In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating AstraZeneca AZN and its primary competitors in the Pharmaceuticals industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company's performance within the industry.
AstraZeneca Background
A merger between Astra of Sweden and Zeneca Group of the United Kingdom formed AstraZeneca in 1999. The firm sells branded drugs across several major therapeutic classes, including gastrointestinal, diabetes, cardiovascular, respiratory, cancer, immunology and rare diseases. The majority of sales come from international markets with the United States representing close to one third of its revenue.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| AstraZeneca PLC | 34.13 | 5.38 | 4.47 | 3.68% | $3.33 | $9.4 | 4.64% |
| Eli Lilly and Co | 108.89 | 50.86 | 16.93 | -0.52% | $0.96 | $7.64 | 36.84% |
| Novo Nordisk A/S | 43.12 | 34.59 | 15.15 | 24.5% | $32.76 | $49.02 | 28.89% |
| Johnson & Johnson | 28.61 | 5.15 | 4.04 | 35.56% | $7.24 | $14.74 | 6.78% |
| Merck & Co Inc | 56.59 | 6.26 | 4.38 | 11.87% | $6.95 | $11.7 | 6.71% |
| Novartis AG | 25.42 | 5.29 | 3.82 | 3.91% | $4.88 | $8.97 | 12.14% |
| Pfizer Inc | 16.67 | 1.78 | 2.55 | -2.43% | $-1.1 | $3.96 | -41.55% |
| Bristol-Myers Squibb Co | 12.63 | 3.49 | 2.33 | 6.32% | $4.85 | $8.46 | -2.25% |
| Zoetis Inc | 36.70 | 16.29 | 9.99 | 12.28% | $0.9 | $1.51 | 7.44% |
| GSK PLC | 9.65 | 4.46 | 1.98 | 13.25% | $2.55 | $5.88 | 3.59% |
| Takeda Pharmaceutical Co Ltd | 34.63 | 0.93 | 1.59 | -0.69% | $202.28 | $699.51 | 4.07% |
| Dr Reddy's Laboratories Ltd | 18.61 | 3.74 | 3.55 | 5.94% | $23.28 | $40.37 | 9.11% |
| Viatris Inc | 6.25 | 0.54 | 0.74 | 1.59% | $1.22 | $1.69 | -3.34% |
| Jazz Pharmaceuticals PLC | 146.20 | 2.19 | 2.23 | 4.19% | $0.33 | $0.87 | 3.35% |
| Amphastar Pharmaceuticals Inc | 22.21 | 4.58 | 4.98 | 8.31% | $0.09 | $0.11 | 50.3% |
| Corcept Therapeutics Inc | 31.66 | 5.66 | 6.37 | 7.06% | $0.03 | $0.12 | 21.5% |
| Average | 39.86 | 9.72 | 5.38 | 8.74% | $19.15 | $56.97 | 9.57% |
When closely examining AstraZeneca, the following trends emerge:
-
At 34.13, the stock's Price to Earnings ratio is 0.86x less than the industry average, suggesting favorable growth potential.
-
The current Price to Book ratio of 5.38, which is 0.55x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
-
Based on its sales performance, the stock could be deemed undervalued with a Price to Sales ratio of 4.47, which is 0.83x the industry average.
-
The Return on Equity (ROE) of 3.68% is 5.06% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
-
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $3.33 Billion is 0.17x below the industry average, suggesting potential lower profitability or financial challenges.
-
Compared to its industry, the company has lower gross profit of $9.4 Billion, which indicates 0.16x below the industry average, potentially indicating lower revenue after accounting for production costs.
-
The company's revenue growth of 4.64% is significantly lower compared to the industry average of 9.57%. This indicates a potential fall in the company's sales performance.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a financial metric that helps determine the level of financial risk associated with a company's capital structure.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When comparing AstraZeneca with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
-
When considering the debt-to-equity ratio, AstraZeneca exhibits a stronger financial position compared to its top 4 peers.
-
This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.77, which can be perceived as a positive aspect by investors.
Key Takeaways
AstraZeneca's low PE, PB, and PS ratios suggest that the company's stock is undervalued compared to its peers in the Pharmaceuticals industry. The low ROE indicates that AstraZeneca's profitability is relatively low compared to its peers. The low EBITDA suggests that the company's operating performance is weaker compared to its industry peers. The low gross profit and revenue growth indicate that AstraZeneca's financial performance and growth potential are lower compared to its industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
