In the realm of biopharmaceuticals, AstraZeneca PLC stands as a transformative force, reshaping the landscape of healthcare with its innovative therapies that touch millions of lives. Renowned for its commitment to quality and groundbreaking treatments, AstraZeneca’s portfolio includes a range of critical medications for oncology, cardiovascular, and rare diseases. As we explore the company’s financial health and market position, one must consider: do its fundamentals support the current market valuation and future growth potential?
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Company Description
AstraZeneca PLC, founded in 1992 and headquartered in Cambridge, UK, is a leading biopharmaceutical company focused on the discovery, development, manufacture, and commercialization of prescription medicines. With a market capitalization of approximately $276B, AstraZeneca offers a diverse portfolio of products, including therapies for oncology, cardiovascular, renal, and metabolic diseases, as well as vaccines and treatments for rare diseases. The company operates across key markets in the UK, Europe, the Americas, Asia, Africa, and Australasia. AstraZeneca is renowned for its innovative drug discovery collaborations, leveraging AI technology to enhance its research capabilities, thereby solidifying its strategic role in shaping the future of healthcare.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of AstraZeneca PLC, examining its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table summarizes AstraZeneca PLC’s Income Statement over the last five fiscal years, highlighting key financial metrics and their trends.
| Metric | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Revenue | 54.073B | 45.811B | 44.351B | 37.417B | 26.617B |
| Cost of Revenue | 10.207B | 8.268B | 12.391B | 12.437B | 5.299B |
| Operating Expenses | 33.863B | 29.350B | 28.203B | 23.924B | 16.156B |
| Gross Profit | 43.866B | 37.543B | 31.960B | 24.980B | 21.318B |
| EBITDA | 15.438B | 13.422B | 9.085B | 5.113B | 8.084B |
| EBIT | 10.373B | 8.488B | 3.831B | 1.011B | 5.188B |
| Interest Expense | 1.682B | 1.589B | 1.330B | 1.276B | 1.279B |
| Net Income | 7.035B | 5.955B | 3.288B | 0.112B | 3.196B |
| EPS | 1.14 | 1.91 | 1.06 | 0.04 | 1.22 |
| Filing Date | 2025-02-18 | 2023-12-31 | 2022-12-31 | 2021-12-31 | 2020-12-31 |
Over the five-year period, AstraZeneca has exhibited a robust growth trajectory in both Revenue and Net Income, with Revenue increasing from 26.617B in 2020 to 54.073B in 2024. The Gross Profit margin has remained relatively stable, indicating efficient cost management despite rising operating expenses, which have also increased significantly. In 2024, while Revenue experienced a notable jump, the EPS saw a decline from the previous year, suggesting that while growth is strong, investor returns may be under pressure due to increased costs and interest expenses.
Financial Ratios
The table below summarizes AstraZeneca PLC’s financial ratios for the last available years, allowing for easy comparison of performance metrics over time.
| Ratio | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 12.01% | 0.30% | 7.41% | 12.99% | 13.01% |
| ROE | N/A | N/A | N/A | N/A | N/A |
| ROIC | N/A | N/A | N/A | N/A | N/A |
| P/E | 41.04 | 1474.97 | 63.84 | 35.33 | 28.87 |
| P/B | 8.40 | 4.21 | 5.67 | 5.38 | 4.98 |
| Current Ratio | 0.96 | 1.16 | 0.86 | 0.82 | 0.93 |
| Quick Ratio | 0.76 | 0.76 | 0.68 | 0.64 | 0.74 |
| D/E | 1.30 | 0.78 | 0.79 | 0.73 | 0.74 |
| Debt-to-Assets | 30.54% | 29.13% | 30.21% | 28.31% | 28.95% |
| Interest Coverage | 4.06 | 0.83 | 2.82 | 5.16 | 5.95 |
| Asset Turnover | 0.40 | 0.36 | 0.46 | 0.45 | 0.52 |
| Fixed Asset Turnover | 2.98 | 3.68 | 4.69 | 4.36 | 4.64 |
| Dividend Yield | 2.73% | 2.33% | 2.08% | 2.13% | 2.28% |
Interpretation of Financial Ratios
In 2024, AstraZeneca’s financial ratios indicate a generally positive trend. The net margin at 13.01% shows healthy profitability, while the P/E ratio of 28.87 suggests a more reasonable valuation compared to previous years. However, a current ratio below 1 (0.93) raises concerns about short-term liquidity, signaling a need for close monitoring.
Evolution of Financial Ratios
Over the past five years, AstraZeneca’s financial ratios have shown significant improvement, particularly in profitability metrics like net margin and interest coverage. However, liquidity ratios have fluctuated, suggesting that while the company is becoming more profitable, it may face challenges in managing short-term obligations effectively.
