ASTRAZENECA PLC-SPONS ADR (AZN)
US0463531089 - ADR
We assign a fundamental rating of 6 out of 10 to AZN. AZN was compared to 194 industry peers in the Pharmaceuticals industry. While AZN belongs to the best of the industry regarding profitability, there are some minor 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
In the past year AZN was profitable.
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
With an excellent Return On Assets value of 6.17%, AZN belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
AZN has a better Return On Equity (16.30%) than 91.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.30%, AZN belongs to the top of the industry, outperforming 90.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AZN is significantly below the industry average of 42.22%.
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
AZN has a Profit Margin of 13.11%. This is amongst the best in the industry. AZN outperforms 89.58% of its industry peers.
AZN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.99%, AZN belongs to the best of the industry, outperforming 86.98% of the companies in the same industry.
AZN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 82.21%, AZN belongs to the top of the industry, outperforming 88.54% of the companies in the same industry.
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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AZN is still creating some value.
The number of shares outstanding for AZN remains at a similar level compared to 1 year ago.
The number of shares outstanding for AZN has been increased compared to 5 years ago.
The debt/assets ratio for AZN has been reduced compared to a year ago.
2.2 Solvency
AZN has an Altman-Z score of 2.66. 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.
Looking at the Altman-Z score, with a value of 2.66, AZN is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
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 has a Debt to FCF ratio of 4.81. This is amongst the best in the industry. AZN outperforms 87.50% 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.
Looking at the Debt to Equity ratio, with a value of 0.79, AZN is doing worse than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 2.66 |
ROIC/WACC1.39
WACC8.13%
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.
AZN's Current ratio of 0.89 is on the low side compared to the rest of the industry. AZN is outperformed by 89.58% 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 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for AZN have decreased by -9.05% in the last year.
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.
AZN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.71% yearly.
EPS 1Y (TTM)-9.05%
EPS 3Y21.72%
EPS 5Y15.95%
EPS Q2Q%-39.88%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y19.84%
Revenue growth 5Y15.71%
Sales Q2Q%18.04%
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 10.88% yearly.
AZN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.89% yearly.
EPS Next Y14.81%
EPS Next 2Y15.03%
EPS Next 3Y13.67%
EPS Next 5Y10.88%
Revenue Next Year14.41%
Revenue Next 2Y11.14%
Revenue Next 3Y9.41%
Revenue Next 5Y6.89%
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.
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 19.53 indicates a rather expensive valuation of AZN.
Based on the Price/Earnings ratio, AZN is valued cheaper than 83.85% 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 28.96.
With a Price/Forward Earnings ratio of 13.31, AZN is valued correctly.
Based on the Price/Forward Earnings ratio, AZN is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
AZN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.53 | ||
| Fwd PE | 13.31 |
4.2 Price Multiples
AZN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AZN is cheaper than 81.25% of the companies in the same industry.
AZN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AZN is cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.6 | ||
| EV/EBITDA | 14.4 |
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 13.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)1.22
EPS Next 2Y15.03%
EPS Next 3Y13.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, AZN has a reasonable but not impressive dividend return.
In the last 3 months the price of AZN has falen by -25.85%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.28, AZN pays a better dividend. On top of this AZN pays more dividend than 92.19% of the companies listed in the same industry.
AZN's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
AZN pays out 69.29% of its income as dividend. This is not a sustainable payout ratio.
AZN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.29%
EPS Next 2Y15.03%
EPS Next 3Y13.67%
ASTRAZENECA PLC-SPONS ADR
NASDAQ:AZN (11/21/2024, 8:13:55 PM)
Premarket: 64.8 +0.54 (+0.84%)64.26
+1.06 (+1.68%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
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Market Cap199.24B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.53 | ||
| Fwd PE | 13.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.32
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 16.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.99% | ||
| PM (TTM) | 13.11% | ||
| GM | 82.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-9.05%
EPS 3Y21.72%
EPS 5Y
EPS Q2Q%
EPS Next Y14.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.29%
Revenue growth 3Y19.84%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y