AstraZeneca PLC (AZN.L) | Investment Case

1. Company Snapshot

1.a. Company Description

AstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacturing, and commercialization of prescription medicines.Its marketed products include Calquence, Enhertu, Faslodex, Imfinzi, Iressa, Koselugo, Lumoxiti, Lynparza, Orpathys, Tagrisso, and Zoladex for oncology; Brilinta/Brilique, Bydureon/Byetta, BCise, Byetta, Crestor, Evrenzo, Farxiga/Forxiga, Komboglyze/Kombiglyze XR, Lokelma, Onglyza, Qtern, and Xigduo/Xigduo XR for cardiovascular, renal, and metabolism diseases; Bevespi Aerosphere, Breztri Aerosphere, Daliresp/Daxas, Duaklir Genuair, Fasenra, Pulmicort, Saphnelo, Symbicort, and Tudorza/Eklira/Bretaris for respiratory and immunology; and Andexxa/Ondexxya, Kanuma, Soliris, Strensiq, and Ultomiris for rare diseases.The company's marketed products also comprise Synagis for respiratory syncytial virus; Fluenz Tetra/FluMist Quadrivalent for Influenza; Seroquel IR/Seroquel XR for schizophrenia bipolar disease; Nexium, and Losec/Prilosec for gastroenterology; and Vaxzevria and Evusheld for covid-19.

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 Regeneron Pharmaceuticals, Inc.to research, develop, and commercialize small molecule medicines for obesity; Neurimmune AG to develop and commercialize NI006; Ionis Pharmaceuticals, Inc.

to develop eplontersen, a liver-targeted antisense therapy in Phase III development for the treatment of transthyretin amyloidosis; Proteros Biostructures GmbH to jointly discover novel small molecules for the treatment of hematological cancers; Sierra Oncology, Inc.to develop and commercialize AZD5153.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.

Show Full description

1.b. Last Insights on AZN

AstraZeneca's recent momentum is driven by its robust pipeline, with Citi maintaining a 'buy' rating and £170 target, citing strong trial momentum and a double-digit earnings outlook. The company's full-year results showcased solid commercial performance across major regions, underpinned by pipeline delivery and global expansion. A harmonised global listing on the NYSE has also been established, enhancing its market presence.

1.c. Company Highlights

Last Price	15344
Change Percentage	0.48%
Open	15188
Previous Close	15270
Market Cap ( Millions)	237876
Volume	3426919
Year High	15732
Year Low	9573.5
M A 50	14013.96
M A 200	12296.26

FCF Yield	3.19%
Dividend Yield	1.54%
ROE	23.00%
Debt / Equity	60.87%
Net Debt / EBIDTA	119.30%
Price To Book	6.6
Price Earnings Ratio	30.98
Price To FCF	31.33
Price To sales	5.4
EV / EBITDA	17.22

2. AstraZeneca's Strong FY2025 Results: Growth Momentum Continues

AstraZeneca reported a robust financial performance for FY2025, with revenues growing 8% to reach a significant milestone, driven by a 10% increase in product revenue. The company's core EPS grew by 11%, surpassing analyst estimates of $1.53 with an actual EPS of $1.55. The strong cash flow from operating activities increased by 23% to $14.6 billion, demonstrating the company's ability to generate cash. The financial results were underpinned by a strong performance across various business segments, including oncology and rare disease.

Publication Date: Feb -11

📋 Highlights

Segmental Performance

The oncology segment delivered a strong performance, with total revenues of $25.6 billion, an increase of 14% on the prior year. Key medicines such as Tagrisso, Imfinzi, Calquence, and Enhertu surpassed notable multi-blockbuster milestones, with total revenues exceeding $7 billion for the first time. The BioPharmaceuticals segment also reported a strong performance, with total revenue up 5% to $23 billion, driven by growth in R&I revenues. The rare disease segment delivered total revenue of $9.1 billion, up 4% over the prior year, driven by growth in neurology indications and patient demand.

Valuation and Outlook

Based on the current stock price, the P/E Ratio stands at 31.85, indicating that the stock may be slightly overvalued. However, the Dividend Yield is 1.48%, and the Free Cash Flow Yield is 3.71%, suggesting a reasonable return for investors. AstraZeneca's guidance for 2026 anticipates total revenue to grow by a mid-to-high single-digit percentage and core EPS growth of low double-digit percentage at constant exchange rates. With a robust pipeline and a strong product portfolio, the company is well-positioned to drive growth beyond 2030. As Pascal Soriot emphasized, the company's focus on adding value through investments in assets that won't generate substantial revenue by 2030 will drive growth beyond 2030.

Growth Drivers

The company's growth drivers include the upcoming approvals and launches of new medicines, including Imfinzi, Enhertu, and Calquence. The pipeline is also expected to drive growth, with over 100 Phase III trials and 20 readouts expected in 2026, which could drive more than $10 billion of peak revenue. Additionally, the company's investments in new technologies, including weight management and cardiovascular risk factors, are expected to contribute to growth. With a strong pipeline and a diversified product portfolio, AstraZeneca is well-positioned to achieve its $80 billion ambition by 2030.

