITDA | 13.13 |
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.
AZN's earnings are expected to grow with 12.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)0.97
EPS Next 2Y13.68%
EPS Next 3Y12.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.03%, AZN has a reasonable but not impressive dividend return.
AZN's Dividend Yield is rather good when compared to the industry average which is at 3.83. AZN pays more dividend than 92.75% of the companies in the same industry.
AZN's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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
AZN pays out 59.51% of its income as dividend. 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 2Y13.68%
EPS Next 3Y12.68%
79.66
-1.31 (-1.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners46.88%
Inst Owner Change-11.91%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap246.98B
Analysts82.35
Price Target90.96 (14.19%)
Short Float %0.18%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)0.29%
PT rev (3m)-2.79%
EPS NQ rev (1m)2.31%
EPS NQ rev (3m)-3.36%
EPS NY rev (1m)0.94%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 14.93 | ||
| P/S | 4.37 | ||
| P/FCF | 30.18 | ||
| P/OCF | 18.45 | ||
| P/B | 5.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.13 |
EPS(TTM)4.44
EY5.57%
EPS(NY)5.34
Fwd EY6.7%
FCF(TTM)2.64
FCFY3.31%
OCF(TTM)4.32
OCFY5.42%
SpS18.22
BVpS14.42
TBVpS-4.65
PEG (NY)1.31
PEG (5Y)0.97
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%
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-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 | 3.16 |
F-Score7
WACC8.65%
ROIC/WACC1.65
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 Y13.69%
EPS Next 2Y13.68%
EPS Next 3Y12.68%
EPS Next 5Y12.21%
Revenue 1Y (TTM)15%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%11.74%
Revenue Next Year9.37%
Revenue Next 2Y7.8%
Revenue Next 3Y7.28%
Revenue Next 5Y6.77%
EBIT growth 1Y37.03%
EBIT growth 3Y37.28%
EBIT growth 5Y27.35%
EBIT Next Year34.44%
EBIT Next 3Y17.32%
EBIT Next 5Y12.64%
FCF growth 1Y24.74%
FCF growth 3Y24.58%
FCF growth 5Y70.22%
OCF growth 1Y31.54%
OCF growth 3Y25.76%
OCF growth 5Y31.92%