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Biogen

Nasdaq:BIIB
Snowflake Description

Solid track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BIIB
Nasdaq
$44B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Biogen Inc. discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases worldwide. The last earnings update was 53 days ago. More info.


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  • Biogen has significant price volatility in the past 3 months.
BIIB Share Price and Events
7 Day Returns
0.2%
NasdaqGS:BIIB
-0.7%
US Biotechs
0.5%
US Market
1 Year Returns
-25.4%
NasdaqGS:BIIB
-8.8%
US Biotechs
0.8%
US Market
BIIB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Biogen (BIIB) 0.2% -0.7% -30.1% -25.4% -4.4% -28.8%
US Biotechs -0.7% -1.2% -9.3% -8.8% 11.5% 4.7%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • BIIB underperformed the Biotechs industry which returned -8.8% over the past year.
  • BIIB underperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
BIIB
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Biogen 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 Biogen 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 Biogen.

NasdaqGS:BIIB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 27 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NasdaqGS:BIIB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.32
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.318 (1 + (1- 21%) (14.45%))
1.314
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.314 * 5.96%)
10.56%

Discounted Cash Flow Calculation for NasdaqGS:BIIB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Biogen 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.

NasdaqGS:BIIB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.56%)
2019 5,563.48 Analyst x9 5,032.03
2020 5,622.65 Analyst x8 4,599.75
2021 5,593.56 Analyst x7 4,138.83
2022 5,538.00 Analyst x7 3,706.29
2023 5,446.24 Analyst x7 3,296.70
2024 5,450.65 Est @ 0.08% 2,984.20
2025 5,498.38 Est @ 0.88% 2,722.77
2026 5,577.12 Est @ 1.43% 2,497.94
2027 5,678.70 Est @ 1.82% 2,300.48
2028 5,797.61 Est @ 2.09% 2,124.29
Present value of next 10 years cash flows $33,403.28
NasdaqGS:BIIB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $5,797.61 × (1 + 2.73%) ÷ (10.56% – 2.73%)
$76,051.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $76,051.52 ÷ (1 + 10.56%)10
$27,865.92
NasdaqGS:BIIB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $33,403.28 + $27,865.92
$61,269.20
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $61,269.20 / 193.89
$315.99
NasdaqGS:BIIB Discount to Share Price
Calculation Result
Value per share (USD) From above. $315.99
Current discount Discount to share price of $227.67
= -1 x ($227.67 - $315.99) / $315.99
28%

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

Current Discount
Amount off the current price Biogen is available for.
Intrinsic value
28%
Share price is $227.67 vs Future cash flow value of $315.99
Current Discount Checks
For Biogen to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Biogen's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Biogen's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Biogen's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Biogen's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:BIIB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $23.19
NasdaqGS:BIIB Share Price ** NasdaqGS (2019-06-14) in USD $227.67
United States of America Biotechs Industry PE Ratio Median Figure of 35 Publicly-Listed Biotechs Companies 19.23x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

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

** Primary Listing of Biogen.

NasdaqGS:BIIB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:BIIB Share Price ÷ EPS (both in USD)

= 227.67 ÷ 23.19

9.82x

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

  • Biogen is good value based on earnings compared to the US Biotechs industry average.
  • Biogen is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Biogen's expected growth come at a high price?
Raw Data
NasdaqGS:BIIB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts
-0.2%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 26 Publicly-Listed Biotechs Companies 1.08x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:BIIB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.82x ÷ -0.2%

-52.21x

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

  • Biogen earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Biogen's assets?
Raw Data
NasdaqGS:BIIB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $71.33
NasdaqGS:BIIB Share Price * NasdaqGS (2019-06-14) in USD $227.67
United States of America Biotechs Industry PB Ratio Median Figure of 425 Publicly-Listed Biotechs Companies 2.9x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:BIIB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:BIIB Share Price ÷ Book Value per Share (both in USD)

= 227.67 ÷ 71.33

3.19x

* Primary Listing of Biogen.

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

  • Biogen is overvalued based on assets compared to the US Biotechs industry average.
X
Value checks
We assess Biogen'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 Biotechs 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 Biotechs industry average (and greater than 0)? (1 check)
  5. Biogen has a total score of 3/6, 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.