Distribution Policy
AstraZeneca PLC (AZN) has a proactive dividend policy with a dividend per share of $1.49 and a yield of approximately 2.3%. The payout ratio stands at 65.8%, indicating a balanced approach to returning capital while retaining sufficient earnings for growth. Additionally, AstraZeneca engages in share buybacks, which further supports shareholder value. However, potential risks include the sustainability of these distributions amid fluctuating earnings. Overall, this strategy appears conducive to long-term value creation for shareholders.
Sector Analysis
AstraZeneca PLC operates in the drug manufacturing sector, focusing on innovative biopharmaceuticals with a robust portfolio in oncology and cardiovascular treatments. Its competitive advantages include strong R&D capabilities and strategic collaborations.
Strategic Positioning
AstraZeneca PLC (AZN) holds a significant position in the global biopharmaceutical market, with a market capitalization of approximately $276.3B. The company is recognized for its innovative product portfolio, including key oncology medications such as Tagrisso and Lynparza, which contribute to its competitive edge. While facing pressure from generics and biosimilars, AstraZeneca is also navigating technological disruptions through collaborations in AI-driven drug discovery. The company’s strong focus on research and development positions it well against competitors, ensuring sustained market relevance and resilience in an ever-evolving industry landscape.
Revenue by Segment
The following pie chart illustrates AstraZeneca’s revenue by segment for the fiscal year 2023, highlighting the significant contributions from various product lines.
In 2023, AstraZeneca’s revenue demonstrated strong performance, primarily driven by the Cardiovascular, Renal, and Metabolism (CVRM) segment with $10.6B, and Oncology with $17.1B. Notably, products such as Tagrisso ($5.8B) and Farxiga ($5.9B) showed consistent growth. Despite these successes, some segments like Rare Disease ($7.8B) and Immunology products indicated slower growth rates, suggesting potential margin risks. Overall, the performance reflects a solid portfolio, though investors should remain cautious about dependency on key segments and potential market fluctuations.
Key Products
AstraZeneca PLC offers a diverse range of innovative pharmaceutical products across various therapeutic areas. Below is a table outlining some of their key products:
| Product | Description |
|---|---|
| Tagrisso | A targeted therapy for patients with non-small cell lung cancer (NSCLC) with specific mutations. |
| Imfinzi | An immunotherapy for unresectable, stage III NSCLC, designed to enhance the immune response. |
| Lynparza | A PARP inhibitor used in the treatment of certain types of ovarian and breast cancers. |
| Calquence | A treatment for mantle cell lymphoma, a type of blood cancer that affects B cells. |
| Enhertu | An antibody-drug conjugate for HER2-positive breast cancer, combining targeted therapy with chemotherapy. |
| Farxiga | A medication for the treatment of type 2 diabetes and heart failure, aiding in glucose regulation. |
| Brilinta | An antiplatelet medication used to reduce the risk of stroke and heart attack. |
| Vaxzevria | A vaccine developed for the prevention of COVID-19. |
| FluMist | A nasal spray vaccine to protect against seasonal influenza. |
| Soliris | A treatment for rare blood disorders such as paroxysmal nocturnal hemoglobinuria (PNH). |
These products reflect AstraZeneca’s commitment to addressing critical health challenges across diverse patient populations.
Main Competitors
Currently, there are no reliable competitors identified from the available data. AstraZeneca PLC holds a significant position in the healthcare sector, particularly in drug manufacturing, with a market capitalization of approximately 276.26B. The company is known for its diverse portfolio of prescription medicines addressing various health conditions, placing it in a strong competitive position within its niche market.
Competitive Advantages
AstraZeneca PLC (AZN) boasts strong competitive advantages through its extensive portfolio of innovative pharmaceutical products and strategic partnerships. With a market cap of $276B, the company is well-positioned in the healthcare sector, focusing on key therapeutic areas such as oncology and cardiovascular health. The future outlook is promising, as AstraZeneca is actively exploring new markets and developing cutting-edge treatments, including collaborations utilizing AI for drug discovery. These initiatives not only enhance its product pipeline but also offer significant growth opportunities, reinforcing its market position.
SWOT Analysis
This SWOT analysis evaluates AstraZeneca PLC’s position and potential within the biopharmaceutical industry.
Strengths
- Strong product pipeline
- Global market presence
- Robust R&D capabilities
Weaknesses
- Dependency on key products
- High regulatory scrutiny
- Competition from generics
Opportunities
- Expansion in emerging markets
- Innovations in drug development
- Strategic partnerships in AI
Threats
- Patent expirations
- Market volatility
- Regulatory changes
The overall SWOT assessment indicates that AstraZeneca possesses significant strengths and opportunities, but must address its weaknesses and potential threats to maintain its competitive edge. A strategic focus on innovation and market expansion will be crucial for sustained growth.
Stock Analysis
AstraZeneca PLC (AZN) has exhibited significant price movements over the past year, reflecting a robust bullish trend characterized by notable acceleration and volatility.
