Overall BIIB gets a fundamental rating of 6 out of 10. We evaluated BIIB against 525 industry peers in the Biotechnology industry. BIIB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
BIIB had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 5.51%, BIIB belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
BIIB has a Return On Equity of 8.84%. This is amongst the best in the industry. BIIB outperforms 92.38% of its industry peers.
With an excellent Return On Invested Capital value of 9.70%, BIIB belongs to the best of the industry, outperforming 94.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BIIB is significantly below the industry average of 18.07%.

		Industry Rank	Sector Rank
ROA	5.51%
ROE	8.84%
ROIC	9.7%

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

BIIB's Profit Margin of 15.98% is amongst the best of the industry. BIIB outperforms 92.57% of its industry peers.
BIIB's Profit Margin has declined in the last couple of years.
The Operating Margin of BIIB (28.50%) is better than 96.76% of its industry peers.
In the last couple of years the Operating Margin of BIIB has declined.
Looking at the Gross Margin, with a value of 75.24%, BIIB belongs to the top of the industry, outperforming 83.81% of the companies in the same industry.
BIIB's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	28.5%
PM (TTM)	15.98%
GM	75.24%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BIIB is still creating some value.
BIIB has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BIIB has less shares outstanding
BIIB has a better debt/assets ratio than last year.

2.2 Solvency

BIIB has an Altman-Z score of 3.28. This indicates that BIIB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.28, BIIB is in the better half of the industry, outperforming 69.14% of the companies in the same industry.
BIIB has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as BIIB would need 2.78 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.78, BIIB belongs to the best of the industry, outperforming 92.95% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that BIIB is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, BIIB is not doing good in the industry: 68.76% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.35
Debt/FCF	2.78
Altman-Z	3.28

ROIC/WACC1.15

WACC8.4%

2.3 Liquidity

BIIB has a Current Ratio of 2.72. This indicates that BIIB is financially healthy and has no problem in meeting its short term obligations.
BIIB has a Current ratio of 2.72. This is in the lower half of the industry: BIIB underperforms 68.38% of its industry peers.
BIIB has a Quick Ratio of 2.04. This indicates that BIIB is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.04, BIIB is doing worse than 73.71% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.72
Quick Ratio	2.04

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

BIIB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.51%.
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 4.77%.
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)2.51%

EPS 3Y-4.95%

EPS 5Y-13.31%

EPS Q2Q%17.89%

Revenue 1Y (TTM)4.77%

Revenue growth 3Y-4.13%

Revenue growth 5Y-7.62%

Sales Q2Q%2.79%

3.2 Future

The Earnings Per Share is expected to grow by 0.59% on average over the next years.
BIIB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.63% yearly.

EPS Next Y-7.36%

EPS Next 2Y-3.15%

EPS Next 3Y-0.51%

EPS Next 5Y0.59%

Revenue Next Year1.98%

Revenue Next 2Y-1.62%

Revenue Next 3Y-1.2%

Revenue Next 5Y-0.63%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.44 indicates a reasonable valuation of BIIB.
Compared to the rest of the industry, the Price/Earnings ratio of BIIB indicates a rather cheap valuation: BIIB is cheaper than 97.90% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. BIIB is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.32, the valuation of BIIB can be described as reasonable.
Based on the Price/Forward Earnings ratio, BIIB is valued cheaply inside the industry as 98.10% of the companies are valued more expensively.
BIIB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.

		Industry Rank	Sector Rank
PE	10.44
Fwd PE	11.32

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BIIB indicates a rather cheap valuation: BIIB is cheaper than 98.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BIIB is valued cheaply inside the industry as 98.29% of the companies are valued more expensively.