AstraZeneca (AZN) AI Stock Analysis

• Market Cap: $280.54B
• Dividend Yield: 1.74%
• Average Volume (3M): 5.22M
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.22
• 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: 3,101,451,700
• 10 Day Avg. Volume: 5,867,203
• 30 Day Avg. Volume: 5,215,774
• 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: 0.94
• Enterprise Value/Revenue: 4.54
• Enterprise Value/Gross Profit: 5.52
• Enterprise Value/Ebitda: 14.72
• 1Y Price Target: $102.40
• Price Target Upside: 13.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 4.59
• Revenue Forecast (FY): $58.52B

• Rating: 79 Outperform
• Price Target: $107.00 ▲(19.11% Upside)

AstraZeneca's strong financial performance and positive earnings call drive a high overall score. The bullish technical indicators support this, though the high valuation and potential challenges in China and Medicare reforms 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 (AZN) is a global biopharmaceutical company focusing on the discovery, development, and commercialization of innovative medicines. The company primarily operates in the therapeutic areas of oncology, cardiovascular, renal, metabolism, respiratory, and immunology. AstraZeneca's core products include a range of prescription medications, including cancer treatments, cardiovascular therapies, and respiratory drugs, along with a notable presence in vaccines, highlighted by its involvement in the development of a COVID-19 vaccine.

How the Company Makes Money

AstraZeneca generates revenue primarily through the sale of its pharmaceutical products, which are marketed globally. The company earns significant income from its oncology portfolio, particularly from drugs like Tagrisso and Imfinzi. Additionally, AstraZeneca benefits from licensing agreements and collaborations with other pharmaceutical companies, which often lead to upfront payments, milestone payments, and royalties on sales. The company also engages in partnerships with research institutions and biotechnology firms to enhance its drug development pipeline, contributing to its revenue through shared investments and co-commercialization of products. Moreover, AstraZeneca has a growing presence in emerging markets, which contributes to its overall sales growth.

AstraZeneca Financial Statement Overview

Summary

AstraZeneca demonstrates strong financial health with consistent revenue and profit growth, efficient operations, and robust cash flow generation. The company maintains a stable balance sheet with moderate leverage, though increasing debt levels warrant attention.

Income Statement

AstraZeneca's income statement shows strong profitability with a TTM gross profit margin of 72.6% and a net profit margin of 14.7%. The company has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.9%. EBIT and EBITDA margins are healthy at 20.8% and 32.9%, respectively, indicating efficient operations. However, the slight decline in gross profit margin from 81.1% in 2024 to 72.6% in TTM suggests some pressure on cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.73, indicating moderate leverage. Return on equity is strong at 20.2%, showcasing effective use of shareholder funds. The equity ratio stands at 40.1%, suggesting a solid equity base. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

AstraZeneca's cash flow statement reveals robust cash generation capabilities, with a TTM free cash flow growth rate of 27.8%. The operating cash flow to net income ratio is 1.61, indicating strong cash conversion. The free cash flow to net income ratio of 0.65 suggests efficient cash utilization. Despite these strengths, the operating cash flow coverage ratio has slightly decreased, which could impact liquidity if not addressed.

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: Neutral
• Last Price: 89.83
• 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 Neutral. The current price of 89.83 is below the 20-day moving average (MA) of 90.60, above the 50-day MA of 86.87, and above the 200-day MA of 76.55, indicating a neutral trend. The MACD of 1.17 indicates Positive momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 32.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AZN.

AstraZeneca Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	80 Outperform	$245.75B	13.10	39.51%	3.23%	1.59%	58.02%
NVS	80 Outperform	$252.48B	17.77	32.93%	3.01%	11.53%	-15.21%
AZN	79 Outperform	$280.54B	30.15	21.73%	1.74%	12.95%	44.28%
GSK	77 Outperform	$98.27B	13.75	35.62%	3.42%	5.97%	128.66%
SNY	75 Outperform	$120.76B	12.32	8.39%	4.54%	-9.32%	120.62%
PFE	74 Outperform	$146.58B	15.03	10.59%	6.65%	4.44%	128.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

AstraZeneca Corporate Events

AstraZeneca Stake Adjustment by Capital Group

On December 2, 2025, The Capital Group Companies, Inc. adjusted its holdings in AstraZeneca PLC, reducing its voting rights from 5.017815% to 4.973499%. This change reflects a minor adjustment in the investment management company’s stake, which could have implications for AstraZeneca’s shareholder dynamics and influence within the company.

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.