3. NewsRoom

Inside Biotech: AstraZeneca halts generic diabetes pill launch in patent battle with Pharmacor

Feb -17

Source: proactiveinvestors.com

AstraZeneca (LON:AZN) Hits New 52-Week High – Here’s Why

Feb -17

Source: defenseworld.net

Shore Capital downgrades AstraZeneca as R&D spending dampens earnings trajectory

Feb -13

Source: proactiveinvestors.com

Citi maintains 'buy' on AstraZeneca with £170 target, cites sector-best pipeline

Feb -11

Source: proactiveinvestors.com

OKYO Pharma appoints Leerink Partners as sales agent for ATM equity offering

Feb -11

Source: proactiveinvestors.com

Cavendish backs 88 Energy after Namibia exploration success

Feb -10

Source: proactiveinvestors.com

AstraZeneca’s growth engine stays on track despite cost pressures

Feb -10

Source: proactiveinvestors.com

AFC Energy signs ammonia engine deal with Komatsu

Feb -10

Source: proactiveinvestors.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.50%)

6. Segments

Biopharmaceuticals

Expected Growth: 10.5%

AstraZeneca’s growth is driven by its innovative pipeline, strong oncology and cardiovascular portfolios, and geographic reach, particularly in emerging markets.

7. Detailed Products

Tagrisso

A kinase inhibitor for the treatment of non-small cell lung cancer (NSCLC) with epidermal growth factor receptor (EGFR) mutations.

Imfinzi

A programmed death-ligand 1 (PD-L1) blocking antibody for the treatment of unresectable, stage III non-small cell lung cancer (NSCLC).

Lynparza

A poly (ADP-ribose) polymerase (PARP) inhibitor for the treatment of ovarian cancer, breast cancer, and pancreatic cancer.

Farxiga

A sodium-glucose cotransporter 2 (SGLT2) inhibitor for the treatment of type 2 diabetes.

Symbicort

A combination of budesonide and formoterol fumarate dihydrate for the treatment of asthma and chronic obstructive pulmonary disease (COPD).

Pulmicort

A corticosteroid for the treatment of asthma.

8. AstraZeneca PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

AstraZeneca PLC faces moderate threat from substitutes due to the presence of alternative treatments and generic drugs in the market.

Bargaining Power Of Customers

AstraZeneca PLC has a diverse customer base, which reduces the bargaining power of individual customers, making it a low threat.

Bargaining Power Of Suppliers

AstraZeneca PLC relies on a few key suppliers for raw materials and services, giving them some bargaining power, making it a moderate threat.

Threat Of New Entrants

The pharmaceutical industry has high barriers to entry, including significant R&D investments and regulatory hurdles, making it a low threat for AstraZeneca PLC.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, with many established players and new entrants, making it a high-intensity rivalry for AstraZeneca PLC.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	42.24%
Debt Cost	4.77%
Equity Weight	57.76%
Equity Cost	4.77%
WACC	4.77%
Leverage	73.12%

11. Quality Control: AstraZeneca PLC passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Novartis

A-Score: 6.5/10

Value: 3.0

Growth: 4.2

Quality: 8.3

Yield: 7.5

Momentum: 6.5

Volatility: 9.3

1-Year Total Return ->

GSK

A-Score: 6.3/10

Value: 4.7

Growth: 2.2

Quality: 7.1

Yield: 6.9

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

Sanofi

A-Score: 5.9/10

Value: 6.2

Growth: 4.0

Quality: 8.0

Yield: 7.5

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

AstraZeneca

A-Score: 5.9/10

Value: 1.3

Growth: 7.6

Quality: 6.8

Yield: 3.1

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

Roche

A-Score: 5.4/10

Value: 1.1

Growth: 3.0

Quality: 6.4

Yield: 5.6

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

Bayer

A-Score: 4.4/10

Value: 7.0

Growth: 2.1

Quality: 2.7

Yield: 3.1

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.56%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.77%

AstraZeneca PLC - GB0009895292

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AZN

1.c. Company Highlights

Less Volatile

Expensive

Average Growth

Earnings Miss

Earnings Beats

Revenues Beats

Strong Momentum

Revenues Miss

Stable Momentum

Average Quality

Higher Growth

Fairly Valued

Weak Momentum

2. AstraZeneca's Strong FY2025 Results: Growth Momentum Continues

Segmental Performance

Valuation and Outlook

Growth Drivers

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.50%)

6. Segments

Biopharmaceuticals

Expected Growth: 10.5%

7. Detailed Products

Tagrisso

Imfinzi

Lynparza

Farxiga

Symbicort

Pulmicort

8. AstraZeneca PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: AstraZeneca PLC passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

153.44$

Current Price

153.44$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA