AstraZeneca (AZN) AI Stock Analysis

• Market Cap: $210.85B
• Dividend Yield: 2.25%
• Average Volume (3M): 6.38M
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.39
• Revenue Growth: 15.48%
• EPS Growth: 22.70%
• Country: US
• Employees: 94,300
• Sector: Healthcare
• Sector Strength: 46
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.25
• Shares Outstanding: 3,101,276,900
• 10 Day Avg. Volume: 5,645,423
• 30 Day Avg. Volume: 6,376,109
• 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: $86.34
• Price Target Upside: 27.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

AstraZeneca's strong financial performance and positive earnings call highlight its robust growth and operational efficiency, contributing significantly to its overall stock score. Technical analysis suggests potential overbought conditions, and a high P/E ratio indicates valuation concerns, slightly dampening the outlook. Despite these, the company's strategic advancements and solid dividend yield support a favorable investment profile.

Positive Factors

Clinical Trials

The initiation of a Phase 3 trial in endometrial cancer for puxitatug samrotecan could drive future growth potential in the oncology pipeline.

Product Performance

Enhertu's 17% increase in sales and its demonstrated improvement in progression-free survival in clinical trials enhance its market position and growth prospects.

Product Pipeline

AZN's promising new products and pipeline in large, high-growth markets support a strong outlook compared to the pharma sector average.

Negative Factors

China Market Risks

Investor concerns are heightened due to risks to the China business arising from alleged improper practices by former employees.

Product Sales

The company reported Total Product Sales below consensus estimates by approximately 2%, raising concerns about revenue performance.

Regulatory Challenges

The discontinuation of the CAPItello-280 Phase 3 trial raises questions about the future of certain oncology treatments.

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. The company makes money by developing, manufacturing, and marketing prescription drugs globally, with a significant focus on its key therapeutic areas. AstraZeneca's revenue streams are largely driven by the commercial success of its proprietary medicines, which include blockbuster drugs in oncology and other therapeutic areas. The company also engages in strategic partnerships and collaborations with other pharmaceutical and biotechnology firms to enhance its research and development capabilities, often resulting in milestone payments, royalties, and shared revenues. Additionally, AstraZeneca invests in expanding its market presence through acquisitions and licensing agreements, further contributing to its overall earnings.

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: Negative
• Last Price: 67.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZN, the sentiment is Negative. The current price of 67.57 is below the 20-day moving average (MA) of 69.14, below the 50-day MA of 71.94, and below the 200-day MA of 72.58, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 13.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AZN.

AstraZeneca Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVS	79 Outperform	$207.39B	16.90	32.95%	3.01%	6.30%	-13.28%
AZN	78 Outperform	$210.85B	26.95	19.81%	2.25%	15.48%	22.70%
MRK	76 Outperform	$190.76B	11.06	39.31%	4.16%	4.40%	654.93%
SNY	70 Outperform	$127.20B	20.77	7.34%	2.96%	-4.57%	2.96%
GSK	67 Neutral	$73.95B	18.79	22.26%	4.18%	4.17%	-29.96%
PFE	66 Neutral	$126.67B	16.15	8.62%	7.58%	13.38%	―
Sector *	52 Neutral	$5.15B	3.56	-42.52%	2.83%	14.56%	-0.50%