Future Performance

 How is Biogen expected to perform in the next 1 to 3 years based on estimates from 27 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
-0.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Biogen expected to grow at an attractive rate?
  • Biogen's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Biogen's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Biogen's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:BIIB Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:BIIB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts -0.2%
NasdaqGS:BIIB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts -1.3%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 22.6%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 18%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
NasdaqGS:BIIB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:BIIB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 13,130 6,505 5,297 16
2022-12-31 13,530 6,454 5,318 18
2021-12-31 13,642 6,366 5,394 22
2020-12-31 13,812 6,323 5,352 26
2019-12-31 13,924 6,291 5,410 27
NasdaqGS:BIIB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 13,812 6,190 4,667
2018-12-31 13,453 6,188 4,431
2018-09-30 13,234 5,811 3,187
2018-06-30 12,872 5,703 2,968
2018-03-31 12,594 5,773 2,964
2017-12-31 12,274 4,551 2,539
2017-09-30 11,839 4,615 3,486
2017-06-30 11,717 3,978 3,293
2017-03-31 11,533 3,807 3,480
2016-12-31 11,449 4,587 3,703
2016-09-30 11,416 4,046 3,885
2016-06-30 11,238 3,950 3,818

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Biogen's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Biogen's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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
NasdaqGS:BIIB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below

All data from Biogen Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:BIIB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 28.30 34.22 23.22 11.00
2022-12-31 28.56 31.96 25.60 12.00
2021-12-31 28.45 31.37 26.04 11.00
2020-12-31 28.11 32.11 22.37 14.00
2019-12-31 27.90 30.74 25.19 14.00
NasdaqGS:BIIB Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 23.19
2018-12-31 21.62
2018-09-30 15.33
2018-06-30 14.11
2018-03-31 14.01
2017-12-31 11.94
2017-09-30 16.30
2017-06-30 15.26
2017-03-31 15.99
2016-12-31 16.95
2016-09-30 17.71
2016-06-30 17.15

*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.
  • Biogen is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Biogen'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 States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
Biogen has a total score of 1/6, 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.

Past Performance

  How has Biogen 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 Biogen's growth in the last year to its industry (Biotechs).
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.
  • Biogen's year on year earnings growth rate has been positive over the past 5 years.
  • Biogen's 1-year earnings growth exceeds its 5-year average (57.4% vs 7.1%)
  • Biogen's earnings growth has exceeded the US Biotechs industry average in the past year (57.4% vs 52.3%).
Earnings and Revenue History
Biogen'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 Biogen Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:BIIB 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 13,811.60 4,666.60 2,164.90 2,663.90
2018-12-31 13,452.90 4,430.70 2,098.20 2,597.20
2018-09-30 13,233.60 3,186.50 2,069.10 2,573.20
2018-06-30 12,872.40 2,968.20 2,006.00 2,511.70
2018-03-31 12,594.30 2,964.40 1,920.50 2,326.90
2017-12-31 12,273.90 2,539.10 1,917.90 2,253.60
2017-09-30 11,838.90 3,485.70 1,858.60 2,199.90
2017-06-30 11,716.90 3,292.50 1,886.70 2,282.50
2017-03-31 11,532.70 3,479.50 1,949.30 1,959.40
2016-12-31 11,448.80 3,702.80 1,949.90 1,973.30
2016-09-30 11,416.10 3,885.20 2,035.40 1,981.10
2016-06-30 11,238.20 3,817.90 2,050.50 1,971.90
2016-03-31 10,935.70 3,695.40 2,050.00 1,989.60
2015-12-31 10,763.80 3,547.00 2,113.10 2,012.80
2015-09-30 10,565.15 3,598.88 2,103.67 1,971.17
2015-06-30 10,298.70 3,490.14 2,196.30 1,868.54
2015-03-31 10,128.45 3,277.34 2,281.03 1,825.02
2014-12-31 9,703.30 2,934.80 2,232.30 1,893.40
2014-09-30 9,028.20 2,508.63 2,154.39 1,815.56
2014-06-30 8,344.03 2,139.38 1,989.54 1,808.41
2014-03-31 7,644.75 1,915.55 1,843.93 1,688.60
2013-12-31 6,932.20 1,862.30 1,712.10 1,444.10
2013-09-30 6,382.49 1,697.16 1,565.17 1,367.00
2013-06-30 5,940.76 1,607.95 1,459.22 1,261.20
2013-03-31 5,639.54 1,504.12 1,329.97 1,263.30
2012-12-31 5,514.86 1,380.03 1,277.47 1,334.92
2012-09-30 5,425.23 1,388.24 1,185.40 1,328.67
2012-06-30 5,349.61 1,341.57 1,147.17 1,325.85

*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.
  • Biogen has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Biogen used its assets more efficiently than the US Biotechs industry average last year based on Return on Assets.
  • Biogen's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Biogen'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 Biotechs 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.
Biogen has a total score of 5/6, 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.

