AstraZeneca (AZN) AI Stock Analysis

• Market Cap: $259.50B
• Dividend Yield: 1.86%
• Average Volume (3M): 5.51M
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.28
• Revenue Growth: 15.08%
• EPS Growth: 29.15%
• Country: US
• Employees: 94,300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.08
• Shares Outstanding: 3,101,403,800
• 10 Day Avg. Volume: 4,088,042
• 30 Day Avg. Volume: 5,512,208
• PEG Ratio: 1.51
• Price to Book (P/B): 4.98
• Price to Sales (P/S): 3.76
• P/FCF Ratio: 27.92
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 5.68
• Enterprise Value/Gross Profit: 7.04
• Enterprise Value/Ebitda: 18.07
• 1Y Price Target: $94.50
• Price Target Upside: 12.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $96.00 ▲(14.20% Upside)

AstraZeneca's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The technical analysis suggests a bullish trend, though caution is advised due to potential overbought conditions. The high P/E ratio indicates a premium valuation, which may limit upside potential.

Positive Factors

Pipeline Success

The success in Phase III trials, including new molecular entities, underscores AstraZeneca's strong R&D capabilities, enhancing its long-term growth potential and competitive edge in the pharmaceutical industry.

Oncology Revenue Growth

The robust growth in oncology revenues highlights AstraZeneca's strong market position in cancer treatments, a key driver of future revenue and profitability given the increasing global demand for oncology solutions.

Cash Flow Strength

Strong cash flow growth indicates AstraZeneca's ability to fund R&D and strategic initiatives, ensuring sustainable operations and competitive advantage in the long term.

Negative Factors

Medicare Part D Redesign Impact

The anticipated decline in gross margin due to Medicare changes could pressure AstraZeneca's profitability, affecting its financial flexibility and ability to invest in growth opportunities.

Biosimilar Competition

Biosimilar competition poses a threat to AstraZeneca's rare disease segment, potentially eroding market share and impacting long-term revenue and profitability in this high-margin area.

VBP Implementation in China

The VBP implementation in China may hinder AstraZeneca's growth in a key market, affecting its revenue trajectory and competitive positioning in the region over the long term.

AstraZeneca Business Overview & Revenue Model

Company Description

AstraZeneca (AZN) is a global biopharmaceutical company focused on the discovery, development, and commercialization of prescription medicines. Headquartered in Cambridge, UK, the company operates in the sectors of oncology, cardiovascular, renal, and metabolic diseases, as well as respiratory, inflammation, and autoimmunity. AstraZeneca's core products include a range of innovative medicines, such as cancer treatments like Tagrisso and Imfinzi, cardiovascular drugs like Brilinta, and respiratory medications like Symbicort and Fasenra.

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	42.91B	54.07B	45.81B	44.35B	37.42B	26.62B
Gross Profit	34.63B	43.87B	37.77B	31.96B	24.98B	21.32B
EBITDA	13.49B	15.44B	13.91B	9.09B	5.11B	8.08B
Net Income	5.38B	7.04B	5.96B	3.29B	112.00M	3.20B
Balance Sheet
Total Assets	112.42B	104.03B	101.12B	96.48B	105.36B	66.73B
Cash, Cash Equivalents and Short-Term Investments	7.11B	5.53B	5.86B	6.41B	6.40B	7.99B
Total Debt	32.84B	30.11B	28.62B	29.23B	30.78B	20.38B
Total Liabilities	67.61B	63.16B	61.95B	59.42B	66.08B	51.09B
Stockholders Equity	44.72B	40.79B	39.14B	37.04B	39.27B	15.62B
Cash Flow
Free Cash Flow	5.44B	7.28B	6.57B	7.24B	3.76B	2.19B
Operating Cash Flow	9.68B	11.86B	10.35B	9.81B	5.96B	4.80B
Investing Cash Flow	-4.80B	-7.98B	-4.06B	-2.96B	-11.06B	-285.00M
Financing Cash Flow	-4.28B	-4.00B	-6.57B	-6.82B	3.65B	-2.20B

AstraZeneca Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 84.06 is above the 20-day moving average (MA) of 84.03, above the 50-day MA of 80.95, and above the 200-day MA of 73.52, indicating a bullish trend. The MACD of 1.08 indicates Positive momentum. The RSI at 58.34 is Neutral, neither overbought nor oversold. The STOCH value of 27.15 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	―	$249.53B	18.75	32.82%	3.09%	12.38%	-12.67%
PFE	―	$140.77B	13.17	12.16%	6.90%	14.72%	―
AZN	―	$259.50B	31.03	19.76%	1.86%	15.08%	29.15%
MRK	―	$218.53B	13.49	35.44%	3.68%	2.00%	20.01%
SNY	―	$126.22B	12.84	8.39%	4.30%	-9.32%	120.62%
GSK	―	$86.97B	19.90	23.04%	3.76%	3.46%	-13.29%
Sector *	―	$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.