AstraZeneca PLC is at the forefront of transforming healthcare, with its groundbreaking therapies touching millions of lives globally. This biopharmaceutical giant excels in the discovery and commercialization of innovative medicines, boasting a diverse portfolio that includes life-saving drugs for oncology and chronic diseases. Renowned for its commitment to quality and innovation, AstraZeneca continues to push boundaries. As we analyze the company’s fundamentals, we must ask: do its growth prospects and market valuation still align in today’s dynamic landscape?
Table of contents
Company Description
AstraZeneca PLC is a leading biopharmaceutical company founded in 1992 and headquartered in Cambridge, UK. Specializing in the discovery, development, manufacture, and commercialization of prescription medicines, AstraZeneca’s portfolio includes critical treatments for cardiovascular, renal, metabolism, and oncology, featuring products like Tagrisso, Imfinzi, and Lynparza. Operating in primary and specialty care across major markets, including the UK, Europe, the Americas, and Asia, the company employs around 94,300 professionals. With a strong focus on innovation and collaboration, AstraZeneca is strategically positioned to shape the future of healthcare through advanced therapeutic solutions and AI-driven drug discovery initiatives.
Fundamental Analysis
In this section, I will analyze AstraZeneca PLC’s income statement, financial ratios, and dividend payout policy to evaluate its financial health and investment potential.
Income Statement
The Income Statement below provides a comprehensive overview of AstraZeneca PLC’s financial performance over the past five fiscal years, highlighting key metrics such as revenue, net income, and earnings per share.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 26.6B | 37.4B | 44.4B | 45.8B | 54.1B |
| Cost of Revenue | 5.3B | 12.4B | 12.4B | 8.3B | 10.2B |
| Operating Expenses | 16.2B | 23.9B | 28.2B | 29.4B | 33.9B |
| Gross Profit | 21.3B | 24.9B | 31.9B | 37.5B | 43.9B |
| EBITDA | 8.1B | 5.1B | 9.1B | 13.4B | 15.4B |
| EBIT | 5.2B | 1.0B | 3.8B | 8.5B | 10.4B |
| Interest Expense | 1.3B | 1.3B | 1.3B | 1.6B | 1.7B |
| Net Income | 3.2B | 0.1B | 3.3B | 5.9B | 7.0B |
| EPS | 1.22 | 0.04 | 1.06 | 1.91 | 1.14 |
| Filing Date | 2021-12-31 | 2022-12-31 | 2023-12-31 | 2024-12-31 | 2025-02-18 |
Interpretation of Income Statement
Over the past five years, AstraZeneca has experienced robust revenue growth, rising from 26.6B in 2020 to 54.1B in 2024, indicating strong demand for its products. Net income has similarly increased from 3.2B in 2020 to 7.0B in 2024, reflecting improved operational efficiency despite rising operating expenses. The gross profit margin has remained relatively stable, indicating consistent pricing power. In the most recent year, revenue growth accelerated, showcasing a solid performance amid a competitive landscape, although the EPS has seen a dip, which may warrant further investigation into underlying factors affecting shareholder returns.
Financial Ratios
Below is a table summarizing the financial ratios for AstraZeneca PLC (ticker: AZN) over the last few fiscal years.
| Ratios | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Net Margin | 0.299% | 7.413% | 12.999% | 13.010% |
| ROE | 0.285% | 8.878% | 15.213% | 17.249% |
| ROIC | -0.542% | 6.540% | 9.317% | 10.302% |
| P/E | 1474.973 | 63.841 | 35.332 | 28.872 |
| P/B | 4.207 | 5.668 | 5.375 | 4.980 |
| Current Ratio | 1.162 | 0.859 | 0.820 | 0.927 |
| Quick Ratio | 0.764 | 0.681 | 0.643 | 0.737 |
| D/E | 0.782 | 0.787 | 0.731 | 0.738 |
| Debt-to-Assets | 29.126% | 30.205% | 28.305% | 28.946% |
| Interest Coverage | 0.828 | 2.825 | 5.156 | 5.947 |
| Asset Turnover | 0.355 | 0.460 | 0.453 | 0.520 |
| Fixed Asset Turnover | 3.679 | 4.694 | 4.362 | 4.643 |
| Dividend Yield | 2.341% | 2.080% | 2.130% | 2.279% |
Interpretation of Financial Ratios
AstraZeneca PLC (AZN) presents a mixed financial profile based on the latest ratios. The current ratio of 0.93 and quick ratio of 0.74 indicate a liquidity concern, as they fall below the ideal threshold of 1. The solvency ratio at 0.19 suggests moderate debt levels, but the debt-to-equity ratio of 0.74 raises caution regarding financial leverage. Profitability ratios show strength, with a net profit margin of 13.01% and a return on equity of 17.25%, reflecting solid earnings relative to shareholder equity. However, the price-to-earnings ratio of 28.87 and price-to-book ratio of 4.98 indicate high valuation, which could pose risks if earnings growth slows. Overall, while AZN demonstrates strong profitability, liquidity and leverage ratios warrant careful monitoring.
