173.181 USD
+1.59 (+0.93%)
We assign a fundamental rating of 6 out of 10 to BIIB. BIIB was compared to 525 industry peers in the Biotechnology industry. BIIB gets an excellent profitability rating and is at the same time showing great financial health properties. BIIB is valued quite cheap, but it does not seem to be growing. This makes BIIB very considerable 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.
- 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 has a Return On Assets of 5.51%. This is amongst the best in the industry. BIIB outperforms 92.19% of its industry peers.
- Looking at the Return On Equity, with a value of 8.84%, BIIB belongs to the top of the industry, outperforming 92.38% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 9.70%, BIIB belongs to the top 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 better Profit Margin (15.98%) than 92.57% of its industry peers.
- BIIB's Profit Margin has declined in the last couple of years.
- BIIB's Operating Margin of 28.50% is amongst the best of the industry. BIIB outperforms 96.76% of its industry peers.
- BIIB's Operating Margin has declined in the last couple of years.
- The Gross Margin of BIIB (75.24%) is better than 83.81% of its industry peers.
- In the last couple of years the Gross Margin of BIIB has declined.
| 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
- BIIB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for BIIB has been increased compared to 1 year ago.
- 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 3.26 indicates that BIIB is not in any danger for bankruptcy at the moment.
- BIIB has a Altman-Z score of 3.26. This is in the better half of the industry: BIIB outperforms 69.14% of its industry peers.
- BIIB has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as BIIB would need 2.78 years to pay back of all of its debts.
- The Debt to FCF ratio of BIIB (2.78) is better than 92.95% of its industry peers.
- A Debt/Equity ratio of 0.35 indicates that BIIB is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.35, BIIB is not doing good in the industry: 68.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 3.26 |
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.
- The Quick ratio of BIIB (2.04) is worse 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
- The Revenue has been growing slightly by 4.77% in the past year.
- The Revenue has been decreasing by -7.62% on average over the past years.
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
- The Earnings Per Share is expected to grow by 0.59% on average over the next years.
- BIIB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.63% yearly.
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
- The Price/Earnings ratio is 10.35, which indicates a very decent valuation of BIIB.
- 98.10% of the companies in the same industry are more expensive than BIIB, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. BIIB is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.21 indicates a reasonable valuation of BIIB.
- Based on the Price/Forward Earnings ratio, BIIB is valued cheaply inside the industry as 98.10% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of BIIB to the average of the S&P500 Index (25.98), we can say BIIB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BIIB indicates a rather cheap valuation: BIIB is cheaper than 98.29% of the companies listed in the same industry.
- BIIB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BIIB is cheaper than 98.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 7.54 |
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.