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Astrazeneca Plc (AZN)
NASDAQ:AZN
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AstraZeneca
(NASDAQ:AZN)
73Outperform
Positive Factors
Clinical Trial Success
DESTINY-Breast09 demonstrated a highly statistically significant and clinically meaningful improvement in PFS for Enhertu + pertuzumab vs the control arm standard of care in patients with 1L HER2+ metastatic breast cancer.
Product Pipeline
AZN has promising new products and pipeline, and participates in many large, high-growth markets.
Negative Factors
Market Challenges
Decreasing roxadustat China sales are expected in subsequent years due to expected VBP inclusion.
Regulatory Risks
Current investor concerns mainly revolve around risks to the China business due to alleged improper practices by former employees.
AstraZeneca (AZN) vs. S&P 500 (SPY)
Market Cap
$209.32B
Dividend Yield2.24%
Average Volume (3M)6.18M
Price to Earnings (P/E)29.9
Beta (1Y)0.34
Revenue Growth18.03%
EPS Growth18.11%
CountryUS
Employees94,300
SectorHealthcare
Sector Strength64
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)2.27
Shares Outstanding3,101,247,000
10 Day Avg. Volume7,868,216
30 Day Avg. Volume6,175,153
Financial Highlights & Ratios
PEG Ratio1.65
Price to Book (P/B)N/A
Price to Sales (P/S)4.31
Price to Cash Flow (P/CF)18.50
P/FCF Ratio25.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$88.78Price Target Upside29.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
AstraZeneca Business Overview & Revenue Model
Company DescriptionAstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacture, and commercialization of prescription medicines. The company's marketed products include Tagrisso, Imfinzi, Lynparza, Calquence, Enhertu, Orpathys, Truqap, Zoladex, Faslodex, Farxiga, Brilinta, Lokelma, Roxadustat, Andexxa, Crestor, Seloken, Onglyza, Bydureon, Fasenra, Breztri, Symbicort, Saphnelo, Tezspire, Pulmicort, Bevespi, and Daliresp for cardiovascular, renal, metabolism, and oncology. Its marketed products also comprise Vaxzevria, Beyfortus, Synagis, FluMist, Soliris, Ultomiris, Strensiq, Koselugo, and Kanuma for covid-19 and rare disease. The company serves primary care and specialty care physicians through distributors and local representative offices in the United Kingdom, rest of Europe, the Americas, Asia, Africa, and Australasia. It has a collaboration agreement with Neurimmune AG to develop and commercialize NI006; BenevolentAI for drug discovery for systemic lupus erythematosus; Lunit for developing AI-Powered Digital Pathology Risk Assessment Tools for NSCLC; and Absci Corporation for AI-driven drug discovery against an oncology target. The company was formerly known as Zeneca Group PLC and changed its name to AstraZeneca PLC in April 1999. AstraZeneca PLC was incorporated in 1992 and is headquartered in Cambridge, the United Kingdom.
How the Company Makes MoneyAstraZeneca generates revenue primarily through the sale of its pharmaceutical products. The company makes money by developing, manufacturing, and marketing prescription drugs globally, with a significant focus on its key therapeutic areas. AstraZeneca's revenue streams are largely driven by the commercial success of its proprietary medicines, which include blockbuster drugs in oncology and other therapeutic areas. The company also engages in strategic partnerships and collaborations with other pharmaceutical and biotechnology firms to enhance its research and development capabilities, often resulting in milestone payments, royalties, and shared revenues. Additionally, AstraZeneca invests in expanding its market presence through acquisitions and licensing agreements, further contributing to its overall earnings.
AstraZeneca Financial Statement Overview
Summary
AstraZeneca demonstrates a strong financial position characterized by significant revenue growth, solid profitability margins, and effective cash flow management. The company maintains a balanced capital structure with manageable debt levels and strong equity. While leveraging is relatively high, the firm's consistent profitability and cash flows provide a stable foundation for continued growth and financial health.Income Statement
AstraZeneca's income statement shows strong revenue growth with total revenue growing from $45.8 billion in 2023 to $54.1 billion in 2024, a growth rate of 18.1%. The company maintains a robust gross profit margin of 81.1% in 2024. The net profit margin improved to 13.0% in 2024, up from 13.0% in 2023, indicating increased profitability. Both EBIT and EBITDA margins show positive trends, reflecting operational efficiency and strong earnings performance.88
Very Positive
Balance Sheet
The balance sheet reveals solid financials with a debt-to-equity ratio of 0.74 in 2024, showing manageable leverage. Stockholders' equity increased to $40.8 billion, supporting a stable equity ratio of 39.2%. Return on equity improved to 17.2%, highlighting effective use of equity in generating profits. Despite a high total debt, the company's equity position remains robust.75
Positive
Cash Flow
AstraZeneca's cash flow statement indicates healthy cash generation with operating cash flow increasing to $11.9 billion in 2024. The free cash flow to net income ratio is satisfactory, showing effective cash management. Free cash flow growth from $6.6 billion in 2023 to $7.3 billion in 2024 indicates good cash flow growth. Operating cash flow covers net income well, suggesting strong cash conversion.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 54.07B | 45.81B | 44.35B | 37.42B | 26.62B |
| Gross Profit | ||||
| 43.87B | 37.77B | 31.96B | 24.98B | 21.32B |
| EBIT | ||||
| 10.00B | 8.19B | 3.76B | 1.06B | 5.16B |
| EBITDA | ||||
| 17.12B | 13.91B | 9.09B | 5.11B | 8.08B |
| Net Income Common Stockholders | ||||
| 7.04B | 5.96B | 3.29B | 112.00M | 3.20B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.65B | 5.86B | 6.41B | 6.40B | 7.99B |
| Total Assets | ||||
| 104.03B | 101.12B | 96.48B | 105.36B | 66.73B |
| Total Debt | ||||
| 30.11B | 28.62B | 29.23B | 30.78B | 20.38B |
| Net Debt | ||||
| 24.63B | 22.78B | 23.07B | 24.45B | 12.55B |
| Total Liabilities | ||||
| 63.16B | 61.95B | 59.42B | 66.08B | 51.09B |
| Stockholders Equity | ||||
| 40.79B | 39.14B | 37.04B | 39.27B | 15.62B |
| Cash Flow | Free Cash Flow | |||
| 7.28B | 6.57B | 7.24B | 3.76B | 2.19B |
| Operating Cash Flow | ||||
| 11.86B | 10.35B | 9.81B | 5.96B | 4.80B |
| Investing Cash Flow | ||||
| -7.98B | -4.06B | -2.96B | -11.06B | -285.00M |
| Financing Cash Flow | ||||
| -4.00B | -6.57B | -6.82B | 3.65B | -2.20B |
AstraZeneca Technical Analysis
Negative
68.51
Price Trends
72.88
Negative
69.73
Negative
73.01
Negative
Market Momentum
-1.80
Positive
42.96
Neutral
86.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZN, the sentiment is Negative. The current price of 68.51 is below the 20-day moving average (MA) of 69.35, below the 50-day MA of 72.88, and below the 200-day MA of 73.01, indicating a bearish trend. The MACD of -1.80 indicates Positive momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 86.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AZN.
