ASTRAZENECA PLC-SPONS ADR (AZN)
US0463531089 - ADR
We assign a fundamental rating of 6 out of 10 to AZN. AZN was compared to 193 industry peers in the Pharmaceuticals industry. AZN has an excellent profitability rating, but there are some minor concerns on its financial health. AZN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
AZN had positive earnings in the past year.
AZN had a positive operating cash flow in the past year.
AZN had positive earnings in each of the past 5 years.
Each year in the past 5 years AZN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AZN (6.17%) is better than 90.05% of its industry peers.
Looking at the Return On Equity, with a value of 16.30%, AZN belongs to the top of the industry, outperforming 90.58% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.30%, AZN belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AZN is significantly below the industry average of 43.18%.
The 3 year average ROIC (8.91%) for AZN is below the current ROIC(11.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 16.3% | ||
| ROIC | 11.3% |
ROA(3y)3.13%
ROA(5y)3.27%
ROE(3y)8.13%
ROE(5y)11%
ROIC(3y)8.91%
ROIC(5y)8.48%
1.3 Margins
Looking at the Profit Margin, with a value of 13.11%, AZN belongs to the top of the industry, outperforming 89.01% of the companies in the same industry.
AZN's Profit Margin has improved in the last couple of years.
AZN's Operating Margin of 20.99% is amongst the best of the industry. AZN outperforms 86.91% of its industry peers.
In the last couple of years the Operating Margin of AZN has grown nicely.
AZN's Gross Margin of 82.21% is amongst the best of the industry. AZN outperforms 88.48% of its industry peers.
AZN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.99% | ||
| PM (TTM) | 13.11% | ||
| GM | 82.21% |
OM growth 3Y5.6%
OM growth 5Y12.05%
PM growth 3Y2.68%
PM growth 5Y5.91%
GM growth 3Y0.9%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AZN is creating some value.
The number of shares outstanding for AZN remains at a similar level compared to 1 year ago.
AZN has more shares outstanding than it did 5 years ago.
AZN has a better debt/assets ratio than last year.
2.2 Solvency
AZN has an Altman-Z score of 2.69. This is not the best score and indicates that AZN is in the grey zone with still only limited risk for bankruptcy at the moment.
AZN has a Altman-Z score of 2.69. This is in the better half of the industry: AZN outperforms 72.25% of its industry peers.
The Debt to FCF ratio of AZN is 4.81, which is a neutral value as it means it would take AZN, 4.81 years of fcf income to pay off all of its debts.
AZN's Debt to FCF ratio of 4.81 is amongst the best of the industry. AZN outperforms 87.96% of its industry peers.
AZN has a Debt/Equity ratio of 0.79. This is a neutral value indicating AZN is somewhat dependend on debt financing.
AZN has a worse Debt to Equity ratio (0.79) than 69.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 2.69 |
ROIC/WACC1.39
WACC8.14%
2.3 Liquidity
AZN has a Current Ratio of 0.89. This is a bad value and indicates that AZN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AZN (0.89) is worse than 90.05% of its industry peers.
A Quick Ratio of 0.69 indicates that AZN may have some problems paying its short term obligations.
The Quick ratio of AZN (0.69) is worse than 90.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
AZN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.43%.
Measured over the past years, AZN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.95% on average per year.
Looking at the last year, AZN shows a small growth in Revenue. The Revenue has grown by 3.29% in the last year.
The Revenue has been growing by 15.71% on average over the past years. This is quite good.
EPS 1Y (TTM)5.43%
EPS 3Y21.72%
EPS 5Y15.95%
EPS Q2Q%20.23%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y19.84%
Revenue growth 5Y15.71%
Sales Q2Q%18.04%
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 11.56% on average per year.
Based on estimates for the next years, AZN will show a small growth in Revenue. The Revenue will grow by 7.74% on average per year.
EPS Next Y14.81%
EPS Next 2Y15.03%
EPS Next 3Y13.67%
EPS Next 5Y11.56%
Revenue Next Year14.41%
Revenue Next 2Y11.14%
Revenue Next 3Y9.41%
Revenue Next 5Y7.74%
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 17.15 indicates a rather expensive valuation of AZN.
AZN's Price/Earnings ratio is rather cheap when compared to the industry. AZN is cheaper than 84.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, AZN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.54, the valuation of AZN can be described as correct.
83.25% of the companies in the same industry are more expensive than AZN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, AZN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
81.15% of the companies in the same industry are more expensive than AZN, based on the Enterprise Value to EBITDA ratio.
AZN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AZN is cheaper than 82.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.08 | ||
| EV/EBITDA | 14.61 |
4.3 Compensation for Growth
AZN's 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.
