LSE:AZN

Stock Analysis Report

Executive Summary

AstraZeneca PLC discovers, develops, and commercializes prescription medicines in the areas of oncology, cardiovascular, renal and metabolism, respiratory, autoimmunity, infection, neuroscience, and gastroenterology worldwide.

Snowflake

Fundamentals

High growth potential average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.1%

AZN

-2.5%

GB Pharmaceuticals

-0.5%

GB Market


1 Year Return

15.9%

AZN

10.9%

GB Pharmaceuticals

3.7%

GB Market

Return vs Industry: AZN exceeded the UK Pharmaceuticals industry which returned 10.9% over the past year.

Return vs Market: AZN exceeded the UK Market which returned 3.7% over the past year.


Shareholder returns

AZNIndustryMarket
7 Day-3.1%-2.5%-0.5%
30 Day4.8%3.6%1.4%
90 Day-1.3%-0.05%3.1%
1 Year19.9%15.9%15.4%10.9%9.2%3.7%
3 Year87.4%66.0%50.0%32.2%23.5%7.8%
5 Year94.1%57.7%70.4%35.6%34.4%3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AZN (£72.48) is trading below our estimate of fair value (£93.75)

Significantly Below Fair Value: AZN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AZN is poor value based on its PE Ratio (58.5x) compared to the Pharmaceuticals industry average (18.6x).

PE vs Market: AZN is poor value based on its PE Ratio (58.5x) compared to the UK market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: AZN is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: AZN is overvalued based on its PB Ratio (10.1x) compared to the GB Pharmaceuticals industry average (2.5x).


Next Steps

Future Growth

How is AstraZeneca forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

31.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZN's forecast earnings growth (31.5% per year) is above the savings rate (1.2%).

Earnings vs Market: AZN's earnings (31.5% per year) are forecast to grow faster than the UK market (12.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AZN's revenue (9.8% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: AZN's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AZN's Return on Equity is forecast to be very high in 3 years time (40.2%).


Next Steps

Past Performance

How has AstraZeneca performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: AZN's current net profit margins (8.5%) are lower than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: AZN's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: AZN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AZN had negative earnings growth (-15.1%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (6.9%).


Return on Equity

High ROE: AZN's Return on Equity (14.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AstraZeneca's financial position?


Financial Position Analysis

Short Term Liabilities: AZN's short term assets ($13.5B) do not cover its short term liabilities ($14.8B)

Long Term Liabilities: AZN's short term assets (13.5B) do not cover its long term liabilities (30.5B)


Debt to Equity History and Analysis

Debt Level: AZN's debt to equity ratio (143.4%) is considered high

Reducing Debt: AZN's debt to equity ratio has increased from 48.1% to 143.4% over the past 5 years.

Debt Coverage: AZN's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: AZN's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: AZN's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

3.00%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.9%markettop25%5.3%industryaverage3.7%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: AZN's dividend (3%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: AZN's dividend (3%) is low compared to the top 25% of dividend payers in the UK market (5.33%).


Stability and Growth of Payments

Stable Dividend: AZN's dividends per share have been stable in the past 10 years.

Growing Dividend: AZN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (175.6%), AZN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AZN's dividends in 3 years are forecast to be well covered by earnings (46.9% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Pascal Soriot (60yo)

7.1yrs

Tenure

US$11,356,000

Compensation

Mr. Pascal Soriot, MBA has been the Chief Executive Officer and Executive Director at AstraZeneca PLC since October 1, 2012. Mr. Soriot served as the Chief Operating Officer of Roche Pharma AG from 2010 to ...


CEO Compensation Analysis

Compensation vs Market: Pascal's total compensation ($USD14.61M) is above average for companies of similar size in the UK market ($USD5.10M).

Compensation vs Earnings: Pascal's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.8yrs

Average Tenure

60yo

Average Age

Experienced Management: AZN's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

60yo

Average Age

Experienced Board: AZN's board of directors are considered experienced (4.3 years average tenure).