AstraZeneca Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $212.50B | 18.68 | 26.33% | 2.96% | 1.08% | -17.73% | |
74 Outperform | $195.90B | 11.56 | 40.81% | 4.06% | 6.85% | 4577.79% | |
73 Outperform | $209.32B | 29.91 | 17.60% | 2.24% | 18.03% | 18.11% | |
70 Outperform | $125.03B | 21.43 | 7.34% | 2.90% | -4.57% | 2.96% | |
68 Neutral | $127.78B | 15.99 | 9.05% | 7.50% | 8.77% | 272.80% | |
65 Neutral | $73.46B | 22.69 | 19.11% | 4.20% | 6.28% | -47.11% | |
51 Neutral | $5.20B | 3.18 | -40.80% | 2.96% | 17.66% | 1.94% |
* Healthcare Sector Average
Performance Comparison
AZN
AstraZeneca
68.51
-1.29
-1.85%
GSK
GlaxoSmithKline
37.03
-2.28
-5.80%
MRK
Merck & Company
78.97
-44.37
-35.97%
NVS
Novartis
110.13
14.67
15.37%
PFE
Pfizer
22.39
-2.33
-9.43%
SNY
Sanofi
53.02
7.79
17.22%
AstraZeneca Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -2.07% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects strong overall performance with significant revenue growth, successful product approvals, and strategic pipeline advancements. However, challenges in the China market, anticipated headwinds from VBP and IRA, and increased operating expenses highlight areas of concern. The sentiment is balanced between strong growth prospects and operational challenges.Highlights
Strong Revenue Growth
Total revenue increased by 21% in 2024, with a core EPS growth of 19%. This exceeded the twice updated guidance range of a high teens percentage increase.
Successful Product Launches and Approvals
Eight new medicines have been approved to date, including Datroway, with significant contributions from oncology products like Tagrisso, Enhertu, and Imfinzi.
Emerging Markets Growth
Emerging market growth was strong at 22% in 2024, with substantial opportunities noted in China and other emerging markets.
Pipeline Advancements
Nine high-value pivotal trials readouts in 2024, representing over $5 billion in non-risk adjusted peak year revenue, with more anticipated in 2025.
Dividend Increase
AstraZeneca increased its full-year 2024 dividend to $3.10 per share and plans to increase the 2025 dividend to $3.20.
Lowlights
China Market Challenges
Ongoing investigations in China regarding suspected unpaid importation taxes totaling $900,000, which could result in fines of up to five times the amount.
Quarter 4 Revenue Decline in China
China's revenue growth was 11% for 2024 but saw a decline of 3% in the fourth quarter due to hospital ordering dynamics and mild winter affecting respiratory products.
Impact of VBP and IRA
Headwinds anticipated from VBP inclusion for several medicines in China and the impact of Part D redesign in the U.S., affecting revenue and gross margins.
Increased Operating Expenses
Core operating expense increased by 14% in 2024, and while below the revenue growth, it indicates rising costs alongside strong revenue performance.
Net Debt Increase
Net debt increased by $2.1 billion to $24.6 billion, with significant deal-related payments anticipated in 2025.
Company Guidance
During the call, AstraZeneca provided detailed guidance on its performance and future outlook. In 2024, the company achieved a total revenue increase of 21% and a core EPS growth of 19%. Core operating expenses rose by 14%, indicating efficient leverage relative to revenue growth. The company initiated nine high-value pivotal trials, projected to generate over $5 billion in peak revenue. AstraZeneca aims to launch 20 new medicines by 2030, with eight already approved. For 2025, the company anticipates a high single-digit percentage increase in total revenue and a low double-digit percentage increase in core EPS. The company also expects a 70 basis points decline in product sales growth margin due to factors such as IRA in the U.S. and VBP inclusion in China. AstraZeneca plans to increase CapEx by approximately 50% in 2025 to support manufacturing and technology investments. Despite challenges, such as ongoing investigations in China and potential import duty fines, AstraZeneca remains focused on sustaining growth through its diverse product portfolio and strategic investments.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.