BIOGEN INC (BIIB) Stock Fundamental Analysis
NASDAQ:BIIB - Nasdaq - US09062X1037 - Common Stock - Currency: USD
BIIB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 557 industry peers in the Biotechnology industry. While BIIB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BIIB is valued quite cheap, but it does not seem to be growing. With these ratings, BIIB could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
BIIB had positive earnings in the past year.
In the past year BIIB had a positive cash flow from operations.
BIIB had positive earnings in each of the past 5 years.
In the past 5 years BIIB always reported a positive cash flow from operatings.
1.2 Ratios
BIIB has a better Return On Assets (5.28%) than 92.28% of its industry peers.
BIIB has a Return On Equity of 8.71%. This is amongst the best in the industry. BIIB outperforms 93.72% of its industry peers.
BIIB's Return On Invested Capital of 9.95% is amongst the best of the industry. BIIB outperforms 95.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BIIB is below the industry average of 14.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.28% | ||
| ROE | 8.71% | ||
| ROIC | 9.95% |
ROA(3y)7.52%
ROA(5y)9.06%
ROE(3y)13.45%
ROE(5y)18.41%
ROIC(3y)10.57%
ROIC(5y)13.65%
1.3 Margins
Looking at the Profit Margin, with a value of 15.07%, BIIB belongs to the top of the industry, outperforming 93.90% of the companies in the same industry.
BIIB's Profit Margin has declined in the last couple of years.
BIIB has a Operating Margin of 26.30%. This is amongst the best in the industry. BIIB outperforms 97.13% of its industry peers.
BIIB's Operating Margin has declined in the last couple of years.
BIIB has a Gross Margin of 75.58%. This is amongst the best in the industry. BIIB outperforms 83.30% of its industry peers.
In the last couple of years the Gross Margin of BIIB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.3% | ||
| PM (TTM) | 15.07% | ||
| GM | 75.58% |
OM growth 3Y-4.87%
OM growth 5Y-12.22%
PM growth 3Y5.99%
PM growth 5Y-16.26%
GM growth 3Y-1.51%
GM growth 5Y-2.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BIIB is creating some value.
BIIB has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BIIB has been reduced compared to 5 years ago.
The debt/assets ratio for BIIB has been reduced compared to a year ago.
2.2 Solvency
BIIB has an Altman-Z score of 2.80. This is not the best score and indicates that BIIB is in the grey zone with still only limited risk for bankruptcy at the moment.
BIIB has a better Altman-Z score (2.80) than 72.53% of its industry peers.
BIIB has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as BIIB would need 2.74 years to pay back of all of its debts.
BIIB has a better Debt to FCF ratio (2.74) than 94.08% of its industry peers.
BIIB has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
BIIB's Debt to Equity ratio of 0.27 is on the low side compared to the rest of the industry. BIIB is outperformed by 70.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.07
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.44 indicates that BIIB should not have too much problems paying its short term obligations.
BIIB has a worse Current ratio (1.44) than 81.51% of its industry peers.
A Quick Ratio of 1.01 indicates that BIIB should not have too much problems paying its short term obligations.
The Quick ratio of BIIB (1.01) is worse than 86.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
BIIB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.06%.
BIIB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.31% yearly.
BIIB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.59%.
Measured over the past years, BIIB shows a decrease in Revenue. The Revenue has been decreasing by -7.62% on average per year.
EPS 1Y (TTM)3.06%
EPS 3Y-4.95%
EPS 5Y-13.31%
EPS Q2Q%-17.71%
Revenue 1Y (TTM)1.59%
Revenue growth 3Y-4.13%
Revenue growth 5Y-7.62%
Sales Q2Q%6.13%
3.2 Future
The Earnings Per Share is expected to grow by 1.48% on average over the next years.
The Revenue is expected to decrease by -0.48% on average over the next years.
EPS Next Y-7.32%
EPS Next 2Y-2.24%
EPS Next 3Y0.31%
EPS Next 5Y1.48%
Revenue Next Year-3.8%
Revenue Next 2Y-2.86%
Revenue Next 3Y-1.51%
Revenue Next 5Y-0.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.50, the valuation of BIIB can be described as reasonable.
BIIB's Price/Earnings ratio is rather cheap when compared to the industry. BIIB is cheaper than 97.67% of the companies in the same industry.
BIIB is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
BIIB is valuated reasonably with a Price/Forward Earnings ratio of 8.54.
