AstraZeneca Earnings: Strong Growth, but Approaching Generics Weigh on Long-Term Outlook
AstraZeneca reported strong first-quarter results that fell largely in line with our expectations, so we are holding firm to our fair value estimate.
AstraZeneca reported strong first-quarter results that fell largely in line with our expectations, so we are holding firm to our fair value estimate.
The company is expanding its oncology presence with several important pipeline products. In particular, the company's EGFR drug Tagrisso looks well positioned to drive major cashflows over the next decade.
The company's strong entrenchment in respiratory disease could cause challenges, as pricing power in this market tends to be weak.
Metric
|
AZN
|
LLY
|
MRK
|
---|---|---|---|
Price/Earnings (Normalized) | 20.85 | 84.16 | 60.70 |
Price/Book Value | 6.38 | 58.38 | 8.27 |
Price/Sales | 5.05 | 19.79 | 5.46 |
Price/Cash Flow | 23.84 | 82.24 | 19.21 |
Metric
|
AZN
|
LLY
|
MRK
|
---|---|---|---|
Quick Ratio | 0.58 | 0.68 | 0.68 |
Current Ratio | 0.82 | 1.35 | 1.25 |
Interest Coverage | 5.15 | 14.11 | 3.97 |
Metric
|
AZN
|
LLY
|
MRK
|
---|---|---|---|
Return on Assets (Normalized) | 59.78% | 11.20% | 5.22% |
Return on Equity (Normalized) | 157.53% | 57.69% | 13.56% |
Return on Invested Capital (Normalized) | 88.21% | 20.65% | 8.29% |
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
---|---|---|---|---|---|
LLY
| Eli Lilly and Co | Wpxnwlsqw | Bkw | $726.1 Bil | |
JNJ
| Johnson & Johnson | Sllzpfpdd | Ttvjw | $367.4 Bil | |
MRK
| Merck & Co Inc | Gvdgbfck | Yvdtt | $333.6 Bil | |
ABBV
| AbbVie Inc | Hvknfrncy | Nlfl | $285.3 Bil | |
NVS
| Novartis AG ADR | Lzsnkzd | Vnklh | $209.5 Bil | |
RHHBY
| Roche Holding AG ADR | Rtnkmfvh | Nhfw | $202.5 Bil | |
AMGN
| Amgen Inc | Cfwxfwkzhv | Cymy | $167.1 Bil | |
PFE
| Pfizer Inc | Ytqnscr | Fxvm | $163.3 Bil | |
SNY
| Sanofi SA ADR | Xskmpmqz | Ykdt | $122.4 Bil |