93.19 USD
-0.03 (-0.03%)
We assign a fundamental rating of 6 out of 10 to AZN. AZN was compared to 190 industry peers in the Pharmaceuticals industry. AZN scores excellent on profitability, but there are some minor concerns on its financial health. AZN has a decent growth rate and is not valued too expensively. Finally AZN also has an excellent dividend rating.
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.
- Each year in the past 5 years AZN had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AZN (8.21%) is better than 89.47% of its industry peers.
- With an excellent Return On Equity value of 20.48%, AZN belongs to the best of the industry, outperforming 90.53% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 14.42%, AZN belongs to the best of the industry, outperforming 94.21% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AZN is in line with the industry average of 12.83%.
- The 3 year average ROIC (11.62%) for AZN 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
- AZN has a better Profit Margin (16.17%) than 88.42% of its industry peers.
- AZN's Profit Margin has improved in the last couple of years.
- AZN has a better Operating Margin (24.34%) than 91.05% of its industry peers.
- In the last couple of years the Operating Margin of AZN has grown nicely.
- With an excellent Gross Margin value of 81.90%, AZN belongs to the best of the industry, outperforming 85.26% 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 | 24.34% | ||
| 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), 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 worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.53 indicates that AZN is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.53, AZN is in the better half of the industry, outperforming 67.37% of the companies in the same industry.
- AZN has a debt to FCF ratio of 3.41. This is a good value and a sign of high solvency as AZN would need 3.41 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.41, AZN belongs to the top of the industry, outperforming 87.37% of the companies in the same industry.
- AZN has a Debt/Equity ratio of 0.61. This is a neutral value indicating AZN is somewhat dependend on debt financing.
- AZN has a worse Debt to Equity ratio (0.61) than 67.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.64
WACC8.81%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that AZN may have some problems paying its short term obligations.
- AZN has a Current ratio of 0.88. This is amonst the worse of the industry: AZN underperforms 87.37% of its industry peers.
- AZN has a Quick Ratio of 0.88. This is a bad value and indicates that AZN is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.69, AZN is not doing good in the industry: 86.32% 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
- The Earnings Per Share has grown by an impressive 20.61% over the past year.
- AZN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.59% yearly.
- The Revenue has grown by 13.52% in the past year. This is quite good.
- AZN 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
- AZN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.37% yearly.
- The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y14.52%
EPS Next 2Y13.43%
EPS Next 3Y12.85%
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
- AZN is valuated rather expensively with a Price/Earnings ratio of 20.26.
- Compared to the rest of the industry, the Price/Earnings ratio of AZN indicates a rather cheap valuation: AZN is cheaper than 80.53% of the companies listed in the same industry.
- AZN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- AZN is valuated rather expensively with a Price/Forward Earnings ratio of 17.52.
- 79.47% 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 25.83, AZN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 17.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AZN is valued cheaper than 82.11% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AZN is valued cheaper than 81.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.2 | ||
| EV/EBITDA | 15.05 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of AZN may justify a higher PE ratio.
- AZN's earnings are expected to grow with 12.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.4
PEG (5Y)1.09
EPS Next 2Y13.43%
EPS Next 3Y12.85%
5. Dividend
5.1 Amount
- AZN has a Yearly Dividend Yield of 1.80%. 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 0.46. AZN pays more dividend than 92.11% of the companies in the same industry.
- AZN's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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
- 52.89% of the earnings are spent on dividend by AZN. 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.
DP52.89%
EPS Next 2Y13.43%
EPS Next 3Y12.85%
ASTRAZENECA PLC-SPONS ADR / AZN FAQ
Can you provide the ChartMill fundamental rating for ASTRAZENECA PLC-SPONS ADR?
ChartMill assigns a fundamental rating of 6 / 10 to AZN.
What is the valuation status for AZN stock?
ChartMill assigns a valuation rating of 6 / 10 to ASTRAZENECA PLC-SPONS ADR (AZN). This can be considered as Fairly Valued.
How profitable is ASTRAZENECA PLC-SPONS ADR (AZN) stock?
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 20.26 and the Price/Book (PB) ratio is 6.3.
What is the expected EPS growth for ASTRAZENECA PLC-SPONS ADR (AZN) stock?
The Earnings per Share (EPS) of ASTRAZENECA PLC-SPONS ADR (AZN) is expected to grow by 14.52% in the next year.