AZN's earnings are expected to grow with 13.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)1.08
EPS Next 2Y15.03%
EPS Next 3Y13.67%
5. Dividend
5.1 Amount
AZN has a Yearly Dividend Yield of 2.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.42, AZN pays a better dividend. On top of this AZN pays more dividend than 92.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, AZN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
The dividend of AZN has a limited annual growth rate of 1.00%.
AZN has paid a dividend for at least 10 years, which is a reliable track record.
AZN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
AZN pays out 69.29% 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.
DP69.29%
EPS Next 2Y15.03%
EPS Next 3Y13.67%
ASTRAZENECA PLC-SPONS ADR
NASDAQ:AZN (12/20/2024, 8:00:01 PM)
After market: 65.9562 +0.61 (+0.93%)65.35
+0.91 (+1.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners47.68%
Inst Owner Change-2.81%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap202.63B
Analysts80.59
Price Target86.66 (32.61%)
Short Float %0.49%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Dividend Growth(5Y)1%
DP69.29%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.5%
Min EPS beat(2)-1.9%
Max EPS beat(2)4.9%
EPS beat(4)2
Avg EPS beat(4)0.45%
Min EPS beat(4)-5%
Max EPS beat(4)4.9%
EPS beat(8)6
Avg EPS beat(8)3.48%
EPS beat(12)9
Avg EPS beat(12)2.73%
EPS beat(16)10
Avg EPS beat(16)1.04%
Revenue beat(2)1
Avg Revenue beat(2)1.87%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)4.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)4.27%
Revenue beat(8)2
Avg Revenue beat(8)-0.76%
Revenue beat(12)5
Avg Revenue beat(12)0.47%
Revenue beat(16)8
Avg Revenue beat(16)0.69%
PT rev (1m)-0.28%
PT rev (3m)-5.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 13.54 | ||
| P/S | 4.12 | ||
| P/FCF | 29.08 | ||
| P/OCF | 18.31 | ||
| P/B | 5.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.61 |
EPS(TTM)3.81
EY5.83%
EPS(NY)4.83
Fwd EY7.39%
FCF(TTM)2.25
FCFY3.44%
OCF(TTM)3.57
OCFY5.46%
SpS15.85
BVpS12.74
TBVpS-6.76
PEG (NY)1.16
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 16.3% | ||
| ROCE | 13.61% | ||
| ROIC | 11.3% | ||
| ROICexc | 12.42% | ||
| ROICexgc | 79.12% | ||
| OM | 20.99% | ||
| PM (TTM) | 13.11% | ||
| GM | 82.21% | ||
| FCFM | 14.18% |
ROA(3y)3.13%
ROA(5y)3.27%
ROE(3y)8.13%
ROE(5y)11%
ROIC(3y)8.91%
ROIC(5y)8.48%
ROICexc(3y)9.75%
ROICexc(5y)9.57%
ROICexgc(3y)97.31%
ROICexgc(5y)84.98%
ROCE(3y)10.38%
ROCE(5y)9.87%
ROICexcg growth 3Y20.31%
ROICexcg growth 5Y22.06%
ROICexc growth 3Y6.49%
ROICexc growth 5Y16.91%
OM growth 3Y5.6%
OM growth 5Y12.05%
PM growth 3Y2.68%
PM growth 5Y5.91%
GM growth 3Y0.9%
GM growth 5Y0.4%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.81 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 79.68% | ||
| Cap/Sales | 8.34% | ||
| Interest Coverage | 8.73 | ||
| Cash Conversion | 71.6% | ||
| Profit Quality | 108.18% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.69 |
F-Score6
WACC8.14%
ROIC/WACC1.39
Cap/Depr(3y)50.25%
Cap/Depr(5y)59.78%
Cap/Sales(3y)6.64%
Cap/Sales(5y)7.96%
Profit Quality(3y)1230.07%
Profit Quality(5y)759.39%
High Growth Momentum
Growth
EPS 1Y (TTM)5.43%
EPS 3Y21.72%
EPS 5Y15.95%
EPS Q2Q%20.23%
EPS Next Y14.81%
EPS Next 2Y15.03%
EPS Next 3Y13.67%
EPS Next 5Y11.56%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y19.84%
Revenue growth 5Y15.71%
Sales Q2Q%18.04%
Revenue Next Year14.41%
Revenue Next 2Y11.14%
Revenue Next 3Y9.41%
Revenue Next 5Y7.74%
EBIT growth 1Y13.56%
EBIT growth 3Y26.55%
EBIT growth 5Y29.65%
EBIT Next Year33.33%
EBIT Next 3Y17.92%
EBIT Next 5Y12.33%
FCF growth 1Y30.64%
FCF growth 3Y44.14%
FCF growth 5Y39.41%
OCF growth 1Y45.27%
OCF growth 3Y29.18%
OCF growth 5Y31.63%