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AstraZeneca

LSE:AZN
Snowflake Description

High growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AZN
LSE
£84B
Market Cap
  1. Home
  2. GB
  3. Pharmaceuticals & Biotech
Company description

AstraZeneca PLC discovers, develops, and commercializes prescription medicines in the areas of oncology, cardiovascular, renal and metabolism, respiratory, autoimmunity, infection, neuroscience, and gastroenterology worldwide. The last earnings update was 85 days ago. More info.


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AZN Share Price and Events
7 Day Returns
1%
LSE:AZN
1%
GB Pharmaceuticals
0.2%
GB Market
1 Year Returns
14.3%
LSE:AZN
8%
GB Pharmaceuticals
-2%
GB Market
AZN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AstraZeneca (AZN) 1% -1.5% 9.9% 14.3% 38.5% 45.5%
GB Pharmaceuticals 1% 0.6% 8.2% 8% 13.3% 29.8%
GB Market 0.2% 1.3% 0.1% -2% 11.2% 6.3%
1 Year Return vs Industry and Market
  • AZN outperformed the Pharmaceuticals industry which returned 8% over the past year.
  • AZN outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2% over the past year.
Price Volatility
AZN
Industry
5yr Volatility vs Market

AZN Value

 Is AstraZeneca undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AstraZeneca to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AstraZeneca.

LSE:AZN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:AZN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.732 (1 + (1- 19%) (20.62%))
0.903
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.903 * 6.65%)
7.23%

Discounted Cash Flow Calculation for LSE:AZN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AstraZeneca is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:AZN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.23%)
2020 5,444.27 Analyst x7 5,077.22
2021 6,264.99 Analyst x7 5,448.71
2022 10,470.00 Analyst x1 8,491.93
2023 8,757.00 Analyst x2 6,623.72
2024 7,696.24 Est @ -12.11% 5,428.90
2025 7,071.99 Est @ -8.11% 4,652.23
2026 6,696.48 Est @ -5.31% 4,108.21
2027 6,472.24 Est @ -3.35% 3,702.95
2028 6,344.35 Est @ -1.98% 3,385.06
2029 6,279.94 Est @ -1.02% 3,124.80
Present value of next 10 years cash flows $50,043.72
LSE:AZN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $6,279.94 × (1 + 1.23%) ÷ (7.23% – 1.23%)
$105,909.76
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $105,909.76 ÷ (1 + 7.23%)10
$52,698.97
LSE:AZN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $50,043.72 + $52,698.97
$102,742.69
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $102,742.69 / 1,311.78
$78.32
LSE:AZN Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:AZN)
0.8
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $78.32 x 0.8
£62.65
Value per share (GBP) From above. £62.65
Current discount Discount to share price of £63.90
= -1 x (£63.90 - £62.65) / £62.65
-2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of AstraZeneca is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AstraZeneca's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AstraZeneca's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:AZN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.90
LSE:AZN Share Price ** LSE (2019-07-19) in GBP £63.9
LSE:AZN Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.25 $79.89
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry PE Ratio Median Figure of 9 Publicly-Listed Pharmaceuticals Companies 20.76x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 792 Publicly-Listed Companies 16.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AstraZeneca.

LSE:AZN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:AZN Share Price ÷ EPS (both in USD)

= 79.89 ÷ 1.90

42.04x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AstraZeneca is overvalued based on earnings compared to the GB Pharmaceuticals industry average.
  • AstraZeneca is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does AstraZeneca's expected growth come at a high price?
Raw Data
LSE:AZN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 42.04x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
27.5%per year
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry PEG Ratio Median Figure of 6 Publicly-Listed Pharmaceuticals Companies 1.62x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:AZN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 42.04x ÷ 27.5%

1.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AstraZeneca is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AstraZeneca's assets?
Raw Data
LSE:AZN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $7.99
LSE:AZN Share Price * LSE (2019-07-19) in GBP £63.9
LSE:AZN Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.25 $79.89
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry PB Ratio Median Figure of 25 Publicly-Listed Pharmaceuticals Companies 2.91x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.51x
LSE:AZN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:AZN Share Price ÷ Book Value per Share (both in USD)

