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Stock Analysis & ValuationAstraZeneca PLC (ZEG.DE)

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157.10
Sector Valuation Confidence Level
High
Valuation methodValue, Upside, %
Artificial intelligence (AI)89.70-43
Intrinsic value (DCF)137.79-12
Graham-Dodd Methodn/a
Graham Formula99.60-37

Strategic Investment Analysis

Company Overview

AstraZeneca PLC (ZEG.DE) is a leading global biopharmaceutical company headquartered in Cambridge, United Kingdom, specializing in the discovery, development, manufacturing, and commercialization of prescription medicines. The company operates across multiple therapeutic areas, including oncology, cardiovascular, renal, and metabolism diseases, respiratory and immunology, rare diseases, and infectious diseases. AstraZeneca's robust product portfolio includes blockbuster drugs such as Tagrisso, Lynparza, and Farxiga, alongside COVID-19 vaccines like Vaxzevria. With a strong presence in the UK, Europe, the Americas, Asia, Africa, and Australasia, AstraZeneca serves primary and specialty care physicians through a network of distributors and local offices. The company actively engages in strategic collaborations, such as partnerships with Regeneron Pharmaceuticals and Ionis Pharmaceuticals, to advance innovative treatments. AstraZeneca's commitment to R&D and its diversified pipeline position it as a key player in the global pharmaceutical industry, addressing critical unmet medical needs.

Investment Summary

AstraZeneca presents a compelling investment opportunity due to its diversified and high-growth product portfolio, strong R&D pipeline, and strategic collaborations. The company's revenue of €54.07 billion and net income of €7.04 billion in the latest fiscal year underscore its financial stability. With a market capitalization of approximately €192.82 billion and a low beta of 0.176, AstraZeneca offers defensive characteristics suitable for risk-averse investors. The company's operating cash flow of €11.86 billion supports its dividend payout of €2.92 per share, appealing to income-focused investors. However, risks include high total debt of €30.11 billion and competitive pressures in the pharmaceutical sector. AstraZeneca's focus on innovation and expansion in emerging markets mitigates some of these risks, making it an attractive long-term investment.

Competitive Analysis

AstraZeneca holds a competitive edge in the pharmaceutical industry through its strong R&D capabilities, diversified therapeutic portfolio, and strategic partnerships. The company's oncology segment, featuring drugs like Tagrisso and Lynparza, competes effectively with rivals such as Roche and Merck & Co. In cardiovascular and metabolic diseases, Farxiga's strong performance positions AstraZeneca favorably against competitors like Novo Nordisk and Eli Lilly. The company's respiratory portfolio, including Symbicort and Fasenra, faces competition from GSK and Sanofi. AstraZeneca's COVID-19 vaccine, Vaxzevria, though less dominant than Pfizer-BioNTech's offering, contributed significantly during the pandemic. The company's collaborations with biotech firms enhance its pipeline, ensuring long-term growth. However, AstraZeneca's reliance on a few blockbuster drugs exposes it to patent cliffs and generic competition. Its extensive global footprint and focus on emerging markets provide a buffer against regional economic fluctuations, reinforcing its competitive positioning.

Major Competitors

  • Roche Holding AG (ROG.SW): Roche is a global leader in pharmaceuticals and diagnostics, with a strong oncology portfolio including Herceptin and Avastin. Its diagnostics division provides a competitive edge in personalized medicine. However, Roche faces challenges from biosimilars and pricing pressures. Compared to AstraZeneca, Roche has a more diversified business but lacks AstraZeneca's recent momentum in oncology innovation.
  • Merck & Co., Inc. (MRK): Merck & Co. is a key competitor in oncology with blockbuster drug Keytruda, which dominates the PD-1 inhibitor market. The company also has a strong vaccines and animal health business. Merck's reliance on Keytruda for a significant portion of its revenue is a risk. AstraZeneca's broader oncology pipeline provides more diversification compared to Merck's heavy dependence on one drug.
  • Novo Nordisk A/S (NOVO-B.CO): Novo Nordisk specializes in diabetes and obesity treatments, with drugs like Ozempic and Wegovy leading the market. The company's focus on metabolic diseases positions it as a strong competitor in AstraZeneca's cardiovascular and metabolism segment. Novo Nordisk's innovation in GLP-1 therapies gives it an edge, but its narrow therapeutic focus compared to AstraZeneca's diversified portfolio is a limitation.
  • GSK plc (GSK): GSK competes with AstraZeneca in respiratory and immunology, with products like Trelegy and Nucala. The company also has a strong vaccines business. GSK's recent spin-off of its consumer health division allows it to focus on pharmaceuticals and vaccines. However, AstraZeneca's stronger oncology pipeline and recent R&D successes give it an advantage over GSK in long-term growth potential.
  • Pfizer Inc. (PFE): Pfizer is a pharmaceutical giant with a broad portfolio, including COVID-19 vaccine Comirnaty and oncology drug Ibrance. The company's recent acquisitions bolster its pipeline. Pfizer's scale and financial resources make it a formidable competitor. However, AstraZeneca's faster growth in oncology and strategic collaborations provide a competitive edge in innovation.
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