DB:AXP

Stock Analysis Report

Executive Summary

Alexion Pharmaceuticals, Inc. develops and commercializes various therapeutic products.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Alexion Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AXP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

AXP

-1.4%

DE Biotechs

0.1%

DE Market


1 Year Return

-5.8%

AXP

-6.9%

DE Biotechs

8.8%

DE Market

Return vs Industry: AXP exceeded the German Biotechs industry which returned -6.9% over the past year.

Return vs Market: AXP underperformed the German Market which returned 8.8% over the past year.


Shareholder returns

AXPIndustryMarket
7 Day2.4%-1.4%0.1%
30 Day10.1%-2.4%5.9%
90 Day3.6%-7.9%15.0%
1 Year-5.8%-5.8%-6.6%-6.9%12.2%8.8%
3 Year-13.6%-13.6%54.7%52.6%25.5%14.5%
5 Year-35.4%-35.4%-1.5%-4.6%40.1%21.0%

Price Volatility Vs. Market

How volatile is Alexion Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Alexion Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

43.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AXP (€98.44) is trading below our estimate of fair value (€174.74)

Significantly Below Fair Value: AXP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AXP is good value based on its PE Ratio (16.6x) compared to the Biotechs industry average (29.2x).

PE vs Market: AXP is good value based on its PE Ratio (16.6x) compared to the German market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: AXP is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: AXP is good value based on its PB Ratio (2.3x) compared to the DE Biotechs industry average (3.1x).


Next Steps

Future Growth

How is Alexion Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXP's forecast earnings growth (10.3% per year) is above the savings rate (0.2%).

Earnings vs Market: AXP's earnings (10.3% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: AXP's earnings are forecast to grow, but not significantly.

Revenue vs Market: AXP's revenue (9.3% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: AXP's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AXP's Return on Equity is forecast to be low in 3 years time (19.4%).


Next Steps

Past Performance

How has Alexion Pharmaceuticals performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXP has large one-off items impacting its financial results.

Growing Profit Margin: AXP's current net profit margins (31%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: AXP's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: AXP's earnings growth over the past year (863.5%) exceeds its 5-year average (13.7% per year).

Earnings vs Industry: AXP earnings growth over the past year (863.5%) exceeded the Biotechs industry 5.4%.


Return on Equity

High ROE: AXP's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alexion Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: AXP's short term assets ($4.3B) exceeds its short term liabilities ($1.1B)

Long Term Liabilities: AXP's short term assets (4.3B) exceeds its long term liabilities (3.4B)


Debt to Equity History and Analysis

Debt Level: AXP's debt to equity ratio (25.1%) is considered satisfactory

Reducing Debt: AXP's debt to equity ratio has increased from 2.2% to 25.1% over the past 5 years.

Debt Coverage: AXP's debt is well covered by operating cash flow (63.4%).

Interest Coverage: AXP's interest payments on its debt are well covered by EBIT (24.1x coverage).


Balance Sheet

Inventory Level: AXP has a low level of unsold assets or inventory.

Debt Coverage by Assets: AXP's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Alexion Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AXP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AXP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AXP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AXP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AXP's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Alexion Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Ludwig Hantson (56yo)

2.7yrs

Tenure

US$16,490,250

Compensation

Dr. Ludwig N. Hantson, Ph.D., has been Chief Executive Officer at Alexion Pharmaceuticals, Inc. since March 27, 2017. Dr. Hantson has been the President of Synovis Life Technologies Inc. since February 14, ...


CEO Compensation Analysis

Compensation vs Market: Ludwig's total compensation ($USD16.49M) is above average for companies of similar size in the German market ($USD4.47M).

Compensation vs Earnings: Ludwig's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.1yrs

Average Tenure

54yo

Average Age

Experienced Management: AXP's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: AXP's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$33,340,58330 May 19
Baker Bros. Advisors LP
EntityCompany
Shares300,000
Max PriceUS$114.11
SellUS$223,49920 Feb 19
Daniel Bazarko
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Senior VP
Shares2,000
Max PriceUS$111.75
SellUS$271,57303 Jan 19
Ludwig Hantson
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares3,244
Max PriceUS$83.72
SellUS$272,74030 Nov 18
Indrani M. Franchini
EntityIndividual
Role
Chief Compliance Officer
Executive VP & Chief Compliance Officer
Shares2,605
Max PriceUS$104.70

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ellen Chiniara (60yo)

    Executive VP

    • Tenure: 1.8yrs
  • Ludwig Hantson (56yo)

    CEO & Director

    • Tenure: 2.7yrs
    • Compensation: US$16.49m
  • John Orloff (62yo)

    Executive VP and Head of Research & Development

    • Tenure: 2.4yrs
    • Compensation: US$4.86m
  • Paul Clancy (57yo)

    Executive VP & Senior Advisor

    • Tenure: 0.08yrs
    • Compensation: US$5.49m
  • Anne-Marie Law (52yo)

    Executive VP & Chief Human Experience Officer

    • Tenure: 2.4yrs
    • Compensation: US$5.30m
  • Brian Goff (50yo)

    Executive VP & Chief Commercial and Global Operations Officer

    • Tenure: 0.08yrs
    • Compensation: US$4.88m
  • Indrani M. Franchini (47yo)

    Executive VP & Chief Compliance Officer

    • Tenure: 2.4yrs
  • Daniel Bazarko

    Chief Accounting Officer & Senior VP

    • Tenure: 0yrs
  • Susan Altschuller

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Aradhana Sarin (44yo)

    Executive VP & CFO

    • Tenure: 0.08yrs

Board Members

  • Felix Baker (50yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$373.86k
  • Paul Friedman (76yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$348.86k
  • Chris Coughlin (67yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$533.86k
  • Deborah Dunsire (57yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$582.96k
  • David Brennan (65yo)

    Independent Chairman of the Board

    • Tenure: 2.5yrs
    • Compensation: US$448.86k
  • Judy Reinsdorf (55yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$595.45k
  • Ludwig Hantson (56yo)

    CEO & Director

    • Tenure: 2.7yrs
    • Compensation: US$16.49m
  • Andreas Rummelt (63yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$348.86k
  • Jack Mollen (68yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$373.86k
  • Francois Nader (62yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$348.86k

Company Information

Alexion Pharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alexion Pharmaceuticals, Inc.
  • Ticker: AXP
  • Exchange: DB
  • Founded: 1992
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$24.218b
  • Listing Market Cap: US$22.009b
  • Shares outstanding: 221.29m
  • Website: https://www.alexion.com

Number of Employees


Location

  • Alexion Pharmaceuticals, Inc.
  • 121 Seaport Boulevard
  • Boston
  • Massachusetts
  • 2210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALXNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1996
AXPXTRA (XETRA Trading Platform)YesCommon StockDEEURFeb 1996
AXPDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1996
0QZMLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1996
ALXN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1996
ALXNWBAG (Wiener Boerse AG)YesCommon StockATEURFeb 1996

Biography

Alexion Pharmaceuticals, Inc. develops and commercializes various therapeutic products. The company offers ULTOMIRIS (ALXN1210/ravulizumab-cwvz), a monoclonal antibody for the treatment of paroxysmal noctu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 21:29
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.