NasdaqGS:ALXN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

9.4%

ALXN

4.6%

US Biotechs

3.4%

US Market


1 Year Return

-17.9%

ALXN

-10.1%

US Biotechs

5.4%

US Market

Return vs Industry: ALXN underperformed the US Biotechs industry which returned -10.1% over the past year.

Return vs Market: ALXN underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

ALXNIndustryMarket
7 Day9.4%4.6%3.4%
30 Day-2.4%-2.4%-1.0%
90 Day-15.1%-2.1%-0.4%
1 Year-17.9%-17.9%-9.4%-10.1%7.7%5.4%
3 Year-13.6%-13.6%14.9%10.9%46.2%36.8%
5 Year-39.9%-39.9%2.3%-2.7%65.6%47.5%

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

Valuation

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

39.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ALXN ($104.81) is trading below our estimate of fair value ($173.35)

Significantly Undervalued: ALXN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ALXN is poor value based on its PE Ratio (17.6x) compared to the Biotechs industry average (17.8x).

PE vs Market: ALXN is poor value based on its PE Ratio (17.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ALXN is good value based on its PB Ratio (2.3x) compared to the US Biotechs industry average (2.6x).


Next Steps

Future Growth

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

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALXN's forecast earnings growth (11.2% per year) is above the savings rate (2.7%).

Earnings vs Market: ALXN's earnings (11.2% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: ALXN's revenue (9.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ALXN's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ALXN's Return on Equity is forecast to be low in 3 years time (20%).


Next Steps

Past Performance

How has Alexion Pharmaceuticals performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ALXN's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: ALXN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ALXN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (78.4%).


Return on Equity

High ROE: ALXN's Return on Equity (13.1%) is considered low.


Return on Assets

ROA vs Industry: ALXN's Return on Assets is below or equal to the Biotechs industry average last year.


Return on Capital Employed

ROCE Improving: ALXN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Alexion Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: ALXN's short term assets ($4.2B) exceeds its short term liabilities ($1.0B)

Long Term Liabilities: ALXN's short term assets (4.2B) exceeds its long term liabilities (3.4B)


Debt to Equity History and Analysis

Debt Level: ALXN's debt to equity ratio (25.9%) is considered satisfactory

Reducing Debt: ALXN's debt to equity ratio has increased from 2.8% to 25.9% over the past 5 years.

Debt Coverage: ALXN's debt is well covered by operating cash flow (54.8%).

Interest Coverage: ALXN's interest payments on its debt are well covered by EBIT (17.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: ALXN's debt is covered by short term assets (assets are 1.586240x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if ALXN'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 ALXN's dividend in 3 years as they are not forecast to pay a notable one for the US 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?

2.3yrs

Average management tenure


CEO

Ludwig Hantson (56yo)

2.6yrs

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 ($USD16.49M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

2.3yrs

Average Tenure

56yo

Average Age

Experienced Management: ALXN's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ALXN's board of directors are not considered experienced ( 2.5 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$37,123,46430 May 19
Baker Bros. Advisors LP
EntityCompany
Shares300,000
Max PriceUS$127.06
SellUS$252,00020 Feb 19
Daniel Bazarko
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Senior VP
Shares2,000
Max PriceUS$126.00
SellUS$310,93703 Jan 19
Ludwig Hantson
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares3,244
Max PriceUS$95.85
SellUS$307,72930 Nov 18
Indrani M. Franchini
EntityIndividual
Role
Chief Compliance Officer
Executive VP & Chief Compliance Officer
Shares2,605
Max PriceUS$118.13

Ownership Breakdown


Management Team

  • Ellen Chiniara (60yo)

    Executive VP

    • Tenure: 1.7yrs
  • Ludwig Hantson (56yo)

    CEO & Director

    • Tenure: 2.6yrs
    • Compensation: US$16.49m
  • John Orloff (62yo)

    Executive VP and Head of Research & Development

    • Tenure: 2.3yrs
    • Compensation: US$4.86m
  • Paul Clancy (57yo)

    Executive VP & CFO

    • Tenure: 2.3yrs
    • Compensation: US$5.49m
  • Anne-Marie Law (52yo)

    Executive VP and Chief Patient & Employee Experience Officer

    • Tenure: 2.3yrs
    • Compensation: US$5.30m
  • Brian Goff (50yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 2.3yrs
    • Compensation: US$4.88m
  • Indrani M. Franchini (47yo)

    Executive VP & Chief Compliance Officer

    • Tenure: 2.3yrs
  • Daniel Bazarko

    Chief Accounting Officer & Senior VP

    • Tenure: 0yrs
  • Susan Altschuller

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Megan Goulart

    Senior Director of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Felix Baker (50yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$373.86k
  • Paul Friedman (76yo)

    Independent Director

    • Tenure: 2.1yrs
    • 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: 2.4yrs
    • Compensation: US$448.86k
  • Judy Reinsdorf (55yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$595.45k
  • Ludwig Hantson (56yo)

    CEO & Director

    • Tenure: 2.6yrs
    • Compensation: US$16.49m
  • Andreas Rummelt (63yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$348.86k
  • Jack Mollen (68yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$373.86k
  • Francois Nader (62yo)

    Independent Director

    • Tenure: 1.9yrs
    • 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: ALXN
  • Exchange: NasdaqGS
  • Founded: 1992
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$23.501b
  • Shares outstanding: 224.23m
  • 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 Analysis2019/10/15 23:31
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.