Health

 How is Biogen'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 Biogen's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Biogen is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Biogen's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Biogen'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 covered by short term assets, assets are 1.5x 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 Biogen Company Filings, last reported 2 months ago.

NasdaqGS:BIIB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 13,822.00 6,379.30 3,909.00
2018-12-31 13,031.60 5,936.50 3,538.00
2018-09-30 13,759.80 5,931.10 4,428.40
2018-06-30 12,253.70 5,928.40 3,224.20
2018-03-31 14,037.50 5,932.70 5,916.00
2017-12-31 12,598.10 5,938.20 3,689.00
2017-09-30 12,848.90 6,511.50 3,508.30
2017-06-30 11,573.60 6,513.90 2,893.00
2017-03-31 11,467.40 6,514.20 2,880.20
2016-12-31 12,128.60 6,517.40 4,895.10
2016-09-30 12,114.80 6,534.50 4,316.00
2016-06-30 11,403.70 6,543.10 3,796.80
2016-03-31 10,328.10 6,540.50 3,585.40
2015-12-31 9,374.90 6,526.30 3,428.50
2015-09-30 10,566.94 6,534.45 5,842.50
2015-06-30 12,573.00 579.47 2,368.67
2015-03-31 11,669.46 583.93 2,152.00
2014-12-31 10,814.00 583.40 1,845.40
2014-09-30 10,430.89 587.20 1,861.35
2014-06-30 9,565.23 589.48 1,573.07
2014-03-31 9,141.06 594.56 1,260.21
2013-12-31 8,620.84 595.93 1,222.73
2013-09-30 8,125.69 698.28 668.69
2013-06-30 7,902.15 729.58 667.67
2013-03-31 7,339.61 915.15 663.30
2012-12-31 6,963.80 1,140.78 1,705.71
2012-09-30 6,661.94 1,111.65 1,605.79
2012-06-30 6,270.69 1,094.61 1,406.05
  • Biogen's level of debt (43%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (6.5% vs 43% today).
  • Debt is well covered by operating cash flow (104.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 79.8x coverage).
X
Financial health checks
We assess Biogen'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. Biogen has a total score of 3/6, 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.

Dividends

 What is Biogen'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
0%
Current annual income from Biogen dividends. Estimated to be 0% next year.
If you bought $2,000 of Biogen shares you are expected to receive $0 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?
  • Unable to evaluate Biogen's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Biogen's dividend against the top 25% market benchmark as the company has not reported any payouts.
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
NasdaqGS:BIIB 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 27 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

NasdaqGS:BIIB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 5.00
2020-12-31 0.00 5.00
2019-12-31 0.00 5.00

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

  • Unable to perform a dividend volatility check as Biogen has not reported any payouts.
  • Unable to verify if Biogen's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Biogen's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Biogen has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Biogen's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Biogen's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 Biogen afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Biogen has a total score of 0/6, see the detailed checks below.


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

Management

 What is the CEO of Biogen'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
Michel Vounatsos
COMPENSATION $16,168,646
AGE 56
TENURE AS CEO 2.4 years
CEO Bio

Mr. Michel Vounatsos has been the Chief Executive Officer of Biogen Inc. since January 6, 2017. Mr. Vounatsos served as the Chief Commercial Officer and Executive Vice President of Biogen Inc. since April 18, 2016 until December 2016. He is a sophisticated global business leader who has a track record of commercial success and creativity. He joined Biogen after a 20 year career at Merck, where he various positions including served as president, Primary Care Business Line and Merck Customer Centricity. Prior to this role, he held leadership positions at Merck across Europe and in China. He has been Director of Biogen Inc. since January 6, 2017. Prior to that, Mr. Vounatsos held management positions at Ciba-Geigy. Mr. Vounatsos attended the Universite Victor Segalen, Bordeaux II, in France, receiving his C.S.C.T. certificate in Medicine. He received his M.B.A. from the HEC School of Management in Paris.