= 79.89 ÷ 7.99

10x

* Primary Listing of AstraZeneca.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AstraZeneca is overvalued based on assets compared to the GB Pharmaceuticals industry average.
X
Value checks
We assess AstraZeneca's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. AstraZeneca has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AZN Future Performance

 How is AstraZeneca expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AstraZeneca expected to grow at an attractive rate?
  • AstraZeneca's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • AstraZeneca's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • AstraZeneca's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:AZN Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:AZN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 27.5%
LSE:AZN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 9.7%
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 20.3%
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 7.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:AZN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:AZN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 34,637 11,115 7,436 9
2022-12-31 31,977 9,535 6,224 9
2021-12-31 28,540 8,100 4,777 20
2020-12-31 26,073 6,363 3,480 21
2019-12-31 23,679 4,083 2,426 21
LSE:AZN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 22,403 2,371 2,408
2018-12-31 22,090 2,618 2,155
2018-09-30 21,450 1,391 2,422
2018-06-30 22,342 3,165 2,677
2018-03-31 22,238 3,350 2,804
2017-12-31 22,465 3,578 3,001
2017-09-30 22,273 4,541 3,542
2017-06-30 21,740 3,109 3,870
2017-03-31 22,292 3,040 3,390
2016-12-31 23,002 4,145 3,499
2016-09-30 23,816 2,756 2,465
2016-06-30 24,062 3,690 2,221

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AstraZeneca's earnings are expected to grow significantly at over 20% yearly.
  • AstraZeneca's revenue is expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:AZN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from AstraZeneca Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AZN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 6.13 6.48 5.87 3.00
2022-12-31 5.01 5.26 4.64 3.00
2021-12-31 3.43 4.29 2.90 8.00
2020-12-31 2.54 3.17 1.98 11.00
2019-12-31 1.89 2.07 1.68 11.00
LSE:AZN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.90
2018-12-31 1.70
2018-09-30 1.91
2018-06-30 2.11
2018-03-31 2.21
2017-12-31 2.37
2017-09-30 2.80
2017-06-30 3.06
2017-03-31 2.68
2016-12-31 2.77
2016-09-30 1.95
2016-06-30 1.76

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AstraZeneca is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess AstraZeneca's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AstraZeneca has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AZN Past Performance

  How has AstraZeneca performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AstraZeneca's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AstraZeneca's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • AstraZeneca's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • AstraZeneca's 1-year earnings growth is negative, it can't be compared to the GB Pharmaceuticals industry average.
Earnings and Revenue History
AstraZeneca's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AstraZeneca Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AZN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 22,403.00 2,408.00 10,862.00 5,279.00
2018-12-31 22,090.00 2,155.00 10,803.00 5,299.00
2018-09-30 21,450.00 2,422.00 9,949.00 5,251.00
2018-06-30 22,342.00 2,677.00 9,984.00 5,378.00
2018-03-31 22,238.00 2,804.00 9,724.00 5,358.00
2017-12-31 22,465.00 3,001.00 9,505.00 5,455.00
2017-09-30 22,273.00 3,542.00 9,251.00 5,507.00
2017-06-30 21,740.00 3,870.00 9,049.00 5,501.00
2017-03-31 22,292.00 3,390.00 9,645.00 5,586.00
2016-12-31 23,002.00 3,499.00 9,902.00 5,679.00
2016-09-30 23,816.00 2,465.00 10,464.00 5,790.00
2016-06-30 24,062.00 2,221.00 10,784.00 5,800.00
2016-03-31 24,766.00 2,921.00 10,796.00 5,808.00
2015-12-31 24,708.00 2,825.00 11,024.00 5,660.00
2015-09-30 25,025.00 1,696.00 11,796.00 5,392.00
2015-06-30 25,689.00 1,180.00 12,255.00 5,361.00
2015-03-31 26,144.00 1,279.00 12,280.00 5,180.00
2014-12-31 26,547.00 1,233.00 12,219.00 5,001.00
2014-09-30 26,675.00 1,030.00 11,601.00 4,975.00
2014-06-30 26,316.00 2,022.00 10,977.00 4,438.00
2014-03-31 25,786.00 2,049.00 10,476.00 4,428.00
2013-12-31 25,806.00 2,556.00 10,057.00 4,281.00
2013-09-30 26,149.00 4,587.00 9,786.00 4,026.00
2013-06-30 26,581.00 4,852.00 9,654.00 4,309.00
2013-03-31 27,009.00 5,626.00 9,557.00 4,149.00
2012-12-31 27,973.00 6,240.00 9,524.00 4,266.00
2012-09-30 29,347.00 6,219.00 9,699.00 4,369.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AstraZeneca has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • AstraZeneca used its assets less efficiently than the GB Pharmaceuticals industry average last year based on Return on Assets.
  • AstraZeneca's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AstraZeneca's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AstraZeneca has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AZN Health

