AstraZeneca (AZN) AI Stock Analysis

• Market Cap: $219.66B
• Dividend Yield: 2.16%
• Average Volume (3M): 5.14M
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.37
• Revenue Growth: 15.48%
• EPS Growth: 22.70%
• Country: US
• Employees: 94,300
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.25
• Shares Outstanding: 3,101,276,900
• 10 Day Avg. Volume: 4,864,774
• 30 Day Avg. Volume: 5,139,792
• PEG Ratio: -4.99
• Price to Book (P/B): 10.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 49.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $87.34
• Price Target Upside: 24.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 77 Outperform
• Price Target: $80.00 ▲(13.62%Upside)

AstraZeneca's overall stock score is driven by strong financial performance and positive earnings call outcomes, highlighting robust growth and strategic pipeline advancements. While technical indicators suggest neutrality, the valuation appears high, indicating limited upside potential given current prices.

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.

Market Leadership

In China, roxadustat is the category leader in ESA+ HIF branded share, with approximately 45% market share.

Product Potential

More recently launched products including Ultomiris, Enhertu, Saphnelo, Tezspire, and Beyfortus collectively have $15B+ in sales potential to AZN in 2030.

Negative Factors

Clinical Trial Discontinuation

The discontinuation of the CAPItello-280 Ph 3 trial evaluating Truqap in patients with metastatic castration-resistant prostate cancer was announced.

Financial Performance

Total Product Sales of $12,875 bn missing consensus estimates by ~2% and missing Leerink Partners' estimate by ~1%.

Regulatory and Compliance Risks

Current investor concerns mainly revolve around risks to the China business due to alleged improper practices by former employees.

AstraZeneca Business Overview & Revenue Model

Company Description

AstraZeneca (AZN) is a global, science-led biopharmaceutical company headquartered in Cambridge, United Kingdom. The company primarily focuses on the discovery, development, and commercialization of prescription medicines in three main therapy areas: Oncology, Cardiovascular, Renal & Metabolism, and Respiratory & Immunology. AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide.

How the Company Makes Money

AstraZeneca makes money through the research, development, and sale of pharmaceutical products. Its revenue model is largely based on the sales of prescription drugs across its core therapeutic areas. Key revenue streams include the sale of branded pharmaceutical products, royalties from licensing agreements, and strategic collaborations with other pharmaceutical companies. AstraZeneca also engages in partnerships with research institutions and biotech firms to enhance its product offerings and expand its market reach. Additionally, the company invests in its pipeline to develop new drugs, which are critical to sustaining long-term growth and profitability. Factors contributing to its earnings include successful drug approvals, patent protections, and the ability to penetrate emerging markets.

AstraZeneca Financial Statement Overview

Summary

AstraZeneca exhibits strong financial health across all verticals. The income statement reflects solid growth and profitability improvements with a revenue growth rate of 16.15% and a robust gross profit margin of 81.38%. The balance sheet is stable with manageable leverage, evidenced by a moderate debt-to-equity ratio of 0.76. Cash flow performance is strong, with a free cash flow growth rate of 25.63% and efficient cash conversion metrics.

Income Statement

AstraZeneca shows strong income statement performance with a consistent revenue growth trajectory, evidenced by a revenue growth rate of 16.15% from 2023 to TTM. The gross profit margin is robust at 81.38% TTM, indicating efficient cost management. The net profit margin also improved to 14.14% TTM, reflecting enhanced profitability. EBIT margin at 19.21% and EBITDA margin at 32.19% TTM suggest solid operational efficiency. Overall, AstraZeneca's income statement reflects a strong growth trend with improving profitability metrics.

Balance Sheet

AstraZeneca maintains a stable balance sheet with a moderate debt-to-equity ratio of 0.76 TTM, indicating manageable leverage levels. The equity ratio stands at 38.62% TTM, providing a stable equity base. Return on equity improved to 18.94% TTM, highlighting effective utilization of shareholder funds. The balance sheet reflects a healthy financial structure, though attention to debt levels remains prudent.

Cash Flow

AstraZeneca demonstrates strong cash flow performance with a free cash flow growth rate of 25.63% from 2023 to TTM, indicating robust cash generation. The operating cash flow to net income ratio is favorable at 1.68 TTM, showing efficient conversion of earnings to cash. The free cash flow to net income ratio of 1.18 TTM underscores solid cash flow management. Overall, cash flows are well-aligned with income, supporting financial flexibility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
54.98B	54.07B	45.81B	44.35B	37.42B	26.62B
	Gross Profit
44.75B	43.87B	37.77B	31.96B	24.98B	21.32B
	EBIT
10.56B	10.00B	8.19B	3.76B	1.06B	5.16B
	EBITDA
17.70B	15.44B	13.91B	9.09B	5.11B	8.08B
	Net Income Common Stockholders
7.77B	7.04B	5.96B	3.29B	112.00M	3.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.39B	5.65B	5.86B	6.41B	6.40B	7.99B
	Total Assets
106.25B	104.03B	101.12B	96.48B	105.36B	66.73B
	Total Debt
31.29B	30.11B	28.62B	29.23B	30.78B	20.38B
	Net Debt
26.06B	24.63B	22.78B	23.07B	24.45B	12.55B
	Total Liabilities
65.12B	63.16B	61.95B	59.42B	66.08B	51.09B
	Stockholders Equity
41.04B	40.79B	39.14B	37.04B	39.27B	15.62B
Cash Flow		Free Cash Flow
9.14B	7.28B	6.57B	7.24B	3.76B	2.19B
	Operating Cash Flow
13.09B	11.86B	10.35B	9.81B	5.96B	4.80B
	Investing Cash Flow
-6.82B	-7.98B	-4.06B	-2.96B	-11.06B	-285.00M
	Financing Cash Flow
-8.73B	-4.00B	-6.57B	-6.82B	3.65B	-2.20B

AstraZeneca Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 70.41 is above the 20-day moving average (MA) of 69.70, above the 50-day MA of 70.30, and below the 200-day MA of 72.09, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 86.08 is Negative, 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	78 Outperform	$215.37B	17.53	32.95%	2.91%	6.30%	-13.28%
AZN	77 Outperform	$219.66B	28.08	19.81%	2.16%	15.48%	22.70%
MRK	76 Outperform	$194.81B	11.29	39.31%	4.07%	4.40%	654.93%
SNY	71 Outperform	$128.05B	21.63	7.34%	2.84%	-4.57%	2.96%
PFE	66 Neutral	$132.58B	16.90	8.62%	7.25%	13.38%	―
GSK	63 Neutral	$78.10B	19.83	22.26%	3.96%	4.17%	-29.96%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%