Evolution of Financial Ratios
Over the past five years, AstraZeneca’s financial ratios have shown significant improvement in profitability, with net profit margins increasing from 0.3% in 2021 to 13.01% in 2024. However, liquidity ratios have generally trended downward, indicating increasing concerns about short-term financial stability.
Distribution Policy
AstraZeneca PLC (AZN) maintains a robust dividend policy, with a payout ratio of approximately 65.8% and a dividend yield of around 2.28%. Over recent years, the company has consistently increased its dividend per share, reflecting a commitment to returning capital to shareholders. Additionally, AZN engages in share buyback programs, which can enhance shareholder value. However, I advise caution regarding potential risks related to unsustainable distributions, particularly in light of fluctuating profit margins and market conditions. Overall, AstraZeneca’s distribution strategy appears to support sustainable long-term value creation for shareholders.
Sector Analysis
AstraZeneca PLC operates in the healthcare sector as a leading biopharmaceutical company, focusing on innovative prescription medicines across multiple therapeutic areas, facing competition from other major players in the drug manufacturing industry.
Strategic Positioning
AstraZeneca PLC (AZN) holds a significant position in the global biopharmaceutical market, with a market capitalization of $280B. The company has carved out a strong share in oncology and cardiovascular drugs, competing effectively against major players like Pfizer and Novartis. Despite competitive pressures, AstraZeneca’s innovative pipeline and strategic collaborations, particularly in AI-driven drug discovery, position it well against technological disruptions. The recent approval of key therapies enhances its market standing, ensuring resilience amid evolving healthcare demands.
Revenue by Segment
The following pie chart illustrates AstraZeneca’s revenue distribution across its various segments for the fiscal year 2023, highlighting key contributors to overall income.
In 2023, AstraZeneca’s primary revenue drivers were the Cardiovascular, Renal & Metabolism (CVRM) segment, generating $10.59B, and Oncology, totaling $17.15B. Notably, the Rare Disease and Immunology segments also contributed significantly with $7.76B and $4.24B, respectively. Compared to 2022, the Oncology segment saw continued growth, reflecting an accelerated performance, while other segments showed more modest increases. The overall trend indicates a strong reliance on a few key products, posing potential concentration risks in the future.
Key Products
AstraZeneca PLC offers a diverse portfolio of products that address various medical needs. Below is a table summarizing some of the key products in their lineup.
| Product | Description |
|---|---|
| Tagrisso | A targeted therapy for non-small cell lung cancer (NSCLC) with specific genetic mutations. |
| Imfinzi | An immunotherapy used for the treatment of unresectable, stage III NSCLC, designed to enhance the immune response. |
| Lynparza | A breakthrough treatment for ovarian cancer that targets specific genetic mutations related to the disease. |
| Calquence | A treatment for chronic lymphocytic leukemia (CLL) that inhibits a specific enzyme to reduce cancer cell growth. |
| Enhertu | An antibody-drug conjugate for HER2-positive breast cancer that delivers chemotherapy directly to cancer cells. |
| Farxiga | A medication for type 2 diabetes that also supports heart and kidney health by improving cardiovascular outcomes. |
| Brilinta | An antiplatelet medication that reduces the risk of cardiovascular events in patients with acute coronary syndromes. |
| Vaxzevria | A COVID-19 vaccine developed to provide protection against the SARS-CoV-2 virus. |
| FluMist | A nasal spray vaccine for the prevention of influenza in eligible patients, offering an alternative to the flu shot. |
| Ultomiris | A medication for paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS). |
These products reflect AstraZeneca’s commitment to addressing critical healthcare challenges across multiple therapeutic areas while driving innovation in drug development.
