ASTRAZENECA PLC-SPONS ADR (AZN) Stock Fundamental Analysis
NASDAQ:AZN - Nasdaq - US0463531089 - ADR
AZN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 195 industry peers in the Pharmaceuticals industry. AZN scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on AZN.
1. Profitability
1.1 Basic Checks
In the past year AZN was profitable.
AZN had a positive operating cash flow in the past year.
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 (6.17%) is better than 90.32% of its industry peers.
AZN has a better Return On Equity (16.30%) than 90.86% of its industry peers.
The Return On Invested Capital of AZN (11.30%) is better than 89.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZN is significantly below the industry average of 43.99%.
The last Return On Invested Capital (11.30%) for AZN is above the 3 year average (8.91%), which is a sign of increasing profitability.
| 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 88.71% of the companies in the same industry.
In the last couple of years the Profit Margin of AZN has grown nicely.
Looking at the Operating Margin, with a value of 20.99%, AZN belongs to the top of the industry, outperforming 86.56% of the companies in the same industry.
AZN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 82.21%, AZN belongs to the best of the industry, outperforming 88.17% 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.
Compared to 1 year ago, AZN has about the same amount of shares outstanding.
Compared to 5 years ago, AZN has more shares outstanding
The debt/assets ratio for AZN has been reduced compared to a year ago.
2.2 Solvency
AZN has an Altman-Z score of 2.76. 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.
With a decent Altman-Z score value of 2.76, AZN is doing good in the industry, outperforming 72.04% of the companies in the same industry.
AZN has a debt to FCF ratio of 4.81. This is a neutral value as AZN would need 4.81 years to pay back of all of its debts.
AZN has a better Debt to FCF ratio (4.81) than 87.10% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that AZN is somewhat dependend on debt financing.
AZN has a worse Debt to Equity ratio (0.79) than 69.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.35
WACC8.35%
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.
With a Current ratio value of 0.89, AZN is not doing good in the industry: 89.25% of the companies in the same industry are doing better.
A Quick Ratio of 0.69 indicates that AZN may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, AZN is not doing good in the industry: 90.32% of the companies in the same industry are doing better.
| 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%.
AZN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.95% yearly.
The Revenue has been growing slightly by 3.29% in the past year.
Measured over the past years, AZN shows a quite strong growth in Revenue. The Revenue has been growing by 15.71% on average per year.
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
The Earnings Per Share is expected to grow by 11.49% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.96% on average over the next years.
EPS Next Y14.81%
EPS Next 2Y15.03%
EPS Next 3Y13.67%
EPS Next 5Y11.49%
Revenue Next Year15.26%
Revenue Next 2Y11.28%
Revenue Next 3Y9.45%
Revenue Next 5Y7.96%
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
With a Price/Earnings ratio of 17.84, AZN is valued on the expensive side.
AZN's Price/Earnings ratio is rather cheap when compared to the industry. AZN is cheaper than 86.02% 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 28.29.
A Price/Forward Earnings ratio of 14.08 indicates a correct valuation of AZN.
Based on the Price/Forward Earnings ratio, AZN is valued cheaper than 82.80% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, AZN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 14.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AZN is valued cheaply inside the industry as 81.18% of the companies are valued more expensively.
82.26% of the companies in the same industry are more expensive than AZN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.25 | ||
| EV/EBITDA | 15.14 |
4.3 Compensation for Growth
AZN's 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.
A more expensive valuation may be justified as AZN's earnings are expected to grow with 13.67% in the coming years.
PEG (NY)1.2
PEG (5Y)1.12
EPS Next 2Y15.03%
EPS Next 3Y13.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.15%, 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 4.09. AZN pays more dividend than 91.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, AZN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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 (1/21/2025, 8:00:00 PM)
After market: 67.96 0 (0%)67.96
+1.36 (+2.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners47.68%
Inst Owner Change-0.09%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap210.75B
Analysts80.59
Price Target85.54 (25.87%)
Short Float %0.42%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend2.89
Dividend Growth(5Y)1%
DP69.29%
Div Incr Years1
Div Non Decr Years11
Ex-DateN/A
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)-1.29%
PT rev (3m)-7.33%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-2.54%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 14.08 | ||
| P/S | 4.29 | ||
| P/FCF | 30.25 | ||
| P/OCF | 19.05 | ||
| P/B | 5.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.14 |
EPS(TTM)3.81
EY5.61%
EPS(NY)4.83
Fwd EY7.1%
FCF(TTM)2.25
FCFY3.31%
OCF(TTM)3.57
OCFY5.25%
SpS15.84
BVpS12.74
TBVpS-6.76
PEG (NY)1.2
PEG (5Y)1.12
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 | 2.76 |
F-Score6
WACC8.35%
ROIC/WACC1.35
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 5Y11.49%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y19.84%
Revenue growth 5Y15.71%
Sales Q2Q%18.04%
Revenue Next Year15.26%
Revenue Next 2Y11.28%
Revenue Next 3Y9.45%
Revenue Next 5Y7.96%
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%