 How is AstraZeneca's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AstraZeneca's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AstraZeneca's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • AstraZeneca's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of AstraZeneca's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AstraZeneca Company Filings, last reported 3 months ago.

LSE:AZN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 12,029.00 20,897.00 4,958.00
2018-12-31 14,044.00 19,144.00 5,893.00
2018-09-30 13,537.00 20,948.00 4,228.00
2018-06-30 14,272.00 19,694.00 3,777.00
2018-03-31 14,573.00 19,904.00 3,871.00
2017-12-31 16,642.00 17,830.00 4,554.00
2017-09-30 15,447.00 17,853.00 5,211.00
2017-06-30 15,412.00 19,716.00 6,237.00
2017-03-31 14,779.00 17,430.00 3,659.00
2016-12-31 16,669.00 16,850.00 5,921.00
2016-09-30 14,912.00 17,623.00 3,999.00
2016-06-30 15,390.00 17,640.00 4,646.00
2016-03-31 16,642.00 16,211.00 4,099.00
2015-12-31 18,509.00 14,968.00 6,853.00
2015-09-30 17,368.00 10,869.00 4,577.00
2015-06-30 18,299.00 10,907.00 4,498.00
2015-03-31 16,956.00 10,475.00 3,685.00
2014-12-31 19,646.00 10,756.00 6,380.00
2014-09-30 20,466.00 9,830.00 5,950.00
2014-06-30 22,052.00 9,973.00 5,777.00
2014-03-31 21,477.00 10,243.00 5,156.00
2013-12-31 23,253.00 10,277.00 9,278.00
2013-09-30 23,447.00 10,178.00 8,317.00
2013-06-30 23,412.00 10,357.00 9,091.00
2013-03-31 22,488.00 10,120.00 8,029.00
2012-12-31 23,946.00 10,229.00 7,776.00
2012-09-30 22,261.00 10,914.00 6,816.00
  • AstraZeneca's level of debt (173.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (48.2% vs 173.7% today).
  • Debt is not well covered by operating cash flow (11.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess AstraZeneca's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AstraZeneca has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AZN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.5%
Current annual income from AstraZeneca dividends. Estimated to be 3.6% next year.
If you bought £2,000 of AstraZeneca shares you are expected to receive £70 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AstraZeneca's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • AstraZeneca's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:AZN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:AZN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 3.03 5.00
2022-12-31 2.93 5.00
2021-12-31 2.92 17.00
2020-12-31 2.85 18.00
2019-12-31 2.81 18.00
LSE:AZN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-05 2.800 3.545
2019-02-14 2.800 3.455
2018-03-06 2.800 3.817
2018-02-02 2.800 4.196
2017-02-02 2.800 4.403
2016-03-08 2.800 4.806
2016-02-04 2.800 4.814
2015-03-10 2.800 4.237
2015-02-05 2.800 4.094
2014-03-20 2.800 3.901
2014-02-06 2.800 4.205
2013-08-01 2.800 5.164
2013-01-31 2.800 5.704
2012-03-28 2.800 6.117
2012-02-02 2.800 6.155
2011-07-28 2.700 5.882
2011-01-27 2.550 5.196
2010-03-25 2.300 4.835
2010-01-28 2.300 5.188
2009-08-12 2.090 4.560
2009-01-29 2.050 5.335

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of AstraZeneca's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess AstraZeneca's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AstraZeneca afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AstraZeneca has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AZN Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pascal Soriot
COMPENSATION $9,435,000
AGE 60
TENURE AS CEO 6.8 years
CEO Bio

