ASTRAZENECA PLC (ZEG.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ZEG - GB0009895292 - Common Stock
156.1 EUR
+3.1 (+2.03%)
We assign a fundamental rating of 5 out of 10 to ZEG. ZEG was compared to 54 industry peers in the Pharmaceuticals industry. ZEG has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, ZEG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- ZEG had positive earnings in the past year.
- ZEG had a positive operating cash flow in the past year.
- In the past 5 years ZEG has always been profitable.
- Each year in the past 5 years ZEG had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 8.21%, ZEG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- ZEG has a Return On Equity of 20.48%. This is in the better half of the industry: ZEG outperforms 68.52% of its industry peers.
- ZEG has a better Return On Invested Capital (14.42%) than 70.37% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ZEG is below the industry average of 13.93%.
- 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
- ZEG has a better Profit Margin (16.17%) than 66.67% of its industry peers.
- ZEG's Profit Margin has improved in the last couple of years.
- ZEG has a Operating Margin of 24.34%. This is in the better half of the industry: ZEG outperforms 61.11% of its industry peers.
- ZEG's Operating Margin has improved in the last couple of years.
- The Gross Margin of ZEG (81.90%) is better than 83.33% of its industry peers.
- In the last couple of years the Gross Margin of ZEG has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ZEG is creating some value.
- Compared to 1 year ago, ZEG has about the same amount of shares outstanding.
- ZEG has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ZEG has a worse debt to assets ratio.
2.2 Solvency
- ZEG has an Altman-Z score of 5.96. This indicates that ZEG is financially healthy and has little risk of bankruptcy at the moment.
- ZEG has a better Altman-Z score (5.96) than 79.63% 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.
- With a decent Debt to FCF ratio value of 3.41, ZEG is doing good in the industry, outperforming 64.81% of the companies in the same industry.
- A Debt/Equity ratio of 0.61 indicates that ZEG is somewhat dependend on debt financing.
- The Debt to Equity ratio of ZEG (0.61) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 5.96 |
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 81.48% of the companies in the same industry.
- ZEG has a Quick 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.
- ZEG's Quick ratio of 0.69 is on the low side compared to the rest of the industry. ZEG is outperformed by 72.22% 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.
- Measured over the past years, ZEG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.59% on average per year.
- Looking at the last year, ZEG shows a quite strong growth in Revenue. The Revenue has grown by 13.52% in the last year.
- Measured over the past years, ZEG shows a quite strong growth in Revenue. The Revenue has been growing by 17.27% on average per year.
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
- Based on estimates for the next years, ZEG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.37% on average per year.
- ZEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.20% yearly.
EPS Next Y11.95%
EPS Next 2Y12.55%
EPS Next 3Y12.2%
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.
- 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
- A Price/Earnings ratio of 20.01 indicates a rather expensive valuation of ZEG.
- ZEG's Price/Earnings ratio is in line with the industry average.
- ZEG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
- ZEG is valuated rather expensively with a Price/Forward Earnings ratio of 17.57.
- ZEG's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, ZEG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 17.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ZEG is valued a bit more expensive than 70.37% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ZEG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.22 | ||
| EV/EBITDA | 28.45 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ZEG has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ZEG's earnings are expected to grow with 12.20% in the coming years.
PEG (NY)1.67
PEG (5Y)1.08
EPS Next 2Y12.55%
EPS Next 3Y12.2%
5. Dividend
5.1 Amount
- ZEG has a Yearly Dividend Yield of 1.74%. Purely for dividend investing, there may be better candidates out there.
- ZEG's Dividend Yield is a higher than the industry average which is at 1.59.
- 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 | 1.74% |
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
- 52.89% of the earnings are spent on dividend by ZEG. This is a bit on the high side, but may be sustainable.
- The dividend of ZEG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.89%
EPS Next 2Y12.55%
EPS Next 3Y12.2%
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 20.01 and the Price/Book (PB) ratio is 12.35.
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 11.95% in the next year.