BIOGEN INC (BIIB) Stock Fundamental Analysis
NASDAQ:BIIB - Nasdaq - US09062X1037 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BIIB. BIIB was compared to 568 industry peers in the Biotechnology industry. While BIIB has a great profitability rating, there are some minor concerns on its financial health. BIIB is cheap, but on the other hand it scores bad on growth. These ratings would make BIIB suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year BIIB was profitable.
BIIB had a positive operating cash flow in the past year.
In the past 5 years BIIB has always been profitable.
In the past 5 years BIIB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BIIB (5.82%) is better than 94.01% of its industry peers.
BIIB has a Return On Equity of 9.76%. This is amongst the best in the industry. BIIB outperforms 94.37% of its industry peers.
BIIB's Return On Invested Capital of 9.92% is amongst the best of the industry. BIIB outperforms 95.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BIIB is below the industry average of 14.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.82% | ||
| ROE | 9.76% | ||
| ROIC | 9.92% |
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 16.87% is amongst the best of the industry. BIIB outperforms 96.30% of its industry peers.
BIIB's Profit Margin has declined in the last couple of years.
BIIB has a Operating Margin of 26.35%. This is amongst the best in the industry. BIIB outperforms 97.01% 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 76.12%, BIIB belongs to the top of the industry, outperforming 83.45% of the companies in the same industry.
In the last couple of years the Gross Margin of BIIB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.35% | ||
| PM (TTM) | 16.87% | ||
| GM | 76.12% |
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.
Compared to 1 year ago, BIIB has more shares outstanding
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
An Altman-Z score of 2.59 indicates that BIIB is not a great score, but indicates only limited risk for bankruptcy at the moment.
BIIB has a better Altman-Z score (2.59) than 75.70% of its industry peers.
The Debt to FCF ratio of BIIB is 2.50, which is a good value as it means it would take BIIB, 2.50 years of fcf income to pay off all of its debts.
BIIB has a Debt to FCF ratio of 2.50. This is amongst the best in the industry. BIIB outperforms 94.37% 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 has a worse Debt to Equity ratio (0.27) than 70.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.02
WACC9.7%
2.3 Liquidity
BIIB has a Current Ratio of 1.35. This is a normal value and indicates that BIIB is financially healthy and should not expect problems in meeting its short term obligations.
BIIB has a Current ratio of 1.35. This is amonst the worse of the industry: BIIB underperforms 83.63% of its industry peers.
BIIB has a Quick Ratio of 1.35. This is a bad value and indicates that BIIB is not financially healthy enough and could expect problems in meeting its short term obligations.
BIIB's Quick ratio of 0.90 is on the low side compared to the rest of the industry. BIIB is outperformed by 88.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
BIIB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.22%, which is quite good.
The earnings per share for BIIB have been decreasing by -13.31% on average. This is quite bad
The Revenue has decreased by -1.62% in the past year.
BIIB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.62% yearly.
EPS 1Y (TTM)9.22%
EPS 3Y-4.95%
EPS 5Y-13.31%
EPS Q2Q%4.24%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y-4.13%
Revenue growth 5Y-7.62%
Sales Q2Q%2.87%
3.2 Future
BIIB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.94% yearly.
Based on estimates for the next years, BIIB will show a decrease in Revenue. The Revenue will decrease by -0.29% on average per year.
EPS Next Y-2.34%
EPS Next 2Y-0.8%
EPS Next 3Y1.99%
EPS Next 5Y1.94%
Revenue Next Year-4.32%
Revenue Next 2Y-2.38%
Revenue Next 3Y-0.89%
Revenue Next 5Y-0.29%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.07, the valuation of BIIB can be described as very cheap.
98.06% of the companies in the same industry are more expensive than BIIB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.63. BIIB is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.24 indicates a rather cheap valuation of BIIB.
98.06% of the companies in the same industry are more expensive than BIIB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BIIB to the average of the S&P500 Index (20.85), we can say BIIB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BIIB is valued cheaply inside the industry as 98.77% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BIIB indicates a rather cheap valuation: BIIB is cheaper than 98.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.78 | ||
| EV/EBITDA | 6.51 |
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-0.8%
EPS Next 3Y1.99%
5. Dividend
5.1 Amount
No dividends for BIIB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
116.49
-2.12 (-1.79%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners94.24%
Inst Owner Change0.69%
Ins Owners0.12%
Ins Owner Change1.16%
Market Cap17.05B
Analysts74.42
Price Target200.75 (72.33%)
Short Float %2.56%
Short Ratio2.39
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)3.08%
Min EPS beat(2)0.67%
Max EPS beat(2)5.5%
EPS beat(4)4
Avg EPS beat(4)9.77%
Min EPS beat(4)0.67%
Max EPS beat(4)28.61%
EPS beat(8)8
Avg EPS beat(8)6.83%
EPS beat(12)11
Avg EPS beat(12)8.87%
EPS beat(16)14
Avg EPS beat(16)9.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)1.48%
Revenue beat(8)5
Avg Revenue beat(8)0.17%
Revenue beat(12)7
Avg Revenue beat(12)0.42%
Revenue beat(16)10
Avg Revenue beat(16)0.84%
PT rev (1m)-0.56%
PT rev (3m)-17.45%
EPS NQ rev (1m)-3.76%
EPS NQ rev (3m)-11.84%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-5.71%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-3.66%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 7.24 | ||
| P/S | 1.76 | ||
| P/FCF | 6.78 | ||
| P/OCF | 5.93 | ||
| P/B | 1.02 | ||
| P/tB | 31.23 | ||
| EV/EBITDA | 6.51 |
EPS(TTM)16.47
EY14.14%
EPS(NY)16.08
Fwd EY13.81%
FCF(TTM)17.19
FCFY14.75%
OCF(TTM)19.65
OCFY16.86%
SpS66.11
BVpS114.2
TBVpS3.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.82% | ||
| ROE | 9.76% | ||
| ROCE | 11.32% | ||
| ROIC | 9.92% | ||
| ROICexc | 11.09% | ||
| ROICexgc | 56.18% | ||
| OM | 26.35% | ||
| PM (TTM) | 16.87% | ||
| GM | 76.12% | ||
| FCFM | 26% |
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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.5 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 53.45% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 10.39 | ||
| Cash Conversion | 89.23% | ||
| Profit Quality | 154.13% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 2.59 |
F-Score6
WACC9.7%
ROIC/WACC1.02
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)9.22%
EPS 3Y-4.95%
EPS 5Y-13.31%
EPS Q2Q%4.24%
EPS Next Y-2.34%
EPS Next 2Y-0.8%
EPS Next 3Y1.99%
EPS Next 5Y1.94%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y-4.13%
Revenue growth 5Y-7.62%
Sales Q2Q%2.87%
Revenue Next Year-4.32%
Revenue Next 2Y-2.38%
Revenue Next 3Y-0.89%
Revenue Next 5Y-0.29%
EBIT growth 1Y24.37%
EBIT growth 3Y-8.8%
EBIT growth 5Y-18.9%
EBIT Next Year14.01%
EBIT Next 3Y5.48%
EBIT Next 5Y5.69%
FCF growth 1Y103.57%
FCF growth 3Y-9.06%
FCF growth 5Y-17.06%
OCF growth 1Y85.85%
OCF growth 3Y-7.56%
OCF growth 5Y-16.49%