175.78 USD
+0.95 (+0.54%)
BIIB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 525 industry peers in the Biotechnology industry. BIIB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BIIB has a bad growth rate and is valued cheaply. This makes BIIB very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year BIIB was profitable.
- BIIB had a positive operating cash flow in the past year.
- BIIB had positive earnings in each of the past 5 years.
- Each year in the past 5 years BIIB had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BIIB (5.51%) is better than 92.19% of its industry peers.
- BIIB has a Return On Equity of 8.84%. This is amongst the best in the industry. BIIB outperforms 92.38% of its industry peers.
- With an excellent Return On Invested Capital value of 9.70%, BIIB belongs to the best of the industry, outperforming 94.86% 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 significantly below the industry average of 18.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 8.84% | ||
| ROIC | 9.7% |
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
- BIIB has a Profit Margin of 15.98%. This is amongst the best in the industry. BIIB outperforms 92.57% of its industry peers.
- In the last couple of years the Profit Margin of BIIB has declined.
- With an excellent Operating Margin value of 28.50%, BIIB belongs to the best of the industry, outperforming 96.76% of the companies in the same industry.
- In the last couple of years the Operating Margin of BIIB has declined.
- The Gross Margin of BIIB (75.24%) is better than 83.81% of its industry peers.
- BIIB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.5% | ||
| PM (TTM) | 15.98% | ||
| GM | 75.24% |
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.
- Compared to 1 year ago, BIIB has more shares outstanding
- BIIB has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BIIB has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.29 indicates that BIIB is not in any danger for bankruptcy at the moment.
- BIIB has a Altman-Z score of 3.29. This is in the better half of the industry: BIIB outperforms 69.33% of its industry peers.
- The Debt to FCF ratio of BIIB is 2.78, which is a good value as it means it would take BIIB, 2.78 years of fcf income to pay off all of its debts.
- BIIB has a better Debt to FCF ratio (2.78) than 92.95% of its industry peers.
- A Debt/Equity ratio of 0.35 indicates that BIIB is not too dependend on debt financing.
- BIIB has a worse Debt to Equity ratio (0.35) than 68.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 3.29 |
ROIC/WACC1.15
WACC8.4%
2.3 Liquidity
- BIIB has a Current Ratio of 2.72. This indicates that BIIB is financially healthy and has no problem in meeting its short term obligations.
- BIIB has a Current ratio of 2.72. This is in the lower half of the industry: BIIB underperforms 68.38% of its industry peers.
- BIIB has a Quick Ratio of 2.04. This indicates that BIIB is financially healthy and has no problem in meeting its short term obligations.
- BIIB has a worse Quick ratio (2.04) than 73.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
- BIIB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.51%.
- The earnings per share for BIIB have been decreasing by -13.31% on average. This is quite bad
- Looking at the last year, BIIB shows a small growth in Revenue. The Revenue has grown by 4.77% in the last year.
- BIIB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.62% yearly.
EPS 1Y (TTM)2.51%
EPS 3Y-4.95%
EPS 5Y-13.31%
EPS Q2Q%17.89%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y-4.13%
Revenue growth 5Y-7.62%
Sales Q2Q%2.79%
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 0.59% on average per year.
- Based on estimates for the next years, BIIB will show a decrease in Revenue. The Revenue will decrease by -0.63% on average per year.
EPS Next Y-7.36%
EPS Next 2Y-3.15%
EPS Next 3Y-0.51%
EPS Next 5Y0.59%
Revenue Next Year1.98%
Revenue Next 2Y-1.62%
Revenue Next 3Y-1.2%
Revenue Next 5Y-0.63%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- BIIB is valuated reasonably with a Price/Earnings ratio of 10.50.
- Compared to the rest of the industry, the Price/Earnings ratio of BIIB indicates a rather cheap valuation: BIIB is cheaper than 97.90% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. BIIB is valued rather cheaply when compared to this.
- BIIB is valuated reasonably with a Price/Forward Earnings ratio of 11.38.
- Based on the Price/Forward Earnings ratio, BIIB is valued cheaper than 98.10% of the companies in the same industry.
- BIIB is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
- 98.48% of the companies in the same industry are more expensive than BIIB, based on the Enterprise Value to EBITDA ratio.
- 98.48% 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 | 7.67 |
4.3 Compensation for Growth
- The decent profitability rating of BIIB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.15%
EPS Next 3Y-0.51%
5. Dividend
5.1 Amount
- No dividends for BIIB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIOGEN INC / BIIB FAQ
Can you provide the ChartMill fundamental rating for BIOGEN INC?
ChartMill assigns a fundamental rating of 6 / 10 to BIIB.
What is the valuation status of BIOGEN INC (BIIB) stock?
ChartMill assigns a valuation rating of 7 / 10 to BIOGEN INC (BIIB). This can be considered as Undervalued.
How profitable is BIOGEN INC (BIIB) stock?
BIOGEN INC (BIIB) has a profitability rating of 7 / 10.
How financially healthy is BIOGEN INC?
The financial health rating of BIOGEN INC (BIIB) is 7 / 10.