ASTRAZENECA PLC-SPONS ADR (AZN) Stock Fundamental Analysis
NASDAQ:AZN - Nasdaq - US0463531089 - ADR - Currency: USD
Taking everything into account, AZN scores 6 out of 10 in our fundamental rating. AZN was compared to 194 industry peers in the Pharmaceuticals industry. While AZN has a great profitability rating, there are some minor concerns on its financial health. AZN is valued quite cheap, while showing a decent growth score. This is a good 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 has a Return On Assets of 6.76%. This is amongst the best in the industry. AZN outperforms 91.35% of its industry peers.
Looking at the Return On Equity, with a value of 17.25%, AZN belongs to the top of the industry, outperforming 91.35% of the companies in the same industry.
The Return On Invested Capital of AZN (13.97%) is better than 91.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.76% | ||
| ROE | 17.25% | ||
| ROIC | 13.97% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AZN has a better Profit Margin (13.01%) than 88.65% of its industry peers.
In the last couple of years the Profit Margin of AZN has grown nicely.
AZN has a better Operating Margin (23.62%) than 90.27% of its industry peers.
In the last couple of years the Operating Margin of AZN has grown nicely.
AZN's Gross Margin of 81.56% is amongst the best of the industry. AZN outperforms 86.49% of its industry peers.
In the last couple of years the Gross Margin of AZN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.62% | ||
| PM (TTM) | 13.01% | ||
| GM | 81.56% |
OM growth 3Y21.73%
OM growth 5Y8.76%
PM growth 3Y251.6%
PM growth 5Y18.9%
GM growth 3Y3.07%
GM growth 5Y0.33%
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.
AZN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.16 indicates that AZN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.16, AZN is in the better half of the industry, outperforming 75.14% of the companies in the same industry.
AZN has a debt to FCF ratio of 4.16. This is a neutral value as AZN would need 4.16 years to pay back of all of its debts.
AZN has a better Debt to FCF ratio (4.16) than 88.11% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that AZN is somewhat dependend on debt financing.
AZN has a worse Debt to Equity ratio (0.69) than 68.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.56
WACC8.97%
2.3 Liquidity
A Current Ratio of 0.93 indicates that AZN may have some problems paying its short term obligations.
With a Current ratio value of 0.93, AZN is not doing good in the industry: 88.65% of the companies in the same industry are doing better.
A Quick Ratio of 0.74 indicates that AZN may have some problems paying its short term obligations.
AZN has a Quick ratio of 0.74. This is amonst the worse of the industry: AZN underperforms 88.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for AZN have decreased by -1.10% in the last year.
The Earnings Per Share has been growing by 15.42% on average over the past years. This is quite good.
Looking at the last year, AZN shows a quite strong growth in Revenue. The Revenue has grown by 18.03% in the last year.
The Revenue has been growing by 17.27% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.1%
EPS 3Y10.74%
EPS 5Y15.42%
EPS Q2Q%-27.59%
Revenue 1Y (TTM)18.03%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%23.84%
3.2 Future
The Earnings Per Share is expected to grow by 15.37% on average over the next years. This is quite good.
AZN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.71% yearly.
EPS Next Y32.94%
EPS Next 2Y21.91%
EPS Next 3Y17.43%
EPS Next 5Y15.37%
Revenue Next Year6.95%
Revenue Next 2Y6.36%
Revenue Next 3Y5.93%
Revenue Next 5Y6.71%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 20.56, AZN is valued on the expensive side.
Based on the Price/Earnings ratio, AZN is valued cheaper than 83.78% 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 29.63.
The Price/Forward Earnings ratio is 15.46, which indicates a correct valuation of AZN.
Based on the Price/Forward Earnings ratio, AZN is valued cheaper than 83.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AZN to the average of the S&P500 Index (22.68), we can say AZN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 15.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZN indicates a rather cheap valuation: AZN is cheaper than 82.16% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZN indicates a rather cheap valuation: AZN is cheaper than 81.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.64 | ||
| EV/EBITDA | 13.12 |
4.3 Compensation for Growth
AZN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of AZN may justify a higher PE ratio.