Mr. Pascal Soriot 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 September 1, 2012. He served as the Chief Operating Officer of Roche Pharmaceuticals at Roche Diabetes Care AG. He served as the Chief Operating Officer of Pharmaceuticals at Roche Holding AG since January 1, 2010 and served as its Head of Pharma Medicines. He served as the Chief Executive Officer of Genentech Inc. since 2009. He served as the Head of Commercial Operations at Roche Holding AG since December 2006 and Head of Strategic Marketing Pharma Division from March 1, 2006 to December 2006. He served as Senior Vice President of Commercial Operations, United States of Sanofi-aventis since August 2004 and Chief Operating Officer since 2002. Before joining sanofi-aventis, he served in a similar position at Aventis. After being appointed by Roussel Uclaf in 1986 as Financial Controller for the Asia-Pacific region, he held various management positions in finance and marketing at companies that form part of sanofi-aventis. He served as District Sales Manager at Roussel New Zealand since 1987. He served as Sales and Marketing Manager at Roussel Australia since 1989 and also served as its General Manager. He served as Division Global Marketing Director at Roussel Uclaf Pharmaceuticals since 1994 and General Manager at Hoechst Marion Roussel Australia since 1996. He served as Regional Vice President, Asia Pacific at Hoechst Marion Roussel Tokyo since 1997. He served as Senior Vice President and Head of Global Marketing & Medical Affairs at Aventis Bridgewater (US) since 2000 and Head of Strategic Marketing at Roche since 2006 and as its Head of Commercial Operations since 2007. He served as a Director of Genentech, Inc. He served as a Director of Chugai Pharmaceutical Co. Ltd. until September 3, 2012. He holds a Doctoral degree in Veterinary Medicine from the Ecole Nationale Vtrinaire at Maisons-Alfort and an MBA with major in Finance from HEC Paris (Ecole des Hautes Etudes Commerciales -- Institut Suprieur des Affaires).

CEO Compensation
  • Pascal's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Pascal's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the AstraZeneca management team in years:

6.5
Average Tenure
56.5
Average Age
  • The average tenure for the AstraZeneca management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Pascal Soriot

TITLE
CEO & Executive Director
COMPENSATION
$9M
AGE
60
TENURE
6.8 yrs

Marc Dunoyer

TITLE
CFO & Executive Director
COMPENSATION
$5M
AGE
67
TENURE
5.7 yrs

Pam Cheng

TITLE
Executive Vice-President of Operations & Information Technology
AGE
48
TENURE
4.1 yrs

Thomas Larsen

TITLE
Head of Investor Relations

Jeff Pott

TITLE
General Counsel
TENURE
10.5 yrs

Katarina Ageborg

TITLE
Executive VP of Sustainability & Chief Compliance Officer
TENURE
8 yrs

Fiona Cicconi

TITLE
Executive Vice President of Human Resources
TENURE
4.8 yrs

Mene Pangalos

TITLE
Executive VP & President of Research & Development - BioPharmaceuticals
TENURE
6.5 yrs

Ruud Dobber

TITLE
Executive VP & President of BioPharmaceuticals Business Unit
TENURE
6.5 yrs

Susan Galbraith

TITLE
Head of Oncology - Innovative Medicines & Early Development Unit and Senior VP
AGE
53
Board of Directors Tenure

Average tenure and age of the AstraZeneca board of directors in years:

4
Average Tenure
60
Average Age
  • The tenure for the AstraZeneca board of directors is about average.
Board of Directors

Leif Johansson

TITLE
Non-Executive Chairman
COMPENSATION
$614K
AGE
68
TENURE
7.1 yrs

Pascal Soriot

TITLE
CEO & Executive Director
COMPENSATION
$9M
AGE
60
TENURE
6.8 yrs

Marc Dunoyer

TITLE
CFO & Executive Director
COMPENSATION
$5M
AGE
67
TENURE
5.7 yrs

Graham Chipchase

TITLE
Senior Independent Non-Executive Director
COMPENSATION
$115K
AGE
56
TENURE
0.5 yrs

