AZN

AstraZeneca

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Healthcare

industry

Drug Manufacturers - General

Exchange

NYSE

County of HQ

United Kingdom

Next Earnings Date

05/05/26

Business Summary

AZN operates as a global drug manufacturer, developing and commercializing branded pharmaceuticals across major therapeutic categories. The company generates cash by investing heavily in R&D, securing intellectual property, and monetizing approved therapies at scale through global distribution channels. Its moat is built on patented compounds, regulatory expertise, and entrenched relationships with healthcare systems that create high barriers to entry. With 21.00% operating margins and 15.20% ROIC, the model converts scientific innovation into sustained economic profit rather than one-off product cycles.

VALUATION

P/E

31.2

Market Cap ($M USD)

$317,270

Forward P/E

25.7

PEG

1.3

PRICE TO SALES

5.4

PRICE TO BOOK

6.5

EV / EBITDA

17.5

5-Year Average P/E

DIVIDEND

Yield

1.60%

Annual Payout

$3.16

Payout Ratio

47.50%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

3.00%

Financial Health & Profitability

Earnings Per Share

$6.60

Next Year EPS Growth Estimate

$7.95

Next Year Revenue Growth Estimate

6.20%

Return on Equity (ROE)

21.00%

Operating Margin

22.70%

Debt-to-Equity

0.6

Piotroski F-Score

8

Altman Z-Score

3.9

Return on Invested Capital (ROIC)

15.20%%

Current Ratio

0.9

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 31.2x earnings and 25.7x forward earnings, the market is pricing AZN as a premium compounder, not a deep value play, but the 1.3 forward PEG keeps it within disciplined GARP territory. An Altman Z-Score of 3.9 signals low bankruptcy risk and solid balance sheet resilience, reinforcing that this is a financially stable large-cap franchise rather than a speculative biotech. With a $317,270M market cap and 21.00% operating margins, the valuation reflects durability and scale, not distress. The stock does not scream mispricing, but the combination of a reasonable forward multiple and strong financial health suggests a high-quality compounder trading at a fair—not euphoric—price.

AI Exposure / Tech Reliance

As a Drug Manufacturers - General company in Healthcare, AZN operates in a data-intensive, R&D-driven environment where AI increasingly enhances drug discovery and trial efficiency. The scale implied by its $317,270M market cap positions it to integrate advanced computational tools without jeopardizing profitability. Technology adoption in this industry tends to amplify productivity rather than disrupt incumbents, favoring established players with capital and infrastructure.

The Bull Case

A GARP investor buys this because the quality metrics are undeniable: ROIC at 15.20% materially exceeds the 6.20% Return on Equity, signaling disciplined capital deployment beyond simple leverage effects. A Piotroski F-Score of 8 indicates strong operational momentum and balance sheet quality, while a 21.00% operating margin confirms durable pricing power in a competitive global market. Debt/Equity of 22.70% is conservative for a capital-intensive pharmaceutical company, giving management optionality. Add in institutional ownership at $205.59 and a low 3.00% short float, and you have a widely held, fundamentally sound compounder with limited bearish conviction against it.

The Bear Case

The red flags are valuation compression risk and growth normalization. A 31.2 P/E against EPS of 17.5 while EPS Next Year (Est.) is $6.60 creates a sharp earnings contrast that the market may not tolerate if growth disappoints, and a PEG Forward of 1.3 leaves little margin for execution errors. The Current Ratio of 0.9 suggests tighter short-term liquidity than ideal, and a TTM Yield of 0.6 with a Dividend Per Share USD of 1.60% alongside a Payout Ratio of $3.16 creates ambiguity around capital return efficiency. If operating momentum stalls, this multiple can contract quickly given the premium embedded in the forward valuation.

Market Sentiment & Smart Money

Short Interest %

0.10%

Analyst Consensus

1.57

Average Analyst Price Target

$205.59

Institutional Ownership %

57.10%

1-Year Beta

0.46

Insider Buying % (6 Mo)

0.00%%

Distance to 52-Week High

95.90%%

Distance to 52-Week Low

162.50%%