ASTRAZENECA PLC-SPONS ADR (AZN) Stock Fundamental Analysis
USA - NASDAQ:AZN - US0463531089 - ADR
82.23 USD
-0.38 (-0.46%)
82.6 USD
+0.37 (+0.45%)
Overall AZN gets a fundamental rating of 6 out of 10. We evaluated AZN against 192 industry peers in the Pharmaceuticals industry. AZN scores excellent on profitability, but there are some minor concerns on its financial health. AZN is not valued too expensively and it also shows a decent growth rate. Finally AZN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AZN was profitable.
AZN had a positive operating cash flow in the past year.
In the past 5 years AZN has always been profitable.
Each year in the past 5 years AZN had a positive operating cash flow.
1.2 Ratios
AZN has a Return On Assets of 7.38%. This is amongst the best in the industry. AZN outperforms 91.15% of its industry peers.
With an excellent Return On Equity value of 18.55%, AZN belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
AZN has a Return On Invested Capital of 14.26%. This is amongst the best in the industry. AZN outperforms 93.23% of its industry peers.
AZN had an Average Return On Invested Capital over the past 3 years of 11.62%. This is below the industry average of 15.41%.
The last Return On Invested Capital (14.26%) for AZN is above the 3 year average (11.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 18.55% | ||
| ROIC | 14.26% |
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 an excellent Profit Margin value of 14.68%, AZN belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
AZN's Profit Margin has improved in the last couple of years.
AZN has a Operating Margin of 24.39%. This is amongst the best in the industry. AZN outperforms 90.63% of its industry peers.
In the last couple of years the Operating Margin of AZN has grown nicely.
The Gross Margin of AZN (82.07%) is better than 85.94% of its industry peers.
AZN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.39% | ||
| PM (TTM) | 14.68% | ||
| GM | 82.07% |
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), 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.
The debt/assets ratio for AZN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.24 indicates that AZN is not in any danger for bankruptcy at the moment.
AZN has a Altman-Z score of 3.24. This is in the better half of the industry: AZN outperforms 70.31% of its industry peers.
The Debt to FCF ratio of AZN is 4.01, which is a neutral value as it means it would take AZN, 4.01 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 4.01, AZN belongs to the best of the industry, outperforming 86.98% of the companies in the same industry.
AZN has a Debt/Equity ratio of 0.63. This is a neutral value indicating AZN is somewhat dependend on debt financing.
AZN's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. AZN is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 3.24 |
ROIC/WACC1.62
WACC8.78%
2.3 Liquidity
AZN has a Current Ratio of 0.86. This is a bad value and indicates that AZN is not financially healthy enough and could expect problems in meeting its short term obligations.
AZN has a Current ratio of 0.86. This is amonst the worse of the industry: AZN underperforms 86.98% of its industry peers.
A Quick Ratio of 0.67 indicates that AZN may have some problems paying its short term obligations.
AZN's Quick ratio of 0.67 is on the low side compared to the rest of the industry. AZN is outperformed by 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
AZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.30%, which is quite impressive.
The Earnings Per Share has been growing by 18.59% on average over the past years. This is quite good.
AZN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.00%.
The Revenue has been growing by 17.27% on average over the past years. This is quite good.
EPS 1Y (TTM)22.3%
EPS 3Y15.85%
EPS 5Y18.59%
EPS Q2Q%9.6%
Revenue 1Y (TTM)15%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%11.74%
3.2 Future
AZN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.44% yearly.
Based on estimates for the next years, AZN will show a small growth in Revenue. The Revenue will grow by 7.04% on average per year.
EPS Next Y13.74%
EPS Next 2Y13.62%
EPS Next 3Y12.75%
EPS Next 5Y12.44%
Revenue Next Year9.63%
Revenue Next 2Y7.79%
Revenue Next 3Y7.1%
Revenue Next 5Y7.04%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.52 indicates a rather expensive valuation of AZN.
Compared to the rest of the industry, the Price/Earnings ratio of AZN indicates a rather cheap valuation: AZN is cheaper than 83.85% of the companies listed in the same industry.
AZN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.76.
With a Price/Forward Earnings ratio of 15.43, AZN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AZN indicates a rather cheap valuation: AZN is cheaper than 81.25% of the companies listed in the same industry.
AZN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 15.43 |
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 84.38% of the companies listed in the same industry.
AZN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AZN is cheaper than 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.15 | ||
| EV/EBITDA | 13.58 |
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 12.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)1
EPS Next 2Y13.62%
EPS Next 3Y12.75%
5. Dividend
5.1 Amount
AZN has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
AZN's Dividend Yield is rather good when compared to the industry average which is at 6.29. AZN pays more dividend than 92.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, AZN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of AZN has a limited annual growth rate of 1.40%.