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

BuyUS$493,00008 May 19
Marc Dunoyer
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares8,500
Max PriceUS$58.00
BuyUS$996,16001 May 19
Pascal Soriot
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares17,100
Max PriceUS$58.26
BuyUS$29,83801 May 19
Philip John Broadley
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares520
Max PriceUS$57.38

Ownership Breakdown

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


Management Team

  • Marc Dunoyer (67yo)

    CFO & Executive Director

    • Tenure: 6yrs
    • Compensation: US$5.19m
  • Pascal Soriot (60yo)

    CEO & Executive Director

    • Tenure: 7.1yrs
    • Compensation: US$11.36m
  • Ruud Dobber

    Executive VP & President of BioPharmaceuticals Business Unit

    • Tenure: 6.8yrs
  • Jeff Pott

    General Counsel

    • Tenure: 10.8yrs
  • Katarina Ageborg

    Executive VP of Sustainability & Chief Compliance Officer

    • Tenure: 8.3yrs
  • Mene Pangalos

    Executive VP & President of Research & Development - BioPharmaceuticals

    • Tenure: 6.8yrs
  • Fiona Cicconi

    Executive Vice President of Human Resources

    • Tenure: 5.2yrs
  • Pam Cheng (48yo)

    Executive Vice-President of Operations & Information Technology

    • Tenure: 4.4yrs
  • Thomas Larsen

    Head of Investor Relations

    • Tenure: 0yrs
  • Ralph Knöll

    Chief Scientist

    • Tenure: 0.3yrs

Board Members

  • Marcus Wallenberg (63yo)

    Non-Executive Director

    • Tenure: 20.6yrs
    • Compensation: US$103.00k
  • Leif Johansson (68yo)

    Non-Executive Chairman

    • Tenure: 7.4yrs
    • Compensation: US$690.00k
  • Philip John Broadley (58yo)

    Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: US$108.00k
  • Graham Chipchase (56yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: US$128.00k
  • Marc Dunoyer (67yo)

    CFO & Executive Director

    • Tenure: 6yrs
    • Compensation: US$5.19m
  • Pascal Soriot (60yo)

    CEO & Executive Director

    • Tenure: 7.1yrs
    • Compensation: US$11.36m
  • Deborah DiSanzo Eldracher (59yo)

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: US$73.00k
  • Sheri McCoy (60yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: US$96.00k
  • Geneviève Berger (64yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: US$110.00k
  • Nazneen Rahman

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: US$110.00k

Company Information

AstraZeneca PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AstraZeneca PLC
  • Ticker: AZN
  • Exchange: LSE
  • Founded: 1992
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£95.087b
  • Shares outstanding: 1.31b
  • Website: https://www.astrazeneca.com

Number of Employees


Location

  • AstraZeneca PLC
  • 1 Francis Crick Avenue
  • Cambridge Biomedical Campus
  • Cambridge
  • Cambridgeshire
  • CB2 0AA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZEGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1993
AZNNYSE (New York Stock Exchange)ADR EACH REP 1 ORD USD0.25(MGT)USUSDMay 1993
AZNLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 1993
AZNOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKMay 1993
AZN NBMV (Bolsa Mexicana de Valores)ADR EACH REP 1 ORD USD0.25(MGT)MXMXNMay 1993
AZNC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1993
ZEGADB (Deutsche Boerse AG)ADR EACH REP 1 ORD USD0.25(MGT)DEEURMay 1993
AZNSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKMay 1993
ZEGXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURMay 1993
AZNSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFMay 1993
AZNLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 1993

Biography

AstraZeneca PLC discovers, develops, and commercializes prescription medicines in the areas of oncology, cardiovascular, renal and metabolism, respiratory, autoimmunity, infection, neuroscience, and gastro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 20:33
End of Day Share Price2019/11/11 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.