Nazneen Rahman

TITLE
Non-Executive Director
COMPENSATION
$61K
TENURE
2.1 yrs

Marcus Wallenberg

TITLE
Non-Executive Director
COMPENSATION
$87K
AGE
63
TENURE
20.3 yrs

Geneviève Berger

TITLE
Non-Executive Director
COMPENSATION
$87K
AGE
64
TENURE
7.3 yrs

Philip John Broadley

TITLE
Non-Executive Director
COMPENSATION
$64K
AGE
58
TENURE
2.3 yrs

Sheri McCoy

TITLE
Non-Executive Director
COMPENSATION
$43K
AGE
60
TENURE
1.8 yrs

Deborah DiSanzo Eldracher

TITLE
Non-Executive Director
COMPENSATION
$25K
AGE
59
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by AstraZeneca individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
08. May 19 Buy Marc Dunoyer Individual 07. May 19 07. May 19 8,500 £58.00 £493,000
01. May 19 Buy Pascal Soriot Individual 29. Apr 19 29. Apr 19 17,100 £58.26 £996,160
01. May 19 Buy Philip John Broadley Individual 30. Apr 19 30. Apr 19 520 £57.38 £29,838
X
Management checks
We assess AstraZeneca's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AstraZeneca has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AZN News

Simply Wall St News

The AstraZeneca (LON:AZN) Share Price Has Gained 48% And Shareholders Are Hoping For More

To wit, the AstraZeneca share price has climbed 48% in five years, easily topping the market return of 7.0% (ignoring dividends). … There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … It is important to consider the total shareholder return, as well as the share price return, for any given stock.

Simply Wall St -

AstraZeneca PLC (LON:AZN) Insiders Increased Their Holdings

So we'll take a look at whether insiders have been buying or selling shares in AstraZeneca PLC (LON:AZN). … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' Check out our latest analysis for AstraZeneca The Last 12 Months Of Insider Transactions At AstraZeneca In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Pascal Soriot bought UK£996k worth of shares at a price of UK£58.26 per share. … In the last twelve months AstraZeneca insiders were buying shares, but not selling.

Simply Wall St -

Is AstraZeneca PLC's (LON:AZN) 19% ROE Strong Compared To Its Industry?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for AstraZeneca: 19% = US$2.4b ÷ US$12b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does AstraZeneca Have A Good Return On Equity? … Combining AstraZeneca's Debt And Its 19% Return On Equity AstraZeneca clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.74.

Simply Wall St -

Should You Be Holding AstraZeneca PLC (LON:AZN)?

AZN is a company with a a great track record of dividend payments as well as a buoyant future outlook. … LSE:AZN Past and Future Earnings, June 5th 2019 AZN dishes out decent dividend payments over time, exceeding the low-risk savings rate, which is what investors expect when they take on the risk of investing in the stock market. … LSE:AZN Historical Dividend Yield, June 5th 2019 Next Steps: For AstraZeneca, there are three pertinent factors you should look at: Historical Performance: What has AZN's returns been like over the past?

Simply Wall St -

Is AstraZeneca PLC (LON:AZN) Trading At A 50% Discount?

In this article we are going to estimate the intrinsic value of AstraZeneca PLC (LON:AZN) by projecting its future cash flows and then discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $5.55k $5.39k $6.27k $10.47k $11.63k $12.53k $13.25k $13.84k $14.32k $14.72k Growth Rate Estimate Source Analyst x4 Analyst x7 Analyst x6 Analyst x1 Analyst x1 Est @ 7.73% Est @ 5.78% Est @ 4.41% Est @ 3.46% Est @ 2.79% Present Value ($, Millions) Discounted @ 7.04% $5.18k $4.70k $5.11k $7.97k $8.28k $8.33k $8.23k $8.03k $7.76k $7.45k Present Value of 10-year Cash Flow (PVCF)= $71.05b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$15b × (1 + 1.2%) ÷ (7% – 1.2%) = US$256b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$256b ÷ ( 1 + 7%)10 = $129.63b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $200.67b.

Simply Wall St -

Is AstraZeneca PLC (LON:AZN) Overpaying Its CEO?

According to our data, AstraZeneca PLC has a market capitalization of UK£75b, and pays its CEO total annual compensation worth US$9.4m. … When we examined a group of companies with market caps over UK£6.1b, we found that their median CEO total compensation was UK£3.7m. … Thus we can conclude that Pascal Soriot receives more in total compensation than the median of a group of large companies in the same market as AstraZeneca PLC.

Simply Wall St -

Do Directors Own AstraZeneca PLC (LON:AZN) Shares?