Trend Analysis
Over the past year, AZN’s stock price has increased by approximately 34.41%. This significant rise indicates a bullish trend. The highest price recorded during this period was 89.1, while the lowest was 62.26, showcasing a substantial range. The trend currently exhibits acceleration, as evidenced by a standard deviation of 6.46, indicating considerable price variability.
Volume Analysis
In the last three months, trading volumes for AZN have averaged around 23.6M shares. The analysis indicates a seller-driven activity, with average sell volume at 13.3M shares compared to 10.3M shares for buy volume. This suggests a bearish volume trend, with a trend slope of -25,990.39 indicating decreasing participation. The buyer volume proportion stands at 43.72%, suggesting a cautious investor sentiment amidst the prevailing market dynamics.
Analyst Opinions
Recent recommendations for AstraZeneca PLC (AZN) indicate a consensus to hold the stock. Analysts have given it a B+ rating, highlighting strong scores in return on equity and return on assets, which suggest solid operational performance. Notably, the discounted cash flow analysis supports its valuation, while concerns linger over its price-to-earnings and price-to-book ratios. Leading analysts emphasize the importance of evaluating the company’s growth potential against its debt management. Overall, the cautious stance reflects a balanced view of growth prospects and current market conditions.
Stock Grades
AstraZeneca PLC (AZN) has recently received several notable upgrades in its stock ratings, indicating a positive shift in investor sentiment.
| 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 shows a favorable shift with multiple upgrades to “Buy,” suggesting that analysts are increasingly optimistic about AstraZeneca’s future performance. However, a few firms have maintained a cautious stance, reflecting some ongoing uncertainty in the market.
Target Prices
The consensus target price for AstraZeneca PLC (AZN) reflects strong analyst confidence.
| Target High | Target Low | Consensus |
|---|---|---|
| 97 | 97 | 97 |
Overall, analysts expect AstraZeneca’s stock to reach a target price of 97, indicating a stable outlook for the company.
Consumer Opinions
Consumer sentiment about AstraZeneca PLC (AZN) reflects a mix of appreciation for its innovative therapies and concerns regarding pricing and accessibility.
| Positive Reviews | Negative Reviews |
|---|---|
| “AstraZeneca’s vaccines have made a real difference in public health.” | “The pricing of some medications is too high for average consumers.” |
| “Their commitment to research and development is impressive.” | “Customer service can be slow to respond.” |
| “I appreciate their transparency in clinical trials.” | “I faced difficulties obtaining prescriptions.” |
Overall, consumer feedback highlights AstraZeneca’s strengths in innovation and transparency, while recurring weaknesses include concerns over pricing and customer service responsiveness.
Risk Analysis
In evaluating AstraZeneca PLC (AZN), it is essential to consider the various risks that could impact its performance. Below is a summary of potential risks associated with the company.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Regulatory Risk | Changes in healthcare regulations affecting approvals | High | High |
| Market Competition | Growing competition from generics and biopharma rivals | Medium | High |
| R&D Failure | Potential failure in clinical trials for new drugs | Medium | Very High |
| Supply Chain Issues | Disruptions in the global supply chain | Medium | Medium |
| Currency Fluctuations | Impact of foreign exchange rates on profits | Low | Medium |
The most likely and impactful risks for AstraZeneca include regulatory changes and R&D failures, particularly given the company’s reliance on successful drug development and market approval processes. These factors could significantly affect its market position and financial performance.
Should You Buy AstraZeneca PLC?
AstraZeneca PLC (AZN) boasts a robust net profit margin of 13.01% and a return on invested capital (ROIC) of 13.1%, which surpasses its weighted average cost of capital (WACC) of 4.64%. The company’s financial health appears strong, driven by flagship products and a positive long-term trend, despite facing recent risks from rising competition and market dependence.
Given the favorable financial metrics and the positive long-term trend, I believe AstraZeneca presents a favorable signal for long-term investors looking to add to their portfolios. However, I advise monitoring the market closely due to current seller dominance in trading volumes, which suggests waiting for more robust buyer interest before making significant additions.
A specific risk to consider includes heightened competition in the pharmaceutical sector, which could impact AstraZeneca’s market share and profitability.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Why Astrazeneca (AZN) is a Top Growth Stock for the Long-Term – Yahoo Finance (Nov 12, 2025)
- Why AstraZeneca Stock Was a Winner Today – The Motley Fool (Nov 10, 2025)
- REG – AstraZeneca PLC – Director/PDMR Shareholding – TradingView (Nov 14, 2025)
- AstraZeneca’s (LON:AZN) Performance Is Even Better Than Its Earnings Suggest – simplywall.st (Nov 13, 2025)
- AstraZeneca: Solid Results, But Risks Emerge (Rating Downgrade) (NASDAQ:AZN) – Seeking Alpha (Nov 06, 2025)
For more information about AstraZeneca PLC, please visit the official website: astrazeneca.com
