AstraZeneca PLC (AZN, Financial) has recently seen a notable uptick in its stock performance, with a market capitalization now standing at a robust $231.04 billion. Over the past week, the company's stock price has climbed to $75.07, marking a significant gain of 10.16%. This upward trajectory is not limited to the short term; over the past three months, AstraZeneca's stock has experienced a 14.09% increase. According to GuruFocus's valuation metrics, the current GF Value of $75.37 suggests that the stock is Fairly Valued, aligning closely with its current trading price. This valuation has remained consistent, as the past GF Value three months ago was $70.76, maintaining a Fairly Valued status over this period.
Introduction to AstraZeneca PLC
AstraZeneca PLC, a prominent player in the drug manufacturing industry, was established through the merger of Astra of Sweden and Zeneca Group of the United Kingdom in 1999. The company boasts a diverse portfolio of branded drugs that span across various therapeutic classes, including gastrointestinal, diabetes, cardiovascular, respiratory, cancer, immunology, and rare diseases. AstraZeneca's global footprint is significant, with the United States accounting for nearly one-third of its revenue. The company's international market presence is a testament to its strategic expansion and commitment to addressing a wide range of medical needs.
Assessing AstraZeneca's Profitability
AstraZeneca's financial health is reflected in its high Profitability Rank of 8/10, indicating robust profitability within the industry. The company's operating margin stands at an impressive 19.05%, surpassing 82.24% of its industry peers. This is complemented by a strong Return on Equity (ROE) of 15.93%, outperforming 83.9% of competitors, and a Return on Assets (ROA) of 6.10%, which is better than 71.1% of the industry. Additionally, AstraZeneca's Return on Invested Capital (ROIC) of 8.68% exceeds 69.1% of similar companies. The company has also maintained profitability for the past 10 years, a feat better than 99.89% of its peers, showcasing its consistent financial performance.
Growth Prospects of AstraZeneca
The company's Growth Rank is an impressive 9/10, reflecting strong growth potential. AstraZeneca's 3-Year Revenue Growth Rate per Share is 15.40%, higher than 77.03% of the industry. Its 5-Year Revenue Growth Rate per Share also stands strong at 13.20%, outpacing 76.89% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 6.90%, which is better than 45.18% of the market. The company's 3-Year EPS without NRI Growth Rate is a remarkable 37.20%, surpassing 81.01% of industry peers, and the EPS Growth Rate (Future 3Y To 5Y Est) is expected to be 11.09%, exceeding 69.39% of the industry. These growth metrics underscore AstraZeneca's potential for continued expansion and profitability.
Investor Confidence in AstraZeneca
Notable investment firms have shown their confidence in AstraZeneca by holding significant shares in the company. PRIMECAP Management (Trades, Portfolio) holds 42,987,075 shares, representing a 1.39% share percentage. Ken Fisher (Trades, Portfolio) has invested in 9,376,193 shares, accounting for 0.3% of the share percentage. Additionally, Harbor Capital Appreciation Fund (Trades, Portfolio) holds 3,973,540 shares, which translates to a 0.13% share percentage. These substantial investments by prominent firms indicate a strong belief in AstraZeneca's market position and future prospects.
Competitive Landscape
In the competitive pharmaceutical industry, AstraZeneca stands among giants. Its competitors include GSK PLC (LSE:GSK, Financial) with a market cap of $83.64 billion, Eli Lilly and Co (LLY, Financial) with a staggering market cap of $687.15 billion, and Johnson & Johnson (JNJ, Financial) with a market cap of $353.9 billion. Despite the fierce competition, AstraZeneca maintains a solid position among its peers, supported by its strong financial metrics and growth potential.
Conclusion
AstraZeneca PLC exhibits a strong stock performance with recent gains and a stable valuation. The company's profitability and growth metrics are robust, with high industry rankings. Notable investment firms hold significant shares, indicating confidence among savvy investors. AstraZeneca competes in a dynamic market with major players, maintaining a solid position among its peers. With its consistent performance and promising growth prospects, AstraZeneca remains a compelling option for value investors looking to capitalize on the pharmaceutical industry's potential.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