Generally speaking, as a company grows, institutions will increase their ownership. … Conversely, insiders often decrease their ownership over time. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

What Does AstraZeneca PLC's (LON:AZN) P/E Ratio Tell You?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … AstraZeneca has a price to earnings ratio of 44.46, based on the last twelve months. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Does AstraZeneca PLC's (LON:AZN) Debt Level Pose A Problem?

the key to their continued success lies in its financial health. … Let’s take a look at AstraZeneca’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

What Does AstraZeneca PLC's (LON:AZN) P/E Ratio Tell You?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 39.93 = $76.34 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $1.91

Simply Wall St -

AZN Company Info

Description

AstraZeneca PLC discovers, develops, and commercializes prescription medicines in the areas of oncology, cardiovascular, renal and metabolism, respiratory, autoimmunity, infection, neuroscience, and gastroenterology worldwide. Its marketed products include Arimidex, Casodex/Cosudex, Calquence, Faslodex, Imfinzi, Iressa, Lynparza, Nolvadex, Tagrisso, and Zoladex for oncology diseases; Atacand1/Atacand HCT/Atacand Plus, Brilinta/Brilique, Crestor, Plendil, Seloken/Toprol-XL, Tenormin, and Zestril for cardiovascular diseases; and Bydureon, Byetta, Farxiga/Forxiga, Kombiglyze XR, Komboglyze, Onglyza, Qtern, Symlin, Xigduo, and Xigduo XR for metabolic diseases. The company’s marketed products also comprise Accolate, Bevespi Aerosphere, Bricanyl Respules, Bricanyl Turbuhaler, Daliresp/Daxas, Duaklir Genuair, Eklira Genuair/Tudorza Pressair, Fasenra, Oxis Turbuhaler, Pulmicort Turbuhaler/Pulmicort Flexhaler, Pulmicort Respules, Symbicort pMDI, Symbicort Turbuhaler, and Tudorza Pressair for respiratory diseases; Fluenz FluMist/Tetra Quadrivalen and Synagis3 for infection diseases; Movantik/Moventig, Seroquel IR, Seroquel XR, and Vimovo for neuroscience diseases; and Losec/Prilosec and Nexium for gastrointestinal diseases. The company serves primary care and specialty care physicians through distributors and local representative offices. AstraZeneca PLC has a collaboration and license option agreement with Transgene SA for clinical development and commercialization of novel oncolytic immunotherapies. The company was formerly known as Zeneca Group PLC and changed its name to AstraZeneca PLC in April 1999. AstraZeneca PLC was founded in 1992 and is headquartered in Cambridge, the United Kingdom.

Details
Name: AstraZeneca PLC
AZN
Exchange: LSE
Founded: 1992
£83,822,942,134
1,311,783,132
Website: http://www.astrazeneca.com
Address: AstraZeneca PLC
1 Francis Crick Avenue,
Cambridge Biomedical Campus,
Cambridge,
Cambridgeshire, CB2 0AA,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE AZN Ordinary Shares London Stock Exchange GB GBP 12. May 1993
OTCPK AZNC.F Ordinary Shares Pink Sheets LLC US USD 12. May 1993
DB ZEG Ordinary Shares Deutsche Boerse AG DE EUR 12. May 1993
XTRA ZEG Ordinary Shares XETRA Trading Platform DE EUR 12. May 1993
SWX AZN Ordinary Shares SIX Swiss Exchange CH CHF 12. May 1993
OM AZN Ordinary Shares OMX Nordic Exchange Stockholm SE SEK 12. May 1993
BATS-CHIXE AZNS Ordinary Shares BATS 'Chi-X Europe' GB SEK 12. May 1993
BATS-CHIXE AZNL Ordinary Shares BATS 'Chi-X Europe' GB GBP 12. May 1993
NYSE AZN ADR EACH REP 1 ORD USD0.25(MGT) New York Stock Exchange US USD 12. May 1993
DB ZEGA ADR EACH REP 1 ORD USD0.25(MGT) Deutsche Boerse AG DE EUR 12. May 1993
BMV AZN N ADR EACH REP 1 ORD USD0.25(MGT) Bolsa Mexicana de Valores MX MXN 12. May 1993
Number of employees
Current staff
Staff numbers
64,400
AstraZeneca employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 20:36
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.