AZN's earnings are expected to grow with 17.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)1.33
EPS Next 2Y21.91%
EPS Next 3Y17.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.05%, AZN has a reasonable but not impressive dividend return.
AZN's Dividend Yield is rather good when compared to the industry average which is at 4.35. AZN pays more dividend than 91.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, AZN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
The dividend of AZN has a limited annual growth rate of 1.00%.
AZN has been paying a dividend for at least 10 years, so it has 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 65.80% 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.
DP65.8%
EPS Next 2Y21.91%
EPS Next 3Y17.43%
74.22
-0.34 (-0.46%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners47.68%
Inst Owner Change4.83%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap230.17B
Analysts80.59
Price Target84.43 (13.76%)
Short Float %0.57%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend2.89
Dividend Growth(5Y)1%
DP65.8%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-24.99%
Min EPS beat(2)-50.62%
Max EPS beat(2)0.64%
EPS beat(4)2
Avg EPS beat(4)-11.75%
Min EPS beat(4)-50.62%
Max EPS beat(4)4.9%
EPS beat(8)5
Avg EPS beat(8)-4.07%
EPS beat(12)9
Avg EPS beat(12)-0.57%
EPS beat(16)11
Avg EPS beat(16)-0.83%
Revenue beat(2)2
Avg Revenue beat(2)1.73%
Min Revenue beat(2)0.95%
Max Revenue beat(2)2.51%
Revenue beat(4)3
Avg Revenue beat(4)1.8%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)4.27%
Revenue beat(8)4
Avg Revenue beat(8)0.14%
Revenue beat(12)5
Avg Revenue beat(12)-0.09%
Revenue beat(16)9
Avg Revenue beat(16)1.07%
PT rev (1m)-1.3%
PT rev (3m)-6.5%
EPS NQ rev (1m)-5.18%
EPS NQ rev (3m)-2.6%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-2.75%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 15.46 | ||
| P/S | 4.26 | ||
| P/FCF | 31.64 | ||
| P/OCF | 19.41 | ||
| P/B | 5.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.12 |
EPS(TTM)3.61
EY4.86%
EPS(NY)4.8
Fwd EY6.47%
FCF(TTM)2.35
FCFY3.16%
OCF(TTM)3.82
OCFY5.15%
SpS17.44
BVpS13.15
TBVpS-5.62
PEG (NY)0.62
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.76% | ||
| ROE | 17.25% | ||
| ROCE | 16.77% | ||
| ROIC | 13.97% | ||
| ROICexc | 15.09% | ||
| ROICexgc | 84.56% | ||
| OM | 23.62% | ||
| PM (TTM) | 13.01% | ||
| GM | 81.56% | ||
| FCFM | 13.45% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y21.73%
OM growth 5Y8.76%
PM growth 3Y251.6%
PM growth 5Y18.9%
GM growth 3Y3.07%
GM growth 5Y0.33%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.16 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 68.57% | ||
| Cap/Sales | 8.48% | ||
| Interest Coverage | 9.73 | ||
| Cash Conversion | 60.95% | ||
| Profit Quality | 103.41% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 3.16 |
F-Score7
WACC8.97%
ROIC/WACC1.56
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)-1.1%
EPS 3Y10.74%
EPS 5Y15.42%
EPS Q2Q%-27.59%
EPS Next Y32.94%
EPS Next 2Y21.91%
EPS Next 3Y17.43%
EPS Next 5Y15.37%
Revenue 1Y (TTM)18.03%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%23.84%
Revenue Next Year6.95%
Revenue Next 2Y6.36%
Revenue Next 3Y5.93%
Revenue Next 5Y6.71%
EBIT growth 1Y43.24%
EBIT growth 3Y37.62%
EBIT growth 5Y27.53%
EBIT Next Year33.75%
EBIT Next 3Y14.78%
EBIT Next 5Y14.96%
FCF growth 1Y10.78%
FCF growth 3Y24.58%
FCF growth 5Y70.22%
OCF growth 1Y14.65%
OCF growth 3Y25.76%
OCF growth 5Y31.92%