AstraZeneca (AZN) AI Stock Analysis

• Market Cap: $249.96B
• Dividend Yield: 1.96%
• Average Volume (3M): 4.89M
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.29
• 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: 3,101,365,200
• 10 Day Avg. Volume: 3,733,672
• 30 Day Avg. Volume: 4,885,171
• 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: 0.97
• Enterprise Value/Revenue: 5.68
• Enterprise Value/Gross Profit: 7.04
• Enterprise Value/Ebitda: 18.07
• 1Y Price Target: $93.00
• Price Target Upside: 16.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: $84.00 ▲(4.93% Upside)

AstraZeneca's strong financial performance and positive earnings call are the most significant factors driving the score. Technical analysis shows bullish momentum, though caution is advised due to overbought signals. The valuation suggests the stock may be overvalued, which slightly tempers the overall score.

Positive Factors

Earnings

The company reported Total Product Sales of $13.795bn, above consensus estimates, driven by the oncology segment.

Regulatory Developments

Regulatory filings accepted for multiple products in the US, EU, and Japan.

Negative Factors

Clinical Trials

The clinical program evaluating anselamimab did not achieve statistical significance in the overall population for the primary endpoint.

Product Performance

Performance across non-oncology products were mixed, with some products below consensus.

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	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: 80.05
• 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 80.05 is above the 20-day moving average (MA) of 76.81, above the 50-day MA of 72.95, and above the 200-day MA of 69.97, indicating a bullish trend. The MACD of 2.29 indicates Negative momentum. The RSI at 66.94 is Neutral, neither overbought nor oversold. The STOCH value of 71.00 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
PFE	82 Outperform	$142.93B	13.76	12.16%	6.86%	14.72%	―
MRK	81 Outperform	$213.09B	13.47	35.44%	3.77%	2.00%	20.01%
AZN	79 Outperform	$249.96B	30.16	19.76%	1.96%	15.08%	29.15%
NVS	78 Outperform	$241.52B	18.27	32.82%	3.15%	12.38%	-12.67%
GSK	78 Outperform	$80.32B	18.50	23.04%	4.13%	3.46%	-13.29%
SNY	76 Outperform	$122.44B	12.77	8.39%	4.40%	-9.32%	120.62%
Sector *	51 Neutral	$7.81B	-0.15	-40.08%	2.29%	21.29%	-1.80%