CEO Compensation
  • Michel's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Michel's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

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

2.3
Average Tenure
53
Average Age
  • The tenure for the Biogen management team is about average.
Management Team

Michel Vounatsos

TITLE
CEO & Director
COMPENSATION
$16M
AGE
56
TENURE
2.4 yrs

Jeff Capello

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
53
TENURE
1.5 yrs

Susan Alexander

TITLE
Executive VP
COMPENSATION
$6M
AGE
61
TENURE
2.3 yrs

Mike Ehlers

TITLE
Executive VP and Head of Research & Development
COMPENSATION
$7M
AGE
49
TENURE
3.1 yrs

Paul McKenzie

TITLE
Executive Vice President of Pharmaceutical Operations & Technology
COMPENSATION
$6M
AGE
52
TENURE
2.9 yrs

Steven Avruch

TITLE
Chief Corporation Counsel & Assistant Secretary
AGE
57

Robin Kramer

TITLE
VP & Chief Accounting Officer
AGE
52
TENURE
0.6 yrs

Mark Hernon

TITLE
Senior VP & Chief Information Officer
AGE
54
TENURE
1.5 yrs

Matt Calistri

TITLE
Senior Director of Investor Relations
TENURE
3.6 yrs

Daniel Karp

TITLE
Executive Vice President of Corporate Development
AGE
40
TENURE
1 yrs
Board of Directors Tenure

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

10
Average Tenure
62
Average Age
  • The average tenure for the Biogen board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Stelios Papadopoulos

TITLE
Independent Chairman
COMPENSATION
$613K
AGE
70
TENURE
5 yrs

Michel Vounatsos

TITLE
CEO & Director
COMPENSATION
$16M
AGE
56
TENURE
2.4 yrs

Robert Pangia

TITLE
Independent Director
COMPENSATION
$483K
AGE
68
TENURE
21.8 yrs

Lynn Schenk

TITLE
Independent Director
COMPENSATION
$428K
AGE
73
TENURE
24.1 yrs

Richard Mulligan

TITLE
Independent Director
COMPENSATION
$408K
AGE
63
TENURE
10 yrs

Alex Denner

TITLE
Independent Director
COMPENSATION
$413K
AGE
49
TENURE
10 yrs

Brian Posner

TITLE
Independent Director
COMPENSATION
$452K
AGE
57
TENURE
10.9 yrs

Caroline Dorsa

TITLE
Independent Director
COMPENSATION
$412K
AGE
59
TENURE
9.4 yrs

Nancy Leaming

TITLE
Independent Director
COMPENSATION
$400K
AGE
70
TENURE
11.4 yrs

Eric Rowinsky

TITLE
Independent Director
COMPENSATION
$408K
AGE
61
TENURE
9.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Biogen insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
02. May 19 Buy Sarissa Capital Management Company 30. Apr 19 02. May 19 118,342 $231.24 $27,211,824
02. May 19 Buy Michel Vounatsos Individual 01. May 19 01. May 19 4,351 $231.48 $1,007,169
01. Feb 19 Buy Sarissa Capital Management Company 30. Jan 19 01. Feb 19 62,800 $330.52 $20,572,406
X
Management checks
We assess Biogen'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. Biogen 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.

News

Simply Wall St News

An Intrinsic Calculation For Biogen Inc. (NASDAQ:BIIB) Suggests It's 26% Undervalued

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $5.56k $5.62k $5.59k $5.54k $5.45k $5.45k $5.50k $5.58k $5.68k $5.80k Growth Rate Estimate Source Analyst x9 Analyst x8 Analyst x7 Analyst x7 Analyst x7 Est @ 0.08% Est @ 0.88% Est @ 1.43% Est @ 1.82% Est @ 2.09% Present Value ($, Millions) Discounted @ 10.86% $5.02k $4.57k $4.11k $3.67k $3.25k $2.94k $2.67k $2.44k $2.24k $2.07k Present Value of 10-year Cash Flow (PVCF)= $32.98b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$5.8b × (1 + 2.7%) ÷ (10.9% – 2.7%) = US$73b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$73b ÷ ( 1 + 10.9%)10 = $26.11b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $59.09b. … NasdaqGS:BIIB Intrinsic value, June 6th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Why Biogen Inc. (NASDAQ:BIIB) Is An Attractive Investment To Consider

For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Biogen here. … NasdaqGS:BIIB Income Statement, May 22nd 2019 Next Steps: For Biogen, I've put together three important aspects you should look at: Future Outlook: What are well-informed industry analysts predicting for BIIB’s future growth? … Take a look at our free research report of analyst consensus for BIIB’s outlook.

Simply Wall St -

What Investors Should Know About Biogen Inc.'s (NASDAQ:BIIB) Financial Strength

(NASDAQ:BIIB), a large-cap worth US$45b, comes to mind for investors seeking a strong and reliable stock investment. … I will provide an overview of Biogen’s financial liquidity and leverage to give you an idea of Biogen’s position to take advantage of potential acquisitions or comfortably endure future downturns. … 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 -

Do You Know What Biogen Inc.'s (NASDAQ:BIIB) P/E Ratio Means?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … How Do I Calculate Biogen's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Be Excited About Biogen Inc.'s (NASDAQ:BIIB) 34% Return On Equity?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.34. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Will Biogen Inc.'s (NASDAQ:BIIB) Earnings Grow In The Year Ahead?

