NasdaqGS:BIIB

Stock Analysis Report

Executive Summary

Biogen Inc. discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases worldwide.

Snowflake

Fundamentals

Solid track record and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.9%

BIIB

4.6%

US Biotechs

3.4%

US Market


1 Year Return

-33.2%

BIIB

-10.1%

US Biotechs

5.4%

US Market

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

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


Shareholder returns

BIIBIndustryMarket
7 Day1.9%4.6%3.4%
30 Day-4.5%-2.4%-1.0%
90 Day-1.5%-2.1%-0.4%
1 Year-33.2%-33.2%-9.4%-10.1%7.7%5.4%
3 Year-16.8%-23.4%14.9%10.9%46.2%36.8%
5 Year-24.9%-30.8%2.3%-2.7%65.6%47.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

32.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BIIB ($226.06) is trading below our estimate of fair value ($334.17)

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


Price To Earnings Ratio

PE vs Industry: BIIB is good value based on its PE Ratio (8.4x) compared to the Biotechs industry average (17.8x).

PE vs Market: BIIB is good value based on its PE Ratio (8.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BIIB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BIIB is overvalued based on its PB Ratio (3.2x) compared to the US Biotechs industry average (2.6x).


Next Steps

Future Growth

How is Biogen forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

-1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIIB's earnings are forecast to decline over the next 3 years (-1.5% per year).

Earnings vs Market: BIIB's earnings are forecast to decline over the next 3 years (-1.5% per year).

High Growth Earnings: BIIB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BIIB's revenue is expected to decline over the next 3 years (-1.6% per year).

High Growth Revenue: BIIB's revenue is forecast to decline over the next 3 years (-1.6%).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BIIB's Return on Equity is forecast to be high in 3 years time (23.2%)


Next Steps

Past Performance

How has Biogen performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BIIB's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: BIIB's earnings growth over the past year (78.4%) exceeds its 5-year average (7.5% per year).

Earnings vs Industry: BIIB earnings growth over the past year (78.4%) underperformed the Biotechs industry 78.4%.


Return on Equity

High ROE: BIIB's Return on Equity (40.9%) is considered outstanding.


Return on Assets

ROA vs Industry: BIIB has a higher Return on Assets than the Biotechs industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Biogen's financial position?


Financial Position Analysis

Short Term Liabilities: BIIB's short term assets ($7.9B) exceeds its short term liabilities ($3.2B)

Long Term Liabilities: BIIB's short term assets (7.9B) do not cover its long term liabilities (10.1B)


Debt to Equity History and Analysis

Debt Level: BIIB's debt to equity ratio (45.9%) is considered high

Reducing Debt: BIIB's debt to equity ratio has increased from 6.2% to 45.9% over the past 5 years.

Debt Coverage: BIIB's debt is well covered by operating cash flow (118.6%).

Interest Coverage: BIIB's interest payments on its debt are well covered by EBIT (93.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: BIIB's debt is covered by short term assets (assets are 1.329710x debt).


Next Steps

Dividend

What is Biogen'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 BIIB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BIIB'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 BIIB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BIIB'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 BIIB'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 Biogen's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Michel Vounatsos (57yo)

2.8yrs

Tenure

US$16,168,646

Compensation

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  ...


CEO Compensation Analysis

Compensation vs. Market: Michel's total compensation ($USD16.17M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

2.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: BIIB's management team is considered experienced (2 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

63yo

Average Age

Experienced Board: BIIB's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$27,211,82402 May 19
Sarissa Capital Management
EntityCompany
Shares118,342
Max PriceUS$231.24
BuyUS$1,007,16902 May 19
Michel Vounatsos
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares4,351
Max PriceUS$231.48
BuyUS$20,572,40601 Feb 19
Sarissa Capital Management
EntityCompany
Shares62,800
Max PriceUS$330.52

Ownership Breakdown


Management Team

  • Susan Alexander (62yo)

    Executive VP

    • Tenure: 2.6yrs
    • Compensation: US$6.35m
  • Jeff Capello (54yo)

    Executive VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$4.48m
  • Mark Hernon (55yo)

    Senior VP & Chief Information Officer

    • Tenure: 1.8yrs
  • Ginger Gregory (51yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 2.3yrs
  • Alphonse Galdes

    Executive Vice President of Pharmaceutical Operations & Technology

    • Tenure: 0yrs
  • Al Sandrock (61yo)

    Executive VP of Research & Development and Chief Medical Officer

    • Tenure: 7.7yrs
    • Compensation: US$8.17m
  • Robin Kramer (53yo)

    VP & Chief Accounting Officer

    • Tenure: 0.9yrs
  • Michel Vounatsos (57yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$16.17m
  • Daniel Karp (41yo)

    Executive Vice President of Corporate Development

    • Tenure: 1.3yrs
  • Joe Mara

    VP of Finance and Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Caroline Dorsa (60yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$412.45k
  • Stelios Papadopoulos (71yo)

    Independent Chairman

    • Tenure: 5.3yrs
    • Compensation: US$613.48k
  • Robert Pangia (69yo)

    Independent Director

    • Tenure: 22.1yrs
    • Compensation: US$482.71k
  • Lynn Schenk (74yo)

    Independent Director

    • Tenure: 24.4yrs
    • Compensation: US$428.45k
  • Brian Posner (58yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$452.45k
  • Nancy Leaming (71yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$400.23k
  • Eric Rowinsky (62yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$407.95k
  • Alex Denner (50yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$413.45k
  • Richard Mulligan (64yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$407.95k
  • Michel Vounatsos (57yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$16.17m

Company Information

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


Key Information

  • Name: Biogen Inc.
  • Ticker: BIIB
  • Exchange: NasdaqGS
  • Founded: 1978
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$41.696b
  • Shares outstanding: 184.45m
  • Website: https://www.biogen.com

Number of Employees


Location

  • Biogen Inc.
  • 225 Binney Street
  • Cambridge
  • Massachusetts
  • 2142
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BIIBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1991
IDPDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1991
IDPXTRA (XETRA Trading Platform)YesCommon StockDEEURSep 1991
BIIBSNSE (Santiago Stock Exchange)YesCommon StockCLUSDSep 1991
BIIB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1991
BIIBSWX (SIX Swiss Exchange)YesCommon StockCHCHFSep 1991
BIIBWBAG (Wiener Boerse AG)YesCommon StockATEURSep 1991
BIIB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1/6 COM USD0.0005BRBRLApr 2016
BIIBBASE (Buenos Aires Stock Exchange)CEDEAR EACH 13 REP 1 COM USD0.0005ARARSApr 2019

Biography

Biogen Inc. discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases worldwide. The company offers TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, and FAMPYR ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:52
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.