BIOGEN INC (BIIB) Stock Fundamental Analysis
NASDAQ:BIIB - US09062X1037 - Common Stock
143.6 USD
+1.66 (+1.17%)
145.22 USD
+1.62 (+1.13%)
We assign a fundamental rating of 5 out of 10 to BIIB. BIIB was compared to 541 industry peers in the Biotechnology industry. While BIIB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BIIB is cheap, but on the other hand it scores bad on growth. These ratings would make BIIB suitable for value investing!
1. Profitability
1.1 Basic Checks
BIIB had positive earnings in the past year.
BIIB had a positive operating cash flow in the past year.
Each year in the past 5 years BIIB has been profitable.
In the past 5 years BIIB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BIIB (5.40%) is better than 91.50% of its industry peers.
BIIB has a Return On Equity of 8.68%. This is amongst the best in the industry. BIIB outperforms 92.61% of its industry peers.
The Return On Invested Capital of BIIB (9.52%) is better than 94.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BIIB is significantly below the industry average of 15.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 8.68% | ||
| ROIC | 9.52% |
ROA(3y)7.52%
ROA(5y)9.06%
ROE(3y)13.45%
ROE(5y)18.41%
ROIC(3y)10.57%
ROIC(5y)13.65%
1.3 Margins
The Profit Margin of BIIB (15.31%) is better than 93.72% of its industry peers.
In the last couple of years the Profit Margin of BIIB has declined.
With an excellent Operating Margin value of 27.35%, BIIB belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
BIIB's Operating Margin has declined in the last couple of years.
The Gross Margin of BIIB (75.43%) is better than 82.99% of its industry peers.
In the last couple of years the Gross Margin of BIIB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.35% | ||
| PM (TTM) | 15.31% | ||
| GM | 75.43% |
OM growth 3Y-4.87%
OM growth 5Y-12.22%
PM growth 3Y5.99%
PM growth 5Y-16.26%
GM growth 3Y-1.51%
GM growth 5Y-2.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BIIB is creating some value.
Compared to 1 year ago, BIIB has more shares outstanding
The number of shares outstanding for BIIB has been reduced compared to 5 years ago.
The debt/assets ratio for BIIB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.04 indicates that BIIB is not in any danger for bankruptcy at the moment.
The Altman-Z score of BIIB (3.04) is better than 70.98% of its industry peers.
The Debt to FCF ratio of BIIB is 3.40, which is a good value as it means it would take BIIB, 3.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BIIB (3.40) is better than 93.90% of its industry peers.
BIIB has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
BIIB has a worse Debt to Equity ratio (0.36) than 70.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 3.04 |
ROIC/WACC1.03
WACC9.24%
2.3 Liquidity
BIIB has a Current Ratio of 2.50. This indicates that BIIB is financially healthy and has no problem in meeting its short term obligations.
BIIB has a Current ratio of 2.50. This is in the lower half of the industry: BIIB underperforms 68.95% of its industry peers.
A Quick Ratio of 1.79 indicates that BIIB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.79, BIIB is not doing good in the industry: 77.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The earnings per share for BIIB have decreased by -3.61% in the last year.
Measured over the past years, BIIB shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.31% on average per year.
Looking at the last year, BIIB shows a small growth in Revenue. The Revenue has grown by 3.36% in the last year.
The Revenue has been decreasing by -7.62% on average over the past years.
EPS 1Y (TTM)-3.61%
EPS 3Y-4.95%
EPS 5Y-13.31%
EPS Q2Q%3.6%
Revenue 1Y (TTM)3.36%
Revenue growth 3Y-4.13%
Revenue growth 5Y-7.62%
Sales Q2Q%7.33%
3.2 Future
Based on estimates for the next years, BIIB will show a small growth in Earnings Per Share. The EPS will grow by 1.26% on average per year.
The Revenue is expected to decrease by -0.33% on average over the next years.
EPS Next Y-1.7%
EPS Next 2Y-1.08%
EPS Next 3Y0.58%
EPS Next 5Y1.26%
Revenue Next Year0.4%
Revenue Next 2Y-1.84%
Revenue Next 3Y-1.15%
Revenue Next 5Y-0.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.97, the valuation of BIIB can be described as very reasonable.
Based on the Price/Earnings ratio, BIIB is valued cheaper than 97.04% of the companies in the same industry.
BIIB is valuated cheaply when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.91, the valuation of BIIB can be described as reasonable.
BIIB's Price/Forward Earnings ratio is rather cheap when compared to the industry. BIIB is cheaper than 97.60% of the companies in the same industry.
BIIB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 8.91 |
4.2 Price Multiples
97.60% of the companies in the same industry are more expensive than BIIB, based on the Enterprise Value to EBITDA ratio.
