BIOGEN INC (BIIB) Stock Fundamental Analysis
NASDAQ:BIIB - Nasdaq - US09062X1037 - Common Stock - Currency: USD
Taking everything into account, BIIB scores 5 out of 10 in our fundamental rating. BIIB was compared to 568 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 has a bad growth rate and is valued cheaply. With these ratings, BIIB could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year BIIB was profitable.
In the past year BIIB had a positive cash flow from operations.
BIIB had positive earnings in each of the past 5 years.
In the past 5 years BIIB always reported a positive cash flow from operatings.
1.2 Ratios
BIIB's Return On Assets of 5.82% is amongst the best of the industry. BIIB outperforms 94.01% of its industry peers.
With an excellent Return On Equity value of 9.76%, BIIB belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.92%, BIIB belongs to the best of the industry, outperforming 95.77% of the companies in the same industry.
BIIB had an Average Return On Invested Capital over the past 3 years of 10.57%. This is below the industry average of 14.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.82% | ||
| ROE | 9.76% | ||
| ROIC | 9.92% |
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 (16.87%) is better than 96.30% of its industry peers.
In the last couple of years the Profit Margin of BIIB has declined.
BIIB has a better Operating Margin (26.35%) than 97.01% of its industry peers.
In the last couple of years the Operating Margin of BIIB has declined.
The Gross Margin of BIIB (76.12%) is better than 83.45% of its industry peers.
In the last couple of years the Gross Margin of BIIB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.35% | ||
| PM (TTM) | 16.87% | ||
| GM | 76.12% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BIIB is still creating some value.
The number of shares outstanding for BIIB has been increased compared to 1 year ago.
Compared to 5 years ago, BIIB has less shares outstanding
Compared to 1 year ago, BIIB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.61 indicates that BIIB is not a great score, but indicates only limited risk for bankruptcy at the moment.
BIIB has a Altman-Z score of 2.61. This is in the better half of the industry: BIIB outperforms 76.23% of its industry peers.
The Debt to FCF ratio of BIIB is 2.50, which is a good value as it means it would take BIIB, 2.50 years of fcf income to pay off all of its debts.
BIIB has a better Debt to FCF ratio (2.50) than 94.37% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that BIIB is not too dependend on debt financing.
BIIB has a Debt to Equity ratio of 0.27. This is in the lower half of the industry: BIIB underperforms 70.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.02
WACC9.69%
2.3 Liquidity
BIIB has a Current Ratio of 1.35. This is a normal value and indicates that BIIB is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.35, BIIB is not doing good in the industry: 83.45% of the companies in the same industry are doing better.
A Quick Ratio of 0.90 indicates that BIIB may have some problems paying its short term obligations.
BIIB's Quick ratio of 0.90 is on the low side compared to the rest of the industry. BIIB is outperformed by 88.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
BIIB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.22%, which is quite good.
The earnings per share for BIIB have been decreasing by -13.31% on average. This is quite bad
The Revenue has decreased by -1.62% in the past year.
Measured over the past years, BIIB shows a decrease in Revenue. The Revenue has been decreasing by -7.62% on average per year.
EPS 1Y (TTM)9.22%
EPS 3Y-4.95%
EPS 5Y-13.31%
EPS Q2Q%4.24%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y-4.13%
Revenue growth 5Y-7.62%
Sales Q2Q%2.87%
3.2 Future
The Earnings Per Share is expected to grow by 1.94% on average over the next years.
Based on estimates for the next years, BIIB will show a decrease in Revenue. The Revenue will decrease by -0.29% on average per year.
EPS Next Y-2.34%
EPS Next 2Y-0.8%
EPS Next 3Y1.99%
EPS Next 5Y1.94%
Revenue Next Year-4.32%
Revenue Next 2Y-2.38%
Revenue Next 3Y-0.89%
Revenue Next 5Y-0.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 7.07, the valuation of BIIB can be described as very cheap.
BIIB's Price/Earnings ratio is rather cheap when compared to the industry. BIIB is cheaper than 98.06% of the companies in the same industry.
BIIB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
BIIB is valuated cheaply with a Price/Forward Earnings ratio of 7.24.
Based on the Price/Forward Earnings ratio, BIIB is valued cheaper than 98.06% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, BIIB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
98.77% of the companies in the same industry are more expensive than BIIB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BIIB indicates a rather cheap valuation: BIIB is cheaper than 98.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.78 | ||
| EV/EBITDA | 6.6 |
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-0.8%
EPS Next 3Y1.99%
5. Dividend
5.1 Amount
BIIB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
116.49
-2.12 (-1.79%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners94.24%
Inst Owner Change0.69%
Ins Owners0.12%
Ins Owner Change1.16%
Market Cap17.05B
Analysts74.42
Price Target200.75 (72.33%)
Short Float %2.56%
Short Ratio2.39
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)3.08%
Min EPS beat(2)0.67%
Max EPS beat(2)5.5%
EPS beat(4)4
Avg EPS beat(4)9.77%
Min EPS beat(4)0.67%
Max EPS beat(4)28.61%
EPS beat(8)8
Avg EPS beat(8)6.83%
EPS beat(12)11
Avg EPS beat(12)8.87%
EPS beat(16)14
Avg EPS beat(16)9.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)1.48%
Revenue beat(8)5
Avg Revenue beat(8)0.17%
Revenue beat(12)7
Avg Revenue beat(12)0.42%
Revenue beat(16)10
Avg Revenue beat(16)0.84%
PT rev (1m)-0.56%
PT rev (3m)-17.45%
EPS NQ rev (1m)-3.76%
EPS NQ rev (3m)-11.84%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-5.71%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-3.66%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 7.24 | ||
| P/S | 1.76 | ||
| P/FCF | 6.78 | ||
| P/OCF | 5.93 | ||
| P/B | 1.02 | ||
| P/tB | 31.23 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)16.47
EY14.14%
EPS(NY)16.08
Fwd EY13.81%
FCF(TTM)17.19
FCFY14.75%
OCF(TTM)19.65
OCFY16.86%
SpS66.11
BVpS114.2
TBVpS3.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.82% | ||
| ROE | 9.76% | ||
| ROCE | 11.32% | ||
| ROIC | 9.92% | ||
| ROICexc | 11.09% | ||
| ROICexgc | 56.18% | ||
| OM | 26.35% | ||
| PM (TTM) | 16.87% | ||
| GM | 76.12% | ||
| FCFM | 26% |
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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.5 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 53.45% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 10.39 | ||
| Cash Conversion | 89.23% | ||
| Profit Quality | 154.13% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 2.61 |
F-Score6
WACC9.69%
ROIC/WACC1.02
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)9.22%
EPS 3Y-4.95%
EPS 5Y-13.31%
EPS Q2Q%4.24%
EPS Next Y-2.34%
EPS Next 2Y-0.8%
EPS Next 3Y1.99%
EPS Next 5Y1.94%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y-4.13%
Revenue growth 5Y-7.62%
Sales Q2Q%2.87%
Revenue Next Year-4.32%
Revenue Next 2Y-2.38%
Revenue Next 3Y-0.89%
Revenue Next 5Y-0.29%
EBIT growth 1Y24.37%
EBIT growth 3Y-8.8%
EBIT growth 5Y-18.9%
EBIT Next Year14.01%
EBIT Next 3Y5.48%
EBIT Next 5Y5.69%
FCF growth 1Y103.57%
FCF growth 3Y-9.06%
FCF growth 5Y-17.06%
OCF growth 1Y85.85%
OCF growth 3Y-7.56%
OCF growth 5Y-16.49%