ASTRAZENECA PLC-SPONS ADR (AZN) Stock Fundamental Analysis
NASDAQ:AZN - Nasdaq - US0463531089 - ADR - Currency: USD
AZN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 195 industry peers in the Pharmaceuticals industry. AZN has an excellent profitability rating, but there are concerns on its financial health. AZN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
AZN had positive earnings in the past year.
In the past year AZN had a positive cash flow from operations.
Each year in the past 5 years AZN has been profitable.
In the past 5 years AZN always reported a positive cash flow from operatings.
1.2 Ratios
AZN's Return On Assets of 7.31% is amongst the best of the industry. AZN outperforms 91.28% of its industry peers.
AZN has a better Return On Equity (18.94%) than 92.31% of its industry peers.
With an excellent Return On Invested Capital value of 14.10%, AZN belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
AZN had an Average Return On Invested Capital over the past 3 years of 11.62%. This is below the industry average of 14.87%.
The last Return On Invested Capital (14.10%) for AZN is above the 3 year average (11.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 18.94% | ||
| ROIC | 14.1% |
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
AZN has a Profit Margin of 14.14%. This is amongst the best in the industry. AZN outperforms 90.26% of its industry peers.
AZN's Profit Margin has improved in the last couple of years.
AZN has a better Operating Margin (24.05%) than 90.26% of its industry peers.
In the last couple of years the Operating Margin of AZN has grown nicely.
Looking at the Gross Margin, with a value of 82.36%, AZN belongs to the top of the industry, outperforming 88.72% of the companies in the same industry.
AZN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.05% | ||
| PM (TTM) | 14.14% | ||
| GM | 82.36% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AZN is still creating some value.
AZN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AZN has more shares outstanding
AZN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.95 indicates that AZN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.95, AZN is doing good in the industry, outperforming 74.87% of the companies in the same industry.
AZN has a debt to FCF ratio of 3.46. This is a good value and a sign of high solvency as AZN would need 3.46 years to pay back of all of its debts.
AZN has a better Debt to FCF ratio (3.46) than 89.74% of its industry peers.
AZN has a Debt/Equity ratio of 0.71. This is a neutral value indicating AZN is somewhat dependend on debt financing.
AZN has a Debt to Equity ratio of 0.71. This is in the lower half of the industry: AZN underperforms 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.64
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.90 indicates that AZN may have some problems paying its short term obligations.
AZN has a worse Current ratio (0.90) than 85.64% of its industry peers.
A Quick Ratio of 0.70 indicates that AZN may have some problems paying its short term obligations.
AZN has a Quick ratio of 0.70. This is amonst the worse of the industry: AZN underperforms 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.27% over the past year.
Measured over the past years, AZN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.59% on average per year.
Looking at the last year, AZN shows a quite strong growth in Revenue. The Revenue has grown by 15.48% in the last year.
Measured over the past years, AZN shows a quite strong growth in Revenue. The Revenue has been growing by 17.27% on average per year.
EPS 1Y (TTM)18.27%
EPS 3Y15.85%
EPS 5Y18.59%
EPS Q2Q%25.73%
Revenue 1Y (TTM)15.48%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%7.17%
3.2 Future
Based on estimates for the next years, AZN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.35% on average per year.
The Revenue is expected to grow by 6.34% on average over the next years.
EPS Next Y12.48%
EPS Next 2Y12.94%
EPS Next 3Y11.87%
EPS Next 5Y11.35%
Revenue Next Year8.37%
Revenue Next 2Y7.23%
Revenue Next 3Y6.74%
Revenue Next 5Y6.34%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 15.78, AZN is valued correctly.
AZN's Price/Earnings ratio is rather cheap when compared to the industry. AZN is cheaper than 84.62% of the companies in the same industry.
AZN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
AZN is valuated correctly with a Price/Forward Earnings ratio of 13.17.
AZN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AZN is cheaper than 81.03% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AZN to the average of the S&P500 Index (21.90), we can say AZN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AZN is valued cheaply inside the industry as 83.59% of the companies are valued more expensively.
AZN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AZN is cheaper than 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.56 | ||
| EV/EBITDA | 12.04 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AZN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)0.85
EPS Next 2Y12.94%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, AZN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.05, AZN pays a better dividend. On top of this AZN pays more dividend than 92.31% of the companies listed in the same industry.