Based on the Price/Forward Earnings ratio, BIIB is valued cheaper than 97.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, BIIB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 8.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BIIB is valued cheaply inside the industry as 98.20% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BIIB is valued cheaper than 97.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.58 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
The decent profitability rating of BIIB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.24%
EPS Next 3Y0.31%
5. Dividend
5.1 Amount
BIIB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
134.46
+4.33 (+3.33%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners92.86%
Inst Owner Change0.03%
Ins Owners0.13%
Ins Owner Change7.57%
Market Cap19.70B
Analysts73.02
Price Target173.34 (28.92%)
Short Float %2.32%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.97%
Min EPS beat(2)0.67%
Max EPS beat(2)17.28%
EPS beat(4)4
Avg EPS beat(4)13.01%
Min EPS beat(4)0.67%
Max EPS beat(4)28.61%
EPS beat(8)8
Avg EPS beat(8)8.78%
EPS beat(12)12
Avg EPS beat(12)10.47%
EPS beat(16)14
Avg EPS beat(16)9.94%
Revenue beat(2)2
Avg Revenue beat(2)3.39%
Min Revenue beat(2)0.11%
Max Revenue beat(2)6.67%
Revenue beat(4)3
Avg Revenue beat(4)1.89%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)6.67%
Revenue beat(8)5
Avg Revenue beat(8)0.61%
Revenue beat(12)8
Avg Revenue beat(12)1.03%
Revenue beat(16)11
Avg Revenue beat(16)1.28%
PT rev (1m)-1.01%
PT rev (3m)-13.65%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-5.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 8.54 | ||
| P/S | 2.01 | ||
| P/FCF | 8.58 | ||
| P/OCF | 7.63 | ||
| P/B | 1.16 | ||
| P/tB | 21.49 | ||
| EV/EBITDA | 7.11 |
EPS(TTM)15.82
EY11.77%
EPS(NY)15.74
Fwd EY11.71%
FCF(TTM)15.67
FCFY11.65%
OCF(TTM)17.62
OCFY13.1%
SpS66.99
BVpS115.87
TBVpS6.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.28% | ||
| ROE | 8.71% | ||
| ROCE | 11.36% | ||
| ROIC | 9.95% | ||
| ROICexc | 11.23% | ||
| ROICexgc | 55.5% | ||
| OM | 26.3% | ||
| PM (TTM) | 15.07% | ||
| GM | 75.58% | ||
| FCFM | 23.39% |
ROA(3y)7.52%
ROA(5y)9.06%
ROE(3y)13.45%
ROE(5y)18.41%
ROIC(3y)10.57%
ROIC(5y)13.65%
ROICexc(3y)12.43%
ROICexc(5y)16.11%
ROICexgc(3y)38.35%
ROICexgc(5y)40.12%
ROCE(3y)12.07%
ROCE(5y)15.58%
ROICexcg growth 3Y14.15%
ROICexcg growth 5Y-5.35%
ROICexc growth 3Y-15.93%
ROICexc growth 5Y-20.8%
OM growth 3Y-4.87%
OM growth 5Y-12.22%
PM growth 3Y5.99%
PM growth 5Y-16.26%
GM growth 3Y-1.51%
GM growth 5Y-2.23%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 40.34% | ||
| Cap/Sales | 2.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.44% | ||
| Profit Quality | 155.18% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 2.8 |
F-Score6
WACC9.27%
ROIC/WACC1.07
Cap/Depr(3y)54.43%
Cap/Depr(5y)68.89%
Cap/Sales(3y)3.09%
Cap/Sales(5y)3.21%
Profit Quality(3y)99.34%
Profit Quality(5y)120.98%
High Growth Momentum
Growth
EPS 1Y (TTM)3.06%
EPS 3Y-4.95%
EPS 5Y-13.31%
EPS Q2Q%-17.71%
EPS Next Y-7.32%
EPS Next 2Y-2.24%
EPS Next 3Y0.31%
EPS Next 5Y1.48%
Revenue 1Y (TTM)1.59%
Revenue growth 3Y-4.13%
Revenue growth 5Y-7.62%
Sales Q2Q%6.13%
Revenue Next Year-3.8%
Revenue Next 2Y-2.86%
Revenue Next 3Y-1.51%
Revenue Next 5Y-0.48%
EBIT growth 1Y21.69%
EBIT growth 3Y-8.8%
EBIT growth 5Y-18.9%
EBIT Next Year9.62%
EBIT Next 3Y4.45%
EBIT Next 5Y5.34%
FCF growth 1Y61.56%
FCF growth 3Y-9.06%
FCF growth 5Y-17.06%
OCF growth 1Y53.87%
OCF growth 3Y-7.56%
OCF growth 5Y-16.49%