AZN has been paying a dividend for at least 10 years, so it has 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 59.51% of its income as dividend. This is a bit on the high side, but may be sustainable.
AZN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.51%
EPS Next 2Y13.62%
EPS Next 3Y12.75%
82.23
-0.38 (-0.46%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners48.98%
Inst Owner Change0.21%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap254.96B
Revenue(TTM)56.50B
Net Income(TTM)8.29B
Analysts81.82
Price Target90.41 (9.95%)
Short Float %0.23%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend2.99
Dividend Growth(5Y)1.4%
DP59.51%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.79%
Min EPS beat(2)-1.74%
Max EPS beat(2)9.32%
EPS beat(4)2
Avg EPS beat(4)1.9%
Min EPS beat(4)-1.74%
Max EPS beat(4)9.32%
EPS beat(8)4
Avg EPS beat(8)1.17%
EPS beat(12)8
Avg EPS beat(12)2.95%
EPS beat(16)11
Avg EPS beat(16)2.52%
Revenue beat(2)0
Avg Revenue beat(2)-2.11%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)-0.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)2.7%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)4
Avg Revenue beat(12)-0.55%
Revenue beat(16)7
Avg Revenue beat(16)0.32%
PT rev (1m)-2.81%
PT rev (3m)-0.32%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)3.2%
EPS NY rev (1m)0%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 15.43 | ||
| P/S | 4.51 | ||
| P/FCF | 31.15 | ||
| P/OCF | 19.04 | ||
| P/B | 5.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.58 |
EPS(TTM)4.44
EY5.4%
EPS(NY)5.33
Fwd EY6.48%
FCF(TTM)2.64
FCFY3.21%
OCF(TTM)4.32
OCFY5.25%
SpS18.22
BVpS14.42
TBVpS-4.65
PEG (NY)1.35
PEG (5Y)1
Graham Number37.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 18.55% | ||
| ROCE | 17.47% | ||
| ROIC | 14.26% | ||
| ROICexc | 15.63% | ||
| ROICexgc | 78.69% | ||
| OM | 24.39% | ||
| PM (TTM) | 14.68% | ||
| GM | 82.07% | ||
| FCFM | 14.48% |
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%
ROICexgc growth 3Y43.28%
ROICexgc 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-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 4.01 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 76.24% | ||
| Cap/Sales | 9.21% | ||
| Interest Coverage | 10.19 | ||
| Cash Conversion | 64.97% | ||
| Profit Quality | 98.66% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.24 |
F-Score7
WACC8.78%
ROIC/WACC1.62
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)22.3%
EPS 3Y15.85%
EPS 5Y18.59%
EPS Q2Q%9.6%
EPS Next Y13.74%
EPS Next 2Y13.62%
EPS Next 3Y12.75%
EPS Next 5Y12.44%
Revenue 1Y (TTM)15%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%11.74%
Revenue Next Year9.63%
Revenue Next 2Y7.79%
Revenue Next 3Y7.1%
Revenue Next 5Y7.04%
EBIT growth 1Y37.03%
EBIT growth 3Y37.28%
EBIT growth 5Y27.35%
EBIT Next Year34.36%
EBIT Next 3Y17.49%
EBIT Next 5Y12.9%
FCF growth 1Y24.74%
FCF growth 3Y24.58%
FCF growth 5Y70.22%
OCF growth 1Y31.54%
OCF growth 3Y25.76%
OCF growth 5Y31.92%
ASTRAZENECA PLC-SPONS ADR / AZN FAQ
What is the fundamental rating for AZN stock?
ChartMill assigns a fundamental rating of 6 / 10 to AZN.
What is the valuation status of ASTRAZENECA PLC-SPONS ADR (AZN) stock?
ChartMill assigns a valuation rating of 6 / 10 to ASTRAZENECA PLC-SPONS ADR (AZN). This can be considered as Fairly Valued.
Can you provide the profitability details for ASTRAZENECA PLC-SPONS ADR?
ASTRAZENECA PLC-SPONS ADR (AZN) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for AZN stock?
The Price/Earnings (PE) ratio for ASTRAZENECA PLC-SPONS ADR (AZN) is 18.52 and the Price/Book (PB) ratio is 5.7.
How financially healthy is ASTRAZENECA PLC-SPONS ADR?
The financial health rating of ASTRAZENECA PLC-SPONS ADR (AZN) is 4 / 10.