Main Competitors
AstraZeneca PLC operates in a highly competitive landscape within the biopharmaceutical sector, where several major players vie for market share.
| Company | Market Cap |
|---|---|
| Eli Lilly and Company | 908B |
| Johnson & Johnson | 487B |
| AbbVie Inc. | 400B |
| Roche Holding AG | 309B |
| Novartis AG | 259B |
| Merck & Co., Inc. | 251B |
| Amgen Inc. | 178B |
| Gilead Sciences, Inc. | 150B |
| Pfizer Inc. | 148B |
| Sanofi | 121B |
| Bristol-Myers Squibb Company | 106B |
| GSK plc | 98B |
| AstraZeneca PLC | 280B |
The main competitors in the global biopharmaceutical market include industry giants like Eli Lilly, Johnson & Johnson, and AbbVie, all of which have established significant market positions. These companies are primarily focused on developing innovative therapies across various therapeutic areas, competing directly with AstraZeneca’s extensive portfolio.
Competitive Advantages
AstraZeneca PLC (AZN) boasts a robust portfolio of innovative drugs, particularly in oncology, cardiovascular, and rare disease segments, giving it a significant edge in the biopharmaceutical market. The company’s ongoing collaborations with tech firms for AI-driven drug discovery and digital pathology tools position it well for future growth. Additionally, its strategic focus on emerging markets and expanding product lines, such as new therapies in development, opens up substantial opportunities for revenue enhancement. With a market cap of approximately $280B, AstraZeneca is well-equipped to capitalize on these advancements in the coming years.
SWOT Analysis
This SWOT analysis evaluates AstraZeneca PLC’s strengths, weaknesses, opportunities, and threats to inform strategic decision-making.
Strengths
- Strong product portfolio
- Global market presence
- Robust R&D capabilities
Weaknesses
- Dependence on key products
- Regulatory challenges
- High competition
Opportunities
- Expansion in emerging markets
- Growth in specialty medicines
- Collaborations in AI-driven drug discovery
Threats
- Market volatility
- Patent expirations
- Economic downturns
Overall, AstraZeneca’s strengths position it well in the competitive healthcare landscape, but the company must address its weaknesses and navigate threats to leverage available opportunities effectively. This strategic focus will be essential for sustained growth and market leadership.
Stock Analysis
AstraZeneca PLC (AZN) has demonstrated significant price movements over the past year, reflecting robust trading dynamics that have led to a strong bullish trend.
Trend Analysis
Over the past year, AstraZeneca’s stock price has experienced a remarkable percentage change of +29.9%. This indicates a clear bullish trend, supported by notable price fluctuations with a highest price of 92.72 and a lowest price of 62.26. The trend is currently accelerating, as evidenced by the standard deviation of 7.03, which suggests some level of volatility in the trading pattern.
Volume Analysis
In the last three months, the total trading volume for AstraZeneca has reached approximately 3.02B, with buyer-driven activity slightly outweighing seller-driven activity, as evidenced by a buyer volume of 1.56B compared to a seller volume of 1.44B. However, the overall volume trend is decreasing, indicating a potential reduction in market participation. This suggests a cautious investor sentiment, with the buyer dominance percentage at 50.71% reflecting a neutral behavior in recent trading sessions.
Analyst Opinions
Recent analyst recommendations for AstraZeneca PLC (AZN) indicate a consensus “buy” rating. Analysts highlight the company’s strong return on equity (5) and return on assets (5), which reflect its robust profitability. The B+ rating from analysts suggests confidence in AstraZeneca’s growth potential despite a lower score in price-to-earnings (2) and price-to-book (2) ratios. Analysts believe that the company’s solid discounted cash flow score (4) further supports its attractiveness as an investment. Overall, the positive outlook suggests that AZN is a favorable choice for investors in the current year.
Stock Grades
AstraZeneca PLC (AZN) has recently seen a shift in its stock ratings, indicating a more favorable outlook from various grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Upgrade | Buy | 2025-02-13 |
| UBS | Upgrade | Neutral | 2024-11-20 |
| Erste Group | Upgrade | Buy | 2024-09-11 |
| TD Cowen | Maintain | Buy | 2024-08-12 |
| Argus Research | Maintain | Buy | 2024-05-30 |
| BMO Capital | Maintain | Outperform | 2024-04-26 |
| Deutsche Bank | Upgrade | Hold | 2024-04-16 |
| BMO Capital | Maintain | Outperform | 2024-02-12 |
| Deutsche Bank | Downgrade | Hold | 2024-02-08 |
| Jefferies | Downgrade | Hold | 2024-01-03 |
Overall, the trend in grades for AZN shows a positive shift with several upgrades to “Buy” and “Outperform.” This suggests improving confidence among analysts, reflecting a potentially bullish sentiment in the market for AstraZeneca.
