AstraZeneca (AZN) AI Stock Analysis

• Market Cap: $274.95B
• Dividend Yield: 1.76%
• Average Volume (3M): 5.09M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.23
• Revenue Growth: 12.95%
• EPS Growth: 44.28%
• Country: US
• Employees: 94,300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.19
• Shares Outstanding: 3,101,425,800
• 10 Day Avg. Volume: 5,174,118
• 30 Day Avg. Volume: 5,087,560
• PEG Ratio: -0.71
• Price to Book (P/B): 4.98
• Price to Sales (P/S): 3.76
• P/FCF Ratio: 27.92
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 4.54
• Enterprise Value/Gross Profit: 5.52
• Enterprise Value/Ebitda: 14.72
• 1Y Price Target: $94.00
• Price Target Upside: 6.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 4.59
• Revenue Forecast (FY): $58.47B

• Rating: 75 Outperform
• Price Target: $91.00 ▲(2.62% Upside)

AstraZeneca's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust revenue growth and successful product pipeline developments, especially in oncology, are significant strengths. However, the high P/E ratio and challenges in China and Medicare reforms slightly temper the outlook.

Positive Factors

Oncology Segment Success

The oncology segment's robust growth underscores AstraZeneca's competitive advantage in high-demand therapeutic areas, supporting sustained revenue expansion.

Strong Cash Flow

Strong cash flow growth enhances AstraZeneca's ability to invest in R&D and strategic acquisitions, bolstering long-term competitive positioning.

Regulatory Approvals

Numerous regulatory approvals and successful trials indicate a robust pipeline, ensuring future product launches and revenue streams.

Negative Factors

Challenges in China

Revenue challenges in China due to VBP and budget capping could impact AstraZeneca's growth in a key market, affecting overall performance.

Medicare Part D Reform Impact

Medicare reforms may pressure margins, potentially affecting profitability and necessitating strategic adjustments to maintain financial health.

Loss of Exclusivity Concerns

Loss of exclusivity poses a risk to revenue streams, requiring AstraZeneca to innovate and diversify to mitigate competitive pressures.

AstraZeneca Business Overview & Revenue Model

Company Description

AstraZeneca 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 Money

AstraZeneca generates revenue primarily through the sale of its pharmaceutical products across various therapeutic areas. The company's revenue model is built on a combination of direct sales of its branded medications and partnerships with other pharmaceutical companies for co-development and co-marketing. Key revenue streams include sales from its oncology segment, which has seen significant growth due to the increasing demand for cancer treatments. The company also benefits from strategic collaborations and licensing agreements with other firms, which provide additional income through upfront payments, milestone payments, and royalties on future sales. Additionally, AstraZeneca invests heavily in research and development to innovate and expand its product portfolio, which contributes to its long-term revenue potential.

AstraZeneca Financial Statement Overview

Summary

AstraZeneca demonstrates robust financial health with strong revenue growth and improved profitability. The balance sheet is stable with manageable leverage, and cash flow metrics indicate strong cash generation and reinvestment capacity.

Income Statement

AstraZeneca has shown strong revenue growth with a 6% increase in the TTM compared to the previous year, driven by consistent sales performance. The company maintains solid profitability, with a gross profit margin of 79.4% and a net profit margin of 14.7% in TTM. The EBIT margin improved to 19.9%, indicating enhanced operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.73, demonstrating manageable leverage. The equity ratio stands at 39.8%, showing a robust capital structure. Return on equity has improved to 18.6%, indicating effective use of shareholder funds.