Looking at Biogen Inc.'s (NASDAQ:BIIB) earnings update in December 2018,. … the consensus outlook from analysts appear fairly confident, … the past 5-year average growth rate of 7.4%

Simply Wall St -

The Biogen Share Price Is Up 28% And Shareholders Are Holding On

(NASDAQ:BIIB) share price. … During three years of share price growth, Biogen achieved compound earnings per share growth of 12% per year. … The average annual share price increase of 8.5% is actually lower than the EPS growth.

Simply Wall St -

How Do Analysts See Biogen Inc. (NASDAQ:BIIB) Performing In The Next Couple Of Years?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … (NASDAQ:BIIB) released in December 2018a

Simply Wall St -

Calculating The Fair Value Of Biogen Inc. (NASDAQ:BIIB)

(NASDAQ:BIIB) from its intrinsic value? … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

A Closer Look At Biogen Inc's (NASDAQ:BIIB) Impressive ROE

We'll use ROE to examine Biogen Inc (NASDAQ:BIIB), by way of a worked example. … That means that for every $1 worth of shareholders' equity, it generated $0.24 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

Biogen Inc. discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases worldwide. The company offers TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, and FAMPYRA for the treatment of multiple sclerosis (MS); SPINRAZA for the treatment of spinal muscular atrophy; and FUMADERM for the treatment of plaque psoriasis. It also provides BENEPALI, an etanercept biosimilar referencing ENBREL; FLIXABI, an infliximab biosimilar referencing REMICADE; and IMRALDI, an adalimumab biosimilar referencing HUMIRA. In addition, the company offers RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL), rheumatoid arthritis, two forms of ANCA-associated vasculitis, and pemphigus vulgaris; RITUXAN HYCELA for non-Hodgkin's lymphoma and CLL; GAZYVA to treat CLL and follicular lymphoma; and OCREVUS for the treatment of primary progressive MS and relapsing MS, and other anti-CD20 therapies. Further, it is involved in developing BIIB098, Opicinumab, and BIIB061 for MS and neuroimmunology; Aducanumab, Elenbecestat, BAN2401, BIIB092, BIIB076, and BIIB080 to treat Alzheimer's disease and dementia; BIIB092 and BIIB054 for treating Parkinson's disease and movement disorders; BIIB067, BIIB078, and BIIB110 to treat neuromuscular disorders; BIIB093, TMS-007, and Natalizumab to treat acute neurology; BIIB104 for treating neurocognitive disorders; BIIB074 and BIIB095 for pain; and Dapirolzumab pegol, BG00011, and BIIB059 for treating other diseases, which are under various stages of development. The company offers products through its sales force and marketing groups. Biogen Inc. has collaboration agreements with Genentech, Inc., Eisai Co., Ltd., Alkermes Pharma Ireland Limited, Bristol-Myers Squibb Company, Acorda Therapeutics, Inc., AbbVie Inc., C4 Therapeutics, University of Pennsylvania, Applied Genetic Technologies Corporation, and others. The company was founded in 1978 and is headquartered in Cambridge, Massachusetts.

Details
Name: Biogen Inc.
BIIB
Exchange: NasdaqGS
Founded: 1978
$44,143,709,694
193,893,397
Website: http://www.biogen.com
Address: Biogen Inc.
225 Binney Street,
Cambridge,
Massachusetts, 02142,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS BIIB Common Stock Nasdaq Global Select US USD 17. Sep 1991
DB IDP Common Stock Deutsche Boerse AG DE EUR 17. Sep 1991
XTRA IDP Common Stock XETRA Trading Platform DE EUR 17. Sep 1991
SWX BIIB Common Stock SIX Swiss Exchange CH CHF 17. Sep 1991
WBAG BIIB Common Stock Wiener Boerse AG AT EUR 17. Sep 1991
SNSE BIIB Common Stock Santiago Stock Exchange CL USD 17. Sep 1991
BMV BIIB * Common Stock Bolsa Mexicana de Valores MX MXN 17. Sep 1991
BASE BIIB CEDEAR EACH 13 REP 1 COM USD0.0005 Buenos Aires Stock Exchange AR ARS 12. Apr 2019
BOVESPA BIIB34 BDR EACH REPR 1/6 COM USD0.0005 Bolsa de Valores de Sao Paulo BR BRL 25. Apr 2016
Number of employees
Current staff
Staff numbers
7,800
Biogen employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:56
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/11
Last earnings filing: 2019/04/24
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.