Target Prices
The consensus target price for AstraZeneca PLC (AZN) reflects a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 103 | 97 | 100 |
Overall, analysts expect AstraZeneca’s stock to reach a target price around 100, indicating a balanced view between potential highs and lows.
Consumer Opinions
Consumer sentiment towards AstraZeneca PLC (ticker: AZN) reflects a mix of appreciation for its innovative products and concerns regarding pricing and accessibility.
| Positive Reviews | Negative Reviews |
|---|---|
| “AstraZeneca’s vaccines have been life-saving.” | “Pricing is too high for many patients.” |
| “Excellent customer service and support.” | “Access to medications can be challenging.” |
| “Innovative research and development.” | “Concerns over side effects in some treatments.” |
| “Reliable and effective treatments.” | “Long waiting times for prescriptions.” |
Overall, consumer feedback highlights AstraZeneca’s strengths in innovation and service, while recurring weaknesses include pricing issues and accessibility challenges.
Risk Analysis
In this section, I will outline the key risks associated with AstraZeneca PLC (AZN) to provide a clearer understanding of potential challenges.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Regulatory | Changes in drug approval regulations may delay product launches. | High | High |
| Competition | Increased competition from generics and biosimilars can erode market share. | High | Medium |
| Market Demand | Fluctuations in demand for key drugs due to market trends or health crises. | Medium | High |
| Supply Chain | Disruptions in the supply chain can impact production capabilities. | Medium | Medium |
| Political | Geopolitical tensions may affect international sales and operations. | Medium | High |
Recent reports indicate that regulatory hurdles and competition are becoming more pronounced, posing significant risks to AstraZeneca’s growth trajectory. As a cautious investor, I prioritize understanding these risks to make informed decisions.
Should You Buy AstraZeneca PLC?
AstraZeneca PLC (AZN) demonstrates strong profitability with a net income of 7.04B and a net profit margin of 13.01%. The company has created value as its return on invested capital (ROIC) of 10.30% exceeds its weighted average cost of capital (WACC) of 4.63%, indicating effective capital utilization. However, with a total debt of 30.11B against total equity of 563.81B, the company’s financial leverage appears manageable, although caution is advised given its debt levels. The overall rating is B+, suggesting a solid outlook, yet potential investors might consider waiting for further clarity on future performance.
Favorable signals
AstraZeneca PLC demonstrates several favorable elements in its financial evaluation. The company has a robust revenue growth rate of 18.03%, alongside a high gross margin of 81.12% and a gross profit growth of 16.84%. Additionally, the EBIT margin stands at 19.18% with an impressive EBIT growth of 22.21%. The net margin of 13.01% further indicates strong profitability, and the interest expense percentage is a manageable 3.11%. From a ratios perspective, the return on equity is 17.25%, and the return on invested capital is 10.3%, both of which are favorable metrics. The weighted average cost of capital is relatively low at 4.63%, further supporting the positive outlook.
Unfavorable signals
Despite numerous favorable signals, AstraZeneca has some unfavorable elements to consider. The earnings per share (EPS) growth rate is notably negative at -40.84%, indicating potential challenges in profitability. Additionally, the price-to-earnings (P/E) ratio is high at 28.87, which may suggest overvaluation. The current ratio of 0.93 and the quick ratio of 0.74 indicate potential liquidity issues, while the price-to-book (P/B) ratio of 4.98 also reflects concerns about valuation.
Conclusion
In conclusion, while AstraZeneca has shown favorable trends in revenue growth, margins, and returns, the negative EPS growth and high valuation ratios imply caution. Given the current dynamics, it might be prudent to wait for a more favorable buying opportunity as the recent seller volume has slightly outpaced buyer volume.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- SCS Capital Management LLC Purchases 142,331 Shares of AstraZeneca PLC $AZN – MarketBeat (Dec 05, 2025)
- Why Astrazeneca (AZN) is a Top Momentum Stock for the Long-Term – Nasdaq (Dec 03, 2025)
- AstraZeneca (AZN) Named One of BofA’s Top 25 Stocks for 2026 – Insider Monkey (Dec 03, 2025)
- Epoch Investment Partners Inc. Trims Position in AstraZeneca PLC $AZN – MarketBeat (Dec 05, 2025)
- AstraZeneca (Nasdaq: AZN) taps Salesforce Agentforce to unify global HCP engagement – Stock Titan (Dec 04, 2025)
For more information about AstraZeneca PLC, please visit the official website: astrazeneca.com