Cash Flow

AstraZeneca exhibits a strong cash flow position, with a 31.4% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 1.62, evidencing strong cash generation capability. However, the free cash flow to net income ratio of 1.15 suggests effective reinvestment in operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.13B	54.07B	45.81B	44.35B	37.42B	26.62B
Gross Profit	47.83B	43.87B	37.54B	31.96B	24.98B	21.32B
EBITDA	17.94B	15.44B	13.42B	9.09B	5.11B	8.08B
Net Income	9.40B	7.04B	5.96B	3.29B	112.00M	3.20B
Balance Sheet
Total Assets	114.46B	104.03B	101.12B	96.48B	105.36B	66.73B
Cash, Cash Equivalents and Short-Term Investments	8.18B	5.53B	5.86B	6.24B	6.40B	7.99B
Total Debt	32.66B	30.11B	28.62B	29.14B	30.69B	20.38B
Total Liabilities	68.48B	63.16B	61.95B	59.42B	66.08B	51.09B
Stockholders Equity	45.89B	40.79B	39.14B	37.04B	39.27B	15.62B
Cash Flow
Free Cash Flow	11.15B	7.28B	6.57B	7.24B	3.76B	2.19B
Operating Cash Flow	15.14B	11.86B	10.35B	9.81B	5.96B	4.80B
Investing Cash Flow	-6.54B	-7.98B	-4.06B	-2.96B	-11.06B	-285.00M
Financing Cash Flow	-4.93B	-4.00B	-6.57B	-6.82B	3.65B	-2.20B

AstraZeneca Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZN, the sentiment is Positive. The current price of 88.68 is above the 20-day moving average (MA) of 85.44, above the 50-day MA of 82.77, and above the 200-day MA of 75.19, indicating a bullish trend. The MACD of 1.86 indicates Negative momentum. The RSI at 64.59 is Neutral, neither overbought nor oversold. The STOCH value of 77.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AZN.

AstraZeneca Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVS	80 Outperform	$251.43B	17.81	32.93%	3.21%	11.53%	-15.21%
MRK	78 Outperform	$235.92B	12.76	39.51%	3.41%	1.59%	58.02%
GSK	77 Outperform	$93.40B	13.32	35.62%	3.63%	5.97%	128.66%
SNY	76 Outperform	$120.73B	12.60	8.39%	4.46%	-9.32%	120.62%
AZN	75 Outperform	$274.95B	29.51	21.73%	1.76%	12.95%	44.28%
PFE	68 Neutral	$141.46B	14.83	10.59%	7.05%	4.44%	128.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

AstraZeneca Corporate Events

AstraZeneca and US Government Reach Historic Agreement to Lower Medicine Costs

On October 13, 2025, AstraZeneca announced a historic agreement with the US Government to lower the cost of prescription medicines for American patients. This agreement includes measures such as providing Direct-to-Consumer sales at significant discounts and participating in a direct purchasing platform. AstraZeneca will invest $50 billion in US manufacturing and R&D, aiming to generate $80 billion in total revenue by 2030, with 50% expected from the US. The agreement also involves delaying tariffs to support domestic manufacturing, reflecting AstraZeneca’s commitment to the US market and its role in biopharmaceutical innovation.

AstraZeneca Sees Increase in Voting Rights by The Capital Group

On August 22, 2025, The Capital Group Companies, Inc. increased its voting rights in AstraZeneca PLC to 5.009701%, surpassing the previous threshold of 4.997854%. This change, notified on August 25, 2025, indicates a strategic move by The Capital Group, potentially impacting AstraZeneca’s shareholder dynamics and market perception.

Capital Group Increases Stake in AstraZeneca

On August 13, 2025, The Capital Group Companies, Inc. increased its voting rights in AstraZeneca PLC to 5.009591%, crossing a significant threshold. This change, notified to AstraZeneca on August 14, 2025, reflects a strategic move by the investment management firm, potentially impacting AstraZeneca’s shareholder dynamics and market perception.

AstraZeneca Sees Slight Change in Voting Rights by Capital Group

On August 8, 2025, The Capital Group Companies, Inc. reported a change in its voting rights in AstraZeneca PLC, reducing its stake from 5.000629% to 4.984560%. This adjustment in holdings, notified to AstraZeneca on August 11, 2025, reflects a minor shift in the investment landscape for the company, potentially impacting shareholder dynamics and market perceptions.