97.97% of the companies in the same industry are more expensive than BIIB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.4 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
BIIB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.08%
EPS Next 3Y0.58%
5. Dividend
5.1 Amount
BIIB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
143.6
+1.66 (+1.17%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners92.67%
Inst Owner Change-0.33%
Ins Owners0.14%
Ins Owner Change3.35%
Market Cap21.05B
Analysts72.86
Price Target171.86 (19.68%)
Short Float %2.84%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.1%
Min EPS beat(2)17.28%
Max EPS beat(2)38.92%
EPS beat(4)4
Avg EPS beat(4)15.59%
Min EPS beat(4)0.67%
Max EPS beat(4)38.92%
EPS beat(8)8
Avg EPS beat(8)13.06%
EPS beat(12)12
Avg EPS beat(12)11.49%
EPS beat(16)14
Avg EPS beat(16)10.96%
Revenue beat(2)2
Avg Revenue beat(2)9.15%
Min Revenue beat(2)6.67%
Max Revenue beat(2)11.62%
Revenue beat(4)3
Avg Revenue beat(4)4.43%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)11.62%
Revenue beat(8)5
Avg Revenue beat(8)1.84%
Revenue beat(12)8
Avg Revenue beat(12)1.78%
Revenue beat(16)11
Avg Revenue beat(16)1.73%
PT rev (1m)-0.58%
PT rev (3m)-0.86%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-5.67%
EPS NY rev (1m)6.04%
EPS NY rev (3m)5.87%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)4.46%
Revenue NY rev (3m)4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 8.91 | ||
| P/S | 2.11 | ||
| P/FCF | 11.4 | ||
| P/OCF | 9.95 | ||
| P/B | 1.19 | ||
| P/tB | 12.58 | ||
| EV/EBITDA | 7 |
EPS(TTM)16.01
EY11.15%
EPS(NY)16.12
Fwd EY11.22%
FCF(TTM)12.6
FCFY8.77%
OCF(TTM)14.44
OCFY10.05%
SpS68.19
BVpS120.28
TBVpS11.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 8.68% | ||
| ROCE | 10.87% | ||
| ROIC | 9.52% | ||
| ROICexc | 10.7% | ||
| ROICexgc | 37.26% | ||
| OM | 27.35% | ||
| PM (TTM) | 15.31% | ||
| GM | 75.43% | ||
| FCFM | 18.47% |
ROA(3y)7.52%
ROA(5y)9.06%
ROE(3y)13.45%
ROE(5y)18.41%
ROIC(3y)10.57%
ROIC(5y)13.65%
ROICexc(3y)12.43%
ROICexc(5y)16.11%
ROICexgc(3y)38.35%
ROICexgc(5y)40.12%
ROCE(3y)12.07%
ROCE(5y)15.58%
ROICexcg growth 3Y14.15%
ROICexcg growth 5Y-5.35%
ROICexc growth 3Y-15.93%
ROICexc growth 5Y-20.8%
OM growth 3Y-4.87%
OM growth 5Y-12.22%
PM growth 3Y5.99%
PM growth 5Y-16.26%
GM growth 3Y-1.51%
GM growth 5Y-2.23%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.4 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 36.28% | ||
| Cap/Sales | 2.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.86% | ||
| Profit Quality | 120.66% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 3.04 |
F-Score6
WACC9.24%
ROIC/WACC1.03
Cap/Depr(3y)54.43%
Cap/Depr(5y)68.89%
Cap/Sales(3y)3.09%
Cap/Sales(5y)3.21%
Profit Quality(3y)99.34%
Profit Quality(5y)120.98%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.61%
EPS 3Y-4.95%
EPS 5Y-13.31%
EPS Q2Q%3.6%
EPS Next Y-1.7%
EPS Next 2Y-1.08%
EPS Next 3Y0.58%
EPS Next 5Y1.26%
Revenue 1Y (TTM)3.36%
Revenue growth 3Y-4.13%
Revenue growth 5Y-7.62%
Sales Q2Q%7.33%
Revenue Next Year0.4%
Revenue Next 2Y-1.84%
Revenue Next 3Y-1.15%
Revenue Next 5Y-0.33%
EBIT growth 1Y23.31%
EBIT growth 3Y-8.8%
EBIT growth 5Y-18.9%
EBIT Next Year9.29%
EBIT Next 3Y4.38%
EBIT Next 5Y5.37%
FCF growth 1Y64.41%
FCF growth 3Y-9.06%
FCF growth 5Y-17.06%
OCF growth 1Y48.2%
OCF growth 3Y-7.56%
OCF growth 5Y-16.49%