ASTRAZENECA PLC (ZEG.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ZEG - GB0009895292 - Common Stock
155.6 EUR
-0.7 (-0.45%)
Overall ZEG gets a fundamental rating of 5 out of 10. We evaluated ZEG against 55 industry peers in the Pharmaceuticals industry. While ZEG has a great profitability rating, there are some minor concerns on its financial health. ZEG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ZEG was profitable.
- ZEG had a positive operating cash flow in the past year.
- ZEG had positive earnings in each of the past 5 years.
- ZEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ZEG's Return On Assets of 8.21% is fine compared to the rest of the industry. ZEG outperforms 65.45% of its industry peers.
- The Return On Equity of ZEG (20.48%) is better than 67.27% of its industry peers.
- ZEG has a Return On Invested Capital of 14.42%. This is in the better half of the industry: ZEG outperforms 70.91% of its industry peers.
- ZEG had an Average Return On Invested Capital over the past 3 years of 11.62%. This is below the industry average of 14.00%.
- The 3 year average ROIC (11.62%) for ZEG is below the current ROIC(14.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.21% | ||
| ROE | 20.48% | ||
| ROIC | 14.42% |
ROA(3y)5.35%
ROA(5y)4.19%
ROE(3y)13.78%
ROE(5y)12.42%
ROIC(3y)11.62%
ROIC(5y)9.52%
1.3 Margins
- The Profit Margin of ZEG (16.17%) is better than 67.27% of its industry peers.
- In the last couple of years the Profit Margin of ZEG has grown nicely.
- The Operating Margin of ZEG (24.34%) is comparable to the rest of the industry.
- ZEG's Operating Margin has improved in the last couple of years.
- The Gross Margin of ZEG (81.90%) is better than 83.64% of its industry peers.
- ZEG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.34% | ||
| PM (TTM) | 16.17% | ||
| GM | 81.9% |
OM growth 3Y21.43%
OM growth 5Y8.6%
PM growth 3Y251.6%
PM growth 5Y18.9%
GM growth 3Y3.31%
GM growth 5Y0.47%
2. Health
2.1 Basic Checks
- ZEG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for ZEG remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, ZEG has more shares outstanding
- ZEG has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.08 indicates that ZEG is not in any danger for bankruptcy at the moment.
- ZEG's Altman-Z score of 6.08 is amongst the best of the industry. ZEG outperforms 81.82% of its industry peers.
- The Debt to FCF ratio of ZEG is 3.41, which is a good value as it means it would take ZEG, 3.41 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ZEG (3.41) is better than 63.64% of its industry peers.
- A Debt/Equity ratio of 0.61 indicates that ZEG is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.61, ZEG perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 6.08 |
ROIC/WACC1.6
WACC9.01%
2.3 Liquidity
- ZEG has a Current Ratio of 0.88. This is a bad value and indicates that ZEG is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.88, ZEG is doing worse than 81.82% of the companies in the same industry.
- A Quick Ratio of 0.69 indicates that ZEG may have some problems paying its short term obligations.
- The Quick ratio of ZEG (0.69) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.61% over the past year.
- ZEG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.59% yearly.
- Looking at the last year, ZEG shows a quite strong growth in Revenue. The Revenue has grown by 13.52% in the last year.
- ZEG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.27% yearly.
EPS 1Y (TTM)20.61%
EPS 3Y15.85%
EPS 5Y18.59%
EPS Q2Q%14.42%
Revenue 1Y (TTM)13.52%
Revenue growth 3Y13.06%
Revenue growth 5Y17.27%
Sales Q2Q%11.99%
3.2 Future
- The Earnings Per Share is expected to grow by 12.37% on average over the next years. This is quite good.
- Based on estimates for the next years, ZEG will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y14.52%
EPS Next 2Y13.43%
EPS Next 3Y12.85%
EPS Next 5Y12.37%
Revenue Next Year10.2%
Revenue Next 2Y8.11%
Revenue Next 3Y7.34%
Revenue Next 5Y7.2%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 20.42, which indicates a rather expensive current valuation of ZEG.
- ZEG's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, ZEG is valued a bit cheaper.
- ZEG is valuated rather expensively with a Price/Forward Earnings ratio of 17.64.
- ZEG's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. ZEG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 17.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZEG indicates a slightly more expensive valuation: ZEG is more expensive than 70.91% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ZEG is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.38 | ||
| EV/EBITDA | 29.12 |
4.3 Compensation for Growth
- ZEG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ZEG may justify a higher PE ratio.
- A more expensive valuation may be justified as ZEG's earnings are expected to grow with 12.85% in the coming years.
PEG (NY)1.41
PEG (5Y)1.1
EPS Next 2Y13.43%
EPS Next 3Y12.85%
5. Dividend
5.1 Amount
- ZEG has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.62, ZEG pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ZEG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
- The dividend of ZEG has a limited annual growth rate of 1.40%.
Dividend Growth(5Y)1.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- ZEG pays out 52.89% of its income as dividend. This is a bit on the high side, but may be sustainable.
- ZEG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.89%
EPS Next 2Y13.43%
EPS Next 3Y12.85%
ASTRAZENECA PLC / ZEG.DE FAQ
What is the fundamental rating for ZEG stock?
ChartMill assigns a fundamental rating of 5 / 10 to ZEG.DE.
What is the valuation status of ASTRAZENECA PLC (ZEG.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to ASTRAZENECA PLC (ZEG.DE). This can be considered as Overvalued.
What is the profitability of ZEG stock?
ASTRAZENECA PLC (ZEG.DE) has a profitability rating of 7 / 10.
What is the valuation of ASTRAZENECA PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ASTRAZENECA PLC (ZEG.DE) is 20.42 and the Price/Book (PB) ratio is 12.59.
Can you provide the expected EPS growth for ZEG stock?
The Earnings per Share (EPS) of ASTRAZENECA PLC (ZEG.DE) is expected to grow by 14.52% in the next year.