ASTRAZENECA PLC (ZEG.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ZEG - GB0009895292 - Common Stock
157 EUR
+0.9 (+0.58%)
Taking everything into account, ZEG scores 5 out of 10 in our fundamental rating. ZEG was compared to 54 industry peers in the Pharmaceuticals industry. While ZEG has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, ZEG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- ZEG had positive earnings in the past year.
- In the past year ZEG had a positive cash flow from operations.
- Each year in the past 5 years ZEG has been profitable.
- In the past 5 years ZEG always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ZEG (8.21%) is better than 66.67% of its industry peers.
- Looking at the Return On Equity, with a value of 20.48%, ZEG is in the better half of the industry, outperforming 68.52% of the companies in the same industry.
- The Return On Invested Capital of ZEG (14.42%) is better than 70.37% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ZEG is below the industry average of 13.93%.
- The 3 year average ROIC (11.62%) for ZEG is below the current ROIC(14.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.21% | ||
| ROE | 20.48% | ||
| ROIC | 14.42% |
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
- With a decent Profit Margin value of 16.17%, ZEG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- ZEG's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 24.34%, ZEG is doing good in the industry, outperforming 61.11% of the companies in the same industry.
- ZEG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 81.90%, ZEG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- In the last couple of years the Gross Margin of ZEG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.34% | ||
| PM (TTM) | 16.17% | ||
| GM | 81.9% |
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), ZEG is creating some value.
- Compared to 1 year ago, ZEG has about the same amount of shares outstanding.
- The number of shares outstanding for ZEG has been increased compared to 5 years ago.
- Compared to 1 year ago, ZEG has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.96 indicates that ZEG is not in any danger for bankruptcy at the moment.
- ZEG has a better Altman-Z score (5.96) than 79.63% of its industry peers.
- The Debt to FCF ratio of ZEG is 3.41, which is a good value as it means it would take ZEG, 3.41 years of fcf income to pay off all of its debts.
- ZEG has a better Debt to FCF ratio (3.41) than 64.81% of its industry peers.
- ZEG has a Debt/Equity ratio of 0.61. This is a neutral value indicating ZEG is somewhat dependend on debt financing.
- ZEG has a Debt to Equity ratio of 0.61. This is comparable to the rest of the industry: ZEG outperforms 51.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 5.96 |
ROIC/WACC1.6
WACC9.01%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that ZEG may have some problems paying its short term obligations.
- The Current ratio of ZEG (0.88) is worse than 81.48% of its industry peers.
- ZEG has a Quick Ratio of 0.88. This is a bad value and indicates that ZEG is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.69, ZEG is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- ZEG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.61%, which is quite impressive.
- Measured over the past years, ZEG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.59% on average per year.
- The Revenue has grown by 13.52% in the past year. This is quite good.
- ZEG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.27% yearly.
EPS 1Y (TTM)20.61%
EPS 3Y15.85%
EPS 5Y18.59%
EPS Q2Q%14.42%
Revenue 1Y (TTM)13.52%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%11.99%
3.2 Future
- ZEG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.37% yearly.
- Based on estimates for the next years, ZEG will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y11.95%
EPS Next 2Y12.55%
EPS Next 3Y12.2%
EPS Next 5Y12.37%
Revenue Next Year10.2%
Revenue Next 2Y8.11%
Revenue Next 3Y7.34%
Revenue Next 5Y7.2%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 20.13 indicates a rather expensive valuation of ZEG.
- Compared to the rest of the industry, the Price/Earnings ratio of ZEG is on the same level as its industry peers.
- ZEG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- ZEG is valuated rather expensively with a Price/Forward Earnings ratio of 17.67.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ZEG is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of ZEG to the average of the S&P500 Index (24.26), we can say ZEG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.13 | ||
| Fwd PE | 17.67 |
4.2 Price Multiples
- 70.37% of the companies in the same industry are cheaper than ZEG, based on the Enterprise Value to EBITDA ratio.
- ZEG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.56 | ||
| EV/EBITDA | 28.45 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ZEG has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ZEG's earnings are expected to grow with 12.20% in the coming years.
PEG (NY)1.68
PEG (5Y)1.08
EPS Next 2Y12.55%
EPS Next 3Y12.2%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.74%, ZEG has a reasonable but not impressive dividend return.
- ZEG's Dividend Yield is a higher than the industry average which is at 1.59.
- Compared to an average S&P500 Dividend Yield of 1.82, ZEG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
- The dividend of ZEG has a limited annual growth rate of 1.40%.
Dividend Growth(5Y)1.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 52.89% of the earnings are spent on dividend by ZEG. This is a bit on the high side, but may be sustainable.
- ZEG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.89%
EPS Next 2Y12.55%
EPS Next 3Y12.2%
ASTRAZENECA PLC / ZEG.DE FAQ
What is the fundamental rating for ZEG stock?
ChartMill assigns a fundamental rating of 5 / 10 to ZEG.DE.
What is the valuation status of ASTRAZENECA PLC (ZEG.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to ASTRAZENECA PLC (ZEG.DE). This can be considered as Overvalued.
What is the profitability of ZEG stock?
ASTRAZENECA PLC (ZEG.DE) has a profitability rating of 7 / 10.
What is the valuation of ASTRAZENECA PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ASTRAZENECA PLC (ZEG.DE) is 20.13 and the Price/Book (PB) ratio is 12.42.
Can you provide the expected EPS growth for ZEG stock?
The Earnings per Share (EPS) of ASTRAZENECA PLC (ZEG.DE) is expected to grow by 11.95% in the next year.