AZN's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of AZN has a limited annual growth rate of 1.40%.
AZN has paid a dividend for at least 10 years, which is a reliable track record.
AZN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.4%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
AZN pays out 63.60% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AZN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.6%
EPS Next 2Y12.94%
EPS Next 3Y11.87%
69.45
-1.68 (-2.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners46.88%
Inst Owner Change-1.12%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap215.32B
Analysts82.86
Price Target90.73 (30.64%)
Short Float %0.25%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend2.99
Dividend Growth(5Y)1.4%
DP63.6%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.54%
Min EPS beat(2)-0.63%
Max EPS beat(2)13.71%
EPS beat(4)2
Avg EPS beat(4)2.95%
Min EPS beat(4)-1.9%
Max EPS beat(4)13.71%
EPS beat(8)5
Avg EPS beat(8)2.79%
EPS beat(12)9
Avg EPS beat(12)4.04%
EPS beat(16)11
Avg EPS beat(16)2.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.64%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)2.7%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)2.7%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)4
Avg Revenue beat(12)-0.55%
Revenue beat(16)8
Avg Revenue beat(16)0.72%
PT rev (1m)-3.04%
PT rev (3m)-1.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 13.17 | ||
| P/S | 3.92 | ||
| P/FCF | 23.56 | ||
| P/OCF | 16.45 | ||
| P/B | 5.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.04 |
EPS(TTM)4.4
EY6.34%
EPS(NY)5.27
Fwd EY7.59%
FCF(TTM)2.95
FCFY4.24%
OCF(TTM)4.22
OCFY6.08%
SpS17.73
BVpS13.24
TBVpS-5.69
PEG (NY)1.26
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 18.94% | ||
| ROCE | 17.15% | ||
| ROIC | 14.1% | ||
| ROICexc | 15.14% | ||
| ROICexgc | 76.66% | ||
| OM | 24.05% | ||
| PM (TTM) | 14.14% | ||
| GM | 82.36% | ||
| FCFM | 16.62% |
ROA(3y)5.35%
ROA(5y)4.19%
ROE(3y)13.78%
ROE(5y)12.42%
ROIC(3y)11.62%
ROIC(5y)9.52%
ROICexc(3y)12.66%
ROICexc(5y)10.55%
ROICexgc(3y)112.76%
ROICexgc(5y)85.06%
ROCE(3y)13.95%
ROCE(5y)11.45%
ROICexcg growth 3Y43.28%
ROICexcg growth 5Y4.77%
ROICexc growth 3Y41%
ROICexc growth 5Y11.99%
OM growth 3Y21.43%
OM growth 5Y8.6%
PM growth 3Y251.6%
PM growth 5Y18.9%
GM growth 3Y3.31%
GM growth 5Y0.47%
F-Score9
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.46 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 58.81% | ||
| Cap/Sales | 7.18% | ||
| Interest Coverage | 9.49 | ||
| Cash Conversion | 65.63% | ||
| Profit Quality | 117.58% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.95 |
F-Score9
WACC8.58%
ROIC/WACC1.64
Cap/Depr(3y)61.87%
Cap/Depr(5y)60.41%
Cap/Sales(3y)7.51%
Cap/Sales(5y)7.64%
Profit Quality(3y)144.6%
Profit Quality(5y)772.45%
High Growth Momentum
Growth
EPS 1Y (TTM)18.27%
EPS 3Y15.85%
EPS 5Y18.59%
EPS Q2Q%25.73%
EPS Next Y12.48%
EPS Next 2Y12.94%
EPS Next 3Y11.87%
EPS Next 5Y11.35%
Revenue 1Y (TTM)15.48%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%7.17%
Revenue Next Year8.37%
Revenue Next 2Y7.23%
Revenue Next 3Y6.74%
Revenue Next 5Y6.34%
EBIT growth 1Y42.22%
EBIT growth 3Y37.28%
EBIT growth 5Y27.35%
EBIT Next Year34.44%
EBIT Next 3Y17.32%
EBIT Next 5Y14.19%
FCF growth 1Y51.52%
FCF growth 3Y24.58%
FCF growth 5Y70.22%
OCF growth 1Y34.8%
OCF growth 3Y25.76%
OCF growth 5Y31.92%